B D E G H M Q Actual HH (Heny Hub) gas prices 1 EIA 2 3 4 1997 2.19 2.17 2.49 1.85 2.35 1.72 1998 1999 5 2.36 2.31 3.99 3.11 8.9 . 2.3 4.74 2.88 2.02 2.55 5.06 2.19 3.55 4.62 5.15 ... 11.75 4.9 2000 . 2001 2002 2003 __ 2004 2005 2006 2.99 2007 2.15 2.23 1.77 2.66 . 5.61 2.32 7.71 5.37 6.14 7.54 8 8.54 4.52 5.32 4.09 2.51 3.33 6.08 2.50 2.09 2.27 4.31 3.96 3.37 5.49 5.90 8.81 6.75 6.98 8.86 3.95 4.39 4.00 2.75 3.73 4.39 2.63 2.52 2.99 3.17 2.57 3.45 2.09 1.85 2.42 8.17 2.32 5.43 6.14 6.15 8.69 6.55 7.99 5.24 5.83 4.49 2.67 3.33 4.71 2.99 2.28 3.3 3.87 3.11 2.02 2008 2009 1.89 2.24 1.79 2.79 5.23 3.03 5.93 5.39 6.96 6.89 7.11 9.41 3.96 4.29 3.97 2.17 3.81 4.9 2.83 1.73 2.88 2.69 2.95 1.79 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 2.03 2.43 2.15 3.04 5.19 3.43 5.26 5.71 7.16 7.16 7.6 10.18 3.5 4.03 4.24 1.95 4.17 * 4.66 2.61 1.92 3.1 2.8 2.65 1.74 2.25 2.14 2.26 3.59 4.19 3.5 5.81 6.33 6.47 6.25 7.64 11.27 3.83 . 4.14 4.31 2.43 4.04 4.58 2.85 1.92 3.15 2.8 2.64 1.75 2.2 2.17 2.3 4.29 3.72 3.26 co 5.82 6.27 7.18 6.21 7.35 12.69 3.8 4.8 4.54 2.46 3.83 4.59 2.78 2.59 2.98 2.97 2.4 1.63 2.8 4.43 2.97 3.09 4.99 5.41 9.53 7.14 6.22 w 8.26 3.14 4.32 4.06 2.84 3.43 3.91 2.77 2.82 5.03 5.93 7.63 . 6.17 6.22 11.09 3.38 4.63 4.42 2.95 3.62 4.05 2.84 2.82 2.98 6.13 . 6.58 . 13.05 . 6.73 7.11 5.82 5.35 4.25 3.17 3.07 1.91 2.73 5.02 2.46 4.13 4.63 6.35 13.42 5.85 6.74 6.74 4.01 3.43 3.57 3.32 3.68 3.78 2.34 2.98 2.88 3.28 2.33 2010 3.01 2.12 2.37 5.52 2.34 4.04 . 4.47 6.17 10.3 7.41 7.1 6.68 3.66 3.71 3.24 3.54 3.64 4.12 2.09 2.55 3.01 4.09 2.65 2011 7.67 2.99 3.89 3.9 2.85 3.62 3.92 2.66 2.99 2012 2013 2014 3.34 4.24 3.48 1.93 3.59 6 2.87 1.99 2.85 2.67 2.69 1.91 2.9 2015 . 2016 . 2017 2018 2019 2020 2.82 2.98 3 2.83 2.96 2.22 2.3 4.04 2.22 2.37 2.56 1.77 C D E F G H 1 EIA 2 3 Actual WTI oil prices 1985 Dec-30 to Jan 3 1986 Jan 6 to Jan 10 1986 Jan-13 to Jan-17 1986 Jan 20 to Jan 24 1986 Jan 27 to Jan-31 4 26.53 25.08 21.33 20.87 5 6 7 8 1986 Feb. 3 to Feb. 7 17.42 16.78 9 10 1986 Feb-10 to Feb-14 1986 Feb-17 to Feb 21 1986 Feb-24 to Feb-28 1986 Mar 3 to Mar: 7 11 12 13 14.68 11.98 14 15 16 17 18 19 1986 Mar 10 to Mar-14 1986 Mar 17 to Mar-21 1985 Mar 24 to Mar 28 1986 Mar 31 to App: 4 1985 Apr 7 to Apr 11 12.94 13.28 12.2 10.25 14.39 1985 Apr 14 to Apr-18 1986 Apr 21 to Apr-25 1986 Apr 28 to May 2 1986 May. 5 to Mayo 1985 May 12 to May 16 12.94 12.48 13.34 14.32 15.75 17.13 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 1985 May-19 to May 23 1986 May-2s to May-30 1986 Jun-2 to Jun 6 1986 Jun-9 to Jun-13 1986 Jun-16 to Jun 20 13.8 12.61 13.65 1985 Jun-23 to Jun-27 1986 Jun-30 to Jul 4 1985 Jul-7 to Jul 11 1986 Jul 14 to Jul 18 1986 Jul-21 to Jul-25 14.05 12.8 11.18 11.23 13.07 1986 Jul 28 to Aug 1 1986 Aug.4 to Aug. 8 1986 Aug 11 to Aug.15 11.09 14 14.92 40 B D E F A 1 6-Sep-20 2 3 4 MM$ 5 6 What is the Net Present Value @ 10% over the economic life of this investment? What is the Net Present Value @ 10% of this investment until year 6 (year 6 included)? What is the Net Present Value @ 15% of this investment until year 6 (year 6 included)? What is the Net Present Value @ 10% of this operation over its economic life after year 6 (year 6 non-included)? What is the IRR of this investment? What is the Payout (in years)? What is the number of years of negative cashflow (in years) MM$ MMS MMS 7 8 % 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 E H L M N O P Q Q . 