Petroleum Economics / ECON-01 / 3 days
Reserves-Based Economic / Financial Modelling & Financing
Rob Dargewitcz HBA, MBA, CMA
Managing Director, Dargewitcz Consulting Corp
Tracy Graff CMA
Managing Director, Off the Graff Enterprises Inc.
When considering new investment opportunities, understanding the use and application of economic and financial modelling tools is critical for successful project decision-making. This 3-day course offered in partnership with DC Corp and Off the Graff Enterprises teaches participants how to build comprehensive, strategic, reserves-based economic and financial models to support oil and gas project investment decisions. This hands-on course incorporates project financing and treasury-related concepts. Instructors address the difference between accounting and economic evaluations, and highlight the necessary interaction and integration between technical and financial disciplines.
- Model development and construction, including inputs sourcing
- Forecasting project economics, including key financial parameters used in ‘go/no-go’ decisions
- Sensitivity analysis incorporating scenario probabilities
- Creation of pro forma financial statements
- Debt vs. equity depending on the life cycle of the firm
- Fixed vs. floating rate debt
- Credit ratings impact on cost of capital
- Calculation of the weighted average cost of capital
- Net Present Value (NPV) discount rate in project economics
The course is designed for a wide range of individuals at different levels of seniority, including analysts, business and technical managers, executives and board members.