Finance - Capital budgeting
angeleen
DraftCopyofAssisgnment-Angie.xlsxAssumptions
| Gas Drilling Information Sheet | ||||||||||||||||||||||||
| General Information | Information | Notes | ||||||||||||||||||||||
| Total Reserve Size (gigajoules - GJs) | 250,000,000 | |||||||||||||||||||||||
| Price per gigajoule of production | 4.45 | ^1 | ||||||||||||||||||||||
| State Royalties | 10.00% | ^2, ^3 | ||||||||||||||||||||||
| Tax | 30.00% | ^4 | ||||||||||||||||||||||
| Required Rate of Return | 11.00% | discount rate | ||||||||||||||||||||||
| Vertical Well Drilling Information | Information | Notes | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | |||||||
| Capital expenditure ($s per well) | 3,000,000 | ^5 | ||||||||||||||||||||||
| Well life (years) | 10 | ^6 | ||||||||||||||||||||||
| Well salvage ($s per well) | - 0 | |||||||||||||||||||||||
| Well capping and rehabilitation expense ($s per well) | 300,000 | ^7 | times the total number of wells | |||||||||||||||||||||
| Well production profile (GJs per well) | ^7 | 517,231 | 744,250 | 486,064 | 288,770 | 156,061 | 76,722 | 34,311 | 13,958 | 5,165 | 1,739 | total production per well | 100 | |||||||||||
| Well depreciation method | straightline | ^7, ^8 | 2,324,271 | 232,427,071.69 | ||||||||||||||||||||
| Well operating costs ($s per GJ) | 1 | ^7, ^9 | ||||||||||||||||||||||
| Working Capital | - 0 | ^10 | ||||||||||||||||||||||
| Wells drilled in given years and their operating life | ^7, ^11 | |||||||||||||||||||||||
| Wells drilled at the beginning of Year 1 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | |||||||||||||
| Wells drilled at the beginning of Year 2 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | |||||||||||||
| Wells drilled at the beginning of Year 3 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | |||||||||||||
| Wells drilled at the beginning of Year 4 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | |||||||||||||
| Wells drilled at the beginning of Year 5 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | |||||||||||||
| Wells in operation | 20 | 40 | 60 | 80 | 100 | 100 | 100 | 100 | 100 | 100 | 80 | 60 | 40 | 20 | ||||||||||
| Wells capped | -20 | -20 | -20 | -20 | -20 | |||||||||||||||||||
| Horizontal Well Drilling Information | Information | Notes | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 |
| Capital expenditure ($s per well) | 5,000,000 | ^5 | ||||||||||||||||||||||
| Well life (years) | 17 | ^6 | ||||||||||||||||||||||
| Well salvage ($s per well) | - 0 | times the total number of wells | ||||||||||||||||||||||
| Well capping and rehabilitation expense ($s per well) | 300,000 | ^7 | total production per well | 50 | ||||||||||||||||||||
| Well production profile (GJs per well) | ^7 | 680,922 | 1,136,692 | 1,068,150 | 731,671 | 463,089 | 288,688 | 181,135 | 115,289 | 74,630 | 49,154 | 32,923 | 22,406 | 15,477 | 10,840 | 7,691 | 5,523 | 4,010 | 4,888,290 | 244,414,502.05 | ||||
| Well depreciation method | straightline | ^7, ^8 | ||||||||||||||||||||||
| Well operating costs ($s per GJ) | 1 | ^7, ^9 | ||||||||||||||||||||||
| Working Capital | - 0 | ^10 | ||||||||||||||||||||||
| Wells drilled in given years and wells in operation profile | ^7, ^11 | |||||||||||||||||||||||
| Wells drilled at the beginning of Year 1 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 2 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 3 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 4 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 5 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells in operation | 10 | 20 | 30 | 40 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 40 | 30 | 20 | 10 | |||
| Wells capped | -10 | -10 | -10 | -10 | -10 | |||||||||||||||||||
