Question
Build a cash flow model (using Excel Microsoft office) from field production profile and justify the profitability of project for the following scenario. In 2004
Build a cash flow model (using Excel Microsoft office) from field production profile and justify the profitability of project for the following scenario.
In 2004 Petro-Canada acquired 30% equity interest in the Russell field for US$ 840 million. Appraise the Russell field at 2004 and determine whether or not the price Petro-Canada paid for its 30% share of the project represents a real rate of return of more than 15%.
Additionally perform a sensitivity analysis with respect to economic parameters such as inflation, oil and gas prices, and discount rate to capture risk of project for Petro Canada. Support your discussion using Tornado chart extracted from @RISK software for the executed sensitivity analysis.
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