Recent Study: Buzzard Field, United Kingdom, Commercial Asset Valuation and Forecast to 2027

Aug. 24, 2010 - PRLog -- The Buzzard field is located in the Moray Firth of the central North Sea that is around 100km north east of Aberdeen and 55km off the coast of Scotland in the UK. Buzzard is an offshore field which is at a depth of 317 feet with reservoirs at a subsurface depth of 2,375-2,800m. The operator of the field is Nexen Petroleum UK Limited which is a Canada-based energy company. Buzzard is one of the largest discoveries in the past decade in the UK and is capable of providing approximately 10% of the country's annual forecast oil demand.

The field is owned by four companies with Nexen Petroleum UK Limited holding the highest stake of 43.21%. The other partners include PetroCanada UK Limited, BG Group Plc and Edinburgh Oil and Gas Plc.

Buzzard is a large oilfield, with a small quantity of associated gas. The oil in field is light with an API ranging from 32deg to 34deg API (1.40% sulfur) and has a small quantities of wax and asphaltenes. The gas produced from the field is treated to strip out carbon-dioxide (CO2) and hydrogen sulphide (H2S).

Buzzard started production in 2007 and has produced around 194 million barrels of oil and around 15,063MMCF of gas in the last three years. The current production (2010) of the field is estimated to be approximately 64 million barrels of oil and 4015 MMCF of gas.

The life of the field is expected to be around 19-21 years with complete abandonment by 2027. The field is expected to generate $26.40 billion in revenues (undiscounted) during its remaining life (starting January 1, 2010) and is expected to yield an IRR of approximately 81.22%.

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

For more information or to purchase this report, go to:
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Partial Table of Contents:

1 Table of contents 2
1.1 List of Tables 3
1.2 List of Figures 3
2 Buzzard Field, United Kingdom, Introduction 4
3 Buzzard Field, United Kingdom, Geology and Formation 6
4 Buzzard Field, United Kingdom, Equity Partners 8
5 Buzzard Field, United Kingdom, Crude Oil and Natural Gas Reserves 9
6 Buzzard Field, United Kingdom, Key Fiscal Terms 10
6.1 Contract Type 10
6.2 Royalty 10
6.3 Bonuses 10
6.4 Rentals 10
6.5 Fees 10
6.6 Taxation 10
6.7 Petroleum Revenue Tax (PRT) 10
6.8 Deductions 10
6.9 Capital Allowance 11
6.10 Ring Fence 11
7 Buzzard Field, United Kingdom, Infrastructure 12
7.1 Upstream Infrastructure 12
7.1.1 Wells 12
7.1.2 Buzzard Platforms 12
7.1.3 Injections - SeaWater and Water 14
7.1.4 Primary Separation Processing Units 14
7.1.5 Gas Treatment Facilities 14
7.2 Midstream Infrastructure 14
7.2.1 Buzzard - Forties Pipeline System and Frigg Pipeline System 14
8 Buzzard Field, United Kingdom, Development Plan, Investment and Expenditure 16
8.1 Phase One (2001-2006) 16
8.2 Phase Two - Enhancement Project (2009 onwards) 16
9 Buzzard Field, United Kingdom, Crude Oil and Natural Gas Production 17
9.1 Buzzard Field, United Kingdom, Crude Oil Production 17
9.2 Buzzard Field, United Kingdom, Associated Natural Gas Production 18
10 Buzzard Field, United Kingdom, Field Economics 19
10.1 Buzzard Field, Economic Assumptions 19
10.1.1 Forecast Commodity Prices 19
10.1.2 Inflation 19
10.1.3 Discount Rate and Representation of Cash Flows 19
10.1.4 Sensitivity 19
10.1.5 Access to the Economic Model 19
10.2 Buzzard Field, Cash Flow Analysis 20
10.3 Buzzard Field, United Kingdom, Remaining PV Sensitivity Analysis 21
10.3.1 Remaining NPV Sensitivity to Discount Rates 21
10.3.2 Remaining NPV Sensitivity to Change in Commodity Prices and Production 22
10.3.3 Remaining NPV Sensitivity to Income Tax and Production Rate 23
11 Buzzard Field, United Kingdom, Summary Cash Flows 24
11.1 Buzzard Field, United Kingdom, Front End Load Due To Fiscal Policy 25
11.2 Buzzard Field, United Kingdom, Tax Liability 26
12 Appendix 27
12.1 Methodology 27
12.2 Coverage 27
12.3 Secondary Research 27
12.4 Primary Research 27
12.5 E&P Forecasts 28
12.6 Capital Costs 28
12.7 Exploration and Appraisal (E&A) Costs 29

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=7777...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.