1 6-Sep-20 2 ! Prices after ! Production transportation fee ! Gross Net Revenues i Prod Income Royalties Capex Opex NCF Year Revenues Oil after i (after Royalty) | Taxes Tax Oil Gas ! Oil Gas shrinkage Sth/day (stb/day) MMscf/day $6 $/M scf $MM/year $MM/year $MM/year $MM/year $MM/year $MM/year $MM/year $MM/year 3 4 5 0 1 6 7 2 8 3 9 4 5 10 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 20 21 A C D E F G H J 1 6-Sep-20 2 10 Investment (Capex) in year 0 Qi Year Oil Price at lease Gas Price at lease gate ($/Bbl) gate (S/Mscf) 3 500 DCA coefficients $MM bod (starting year 1) 4 (1+b 4 D 65% 1 99.15 2.50 oft) - 5 0.8 2 62.81 2.09 6 56 3 80.00 2.27 7 2% 4 94.68 4.31 8 5 93.71 3.96 9 6 97.97 3.37 10 $2.0 7 92.70 5.49 11 $0.15 Mscf/stb for oil only see price tables on the right $/bbl constant $/Mscf constant of Gross Revenue $MM in year 1 increasing at 3% per year $MM in year 1 decreasing at 30% per year of Net Revenue (i.e. after Opex and DDA) of Net Revenue (after Opex) 8 48.27 5.90 Gas production ratio: Shrinkage Price of oil at the lease: Price of gas at the lease: Oil transportation fee Gas transportation fee Royalties: Opex DDA (tax only) () Income tax Production taxes: NRI WI assume no tax on year 0 12 12.5% 9 43.14 8.81 13 2.4 10 50.67 6.75 14 $10 11 65.65 6.98 15 15% 12 57.23 8.86 16 5% 13 35.45 3.95 17 87.5% 18 50.0% Please note that the above 19 20 21 22 23 B D E G H M Q Actual HH (Heny Hub) gas prices 1 EIA 2 3 4 1997 2.19 2.17 2.49 1.85 2.35 1.72 1998 1999 5 2.36 2.31 3.99 3.11 8.9 . 2.3 4.74 2.88 2.02 2.55 5.06 2.19 3.55 4.62 5.15 ... 11.75 4.9 2000 . 2001 2002 2003 __ 2004 2005 2006 2.99 2007 2.15 2.23 1.77 2.66 . 5.61 2.32 7.71 5.37 6.14 7.54 8 8.54 4.52 5.32 4.09 2.51 3.33 6.08 2.50 2.09 2.27 4.31 3.96 3.37 5.49 5.90 8.81 6.75 6.98 8.86 3.95 4.39 4.00 2.75 3.73 4.39 2.63 2.52 2.99 3.17 2.57 3.45 2.09 1.85 2.42 8.17 2.32 5.43 6.14 6.15 8.69 6.55 7.99 5.24 5.83 4.49 2.67 3.33 4.71 2.99 2.28 3.3 3.87 3.11 2.02 2008 2009 1.89 2.24 1.79 2.79 5.23 3.03 5.93 5.39 6.96 6.89 7.11 9.41 3.96 4.29 3.97 2.17 3.81 4.9 2.83 1.73 2.88 2.69 2.95 1.79 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 2.03 2.43 2.15 3.04 5.19 3.43 5.26 5.71 7.16 7.16 7.6 10.18 3.5 4.03 4.24 1.95 4.17 * 4.66 2.61 1.92 3.1 2.8 2.65 1.74 2.25 2.14 2.26 3.59 4.19 3.5 5.81 6.33 6.47 6.25 7.64 11.27 3.83 . 4.14 4.31 2.43 4.04 4.58 2.85 1.92 3.15 2.8 2.64 1.75 2.2 2.17 2.3 4.29 3.72 3.26 co 5.82 6.27 7.18 6.21 7.35 12.69 3.8 4.8 4.54 2.46 3.83 4.59 2.78 2.59 2.98 2.97 2.4 1.63 2.8 4.43 2.97 3.09 4.99 5.41 9.53 7.14 6.22 w 8.26 3.14 4.32 4.06 2.84 3.43 3.91 2.77 2.82 5.03 5.93 7.63 . 6.17 6.22 11.09 3.38 4.63 4.42 2.95 3.62 4.05 2.84 2.82 2.98 6.13 . 6.58 . 13.05 . 6.73 7.11 5.82 5.35 4.25 3.17 3.07 1.91 2.73 5.02 2.46 4.13 4.63 6.35 13.42 5.85 6.74 6.74 4.01 3.43 3.57 3.32 3.68 3.78 2.34 2.98 2.88 3.28 2.33 2010 3.01 2.12 2.37 5.52 2.34 4.04 . 4.47 6.17 10.3 7.41 7.1 6.68 3.66 3.71 3.24 3.54 3.64 4.12 2.09 2.55 3.01 4.09 2.65 2011 7.67 2.99 3.89 3.9 2.85 3.62 3.92 2.66 2.99 2012 2013 2014 3.34 4.24 3.48 1.93 3.59 6 2.87 1.99 2.85 2.67 2.69 1.91 2.9 2015 . 