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it is on the excel page!#1 	Student:	________________________________________________________								10/2/20 	Exam:	Mid-Term 	Problem:	1 	1.You have an opportunity to buy some producing wells.  The property produces 20 BOPD. Your analysis shows that it will produce flat like this for 5 years before it waters out. You expect oil to be $40/BBL forever. Once it waters out it will cost $30K to plug and abandon the well. The well costs $3500/mo to operate. You contact a bunch of investment bankers, do some market research, determine that the appropriate risk rate is 15%.                                                                                       What is the value of the deal? 	BOPD	20 	Expected Life (years) 	5 	Expected price/BBL	$40 	Abandonment Cost	$30,000 	Monthly operating costs	$3,500 	PV (discount rate)	15 #2 		Student:	____________________________________________________										10/2/20 		Exam:	Mid-Term 		Problem:	2 		To drill or not to drill.  Calculate the NPV and breakeven gas price and make a determination whether or not to drill the gas well based on the expected cash flows listed. 		Initial Production, mcf/d			20,150.0 		Days in Month			30.0		NPV 		Well Cost			$4,500,000		Breakeven Gas Price 		Gas Price ($/mcf)			$2.49 		OpEx ($/mcf)			$1.50 		Tax Rate			21% 		Discount Rate			15% 				Prod.	Effective	Prod.	Gas		OpEx		Pretax		Cash 		Date	Month	mcf/d	Decline	mcf/mo	Price	Revenues	$/mcf	Expenses	Profit	Taxes	Flows 		12/31/20	0.0			0.0 		1/31/21	1.0		(30.0%) 		2/28/21	2.0		(21.5%) 		3/31/21	3.0		(16.7%) 		4/30/21	4.0		(13.7%) 		5/31/21	5.0		(11.6%) 		6/30/21	6.0		(10.0%) 		7/31/21	7.0		(8.8%) 		8/31/21	8.0		(7.9%) 		9/30/21	9.0		(7.2%) 		10/31/21	10.0		(6.5%) 		11/30/21	11.0		(6.0%) 		12/31/21	12.0		(5.6%) 		1/31/22	13.0		(5.2%) 		2/28/22	14.0		(4.9%) 		3/31/22	15.0		(4.6%) 		4/30/22	16.0		(4.3%) 		5/31/22	17.0		(4.1%) 		6/30/22	18.0		(3.9%) 		7/31/22	19.0		(3.7%) 		8/31/22	20.0		(3.5%) 		9/30/22	21.0		(3.3%) 		10/31/22	22.0		(3.2%) 		11/30/22	23.0		(3.1%) 		12/31/22	24.0		(2.9%) 		1/31/23	25.0		(2.8%) 		2/28/23	26.0		(2.7%) 		3/31/23	27.0		(2.6%) 		4/30/23	28.0		(2.5%) 		5/31/23	29.0		(2.5%) 		6/30/23	30.0		(2.4%) 		7/31/23	31.0		(2.3%) 		8/31/23	32.0		(2.2%) 		9/30/23	33.0		(2.2%) 		10/31/23	34.0		(2.1%) 		11/30/23	35.0		(2.1%) 		