Welcome To The Questerre Energy HUB On AGORACOM (Edit this message through the "fast facts" section)
| Quebec Lowlands Economics |
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| Questerre NPV model shown in Corporate Presentations |
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| First Production (year) |
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2011 |
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| First year average rate (cf/d) |
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2,975,000 |
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Initial 30 Day Rate (mcf/e) |
5,000,000 |
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| Reserves (cf) |
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n/a |
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First year decline |
0.81 |
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| Operating costs (mcf) |
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1.00 |
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| Royalty Rate |
0.13 |
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0.10 |
0.10 |
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| Tax Rate |
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0.35 |
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| Price per mcf |
(3.55 + 0.5) -> 4.05(US) -> 4.05 (CDN) |
4.05 |
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| Capital Cost of one well plus pipeline costs) |
10,000,000 |
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2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
| First year average rate (cf/d) |
2,975,000 |
1,770,125 |
1,053,224 |
626,669 |
372,868 |
221,856 |
132,005 |
78,543 |
46,733 |
| Gas Revenue |
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4,397,794 |
2,616,687 |
1,556,929 |
926,373 |
551,192 |
327,959 |
195,136 |
116,106 |
69,083 |
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| Operating Costs |
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1,085,875 |
646,096 |
384,427 |
228,734 |
136,097 |
80,978 |
48,182 |
28,668 |
17,058 |
| Royalty |
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439,779 |
261,669 |
155,693 |
92,637 |
55,119 |
32,796 |
19,514 |
11,611 |
6,908 |
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| Income Before Tax |
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2,872,139 |
1,708,923 |
1,016,809 |
605,001 |
359,976 |
214,186 |
127,440 |
75,827 |
45,117 |
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| Income Tax |
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0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
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| Cash Flow |
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2,872,139 |
1,708,923 |
1,016,809 |
605,001 |
359,976 |
214,186 |
127,440 |
75,827 |
45,117 |
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| NPV(10) after tax |
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-2,215,332 |
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| NPV(10) is the net value of the gas flows after Income Tax (minus the cost of the well) |
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| The first average rate (cf/d) is calculated (5,000,000 (initial 30 Day Rate) + 950,000 (end rate) / 2 = 2,975,000 |
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| No IRR was calculated since NPV is negative. |
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| NPV is negative which means well should not be drilled until gas prices increase and the capital cost of each well decreases. |
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| I believe that Forest Oil decreased their capital cost in a Canadian project from 10 million to about 4 milllion |
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| after 10 wells. |
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