Now Available: Elgin Unit, United Kingdom, Commercial Asset Valuation and Forecast to 2030

Aug. 30, 2010 - PRLog -- The Elgin Unit comprises the Elgin field and the Glenelg satellite field. The Elgin field is an offshore gas field located in the block 29/5b in the south Central Graben area in the UK sector of the North-Sea. It is located 240 kilometers east of Aberdeen, the coastal city in the United Kingdom, in 93 meters deep water. Elf Exploration UK Ltd. is the operator of the unit. The Elgin field was discovered in January 1991 and is one of the two world's largest high pressure-high temperature (HP/HT) fields. The Elgin unit produces natural gas and condensate from its two reservoirs Fulmar and Pentland in the block.      

E. F. Oil and Gas Ltd. is the major equity holder in the Elgin field with 46.173%. E. F. Oil and Gas Ltd. is a company owned by Elf Exploration UK Ltd. and Gaz de France. The other partners include Eni Elgin/Franklin Ltd., BG International (CNS) Ltd., Ruhrgas UK Exploration and Production Ltd., Esso Exploration and Production UK Ltd., Texaco Britain Ltd., Dyas UK Ltd. and Sumitomo Corporation, Japan.

In March 1999, a satellite field by the name of Glenelg was discovered using a deviated well from Elgin. It is located in the block 29/4d and 29/5b, four kilometers west of the Elgin WHP in 93 meters water. It was developed via the Elgin-Franklin facility. It started producing from March 2006 and was commingled with the existing Elgin production.

Both Elgin and Glenelg produce natural gas with condensate. The API gravity of the condensate is 44.06th API with sulfur content of less than 0.1%.

The Elgin Unit produced an overall 53.4 billion cubic feet (Bcf) of natural gas and 16.9 million barrels (Mmbbls) of condensate during 2009. The owners of the unit are expecting to reach the peak production for the satellite unit within next two years.

The life of Elgin Unit was estimated to be around 20 years with complete abandonment during 2022. However, with the addition of the Glenelg reserves, the unit is supposed to continue producing till 2030. The unit is expected to generate $7.7 billion in revenues (undiscounted) during its remaining life (starting January 1, 2010) and is expected to yield an IRR of around 42.5%.

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

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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 Elgin Unit, United Kingdom, Introduction 4
3 Elgin Unit, United Kingdom, Geology and Formations 6
4 Elgin Unit, United Kingdom, Equity Details 10
5 Elgin Unit, United Kingdom, Crude Oil and Natural Gas Reserves 11
6 Elgin Unit, United Kingdom, Applicable Fiscal Regime 12
6.1 Royalty 12
6.2 Bonuses 12
6.3 Rentals 12
6.4 Fees  12
6.5 Taxation 12
6.6 Petroleum Revenue Tax (PRT) 12
6.6.1 Supplementary Allowance (Uplift) 12
6.6.2 Oil Allowance 12
6.6.3 Tariff Receipts Allowance 13
6.6.4 Exploration and Appraisal Relief 13
6.6.5 Abandoned Field Loss Relief 13
6.6.6 Cross Field Allowance 13
6.6.7 Research Relief 13
6.6.8 Safeguard Relief 13
6.7 Deductions 13
6.8 Capital Allowance 13
6.9 Ring Fence 14
7 Elgin Unit, United Kingdom, Infrastructure 15
7.1 Upstream Infrastructure 15
7.1.1 Elgin Production-Utilities-Quarters (PUQ) Platform 15
7.1.2 Elgin Well-Head Platform (WHP) 17
7.1.3 Well Design 18
7.1.4 Production Handling Requirements 19
7.1.5 HP/HT Choke And Valve Qualification 19
7.2 Midstream Infrastructure 20
8 Elgin Unit, United Kingdom, Development Plan, Investment and Expenditure 22
8.1 Phase One (Elgin Development) 22
8.2 Phase Two (Glenelg Development) 23
9 Elgin Unit, United Kingdom, Oil and Gas Production 24
9.1 Elgin Unit, United Kingdom, Natural Gas Production 24
9.2 Elgin Unit, United Kingdom, Condensate Production 26
10 Elgin Unit, United Kingdom, Unit Economics 28
10.1 Elgin Unit, United Kingdom, Economic Assumptions 28
10.1.1 Forecast Commodity Prices 28
10.1.2 Inflation 28
10.1.3 Discount Rate and Representation of Cash Flows 28
10.1.4 Sensitivity 28
10.1.5 Access to the Economic Model 28
10.2 Elgin Unit, United Kingdom, Cash Flow Analysis 29

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.