| Notes | ||||||||||||||||||||||||
| ^1 Contract specifies that this is a fixed price of gas at the wellhead over the life of project. | ||||||||||||||||||||||||
| ^2 in a given year, State Royalties ($) = State Royalties (%) x (Revenue - Allowed Extraction Costs). Allowable Extraction Costs include operating expenses and depreciation but exlcudes the well capping and rehibilitation expense. | ||||||||||||||||||||||||
| ^3 State Royalties are tax deductible. | ||||||||||||||||||||||||
| ^4 Tax is paid in the year of income. Note that it is assumed that any tax loses in any year will offset tax gains within the Primitive Energy tax consolidated group. | ||||||||||||||||||||||||
| ^5 Capital expenditure on wells is recorded at the start of year in which the well is drilled. | ||||||||||||||||||||||||
| ^6 Wells must operate for stated life to ensure well pressure is sufficiently low for well capping. | ||||||||||||||||||||||||
| ^7 All revenues and operating expenses are assumed to occur at the end of given year. | ||||||||||||||||||||||||
| ^8 Straight Line depreciation method (depreciating down to zero over the life of the well). | ||||||||||||||||||||||||
| ^9 Wages and other operating expenses are all captured by the operating cost per GJ. | ||||||||||||||||||||||||
| ^10 Given the nature of the project, supply and servicing contracts, project has no working capital requirements. | ||||||||||||||||||||||||
| ^11 Wells drilled in years as indicated. Capital expenditure recorded at the beginning of the year. For example, the beginning of Year 1 corresponds to the 0 column. |
Vertical DCF
| General Information | Information | ||||||||||||||||
| Total Reserve Size (gigajoules - GJs) | 250,000,000 | Notes | |||||||||||||||
| Price per gigajoule of production | 4.45 | ^1 Contract specifies that this is a fixed price of gas at the wellhead over the life of project. | |||||||||||||||
| State Royalties | 10.00% | ^2 in a given year, State Royalties ($) = State Royalties (%) x (Revenue - Allowed Extraction Costs). Allowable Extraction Costs include operating expenses and depreciation but exlcudes the well capping and rehibilitation expense. | |||||||||||||||
| Tax | 30.00% | ^3 State Royalties are tax deductible. | |||||||||||||||
| Required Rate of Return | 11.00% | ^4 Tax is paid in the year of income. Note that it is assumed that any tax loses in any year will offset tax gains within the Primitive Energy tax consolidated group. | |||||||||||||||
| No. of wells | 100 | ^5 Capital expenditure on wells is recorded at the start of year in which the well is drilled. | |||||||||||||||
| Per year | 20 | ^6 Wells must operate for stated life to ensure well pressure is sufficiently low for well capping. | |||||||||||||||
| Well Life (years0 | 10 | ^7 All revenues and operating expenses are assumed to occur at the end of given year. | |||||||||||||||
| Depr' method | Straight line | ^8 Straight Line depreciation method (depreciating down to zero over the life of the well). | |||||||||||||||
| Dep' rate | 10% | ^9 Wages and other operating expenses are all captured by the operating cost per GJ. | |||||||||||||||
| Salvage Value | 0 | ^10 Given the nature of the project, supply and servicing contracts, project has no working capital requirements. | |||||||||||||||
| working Capital | 0 | ^11 Wells drilled in years as indicated. Capital expenditure recorded at the beginning of the year. For example, the beginning of Year 1 corresponds to the 0 column. | |||||||||||||||
| Capital Expenditure per well | 3,000,000 | ||||||||||||||||
| Capital Expenditure for 100 wells | 300,000,000 | ||||||||||||||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | |||||
