Upstream Petroleum Economics using Excel

Venue: To Be Announced

Location: Calgary, Alberta, Canada

Event Date/Time: Jun 20, 2011 End Date/Time: Jun 21, 2011
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Description

Course Description
This hands-on course examines many of the traditional topics of engineering economics as applied to typical upstream oil and gas evaluations through introduction of concepts followed by illustrative Excel modeling exercises. The course also sets the stage for various ways to incorporate risk into our analyses and for analyzing uncertainty.

A complete set of course materials and lunch is included in this course.

*Participants will need to bring a PC laptop with Microsoft Excel to each day of this course*

Course Outline
DAY 1

Principles of Petroleum Economic Analysis

Overview − Basic Principles for Economic Analysis
Ingredients for an Economic Evaluation - Objectives and recurring themes; generating a cash flow forecast, time value of money, understanding the analysis scope and purpose, project viability.
Economic Analysis Procedure − How to start, what to consider, where to go to get the appropriate information and estimates as inputs.
Developing a Cash Flow Prediction − Investments (such as capital expenditures and operating expenses), revenue (from selling production at a price), timing issues.
Time Value of Money – Defining and understanding the role of discount rate, investigate the effects of varying discount rate.
Economic Metrics – Net present value (NPV), internal rate of return, payout, profit to investment measures, finding and development costs, and other appropriate metrics.
Fiscal Regime (Tax – Royalty)
Examples and Exercises Interspersed Throughout the Day

DAY 2

Petroleum Economics – Applications

Multiple Potential Investments − Ranking projects, considerations of constraints and business objectives, formulating fair-comparison models.
Multiple Potential Investments − Portfolio considerations and complexities.
Probability of Success – Geologic, mechanical, commercial – how to incorporate them in our models.
Incorporating Risk Factors − Chance of success, qualitative risk, how risk affects ranking projects, how risk affects portfolios.
Correlation and Dependency − Recognizing dependency or correlation among ventures, projects, or wells, and why we must consider this in our business economics.
Beyond Deterministic Economics – An introduction to stochastic (probabilistic) economics and the rational for applying this methodology.
Examples and Exercises Interspersed Throughout the Day
Final Comprehensive Exercise - Valuation Case Study

Venue

Additional Information

Instructor: Susan K. Peterson Dates: June 20-21, 2011 Location: Calgary, AB Price: $1695 CAD [b]For More Information or to Register:[/b] http://www.progress-seminars.com/seminar/141/upstream-petroleum-economics-using-excel/jun-20-11/