1) A recent acquisition has the following published data.
TUO&GCO recently acquired the producing assets from Hard Times Exploration for $25.6 million. Reported proved developed reserves for the transaction were 1.5MMBO, 4.2 BCF, and 300 MBNGL’s. Current net production for the transaction was 384 BOPD and 1.5 MMCFD of gas. TUO&GCO also commented in their press conference that the transaction included an additional 1.0MMBOE of proved undeveloped reserves.
Calculate the following reserve and production rate based transaction metrics:
a) $/BOE, Developed and 1P
b) $/MCFE, Developed and 1P
c) $/BOEPD
d) $/MCFD
e) Estimate of R/P, the reserve Life Index.
f) Developed Reserve % of Proved Reserves
g) Developed to Undeveloped Reserve Ratio
2) Explain the expected impact on the 2 stream metrics in c,d,e above if 3 stream volumes were provided.
3) If the TUO&GCO transaction had a 7X CF multiple what would you estimate the yearly cash flow for the assets to be?
4) If you presented the above information to the owner of your company and the owner commented that the 7X multiple was likely higher now, would you believe the reported multiple was based on trailing twelve month cash flow or estimated future cash flow (assuming all things except production rates were consistent)?
5) A reservoir in south Louisiana has an EUR of 4.2MMBO and a volume based originally estimated oil in place of 50 MMBO. What is the estimated drive type for this reservoir and why?
6) A well is evaluated and determined to be producing on an exponential decline. Its Initial Rate was 100 BOPD and after 1 year it was producing at 82 BOPD.
a. Complete the following table:
Time (Years) BOPD
0 100
1 82
2
3
4
5
6

b. What is the effective decline %
c. Calculate the nominal decline %
d. Cumulative production for year 1
e. EUR, assuming the economic limit is 5 BOPD.

1) A recent acquisition has the following published data. TUO&amp;...

1) A recent acquisition has the following published data. TUO&...