| Revenue | 46,033,602 | 132,476,417 | 129,779,162 | 102,802,150 | 69,447,092 | 34,141,240 | 15,268,201 | 6,211,262 | 2,298,556 | 773,773 | |||||||
| Operating Costs | - 517,231 | - 744,250 | - 486,064 | - 288,770 | - 156,061 | - 76,722 | - 34,311 | - 13,958 | - 5,165 | - 1,739 | |||||||
| Well Capping and Rehabilition exp | - 6,000,000 | - 12,000,000 | - 18,000,000 | - 24,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | |||||||
| EBITDA | 39,516,371 | 119,732,168 | 111,293,097 | 78,513,380 | 39,291,031 | 4,064,518 | - 14,766,110 | - 23,802,696 | - 27,706,609 | - 29,227,965 | |||||||
| Depreciation | - 6,000,000 | - 12,000,000 | - 18,000,000 | - 24,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | - 30,000,000 | 0 | ||||||
| Gain/Loss on Sale | 0 | ||||||||||||||||
| EBIT | 33,516,371 | 107,732,168 | 93,293,097 | 54,513,380 | 9,291,031 | - 25,935,482 | - 44,766,110 | - 53,802,696 | - 57,706,609 | - 59,227,965 | |||||||
| State Royalties | 3,951,637 | 11,973,217 | 11,129,310 | 7,851,338 | 3,929,103 | 406,452 | - 1,476,611 | - 2,380,270 | - 2,770,661 | - 2,922,797 | |||||||
| Tax | - 11,240,402 | - 35,911,615 | - 31,326,722 | - 18,709,415 | - 3,966,040 | 7,658,709 | 13,872,816 | 16,854,890 | 18,143,181 | 18,645,229 | |||||||
| NOPAT | 26,227,606 | 83,793,769 | 73,095,685 | 43,655,302 | 9,254,094 | - 17,870,321 | - 32,369,904 | - 39,328,076 | - 42,334,089 | - 43,505,533 | |||||||
| Add back Dep'. And Gain/Loss | 6,000,000 | 12,000,000 | 18,000,000 | 24,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 30000000 | |||||||
| CF from Ops. | 32,227,606 | 95,793,769 | 91,095,685 | 67,655,302 | 39,254,094 | 12,129,679 | - 2,369,904 | - 9,328,076 | - 12,334,089 | - 13,505,533 | |||||||
| Cap.Ex | - 60,000,000 | - 60,000,000 | - 60,000,000 | - 60,000,000 | - 60,000,000 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 300,000,000 | |||||
| Salvage | 0 | ||||||||||||||||
| Change in Working Capital | 0 | 0 | |||||||||||||||
| CFt | - 60,000,000 | - 27,772,394 | 35,793,769 | 31,095,685 | 7,655,302 | 39,254,094 | 12,129,679 | - 2,369,904 | - 9,328,076 | - 12,334,089 | - 13,505,533 | ||||||
| Discount Factor | 1.0000 | 0.9009 | 0.8116 | 0.7312 | 0.6587 | 0.5935 | 0.5346 | 0.4817 | 0.4339 | 0.3909 | 0.3522 | ||||||
| PV of CFt | - 60,000,000 | - 25,020,175 | 29,051,026 | 22,736,897 | 5,042,785 | 23,295,394 | 6,485,022 | - 1,141,484 | - 4,047,699 | - 4,821,701 | - 4,756,439 | ||||||
| NPV | - 13,176,376 | ||||||||||||||||
| Vertical Well Drilling Information | Information | Notes | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| Capital expenditure ($s per well) | 3,000,000 | ^5 | |||||||||||||||
| Well life (years) | 10 | ^6 | |||||||||||||||
| Well salvage ($s per well) | - 0 | ||||||||||||||||
| Well capping and rehabilitation expense ($s per well) | 300,000 | ^7 | times the total number of wells | ||||||||||||||
| Well production profile (GJs per well) | ^7 | 517,231 | 744,250 | 486,064 | 288,770 | 156,061 | 76,722 | 34,311 | 13,958 | 5,165 | 1,739 | total production per well | 100 | ||||
| Well depreciation method | straightline | ^7, ^8 | 2,324,271 | 232,427,071.69 | |||||||||||||
| Well operating costs ($s per GJ) | 1 | ^7, ^9 | |||||||||||||||
| Working Capital | - 0 | ^10 | |||||||||||||||
| Wells drilled in given years and their operating life | ^7, ^11 | ||||||||||||||||
| Wells drilled at the beginning of Year 1 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | ||||||
| Wells drilled at the beginning of Year 2 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | ||||||
| Wells drilled at the beginning of Year 3 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | ||||||
| Wells drilled at the beginning of Year 4 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | ||||||
