Q1.

based on the following information for salman oil field, Calculate: oil price 45$/bbl

gas price 3$ / 1000 SCF [10 marks]

A) Revenue B) Net Cash Flow C) Cumulative Cash Flow E) reserve Written

Down value after 10 years from beginning of project

Year Oil Gas Revenue Opex Capex Taxes NCF Cumulative

10^3BOPD 10^6SCFD $m $m $m $m $m NCF $ m

1989 - - - 24

1990 - - - 55

1991 - - - 45

1992 - - -- 70

1993 5 20 15 15 5

1994 25 35 10 10 5

1995 70 35 15 6 5

1996 85 40 20 5 10

1996 63 40 12 - 5

1997 97 40 10 - 5

1998 70 30 10 - 5

1999 45 20 10 - 5

2000 15 10 10 - 10

total 475 BOPD 270 MM SCF 112 230 45

Q2. Based on the following information from an oil field in kurdistan calculate desired parameter:

A) MCO B) NCF 2000 C) coversion rate for term 2000 D) terminal value E) payback period

[10 marks]

years RPI index Convert to 2000 NCF mod NCF 2000 Cumulative NCF

1995 85 -20

1996 90 -55

1997 92 -70

1998 95 110

1999 98 125

2000 100 170

2001 106 120

2002 111 95

2003 115 50

total