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$8,000 per year. Cash income taxes are 30% of gross revenue. Chapter 1 - Overview 1.8 The reservoir pressure in the Smiley Field has declined to the point that Well 152 will no longer flow naturally. As a result it has been decided that a downhole sucker rod pump, a set of rods, and surface unit having a service life of six years will be purchased for $160,000. The pump will cause the well to produce the oil production as shown in the following table 1-7 The reservoir pressure in the Bogu Field has declined to the point that Well 1-1 will no longer flow naturally. As a result, it has been decided that a downhole electric pump having a service life of six years will be purchased for $120,000. The pump will cause the well to produce the oil production as shown in the following table. Year 8/8 Prod 1 1250 2 1190 3 1125 1050 5 1000 1-1. 6 93 0 Year 88 Prod 1 2000 2 1500 3 1200 4 1200 5 1000 6 900 Your working interest is 100%. Your net revenue interest is 75%. Operating costs are estimated to be $40,000 the first year and will increase by $2,000 each of the following five years. The pump has no salvage value. Calculate your revenge using a constant oil price of $85.00/B.L. a) Calculate yearly net cash flow BFIT for this investment. Draw the cash flow diagram Your working interest is 100%. Your net revenue interest is 80%. Operating costs are estimated to be $50,000 the first year and will increase by $5,000 each of the following five years. The pump has no salvage value. Calculate your revenue using a constant oil price of $95.00/Bb1. a) Calculate yearly net cash flow BFIT for this investment. Draw the cash flow diagram Ans: 1.9 Assume income taxes are 35% of taxable income for the following question Taxable income is operating income loss depreciation. Use the information from Problem 0 -120,000 45,000 35,440 25,500 14,800 6,000 4,320 DO a) Prepare a pet cash flow analysis AFIT for this investment. For income tax purposes, use straight line depreciation assuming a five year life. Prepare a net cash flow diagram. Ans: - 120.000 37.650 31436 24.975 18,020 12,300 2,808 14100 20.000 2000 0 5 yet 0000 160,000 1000 JADOO $8,000 per year. Cash income taxes are 30% of gross revenue. Chapter 1 - Overview 1.8 The reservoir pressure in the Smiley Field has declined to the point that Well 152 will no longer flow naturally. As a result it has been decided that a downhole sucker rod pump, a set of rods, and surface unit having a service life of six years will be purchased for $160,000. The pump will cause the well to produce the oil production as shown in the following table 1-7 The reservoir pressure in the Bogu Field has declined to the point that Well 1-1 will no longer flow naturally. As a result, it has been decided that a downhole electric pump having a service life of six years will be purchased for $120,000. The pump will cause the well to produce the oil production as shown in the following table. Year 8/8 Prod 1 1250 2 1190 3 1125 1050 5 1000 1-1. 6 93 0 Year 88 Prod 1 2000 2 1500 3 1200 4 1200 5 1000 6 900 Your working interest is 100%. Your net revenue interest is 75%. Operating costs are estimated to be $40,000 the first year and will increase by $2,000 each of the following five years. The pump has no salvage value. Calculate your revenge using a constant oil price of $85.00/B.L. a) Calculate yearly net cash flow BFIT for this investment. Draw the cash flow diagram Your working interest is 100%. Your net revenue interest is 80%. Operating costs are estimated to be $50,000 the first year and will increase by $5,000 each of the following five years. The pump has no salvage value. Calculate your revenue using a constant oil price of $95.00/Bb1. a) Calculate yearly net cash flow BFIT for this investment. Draw the cash flow diagram Ans: 1.9 Assume income taxes are 35% of taxable income for the following question Taxable income is operating income loss depreciation. Use the information from Problem 0 -120,000 45,000 35,440 25,500 14,800 6,000 4,320 DO a) Prepare a pet cash flow analysis AFIT for this investment. For income tax purposes, use straight line depreciation assuming a five year life. Prepare a net cash flow diagram. Ans: - 120.000 37.650 31436 24.975 18,020 12,300 2,808 14100 20.000 2000 0 5 yet 0000 160,000 1000 JADOO
