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Use the below inputs to Compute discounted net cash flow starting from development period. development period Initial term 5 years. production period Initial term 20
Use the below inputs to Compute discounted net cash flow starting from development period.
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. |
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