12/31/23	36.0		(2.0%) 		1/31/24	37.0		(2.0%) 		2/29/24	38.0		(1.9%) 		3/31/24	39.0		(1.9%) 		4/30/24	40.0		(1.8%) 		5/31/24	41.0		(1.8%) 		6/30/24	42.0		(1.7%) 		7/31/24	43.0		(1.7%) 		8/31/24	44.0		(1.7%) 		9/30/24	45.0		(1.6%) 		10/31/24	46.0		(1.6%) 		11/30/24	47.0		(1.6%) 		12/31/24	48.0		(1.5%) 		1/31/25	49.0		(1.5%) 		2/28/25	50.0		(1.5%) 		3/31/25	51.0		(1.4%) 		4/30/25	52.0		(1.4%) 		5/31/25	53.0		(1.4%) 		6/30/25	54.0		(1.4%) 		7/31/25	55.0		(1.3%) 		8/31/25	56.0		(1.3%) 		9/30/25	57.0		(1.3%) 		10/31/25	58.0		(1.3%) 		11/30/25	59.0		(1.2%) 		12/31/25	60.0		(1.2%) 		1/31/26	61.0		(1.2%) 		2/28/26	62.0		(1.2%) 		3/31/26	63.0		(1.2%) 		4/30/26	64.0		(1.1%) 		5/31/26	65.0		(1.1%) 		6/30/26	66.0		(1.1%) 		7/31/26	67.0		(1.1%) 		8/31/26	68.0		(1.1%) 		9/30/26	69.0		(1.1%) 		10/31/26	70.0		(1.1%) 		11/30/26	71.0		(1.0%) 		12/31/26	72.0		(1.0%) 		1/31/27	73.0		(1.0%) 		2/28/27	74.0		(1.0%) 		3/31/27	75.0		(1.0%) 		4/30/27	76.0		(1.0%) 		5/31/27	77.0		(1.0%) 		6/30/27	78.0		(0.9%) 		7/31/27	79.0		(0.9%) 		8/31/27	80.0		(0.9%) 		9/30/27	81.0		(0.9%) 		10/31/27	82.0		(0.9%) 		11/30/27	83.0		(0.9%) 		12/31/27	84.0		(0.9%) 		1/31/28	85.0		(0.9%) 		2/29/28	86.0		(0.9%) 		3/31/28	87.0		(0.8%) 		4/30/28	88.0		(0.8%) 		5/31/28	89.0		(0.8%) 		6/30/28	90.0		(0.8%) 		7/31/28	91.0		(0.8%) 		8/31/28	92.0		(0.8%) 		9/30/28	93.0		(0.8%) 		10/31/28	94.0		(0.8%) 		11/30/28	95.0		(0.8%) 		12/31/28	96.0		(0.8%) 		1/31/29	97.0		(0.8%) 		2/28/29	98.0		(0.8%) 		3/31/29	99.0		(0.7%) 		4/30/29	100.0		(0.7%) 		5/31/29	101.0		(0.7%) 		6/30/29	102.0		(0.7%) 		7/31/29	103.0		(0.7%) 		8/31/29	104.0		(0.7%) 		9/30/29	105.0		(0.7%) 		10/31/29	106.0		(0.7%) 		11/30/29	107.0		(0.7%) 		12/31/29	108.0		(0.7%) 		1/31/30	109.0		(0.7%) 		2/28/30	110.0		(0.7%) 		3/31/30	111.0		(0.7%) 		4/30/30	112.0		(0.7%) 		5/31/30	113.0		(0.7%) 		6/30/30	114.0		(0.7%) 		7/31/30	115.0		(0.6%) 		8/31/30	116.0		(0.6%) 		9/30/30	117.0		(0.6%) 		10/31/30	118.0		(0.6%) 		11/30/30	119.0		(0.6%) 		12/31/30	120.0		(0.6%) 		1/31/31	121.0		(0.6%) 		2/28/31	122.0		(0.6%) 		3/31/31	123.0		(0.6%) 		4/30/31	124.0		(0.6%) 		5/31/31	125.0		(0.6%) 		6/30/31	126.0		(0.6%) 		7/31/31	127.0		(0.6%) 		8/31/31	128.0		(0.6%) 		9/30/31	129.0		(0.6%) 		10/31/31	130.0		(0.6%) 		11/30/31	131.0		(0.6%) 		12/31/31	132.0		(0.6%) 		1/31/32	133.0		(0.6%) 		2/29/32	134.0		(0.6%) 		3/31/32	