Question # 3 (60%): Taqa energy discovered a new oilfield (Al Gharb) in Abu Dhabi in 2020 with the following average values for reservoir parameters: x Φ = 0.21 x Area = 9,800 m2 x Thickness = 14 m x So = 0.54 x Sg = 0.20 x NGR = 0.32 x Kv/Kh = 0.5 Taqa came in to produce it using primary recovery for the next 17 years producing using primary recovery based on a concession type agreement from the holding company paying a 15.5% royalty. Operating taxes where charged by the state at 12.4% and income tax charged by the federal government of 39%. At the beginning of 2020, Taqa incurred intangible drilling costs and tangible drilling costs for drilling additional horizontal producers and production surface facility (PSF) fit for the primary production period using up a total investment of $2.5 B. Make all necessary assumptions based on the above given data to calculate STOIP in (STB), RF1 for your specific scenario. In addition use your sound judgment for assuming CAPEX, OPEX, Po based on inflation adjustment over the period from 2020 to 2036. Your assigned scenario, would need to justify the following: 1. No. of wells drilled and type of well 2. Cost of D&C 3. Drilling Schedule 4. Po 5. Contribution of CAPEX to DOC and Overhead 6. Contribution of DOC to overhead Following is Po projected forward till 2025: Po2020 Po2021 Po2022 Po2023 Po2024 Po2025 $37 $49 $54 $67 $71 $92 a) (10 Pts) Overhead can be estimated as a fraction of the capital expenditures plus a fraction of direct operating costs. A recent study determined that the appropriate fractions would be a %ge of capital and a %ge of DOC according to your assigned scenario. b) (10 Pts) Make all necessary assumptions based on the above given data to calculate STOIP in (STB) and assume the corresponding RF1 for your specific scenario. Assume the annual production for your drilled and completed wells according to your scenario. c) (20 Pts) Construct an E&P curve with all your findings. And label, Maximum Exposure, Payout period, PV Payout period for your scenarios as well as the maximum exposure and any other relevant findings. d) (20 Pts) Would you recommend to proceed with this project according to your analysis? Explain what impacted your decision? List your total CAPEX, OPEX, Royalty paid, Gross Rev, Net Rev after Roy, NCFBIT, and CUM NCFBIT for the period of 2021-2025.