What is Prospect Valuations?
Prospect valuations allow users to generate and visualize a valuation for covered upstream prospects using Wood Mackenzie's base price assumptions or your own price scenarios.
Using the prospect Stabroek Carbonate-1 as an example, follow the steps outlined below:
Step 1.
Similar to Upstream valuations, after you filter to a prospect, region, country, etc., the Prospect Valuation dashboard will appear under the Valuation menu on the left-hand side of the interface
Step 2.
Lens Upstream will automatically run the valuation using Wood Mackenzie's BASE price scenario and display the resulting financial metrics once done. You can click on the Edit Assumptions option to select the other scenarios, create your own custom price deck or adjust other settings.
💡 Tip: Because the prospect hasn't been drilled, "Total" is used before financial metrics to indicate gross values.
Step 3:
The Net Cash Flow chart allows you to visualize the annual cash flow series and some select components, such as abandonment costs.
The Standard Cash Flow table displays the inflow and outflow components in more detail. In addition, it allows you to also look at the Entitlement Cash Flow.
Finally, the Prices table at the bottom displays the current price series you've selected, along with other economic parameters such as inflation rate (%), regime prices, etc.
Step 5
If you wish to scrutinise the calculation behind the valuation, you can do so by exporting the calculation files. Scroll all the way up and click the topmost Export button.
💡 Tip: When valuing multiple prospects at once, an additional report—Consolidated Company Report—will be available, summarizing the cash flow components for all prospects.