| Wells drilled at the beginning of Year 5 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | ||||||
| Wells in operation | 20 | 40 | 60 | 80 | 100 | 100 | 100 | 100 | 100 | 100 | 80 | 60 | 40 | 20 | |||
| Wells capped | -20 | -20 | -20 | -20 | -20 | ||||||||||||
Horizontal DCF
| General Information | Information | |||||||||||||||||||||||
| Total Reserve Size (gigajoules - GJs) | 250,000,000 | Notes | ||||||||||||||||||||||
| Price per gigajoule of production | 4.45 | ^1 Contract specifies that this is a fixed price of gas at the wellhead over the life of project. | ||||||||||||||||||||||
| State Royalties | 10.00% | ^2 in a given year, State Royalties ($) = State Royalties (%) x (Revenue - Allowed Extraction Costs). Allowable Extraction Costs include operating expenses and depreciation but exlcudes the well capping and rehibilitation expense. | ||||||||||||||||||||||
| Tax | 30.00% | ^3 State Royalties are tax deductible. | ||||||||||||||||||||||
| Required Rate of Return | 11.00% | ^4 Tax is paid in the year of income. Note that it is assumed that any tax loses in any year will offset tax gains within the Primitive Energy tax consolidated group. | ||||||||||||||||||||||
| No. of wells | 50 | ^5 Capital expenditure on wells is recorded at the start of year in which the well is drilled. | ||||||||||||||||||||||
| Well Life (years) | 17 | ^6 Wells must operate for stated life to ensure well pressure is sufficiently low for well capping. | ||||||||||||||||||||||
| Depr' method | Straight line | ^7 All revenues and operating expenses are assumed to occur at the end of given year. | ||||||||||||||||||||||
| Dep' rate | 6% | ^8 Straight Line depreciation method (depreciating down to zero over the life of the well). | ||||||||||||||||||||||
| Salvage Value | 0 | ^9 Wages and other operating expenses are all captured by the operating cost per GJ. | ||||||||||||||||||||||
| working Capital | 0 | ^10 Given the nature of the project, supply and servicing contracts, project has no working capital requirements. | ||||||||||||||||||||||
| Capital Expenditure per well | 5,000,000 | ^11 Wells drilled in years as indicated. Capital expenditure recorded at the beginning of the year. For example, the beginning of Year 1 corresponds to the 0 column. | ||||||||||||||||||||||
| Capital Expenditure for 50 wells | 250,000,000 | |||||||||||||||||||||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | |||||
| Revenue | 30,301,025 | 101,165,589 | 142,598,073 | 130,237,387 | 103,037,288 | 64,233,024 | 40,302,438 | 25,651,826 | 16,605,178 | 10,936,734 | 7,325,375 | 4,985,233 | 3,443,617 | 2,411,981 | 1,711,345 | 1,228,879 | 892,327 | |||||||
| Operating Costs | - 680,922 | - 1,136,692 | - 1,068,150 | - 731,671 | - 463,089 | - 288,688 | - 181,135 | - 115,289 | - 74,630 | - 49,154 | - 32,923 | - 22,406 | - 15,477 | - 10,840 | - 7,691 | - 5,523 | - 4,010 | |||||||
| Well Capping and Rehabilition exp | - 3,000,000 | - 6,000,000 | - 9,000,000 | - 12,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | - 15,000,000 | |||||||
| EBITDA | 26,620,104 | 94,028,897 | 132,529,922 | 117,505,717 | 87,574,199 | 48,944,336 | 25,121,304 | 10,536,537 | 1,530,548 | - 4,112,420 | - 7,707,548 | - 10,037,172 | - 11,571,860 | - 12,598,859 | - 13,296,347 | - 13,776,644 | - 14,111,683 | |||||||
| Depreciation | - 2,941,176 | - 5,882,353 | - 8,823,529 | - 11,764,706 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | - 14,705,882 | 0 | ||||||
| Gain/Loss on Sale | - 0 | |||||||||||||||||||||||
| EBIT | 23,678,927 | 88,146,544 | 123,706,393 | 105,741,011 | 72,868,316 | 34,238,454 | 10,415,421 | - 4,169,345 | - 13,175,335 | - 18,818,303 | - 22,413,431 | - 24,743,054 | - 26,277,742 | - 27,304,741 | - 28,002,229 | - 28,482,526 | - 28,817,565 | |||||||
