NOVA SCOTIA CANADA: THE NEXT PLAY

Spreadsheet scopes project economics

The Department of Energy believes a quick and easy ability to perform scoping economics is essential to explorers and developers considering making investment decisions in offshore jurisdictions.

In January 2007, the department awarded a contract to Indeva Energy Consultants of the UK to create a Microsoft Excel-based spreadsheet model to scope economics for offshore Nova Scotia projects, especially those that could tie into existing infrastructure.

The initiative was in response to numerous requests the department received over the past several years from potential investors.

The model was developed as an easy-to-use tool, with the ability to allow an expert user to delve into the more sophisticated aspects of project economics from the exploration to abandonment phase.

Input parameters include standard exploration streams such as seismic, wildcat and delineation well costs as well as various types of development and operating costs streams, production profiles and product prices. The model requires certain risk parameters to be input and will output various economic parameters including NPV, royality and various tax streams.

In November 2007, the model will be available in beta version. A free version of the software will be available for download at www.gov.ns.ca/energy.