Investment Files

The Investment Files included in the Disbursement & JIB Manager (Integrated Edition) is a mini-application that calculates well payout, discounted rate of return, depletion, and Section 29 credits. Once you fill out the screens under the maintain menu you can view these investment reports for any well in the database.

Maintain > Investment Files
Field Information view
In order to estimate the well pay out to future years, the system needs to know the decline rates of the fields the wells in the system are drilled in. The system will estimate out to 12 years. The fields' screen will also allow you to enter the percentage decline or gain expected in gas and oil prices over the next 12 years. These percentages can then be used to estimate the well revenue in the future.

Enter Investment/Payout Information view
To calculate the discounted rate of return and well pay out amounts, the system needs to know what the owner's investment amount is. The Investment Amount screen is where these amounts are entered. There will be one record per owner interest defined in the Division of Interests screen found under the Maintain menu. Use the list button on the toolbar to locate the appropriate record.

Depletion Setup view
The depletion setup screen allows you to enter information that is required for the correct calculation of depletion. One record should be added for each well and year depletion is to be calculated for.

Depletion Percentages view
The percentages allowable for marginal and non-marginal wells changes from year to year. The Depletion Percentage screen will allow you to enter the allowable percentages for the given year.

Reports > Investment Reports
Well Payout by Owner Reports
The Well Pay Out reports show the initial investment in each well and then a year-by-year report of cash received from production from the well. The report projects the cash to be received for those years in the future. The cash is estimated based upon the decline percentages entered for the field. The estimate is made by averaging the last three years gross income and then declining the average by the decline percentage. Expenses are averaged for the last 3 years with the one-time expenses being dropped out. You can also choose to estimate with the change in price of gas and oil as a consideration.

Well Payout by Well Report view
The well pay out reports show the initial investment in each well and then a year by year report of cash received from production from the well. The report projects the cash to be received for those years in the future. The cash is estimated based upon the decline percentages entered for the field. The estimate is made by averaging the last three years gross income and then declining the average by the decline percentage. Expenses are averaged for the last 3 years with the one-time expenses being dropped out. You can also choose to estimate with the change in price of gas and oil as a consideration.

Depletion Report view
The depletion report shows the allowable depletion calculated for each owner and well in the given year.

Discounted Rate of Return Report view
The discounted rate of return report shows the initial investment in each well and then a year by year report of cash received from the well. An internal rate of return calculation is made based upon the initial investment and the amount of cash received each year. The report projects the cash to be received for those years in the future. The cash is estimated based upon the decline percentages entered for the field. The estimate is made by averaging the last three years gross income and then declining the average by the decline percentage. Expenses are averaged for the last 3 years with the one-time expenses being dropped out. You can also choose to estimate with the change in price of gas and oil as a consideration.