Estimated Operating Metrics Corporate Projects |
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Conventional Oil and Gas |
Waste-to-Energy Facility |
Oilsands Facility |
Coal-to Liquids Facility |
|
| Estimated cash flow (per boe) |
$24.32 to $29.13 |
$61.00 |
$36.90 |
$62.00 to $69.00 |
| Estimated Capital cost (per boe) |
$11.81 to $18.63 |
$8.00 to $9.00 |
$7.50 |
$11.00 to $13.50 |
| Approximate recycle ratio* | 1.6 to 2.4 times |
More than 7.0 times |
4.9 times |
3.6 to 5.0 times |
*Project ROE 19% to 34%
Assumptions:
1) $60 WTI oil, $8.00 AECO gas plant gate, conversion 6GJ=1boe,15% FX Rate, 50% debt financed at 7% interest for 20 years, facility life of 30 years, no salvage value
2) Cash flow includes additional 75% sustaining capital over 30 year life
3) Assumes 80% MSW and 20% tires and hazardous waste, tipping fees of $75/T for MSW and $200/T for tires or hazardous waste
4) CO2 not captured and sold
5) Cash flow includes $250 million of sustaining capital over remaining 25 year life of the facility
6) CO2 captured and sold at $30 per tonne
7) Data provided by First Energy Capital “2006 Edition of Finding, Development and Acquisition Cost Analysis”
Footnotes:
1) Cash flow is defined as net revenue less all operating and administrative costs, before changes to working capital related to operating activities.
2) Recycle ratio means cash flow per boe divided by the capital cost per boe.
