Brage, Norway, Commercial Asset Valuation and Forecast to 2015

http://www.reportsandreports.com/market-reports/brage-norway-commercial-asset-valuation-and-forecast-to-2015/ 

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Norway Market Research 

Brage Field is located in the northern North Sea in Norway. Brage is an oil field which lies approximately 13 kilometers to the east of Oseberg. The field reservoir is at an average depth of 140 meters below the seabed. The field is located in the block 31/4, extending into 31/7 and 30/6.

Statoil ASA is the operator of the field with 32.70% equity stake. The other equity partners of the field are Petoro A/S, Altinex ASA, Talisman Energy Inc., VNG Norge AS and Spring Energy Norway AS. Brage was discovered in 1980. The field was discovered in the well 31/4-3. The basic engineering activities began in 1990. The field came operational in 1993. Brage is expected to hold recoverable reserves of 56.6 million standard cubic meters of oil, 3.7 standard billion cubic meters of gas and 1.2 million tons of NGL as on December 2009.

Brage field produces crude oil and natural gas. The crude is of 33.70 degrees API and 0.37% of sulphur. The field produced about 10.55 million barrels of oil, 4,668.57 million cubic feet of gas and 6.764.58 barrels of equivalent of NGL in 2009.

The field life of Brage is expected to be around 23 years with complete estimated abandonment during 2014-2015. The field is expected to generate $4.09 billion in revenue (undiscounted) during 2010-2015 and is expected to yield an IRR of around 11.06%.

Scope

• The report provides detailed information on oil and gas production, infrastructure, reserves, geology, operator and equity partners and the latest fiscal terms applicable to the asset and provides its fair value (Remaining Net Present Value) based on remaining reserves, forecast production, capital and operational costs, fiscal regime and commodity prices.
• The report also provides additional valuation parameters like Internal Rate of Return (IRR), Profitability Index (PI), Pay Back (discounted and undiscounted), Entitlement Production (EP) and Working Interest (WI) to enhance your decision making process.
• This report provides detailed sensitivity analysis of the remaining NPV with changes in the commodity prices, discount rate, production and key fiscal terms.
• Detailed cash flows over the life of the asset are included in the report. These cash flows cover a wide range of calculations related to various payments to the government/licensing authority.
• Interactive Excel models can be used to derive custom valuations, sensitivities and cash flows based on the specific inputs by the user in the model. These custom inputs vary from production data, cost information, price information and fiscal terms information.

Reasons to buy

• Make well informed investment decisions based on detailed operational analysis and cash flow forecasts
• Estimate the fair value of your future investment under different economic and fiscal conditions
• Value a prospective investment target through a comprehensive analysis using focused forecasting and valuation methodologies.
• Supporting interactive excel model will enhance your decision making capability in a more rapid and time sensitive manner
• Evaluate how the changes in the country’s fiscal policies impact the cash flows and the present value of the asset

1 Table of Contents 3

1.1 List of Tables 4
1.2 List of Figures 4

2 Brage, Norway, Introduction 5

3 Brage, Norway, Geology and Formation 6

4 Brage, Norway, Equity Partners 8

5 Brage, Norway, Crude Oil Reserves 9

6 Brage, Norway, Key Fiscal Terms 9
6.1 Royalty 9
6.2 Fees 9
6.3 Special Petroleum Tax 9
6.4 Taxation 9
6.5 Carbon Dioxide Tax 10
6.6 Deductions and Depreciation 10

7 Brage, Norway, Infrastructure 10
7.1 Upstream Infrastructure 10
7.1.1 Wells 10
7.1.2 Platform 11
7.2 Midstream Infrastructure 11

8 Brage, Norway, Development Plan 11

9 Brage, Norway, Crude Oil, Natural Gas and NGL Production 11

10 Brage, Norway, Field Economics 15
10.1 Brage, Norway, Economic Assumptions 15
10.1.1 Forecast Commodity Prices 15
10.1.2 Inflation 15
10.1.3 Discount Rate and Representation of Cash Flows 15
10.1.4 Sensitivity 15
10.1.5 Access to the Economic Model 15
10.2 Brage, Norway, Cash Flow Analysis 16
10.3 Brage, Norway, Remaining PV Sensitivity Analysis 17
10.3.1 Remaining NPV Sensitivity to Discount Rates 17
10.3.2 Remaining NPV Sensitivity to Change in Commodity Prices and Production 18
10.3.3 Remaining NPV Sensitivity to Income Tax and Production Rate 19

11 Brage, Norway, Summary Cash Flows 20
11.1 Brage, Norway, Front End Load Due To Fiscal Policy 21
11.2 Brage, Norway, Tax Liability 22

12 Appendix 23
12.1 Methodology 23
12.2 Coverage 23
12.3 Secondary Research 23
12.4 Primary Research 23
12.5 Capital Costs 24
12.6 Exploration and Appraisal (E&A) Costs 24
12.7 Operating Costs 24
12.8 Expert Panel Validation 24
12.9 About GlobalData
12.10 Contact Us
12.11 Disclaimer

1.1 List of Tables
Table 1: Brage, Norway, Key Asset Data, 2010 5
Table 2: Brage, Norway, Current Equity Details, 2010 8
Table 3: Brage, Norway, Field Reserves, January 2010 9
Table 4: Brage, Norway, Crude Oil, Natural Gas and NGL Production, 1993-2015 14
Table 5: Brage, Norway, Commodity Price Assumptions, 1993-2015 15
Table 6: Brage, Norway, Project Analysis Metrics, 2010 16
Table 7: Brage, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in Million Dollars 17
Table 8: Brage, Norway, Remaining PV Sensitivity Analysis Over Change in Production Vs. Commodity Price Change, in Million Dollars 18
Table 9: Brage, Norway, Remaining PV Sensitivity Analysis at 10% Discount Rate over Income Tax Change Vs Production Rate, in Million Dollars 19
Table 10: Brage, Norway, Asset Summary Cash Flows, Thousand USD, 2001-2015 20
Table 11: Brage, Norway, Front End Load, Thousand USD, 2001-2015 21
Table 12: Brage, Norway, Tax Liability Estimations, Thousands USD, 2004-2029 22

1.2 List of Figures

Figure 1: Brage, Norway, Location Map 6
Figure 2: Brage, Norway, Geological Formation of the Brage Field 7
Figure 3: Brage, Norway, Current Equity Details, 2010 8
Figure 4: Brage, Norway, Installations at the Brage Field 10
Figure 5: Brage, Norway, Crude Oil Historic Production and Forecast, 1993-2015 11
Figure 6: Brage, Norway, Natural Gas Historic Production and Forecast, 1993-2015 12
Figure 7: Brage, Norway, NGL Historic Production and Forecast, 1993-2015 14
Figure 8: Brage, Norway, Gross Revenue Versus Tax Cash Flow Analysis, 1993-2015 16
Figure 9: Brage, Norway, Remaining PV Sensitivity Analysis Over Discount Rate Vs. Commodity Price Change, in Million Dollars 17
Figure 10: Brage, Norway, Remaining PV Sensitivity Analysis Over Change in Production Vs. Commodity Price Change, in Million Dollars 18
Figure 11: Brage, Norway, Remaining PV Sensitivity Analysis at 10% Discount Rate over Income Tax Change Vs Production Rate, in Million Dollars 19