Changes

The ''net cash flow'' (NCF) for each assumed time period, including time 0, can be determined using the following equation.

The ''net cash flow'' (NCF) for each assumed time period, including time 0, can be determined using the following equation.

:<math>\text{After-tax NCF } = (\text{Net revenue interest}~ \times ~\text{Production} ~\times ~\text{Wellhead price})~ - ~\text{Wellhead taxes}~ - ~\text{Operating costs}~ - ~\text{Federal income taxes}~ - ~\text{Investments} \ </math>

:<math>\text{After-tax NCF } = (\text{Net revenue interest}~ \times ~\text{Production} ~\times ~\text{Wellhead price})</math>

::<math>-~\text{Wellhead taxes}~ - ~\text{Operating costs}~ - ~\text{Federal income taxes}~ - ~\text{Investments} \ </math>

Some of the economic parameters presented later utilize ''after-tax net operating income'' (NOI) as a measure of profit. After-tax NOI is defined as follows:

Some of the economic parameters presented later utilize ''after-tax net operating income'' (NOI) as a measure of profit. After-tax NOI is defined as follows:

:<math>\text{After-tax NOI} = (\text{Net revenue interest}~\times~\text{Production}~\times~\text{Wellhead price})~-~\text{Wellhead taxes}~-~\text{Operating costs}~-~\text{Federal income taxes} \ </math>

:<math>\text{After-tax NOI} = (\text{Net revenue interest}~\times~\text{Production}~\times~\text{Wellhead price})</math>

::<math>-~\text{Wellhead taxes}~-~\text{Operating costs}~-~\text{Federal income taxes} \ </math>

[[File:Test.png|thumbnail|'''Table 3.''' Cash flow model for example multiwell extension project.]]

[[File:Test.png|thumbnail|'''Table 3.''' Cash flow model for example multiwell extension project.]]