| State Royalties | 2,667,893 | 9,414,654 | 13,270,639 | 11,774,101 | 8,786,832 | 4,923,845 | 2,541,542 | 1,083,065 | 182,467 | - 381,830 | - 741,343 | - 974,305 | - 1,127,774 | - 1,230,474 | - 1,300,223 | - 1,348,253 | - 1,381,757 | |||||||
| Tax | - 7,904,046 | - 29,268,360 | - 41,093,110 | - 35,254,534 | - 24,496,544 | - 11,748,690 | - 3,887,089 | 925,884 | 3,897,860 | 5,760,040 | 6,946,432 | 7,715,208 | 8,221,655 | 8,560,565 | 8,790,736 | 8,949,234 | 9,059,797 | |||||||
| NOPAT | 18,442,774 | 68,292,839 | 95,883,923 | 82,260,578 | 57,158,604 | 27,413,609 | 9,069,874 | - 2,160,396 | - 9,095,008 | - 13,440,093 | - 16,208,342 | - 18,002,152 | - 19,183,861 | - 19,974,651 | - 20,511,716 | - 20,881,545 | - 21,139,525 | |||||||
| Add back Dep'. And Gain/Loss | 2,941,176 | 5,882,353 | 8,823,529 | 11,764,706 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | 14,705,882 | |||||||
| CF from Ops. | 21,383,950 | 74,175,192 | 104,707,452 | 94,025,284 | 71,864,486 | 42,119,492 | 23,775,757 | 12,545,487 | 5,610,875 | 1,265,789 | - 1,502,459 | - 3,296,270 | - 4,477,979 | - 5,268,769 | - 5,805,834 | - 6,175,663 | - 6,433,643 | |||||||
| Cap.Ex | - 50,000,000 | - 50,000,000 | - 50,000,000 | - 50,000,000 | - 50,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
| Salvage | 0 | |||||||||||||||||||||||
| Change in Working Capital | 0 | 0 | ||||||||||||||||||||||
| CFt | - 50,000,000 | - 28,616,050 | 24,175,192 | 54,707,452 | 44,025,284 | 71,864,486 | 42,119,492 | 23,775,757 | 12,545,487 | 5,610,875 | 1,265,789 | - 1,502,459 | - 3,296,270 | - 4,477,979 | - 5,268,769 | - 5,805,834 | - 6,175,663 | - 6,433,643 | ||||||
| Discount Factor | 1.0000 | 0.9009 | 0.8116 | 0.7312 | 0.6587 | 0.5935 | 0.5346 | 0.4817 | 0.4339 | 0.3909 | 0.3522 | 0.3173 | 0.2858 | 0.2575 | 0.2320 | 0.2090 | 0.1883 | 0.1696 | ||||||
| PV of CFt | - 50,000,000 | - 25,780,225 | 19,621,128 | 40,001,617 | 29,000,818 | 42,648,075 | 22,518,800 | 11,451,793 | 5,443,819 | 2,193,430 | 445,791 | - 476,705 | - 942,208 | - 1,153,143 | - 1,222,327 | - 1,213,445 | - 1,162,829 | - 1,091,356 | ||||||
| NPV | 90,283,034 | |||||||||||||||||||||||
| Horizontal Well Drilling Information | Information | Notes | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 |
| Capital expenditure ($s per well) | 5,000,000 | ^5 | ||||||||||||||||||||||
| Well life (years) | 17 | ^6 | ||||||||||||||||||||||
| Well salvage ($s per well) | - 0 | times the total number of wells | ||||||||||||||||||||||
| Well capping and rehabilitation expense ($s per well) | 300,000 | ^7 | total production per well | 50 | ||||||||||||||||||||
| Well production profile (GJs per well) | ^7 | 680,922 | 1,136,692 | 1,068,150 | 731,671 | 463,089 | 288,688 | 181,135 | 115,289 | 74,630 | 49,154 | 32,923 | 22,406 | 15,477 | 10,840 | 7,691 | 5,523 | 4,010 | 4,888,290 | 244,414,502.05 | ||||
| Well depreciation method | straightline | ^7, ^8 | ||||||||||||||||||||||
| Well operating costs ($s per GJ) | 1 | ^7, ^9 | ||||||||||||||||||||||
| Working Capital | - 0 | ^10 | ||||||||||||||||||||||
| Wells drilled in given years and wells in operation profile | ^7, ^11 | |||||||||||||||||||||||
| Wells drilled at the beginning of Year 1 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 2 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 3 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 4 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells drilled at the beginning of Year 5 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | ||||||
| Wells in operation | 10 | 20 | 30 | 40 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 40 | 30 | 20 | 10 | |||
| Wells capped | -10 | -10 | -10 | -10 | -10 |
