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Profit Calculations

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   The calculation of value is very difficult to determine in society, with the ups and downs of the petroleum industry and rates of inflation. However, the following is a sample model in a nutshell of how profit of a certain hole is calculated in the petroleum industry. Have fun with this interactive profit calculator. Then, decide whether or not you would drill this hole.

Note: * (asterix) means that you are to type a number within the specified range. Press "tab" after every entry. The numbers entered should all be numerals. (eg. 1000000 rather than 1 billion)

Mineral Rights
(roll a dice)		 $* (x1000)
Surface Rights
(roll a dice)		 $* (x10 000)
Geology $5000
Geophysics $50 000
Land and Environment:
Environmental Clean-Up $25 000
Drilling:
Total Well-Path Distance 1800 m
Cost per Meter $100/m
Subtotal $180 000
Miscellaneous:
Computers, Salaries Office Space $50 000
Total Estimated Cost $
Oil Expected (barrels)
(0-1 billion)		   *
Total $
Gross Profit
(Type in from "Total" above)		 $*
Less Royalties and Taxes $
Type in the Gross Profit
-Type in the Royalty and Tax Reduction
=Net Profit
$*$*$
Net Profit
(from the last calculation)
/Total Costs
(from "Total Estimated Cost" above)
 =Return in %
$* $*

Source: The Oil Game: SpudTownTM.

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