Evercore Investment Banking Pitch Book slide image

Evercore Investment Banking Pitch Book

Preliminary Financial Analysis Ultra Deep Risking Methodology ■ Industry standard expected value analysis relies on risk weighting outcomes by their probabilities ■ Cash flows from this analysis represent aggregate expected values for a full program inclusive of risk ■ Present Value of Development Well Risk-weighted sum of the Present Values of the Success and Mechanical Failure cases ■ Present Value of Full Development Sum of all development wells as calculated above Exploration Well Legend Expected Value for an Ultra Deep Prospect Full Development GCOS Success (1-GCOS) Failure = Exploration Well = Development Well 25 Present Value Σ of Full Development Present Value of Exploratory Dry Hole GCOS Probability of Geologic Success (%) MCOS = Probability of Mechanical Success (%) #1 #20 MCOS Success (1-MCOS) #30 Failure MCOS Success Failure (1-MCOS) MCOS Confidential Success Failure Expected Value of Ultra Deep Prospect Risk-weighted sum of the Present Value of Full Development and the Present Value of an Exploratory Dry Hole Risk Weighting Expected Value = COS x (Present Value of Full Development) + (1-COS) x (Present Value of Exploratory Dry Hole) EVERCORE PARTNERS (1-MCOS) Present Value of Well Present Value of Mech. Failure Present Value of Well Present Value of Mech. Failure Present Value of Well Present Value of Mech. Failure MOMORAN
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