135.0		(0.6%) 		4/30/32	136.0		(0.5%) 		5/31/32	137.0		(0.5%) 		6/30/32	138.0		(0.5%) 		7/31/32	139.0		(0.5%) 		8/31/32	140.0		(0.5%) 		9/30/32	141.0		(0.5%) 		10/31/32	142.0		(0.5%) 		11/30/32	143.0		(0.5%) 		12/31/32	144.0		(0.5%) 		1/31/33	145.0		(0.5%) 		2/28/33	146.0		(0.5%) 		3/31/33	147.0		(0.5%) 		4/30/33	148.0		(0.5%) 		5/31/33	149.0		(0.5%) 		6/30/33	150.0		(0.5%) 		7/31/33	151.0		(0.5%) 		8/31/33	152.0		(0.5%) 		9/30/33	153.0		(0.5%) 		10/31/33	154.0		(0.5%) 		11/30/33	155.0		(0.5%) 		12/31/33	156.0		(0.5%) 		1/31/34	157.0		(0.5%) 		2/28/34	158.0		(0.5%) 		3/31/34	159.0		(0.5%) 		4/30/34	160.0		(0.5%) 		5/31/34	161.0		(0.5%) 		6/30/34	162.0		(0.5%) 		7/31/34	163.0		(0.5%) 		8/31/34	164.0		(0.5%) 		9/30/34	165.0		(0.5%) 		10/31/34	166.0		(0.4%) 		11/30/34	167.0		(0.4%) 		12/31/34	168.0		(0.4%) 		1/31/35	169.0		(0.4%) 		2/28/35	170.0		(0.4%) 		3/31/35	171.0		(0.4%) 		4/30/35	172.0		(0.4%) 		5/31/35	173.0		(0.4%) 		6/30/35	174.0		(0.4%) 		7/31/35	175.0		(0.4%) 		8/31/35	176.0		(0.4%) 		9/30/35	177.0		(0.4%) 		10/31/35	178.0		(0.4%) 		11/30/35	179.0		(0.4%) 		12/31/35	180.0		(0.4%) 		1/31/36	181.0		(0.4%) 		2/29/36	182.0		(0.4%) 		3/31/36	183.0		(0.4%) 		4/30/36	184.0		(0.4%) 		5/31/36	185.0		(0.4%) 		6/30/36	186.0		(0.4%) 		7/31/36	187.0		(0.4%) 		8/31/36	188.0		(0.4%) 		9/30/36	189.0		(0.4%) 		10/31/36	190.0		(0.4%) 		11/30/36	191.0		(0.4%) 		12/31/36	192.0		(0.4%) 		1/31/37	193.0		(0.4%) 		2/28/37	194.0		(0.4%) 		3/31/37	195.0		(0.4%) 		4/30/37	196.0		(0.4%) 		5/31/37	197.0		(0.4%) 		6/30/37	198.0		(0.4%) 		7/31/37	199.0		(0.4%) 		8/31/37	200.0		(0.4%) 		9/30/37	201.0		(0.4%) 		10/31/37	202.0		(0.4%) 		11/30/37	203.0		(0.4%) 		12/31/37	204.0		(0.4%) 		1/31/38	205.0		(0.4%) 		2/28/38	206.0		(0.4%) 		3/31/38	207.0		(0.4%) 		4/30/38	208.0		(0.4%) 		5/31/38	209.0		(0.4%) 		6/30/38	210.0		(0.4%) 		7/31/38	211.0		(0.4%) 		8/31/38	212.0		(0.4%) 		9/30/38	213.0		(0.4%) 		10/31/38	214.0		(0.3%) 		11/30/38	215.0		(0.3%) 		12/31/38	216.0		(0.3%) 		1/31/39	217.0		(0.3%) 		2/28/39	218.0		(0.3%) 		3/31/39	219.0		(0.3%) 		4/30/39	220.0		(0.3%) 		5/31/39	221.0		(0.3%) 		6/30/39	222.0		(0.3%) 		7/31/39	223.0		(0.3%) 		8/31/39	224.0		(0.3%) 		9/30/39	225.0		(0.3%) 		10/31/39	226.0		(0.3%) 		11/30/39	227.0		(0.3%) 		12/31/39	228.0		(0.3%) 		1/31/40	229.0		(0.3%) 		2/29/40	230.0		(0.3%) 		3/31/40	231.0		(0.3%) 		