Sample Cash Flow Model
Tax 30% Opex 10% of CAPEX
Discount rate 15.0% Price 40 $/bbl
DDA 5-Year SLD
Year Oil Oil Price Gross Intangible Tangible OPEX Depreciati Allowable Loss c/f Taxable Tax 30% NCF Cumm. NCF Payout
Production ($/bbl) Revenue CAPEX CAPEX ($MM) on ($MM) Deduction ($MM) Income ($MM) ($MM) ($MM) Period,
(mmbbls) ($MM) ($MM) ($MM) ($MM) ($MM) years
1 0 $ 40.00 0.00 150.00 0.00 150.00 (150.00) 0.00 0.0 (150.00) (150.00) 1.00
2 0 $ 40.00 0.00 100.00 0.00 100.00 (250.00) 0.00 0.0 (100.00) (250.00) 1.00
3 0.58 $ 40.00 23.12 200.00 70.00 40.00 110.00 (336.88) 0.00 0.0 (246.88) (496.88) 1.00
4 6.10 $ 40.00 244.00 150.00 70.00 70.00 140.00 (232.88) 0.00 0.0 24.00 (472.88) 1.00
5 9.42 $ 40.00 376.80 100.00 70.00 90.00 160.00 (16.08) 0.00 0.0 206.80 (266.08) 1.00
6 12.40 $ 40.00 496.00 70.00 90.00 160.00 0.00 319.92 96.0 330.02 63.94 0.81
7 10.85 $ 40.00 434.00 70.00 88.00 158.00 0.00 276.00 82.8 281.20 345.14 0.00
8 9.49 $ 40.00 379.76 70.00 48.50 118.50 0.00 261.26 78.4 231.38 576.53 0.00
9 8.31 $ 40.00 332.28 70.00 19.00 89.00 0.00 243.28 73.0 189.30 765.82 0.00
10 7.27 $ 40.00 290.76 70.00 0.00 70.00 0.00 220.76 66.2 154.53 920.35 0.00
11 6.36 $ 40.00 254.40 70.00 0.00 70.00 0.00 184.40 55.3 129.08 1,049.43 0.00
12 5.57 $ 40.00 222.60 70.00 0.00 70.00 0.00 152.60 45.8 106.82 1,156.25 0.00
13 4.87 $ 40.00 194.76 70.00 0.00 70.00 0.00 124.76 37.4 87.33 1,243.59 0.00
14 4.26 $ 40.00 170.44 70.00 0.00 70.00 0.00 100.44 30.1 70.31 1,313.89 0.00
15 3.73 $ 40.00 149.12 70.00 0.00 70.00 0.00 79.12 23.7 55.38 1,369.28 0.00
16 3.26 $ 40.00 130.48 70.00 0.00 70.00 0.00 60.48 18.1 42.34 1,411.61 0.00
17 2.85 $ 40.00 114.16 70.00 0.00 70.00 0.00 44.16 13.2 30.91 1,442.53 0.00
18 2.50 $ 40.00 99.92 70.00 0.00 70.00 0.00 29.92 9.0 20.94 1,463.47 0.00
19 2.19 $ 40.00 87.40 70.00 0.00 70.00 0.00 17.40 5.2 12.18 1,475.65 0.00
100 4,000 250 450 1,190 446 1,886 (986) 2,115 634 1,476 12,962 5.81
Profitability Indicator Depreciation (For Tax Calculation)
NPV 290.71 Year 3 200 40 40
IRR 26.85% Year 4 150 40 30 70
PVR 0.53 Year 5 100 40 30 20 90
CAPEX 700 Year 6 40 30 20 90
Model
Discountin DiscNCF Cumm. Disc. Disc.
g factor ($MM) Disc. NCF Payout CAPEX
($MM) Period, ($MM)
years
1.00 (150.00) (150.00) 1.00 150.00
0.87 (86.96) (236.96) 1.00 86.96
0.76 (186.68) (423.63) 1.00 151.23
0.66 15.78 (407.85) 1.00 98.63
0.57 118.24 (289.61) 1.00 57.18
0.50 164.08 (125.53) 1.00 0.00
0.43 121.57 (3.96) 1.00 0.00
0.38 86.99 83.02 0.05 0.00
0.33 61.88 144.90 0.00 0.00
0.28 43.93 188.83 0.00 0.00
0.25 31.91 220.74 0.00 0.00
0.21 22.96 243.70 0.00 0.00
0.19 16.32 260.02 0.00 0.00
0.16 11.43 271.45 0.00 0.00
0.14 7.83 279.27 0.00 0.00
0.12 5.20 284.48 0.00 0.00
0.11 3.30 287.78 0.00 0.00
0.09 1.95 289.73 0.00 0.00
0.08 0.98 290.71 0.00 0.00
290.71 7.05 544