New Market Report: Wytch Farm, United Kingdom, Commercial Asset Valuation and Forecast to 2022

Aug. 27, 2010 - PRLog -- Wytch Farm located in Dorset, UK is the largest onshore oil field in Western Europe. The field lies in the Wessex basin, around 27km from Poole and 10km from Wareham. The field was discovered in December 1973 and came into production in 1979.

Wytch Farm oil field consists of three separate oil reservoirs, Bripdport, Sherwood and Frome. Bridport reservoir lies 900m below the surface. Below it there is Sherwood Reservoir at a depth of 1,600m, extending eastwards under Poole Bay. The Frome reservoir lies in clay/limestone at 750m. Approximately 90% of the reserves lie in the Sherwood Reservoir.

The field is operated by BP and it also holds maximum interest in the field with 67.81% stake. The other equity stakeholders are Talisman North Sea Limited, Maersk Oil North Sea UK Limited, Summit Petroleum Dorset, and Premier Oil Exploration Limited.

The oil is of light sweet quality with 37 to 38 deg API and sulfur content of 0.2 to 0.3%. So it will fetch similar price to benchmark Brent Crude.

The field has total estimated recoverable reserves of 500 million barrels of crude oil. It touched its peak production in 1996 with a total production of 36.6 million barrels of oil. Estimated life of the field is around 44 years and it is expected to produce until 2022.  

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 4
1.2 List of Figures 4
2 Wytch Farm, United Kingdom, Introduction 5
3 Wytch Farm, United Kingdom, Geology and Formation 6
4 Wytch Farm, United Kingdom, Equity Partners 7
5 Wytch Farm, United Kingdom, Crude Oil Reserves 8
6 Wytch Farm, United Kindom, Key Fiscal Terms 9
6.1 Royalty 9
6.2 Bonuses 9
6.3 Rentals 9
6.4 Fees 9
6.5 Taxation 9
6.6 Petroleum Revenue Tax (PRT) 9
6.7 Deductions 10
6.8 Capital Allowance 10
6.9 Withholding Tax 10
6.10 Ring Fence 10
7 Wytch Farm, United Kingdom, Infrastructure 11
7.1 Upstream Infrastructure 11
7.2 Midstream Infrastructure 12
8 Wytch Farm, United Kingdom, Development Plan 12
8.1 Stage 1 12
8.2 Stage 2 12
8.3 Stage 3 13
8.4 Infield Drilling Program 13
9 Wytch Farm, United Kingdom, Crude Oil and Associated Gas Production 14
10 Wytch Farm, United Kingdom, Field Economics 16
10.1 Wytch Farm, Economic Assumptions 16
10.1.1 Forecast Commodity Prices 16
10.1.2 Inflation 16
10.1.3 Discount Rate and Representation of Cash Flows 16
10.1.4 Sensitivity 16
10.1.5 Access to the Economic Model 17
10.2 Wytch Farm, Cash Flow Analysis 17
10.3 Wytch Farm, United Kingdom, Remaining PV Sensitivity Analysis 19
10.3.1 Remaining NPV Sensitivity to Discount Rates 19
10.3.2 Remaining NPV Sensitivity to Change in Commodity Prices and Production 20
10.3.3 Remaining NPV Sensitivity to Petroleum Revenue Tax and Production Rate 21
11 Wytch Farm, United Kingdom, Summary Cash Flows 22
11.1 Wytch Farm, United Kingdom, Front End Load Due To Fiscal Policy 23
11.2 Wytch Farm, United Kingdom, Tax Liability 25
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 28
12.8 Operating Costs 29
12.9 Expert Panel Validation 29
12.10 About GlobalData
12.11 Contact Us
12.12 Disclaimer

1.1 List of Tables

Table 1: Wytch Farm, United Kingdom, Key Asset Data, 2010 5
Table 2: Wytch Farm, United Kingdom, Field Reserves, January 2010 8
Table 3: Wytch Farm, United Kingdom, Historic and Forecast Production, 1979-2022 15

Full Table of Contents is available at:
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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.