2016 . 2017 2018 2019 2020 2.82 2.98 3 2.83 2.96 2.22 2.3 4.04 2.22 2.37 2.56 1.77 C D E F G H 1 EIA 2 3 Actual WTI oil prices 1985 Dec-30 to Jan 3 1986 Jan 6 to Jan 10 1986 Jan-13 to Jan-17 1986 Jan 20 to Jan 24 1986 Jan 27 to Jan-31 4 26.53 25.08 21.33 20.87 5 6 7 8 1986 Feb. 3 to Feb. 7 17.42 16.78 9 10 1986 Feb-10 to Feb-14 1986 Feb-17 to Feb 21 1986 Feb-24 to Feb-28 1986 Mar 3 to Mar: 7 11 12 13 14.68 11.98 14 15 16 17 18 19 1986 Mar 10 to Mar-14 1986 Mar 17 to Mar-21 1985 Mar 24 to Mar 28 1986 Mar 31 to App: 4 1985 Apr 7 to Apr 11 12.94 13.28 12.2 10.25 14.39 1985 Apr 14 to Apr-18 1986 Apr 21 to Apr-25 1986 Apr 28 to May 2 1986 May. 5 to Mayo 1985 May 12 to May 16 12.94 12.48 13.34 14.32 15.75 17.13 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 1985 May-19 to May 23 1986 May-2s to May-30 1986 Jun-2 to Jun 6 1986 Jun-9 to Jun-13 1986 Jun-16 to Jun 20 13.8 12.61 13.65 1985 Jun-23 to Jun-27 1986 Jun-30 to Jul 4 1985 Jul-7 to Jul 11 1986 Jul 14 to Jul 18 1986 Jul-21 to Jul-25 14.05 12.8 11.18 11.23 13.07 1986 Jul 28 to Aug 1 1986 Aug.4 to Aug. 8 1986 Aug 11 to Aug.15 11.09 14 14.92 40 B D E F A 1 6-Sep-20 2 3 4 MM$ 5 6 What is the Net Present Value @ 10% over the economic life of this investment? What is the Net Present Value @ 10% of this investment until year 6 (year 6 included)? What is the Net Present Value @ 15% of this investment until year 6 (year 6 included)? What is the Net Present Value @ 10% of this operation over its economic life after year 6 (year 6 non-included)? What is the IRR of this investment? What is the Payout (in years)? What is the number of years of negative cashflow (in years) MM$ MMS MMS 7 8 % 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 E H L M N O P Q Q . 1 6-Sep-20 2 ! Prices after ! Production transportation fee ! Gross Net Revenues i Prod Income Royalties Capex Opex NCF Year Revenues Oil after i (after Royalty) | Taxes Tax Oil Gas ! Oil Gas shrinkage Sth/day (stb/day) MMscf/day $6 $/M scf $MM/year $MM/year $MM/year $MM/year $MM/year $MM/year $MM/year $MM/year 3 4 5 0 1 6 7 2 8 3 9 4 5 10 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 20 21 A C D E F G H J 1 6-Sep-20 2 10 Investment (Capex) in year 0 Qi Year Oil Price at lease Gas Price at lease gate ($/Bbl) gate (S/Mscf) 3 500 DCA coefficients $MM bod (starting year 1) 4 (1+b 4 D 65% 1 99.15 2.50 oft) - 5 0.8 2 62.81 2.09 6 56 3 80.00 2.27 7 2% 4 94.68 4.31 8 5 93.71 3.96 9 6 97.97 3.37 10 $2.0 7 92.70 5.49 11 $0.15 Mscf/stb for oil only see price tables on the right $/bbl constant $/Mscf constant of Gross Revenue $MM in year 1 increasing at 3% per year $MM in year 1 decreasing at 30% per year of Net Revenue (i.e. after Opex and DDA) of Net Revenue (after Opex) 8 48.27 5.90 Gas production ratio: Shrinkage Price of oil at the lease: Price of gas at the lease: Oil transportation fee Gas transportation fee Royalties: Opex DDA (tax only) () Income tax Production taxes: NRI WI assume no tax on year 0 12 12.5% 9 43.14 8.81 13 2.4 10 50.67 6.75 14 $10 11 65.65 6.98 15 15% 12 57.23 8.86 16 5% 13 35.45 3.95 17 87.5% 18 50.0% Please note that the above 19 20 21 22 23