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E-36
VOLUMf'
Chapter XII
VALUATION OF OIL AND GAS RESERVES AT THE WIPP SITE,
ADDITIONAL AREA, AND COMBINED AREA
by
Peter C. Anselmo
TABLE OF CO>TENTS
SUMMARY
RESULTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
XII-I
XII-I
SIMULATION METHOD _ _ XII-3
Market Prices _ _ . . . . . . . . . . . . . . . . . . . . . . . .. XII-4
Capital and Operating Costs __ . . . . . . . . . . .. XII-5
Taxes and Royalties
XII-5
Discount Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. XII-6
REFERENCES
XII-6
FIGURES
Figure I. Combined Area Oil Revenues E(PV) . . . . . . . . . . . . . . . .. XII-8
Figure 2. Combined Area Gas Revenues E(PV) . . . . . . . . . . . . . . . .. XII-9
Figure 3. Combined Area Oil Revenues E(PV) _ XII-lO
Figure 4. Combined Area Gas Revenues E(PV)
XII-l1
Figure 5. Combined Area Oil Cash Flow E(NPV)
XII-12
Figure 6. Combined Area Gas Cash Flow E(NPV)
XlI-13
Figure 7. Combined Area Oil Cash Flow E(NPV)
XII-14
Figure 8. Combined Are" Gas Cash Flow E(NPV)
XII-15
TABLES
Table 1. Oil Simulation Example .
............... XlI-17
Table 2 Present Values of taxes and royalties on oil production at a 15% Discount
Rate
XlI-17
Table 3 Present Values of taxes and royalties on gas production at a 5 % Discount
Rate
XlI-17
Table 4. Expected Net Present Values for oil and gas at a discount rate
of 15% . XII-17
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