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Economic/Financial Modeling and Financing - Reserve Based
Wed, 18 Jan 2017, 8:30 AM – Fri, 20 Jan 2017, 4:30 PM MST
When considering new investment opportunities to create value for your organization, understanding the use and application of Economic and Financial Modeling tools is critical for successful project decision making.
This 3 day course offered in partnership with DC Corp and Off the Graff Enterprises, is intended to develop a greater understanding of building comprehensive, strategic Reserve based Economic and Financial models for investment making decisions with a focus on Oil and Gas related projects. The course is in-depth and hands-on, with participants walking through the creation of a model which includes:
- Model Development and Construction, including inputs sourcing;
- Forecasting/predicting Project Economics, including key financial parameters that are used in ‘GO/NO-GO’ decisions;
- Sensitivity analysis with the incorporation of Scenario Probabilities; and
- Creation of the resulting Pro Forma Financial Statements
The session also incorporates the Financing aspect of the project and the Treasury related concepts including:
- Debt vs. Equity depending on the Life Cycle of the firm;
- Fixed vs. Floating rate Debt, and
- Credit Ratings impact on cost of capital.
- Calculation of the Weighted Average Cost of Capital which is then used as the NPV discount rate in Project Economics
The difference between Accounting and Economic Evaluations are covered in depth, as this is a critical piece of the decision making process within all levels of Oil and Gas entities. This understanding is required from all disciplines including (but not limited to) Geologists, Petroleum Engineers, Exploration and Development Engineers, and Finance Professionals, to highlight the interaction and integration that is required collectively to advance projects that add value for the corporation.
Designed for a wide range of individuals at different levels of seniority, including analysts, business and technical managers, executives and board members.