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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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