New Market Report: Terra Nova, Newfoundland, Canada, Commercial Asset Valuation and Forecast to 2019

Aug. 24, 2010 - PRLog -- The Terra Nova field is positioned off the east coast of North America in the Jeanne d'Arc basin. The oilfield is located at 350 km east southeast of St. John's, Newfoundland and Labrador, Canada at a water depth of 94 meter. The Terra Nova Oilfield is the second largest oil field discovered on the Grand Banks off the Coast of Newfoundland, Canada. The field is comprised of three blocks named Graben, East Flank, and Far East.

Suncor Energy is the operator of the Terra Nova field, and holds 33.99% equity stake. The other equity partners are Exxon Mobil Canada Properties (22%), Husky Energy Operations Ltd. (12.51%), Statoil (15%), Murphy Oil Company Ltd. (12%), Mosbacher Operating Ltd (3.50%), and Chevron Canada Resources (1%). Earlier Petro Canada was the operator of this field. On August 1, 2009, Petro Canada merged with Suncor energy and retained Suncor as its corporate name. The Terra Nova field was discovered in 1984 and first oil production started since January 20, 2002. Terra Nova reached production rate of 125,000 barrels per day in just nine days of its initial production. In 2009, the field production was 29 million barrels.

Terra Nova field's reservoir contains sweet light crude oil with an average specific gravity of around 33.2deg API and 0.48% sulphur content. The field is estimated to contain total recoverable reserves of around 419 million barrels of crude oil. The capital expenditure for this project has been estimated as USUS$2.80 billion, and the operating cost has been estimated as USUS$1.90 billion.

The field life of Terra Nova is expected to be around 18 years with its complete abandonment around 2019. The field is expected to generate USUS$7.68 billion in revenues (undiscounted) during its remaining life (starting 1/1/2010) and is expected to yield an IRR of around 23.30%.

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 Terra Nova, Newfoundland, Canada, Introduction 4
3 Terra Nova, Newfoundland, Canada, Geology and Formations 6
4 Terra Nova, Newfoundland, Canada, Equity Details 8
5 Terra Nova, Newfoundland, Canada, Crude Oil Reserves 9
6 Newfoundland, Fiscal System 10
6.1 Contract Type 10
6.2 Royalty 10
6.3 Bonuses 12
6.4 Rentals 12
6.5 Fees 12
6.6 Taxation 12
7 Terra Nova, Newfoundland, Canada, Infrastructure 13
7.1 Upstream infrastructure 13
7.1.1 FPSO: 13
7.1.2 Subsea Well: 14
7.2 Midstream Infrastructure 14
8 Terra Nova, Newfoundland, Canada, Development Plan 15
9 Terra Nova, Newfoundland, Canada, Crude Oil Production 16
9.1 Full crude oil production forecasting for the field life from 2002-2019 16
10 Terra Nova, Newfoundland, Canada, Economics 17
10.1 Terra Nova, Economic Assumptions 17
10.1.1 Forecast Commodity Prices 17
10.1.2 Inflation 17
10.1.3 Discount Rate and Representation of Cash Flows 17
10.1.4 Sensitivity 17
10.1.5 Access to the Economic Model 17
10.2 Terra Nova, Newfoundland, Canada, Cash Flow Analysis 18
10.3 Terra Nova, Canada, 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 Income Tax and Production Rate 21
11 Terra Nova, Newfoundland, Canada, Summary Cash Flows 22
11.1 Terra Nova, Newfoundland, Canada, Front End Load Estimations 22
11.2 Terra Nova, Newfoundland, Canada, Tax Liability 24
12 Appendix 25
12.1 Methodology 25
12.2 Coverage 25
12.3 Secondary Research 25
12.4 Primary Research 25
12.5 E&P Forecasts 26
12.6 Capital Costs 26
12.7 Exploration and Appraisal (E&A) Costs 26
12.8 Operating Costs 27
12.9 Expert Panel Validation 27
12.10 About GlobalData
12.11 Contact Us
12.12 Disclaimer

1.1 List of Tables

Table 1: Terra Nova, Canada, Key Equity Partners 1
Table 2: Terra Nova Newfoundland, Canada, Key Asset Data, 2010 4
Table 3: Terra Nova, Newfoundland, Canada, Crude Oil Reserves, 2010 9
Table 4: Terra Nova Project, Oil and Gas Royalty Rate, Newfoundland, 2009 10

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.