Here are a few final points that are important to remember concerning cash flow models:
Here are a few final points that are important to remember concerning cash flow models:
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# Cash flow analysis is the third step in evaluating a proposed (or existing) petroleum property; it occurs after estimating (a) the reserves, rates, and costs and (b) the chance of success.
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# Cash flow analysis is the third step in evaluating a proposed (or existing) [[petroleum]] property; it occurs after estimating (a) the reserves, rates, and costs and (b) the chance of success.
# Do not carry out cash flow analysis of "risked reserves"—the cash flow model is built on the success case
# Do not carry out cash flow analysis of "risked reserves"—the cash flow model is built on the success case
# Net cash flow is the sum of outlays and inflows.
# Net cash flow is the sum of outlays and inflows.