4/30/40	232.0		(0.3%) 		5/31/40	233.0		(0.3%) 		6/30/40	234.0		(0.3%) 		7/31/40	235.0		(0.3%) 		8/31/40	236.0		(0.3%) 		9/30/40	237.0		(0.3%) 		10/31/40	238.0		(0.3%) 		11/30/40	239.0		(0.3%) 		12/31/40	240.0		(0.3%) 		1/31/41	241.0		(0.3%) 		2/28/41	242.0		(0.3%) 		3/31/41	243.0		(0.3%) 		4/30/41	244.0		(0.3%) 		5/31/41	245.0		(0.3%) 		6/30/41	246.0		(0.3%) 		7/31/41	247.0		(0.3%) 		8/31/41	248.0		(0.3%) 		9/30/41	249.0		(0.3%) 		10/31/41	250.0		(0.3%) 		11/30/41	251.0		(0.3%) 		12/31/41	252.0		(0.3%) 		1/31/42	253.0		(0.3%) 		2/28/42	254.0		(0.3%) 		3/31/42	255.0		(0.3%) 		4/30/42	256.0		(0.3%) 		5/31/42	257.0		(0.3%) 		6/30/42	258.0		(0.3%) 		7/31/42	259.0		(0.3%) 		8/31/42	260.0		(0.3%) 		9/30/42	261.0		(0.3%) 		10/31/42	262.0		(0.3%) 		11/30/42	263.0		(0.3%) 		12/31/42	264.0		(0.3%) 		1/31/43	265.0		(0.3%) 		2/28/43	266.0		(0.3%) 		3/31/43	267.0		(0.3%) 		4/30/43	268.0		(0.3%) 		5/31/43	269.0		(0.3%) 		6/30/43	270.0		(0.3%) 		7/31/43	271.0		(0.3%) 		8/31/43	272.0		(0.3%) 		9/30/43	273.0		(0.3%) 		10/31/43	274.0		(0.3%) 		11/30/43	275.0		(0.3%) 		12/31/43	276.0		(0.3%) 		1/31/44	277.0		(0.3%) 		2/29/44	278.0		(0.3%) 		3/31/44	279.0		(0.3%) 		4/30/44	280.0		(0.3%) 		5/31/44	281.0		(0.3%) 		6/30/44	282.0		(0.3%) 		7/31/44	283.0		(0.3%) 		8/31/44	284.0		(0.3%) 		9/30/44	285.0		(0.3%) 		10/31/44	286.0		(0.3%) 		11/30/44	287.0		(0.3%) 		12/31/44	288.0		(0.3%) 		1/31/45	289.0		(0.3%) 		2/28/45	290.0		(0.3%) 		3/31/45	291.0		(0.3%) 		4/30/45	292.0		(0.3%) 		5/31/45	293.0		(0.3%) 		6/30/45	294.0		(0.3%) 		7/31/45	295.0		(0.3%) 		8/31/45	296.0		(0.3%) 		9/30/45	297.0		(0.3%) 		10/31/45	298.0		(0.3%) 		11/30/45	299.0		(0.3%) 		12/31/45	300.0		(0.2%) #3 	Student:	____________________________________________________										10/2/20 	Exam:	Mid-Term 	Problem:	2 	Student:	____________________________________________________										10/2/20 	Exam:	Mid-Term 	Problem:	3 	2020 year production, mm bbl 	 robert.forrester: robert.forrester: Hint: use Goal Seek.  Then, set cell B31 to 86 by changing cell A12.  I have taken the liberty of entering the formulas into B21:31.

#1 Student:________________________________________________________ 10/2/20 Exam:Mid-Term Problem:1 1.You have an opportunity to buy some producing wells. The property produces 20 BOPD. Your...

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