Input Data

Reserves (mmbbls)
O&M cost ($/bbl)

Output - Profitability Indicators

50
10.00

Fiscal Terms
Royalty
Signing Bonus (millions USD)
Contractor profit share
Cost recovery
Income Tax
Oil Price (bbl)
Discount Rate

15.0%
$20
80%
40%
35%
$30.00
10.00%

Production Profile
No of producing wells
Daily prod per well
Plateau rate (bbls/day)
Annual plateau production (mmbbls)
Project Life
Decline rate (3% to 7%)

15
800
12000
4.4
18
7%

NPV @
IRR

10.00%

35
13.64%

NPV @
NPV @
NPV @

5%
12%
15%

119
14
(10)

Total negative cash flow

Total Investment
Profit to Investment Ratio PIR
Discounted PIR
Payout time (in years)
Investment Efficiency

Required data
Optional data, default value provided
Given in the bid package
Computed for you

(200)
170
1.65
0.11
10
0.22

Input Data
Reserves (mmbbls)

O&M cost ($/bbl)

Fiscal Terms
Royalty
Tax Rate
Income Tax
Signing Bonus (millions USD)
Contractor profit gas share
Cost recovery limit (usually 80-100%)

Profitability Indicators
50

NPV @
IRR

10.00%

10.00

NPV @
NPV @
NPV @

5%
10%
15%

15.0%
35%
$20
80%
40%

Oil Price (bbls)

$30.00

Discount Rate

10.00%

Production Profile
No of producing wells
Plateau rate (bbls/day)
Annual plateau production (mmbbls)
Decline rate (3% to 7%)
Project Life

15.00
12,000
4
7%
18

Total negative cash flow

Total Investment
Profit to Investment Ratio PIR
Discounted PIR
Payout time (in years)
Investment Efficiency

Required data
Optional data, default value provided
Computed for you

Sample Production Sharing Contract Cash Flow Projection

Oil
Production
Year (mmbbls)

ity Indicators

ative cash flow

nvestment Ratio PIR

me (in years)

Oil
Gross
Price Revenues
($/bbl)
($MM)

Net
Royalty Revenues
($MM)
($MM)

35
13.64%
119
14
(10)
(200)
170
1.65
0.11
10
0.22

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

0.88
3.07
4.38
4.38
4.38
4.38
4.08
3.81
3.55
3.31
3.09
2.88
2.68
2.50
2.33
0.30
-

30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00

50

Total costs
Total cash surplus
Return on Investment

650.00
540.71
-0.17

(A) Gas production profile

26.28
91.98
131.40
131.40
131.40
131.40
122.52
114.23
106.51
99.31
92.60
86.34
80.50
75.06
69.98
9.10
-

3.94
13.80
19.71
19.71
19.71
19.71
18.38
17.14
15.98
14.90
13.89
12.95
12.07
11.26
10.50
1.36
-

22.34
78.18
111.69
111.69
111.69
111.69
104.14
97.10
90.53
84.41
78.71
73.39
68.42
63.80
59.49
7.73
-

1,500

225

1,275

w Projection
Intangible
Cap Ex
($MM)
80%

Tangible Operating
Cap Ex Expense
($MM)
($MM)
20%

Bonus
($MM)

Cost
Oil
($MM)

Total Contractor
Profit
Profit
Oil
Oil
($MM)
($MM)

1.00
6.00
36.00
30.00
30.00
29.00
24.00
(6.00)
-

9.76
36.66
52.56
52.56
52.56
52.56
49.01
45.69
42.60
39.72
37.04
34.53
32.20
30.02
27.99
3.64
-

12.58
41.52
59.13
59.13
59.13
59.13
55.13
51.41
47.93
44.69
41.67
38.85
36.22
33.78
31.49
4.09
-

10.06
33.22
47.30
47.30
47.30
47.30
44.11
41.12
38.34
35.75
33.33
31.08
28.98
27.02
25.19
3.28
-

150

599

676

541

DD&A
($MM)

Tax
Loss C/F
($MM)

20.00
5.00
25.00
150.00
(30.00)

