Decisions pivot on cash flow analysis, and cash flow builds on all of the major drivers in the business. Reliable cash flow analysis requires a broad understandig of the issues and methods for inputs ranging from geology to gas differentials, from decline curves to discount rates. Mr. Purvis will survey methods, notable issues and misunderstood assumptions for creating and interpreting cash flows.
1. Be able to dissect a reservoir engineer's cash flow projections.
2. Be able to ask meaningful questions about the underlying work process that created the assumptions.
3. To apply appropriate concepts of uncertainty to comprehend the implications of the analysis.