Total YEAR1

Reserves $ (MM) 250

CASH INFLOW 16250
Royalty $ (MM) 25
FIXED OPEX $ (MM) 8000
Variable operating $ (MM) 500
Opex $ (MM) 8500
Capex $(MM) 508
capital allowance $ (MM) 508
TAX( MM) 2165.1
CASH OUT FLOW (MM) 6709
NET CASH FLOW (MM) 9541
discount cash flow

development period Initial term 5 years.

production period Initial term 20 years.
Royalty 10%
Cost Recovery 40%
Exploration costs $72mm
Tax rate 35%
Capital costs $508mm, assume to be incurred during the 5 years of development.
Depreciation rate 20% straight
Fixed operating costs $20mm/year
Variable operating costs $ 2/bbl.
Reserves 250mm barrels
discount rate 10%
Oil price 65 $/bbl.
YEAR2 YEAR3 YEAR4 YEAR5 YEAR6 YEAR7 YEAR8 YEAR9 YEAR10 YEAR11

812.5 812.5 812.5 812.5 812.5 812.5

1.25 1.25 1.25 1.25 1.25 1.25
400 400 400 400 400 400
25 25 25 25 25 25
425 425 425 425 425 425

101.6 101.6 101.6 101.6 101.6 101.6

99.6275 99.6275 99.6275 99.6275 99.6275 99.6275
335.45 335.45 335.45 335.45 335.45 335.45
477.05 477.05 477.05 477.05 477.05 477.05
812.5 812.5
YEAR12 YEAR13 YEAR14 YEAR15 YEAR16 YEAR17 YEAR18 YEAR19 YEAR20 YEAR21

812.5 812.5 812.5 812.5 812.5 812.5 812.5 812.5 812.5 812.5
1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25
400 400 400 400 400 400 400 400 400 400
25 25 25 25 25 25 25 25 25 25
425 425 425 425 425 425 425 425 425 425

101.6 101.6 101.6 101.6 101.6 101.6 101.6 101.6 101.6 101.6
99.6275 99.6275 99.6275 99.6275 99.6275 99.6275 99.6275 99.6275 99.6275 99.6275
335.45 335.45 335.45 335.45 335.45 335.45 335.45 335.45 335.45 335.45
477.05 477.05 477.05 477.05 477.05 477.05 477.05 477.05 477.05 477.05
812.5 812.5 812.5 812.5 812.5 812.5 812.5 812.5 812.5 812.5
YEAR22 YEAR23 YEAR24 YEAR25

812.5 812.5 812.5 812.5

1.25 1.25 1.25 1.25
400 400 400 400
25 25 25 25
425 425 425 425

101.6 101.6 101.6 101.6

99.6275 99.6275 99.6275 99.6275
335.45 335.45 335.45 335.45
477.05 477.05 477.05 477.05
812.5 812.5 812.5 812.5 812.5 812.5 812.5 812.5