150

8.76
30.66
43.80
43.80
43.80
43.80
40.84
38.08
35.50
33.10
30.87
28.78
26.83
25.02
23.33
3.03
500

20

0
NPV @
NPV @
NPV @
NPV @
IRR

Contractor
Net
Income
Cash
Tax
Flow
($MM)
($MM)

3.52
11.63
16.56
16.56
16.56
16.56
15.44
14.39
13.42
12.51
11.67
10.88
10.14
9.46
8.82
1.15
-

(20.00)
(5.00)
(25.00)
(150.00)
37.54
27.59
39.51
39.51
39.51
39.51
36.84
34.35
32.02
29.86
27.84
25.96
24.20
22.57
21.04
2.74
-

189

281

5%
12%
15%
10%

119
14
(10)
35
13.64%

PV Net
Cash
Flow
($MM)

(20)
(5)
(21)
(113)
26
17
22
20
18
17
14
12
10
9
7
6
5
4
4
0
0
0
0
0
0
0
0
0
0
0
0

Cummulative
Net
Cash
Flow
($MM)

(20)
(25)
(50)
(200)
(162)
(135)
(95)
(56)
(16)
23
60
94
126
156
184
210
234
257
278
281
281
281
281
281
281
281
281
281
281
281
281

PRODUCTION PROFILE
Total
Costs

Production
Year

0
(5)
(25)
(150)
21
(31)
(44)
(44)
(44)
(44)
(41)
(38)
(36)
(33)
(31)
(29)
(27)
(25)
(23)
(3)
0
0
0
0
0
0
0
0
0
0
0

850

(309.13)

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

PRODUCTION PROFILE

Total profit gas, Cost Gas & Carry Forward Calculatio

Unrecovered
Cost Cost
Cost Rec
costs
for Rec
Limit
($MM)
40%

Oil
Oil
Oil
Production umulative reserves
(mmbbls) Production remaining
(mmbbls)
0
0
0
0
1
3
4
4
4
4
4
4
4
3
3
3
3
3
2
2
2
2
2
2
2
1
1
1
1
1
1

0
0
0
1
4
8
13
17
21
26
29
33
36
39
42
45
47
50
52
54
56
58
59
61
62
63
65
66
67
68

50
50
50
50
49
46
42
37
33
29
24
21
17
14
11
8
5
3
0
-2
-4
-6
-8
-9
-11
-12
-13
-15
-16
-17
-18

0
0
0
1
3
4
4
4
4
4
4
4
3
3
3
3
3
2
0
0
0
0
0
0
0
0
0
0
0
0

10
37
80
74
74
73
65
32
36
33
31
29
27
25
23
3
0
0
0
0
0
0
0
0
0
0
0

50

650

0
0
0
0
0
10
37
80
101
122
143
155
138
128
118
109
101
93
86
79
55
51
51
51
51
51
51
51
51
51
51
51

0
0
0
0
0
11
37
53
53
53
53
49
46
43
40
37
35
32
30
28
4
0
0
0
0
0
0
0
0
0
0
0
600
1500

0
0
0
27
48
70
90
106
92
85
78
72
67
61
56
51
51
51
51
51
51
51
51
51
51
51
51
51

st Gas & Carry Forward Calculation

inary Total Caryy
Profit Forward Cost
Oil Allowed
for Rec
($MM)
($MM)

0
13
42
32
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
97

0
0
0
27
48
70
90
106
92
85
78
72
67
61
56
51
51
51
51
51
51
51
51
51
51
51
51

0
0
0
0
0
0
10
37
53
53
53
53
49
46
43
40
37
35
32
30
28
4
0
0
0
0
0
0
0
0
0
0
0
599

Reserves
plateau production per well
total plateau production
plateau production

50000
50
800
12000
4.38

mmbbls
bbls/day
bbls/day
mmbbls/annual

5 $'/1000 bbl over threshold

cost per well
number of wells
Total well cost

Exploratory Cost
G&G
2 wells
Development Cost
Drilling
Facilities
Total Cost

10 mm$
15
150 mm$

5
25
120
150
-30
150