Atacan Energy tests and incorporates a variety of economic
scenarios into models to evaluate relative effects. Modeling is
especially vital in analyzing how projects pay out under various,
complex production-sharing contracts and concession and service
agreements. Atacan Energy constructs discounted cashflow (DCF)
valuation models that allow for the input of various production/cost
scenarios. We also customize DCF model layouts for alignment with
internal modeling platforms.
The DCF model enables an evaluator to perform financial analyses of
the project at different points in its lifecycle. Atacan Energy
performs incremental analysis when evaluating two complementary
cases — a base case and upside case. Our DCF models incorporate
price and inflation rate assumptions, working interest, taxation
items, working capital adjustments, net present values, internal
rates of return, payback, HSE (health, safety and environment)
impact, abandonment costs, charts and outputs to profit-and-loss
statements and balance sheets.
Atacan Energy also provides clients with instructions detailing the
architecture of the models. The firm conducts in-depth economic
evaluations using the latest proprietary and commercial software
programs. Atacan Energy also receives economic models from clients
and reviews them for compliance with all the terms of contract
agreements.
