Model Inputs

Users select from a library of projects/logistical environments; e.g., onshore wells, onshore fields, offshore fields. Each project contains scoping-level inputs for seven (7) oil and seven (7) gas fields/wells, including: production profiles, prices, quality differentials, transportation tariffs, capital costs (for up to eight cost categories), operating costs – fixed and variable based on units and per well, and financing terms. Also included are probabilities and weights to facilitate risk analysis.

Inputs Assistant

PEET includes extensive conversion factors (area, length, volume, energy) to facilitate the determination of model inputs, and a sub-model to facilitate production profile design, including NGL sub-components determination and effective prices based on gas composition.

Fiscal System Models

Users can build their own fiscal system or select from a library of fiscal terms. Systems included depends on the course and course participants; examples – Angola, Australia, Brazil, Canada (AB), Canada (NL), Columbia, Egypt, Indonesia, Libya, Norway, Philippines, Thailand, Trinidad & Tobago, and Vietnam.

Model Outputs

Summary Statistics and Cash Flows

Summary statistics for seven (7) oil and seven (7) gas scoping fields/wells. Detailed annual cash flows of project, investor/producer, and government revenues. Extensive audit tables detailing the calculation of key parameters and all fiscal calculations. Fiscal calculations include those for determining corporation taxable income; e.g., depreciation and loss carried forward, as well as those for complex fiscal systems such as Alberta’s oil and gas royalties, Newfoundland’s two-tier rate of return profit share, Alaska’s production tax, Egypt’s production sharing, and Libya’s production sharing participation. Parameter outputs include: net cash flow, net present value, rate of return, profit to investment ratio, payout time, cost savings index, maximum probability of failure, expected monetary value, risk performance index, and government share (with and without joint venture state participation). Sensitivity analysis results can be automatically generated for both oil and gas and for seven levels of price, volume, CapEx, and OpEx.

Charts

Charts are produced for all production profiles. For field/well #4 (normally the base case), charts cover CapEx and OpEx by category, cash flow illustrating project revenue, costs, government share, net cash flow, cumulative net cash flow, production start, and payout, the relationship between rate of return and government share, the degree of fiscal progressivity based on field size, volume, price, and costs, and the composition of government share by fiscal element.