Now that we have completed our sources and uses of funds table, let's take a look at some of the assumptions that are gonna be needed in this model.

Down below we have assumptions about the underlying reserves of our oil and gas project. We have an assumption of 59.6 million barrels of oil equivalent, and we also have an assumption of 172,800 cubic feet of natural gas. Up here we have a key conversion ratio and what it means is that for every 5,800 cubic feet of natural gas, we have the equivalent of one barrel of oil from a pricing perspective. Down here we have our estimated extraction of our reserves for both our oil reserves and and our natural gas. So you can see here that we are gonna be extracting these reserves over the operational period of the project. And when we get to the very last year over here, you will see that these numbers add up to a hundred for both the oil reserves and the natural gas reserves. We also have some assumptions about the oil price forecast over the operational period, the lifting costs per barrel of oil, equivalent, the transportation costs, as well as royalties as a percentage of revenue that will have to pay the government.

We also have some operational expenditures, assumptions, and a tax rate of 20%.

Down below we have the CapEx section, as well as the soft cost sections that we've seen before. But down here we also have assumptions about our working capital. So we have our accounts receivables, days assumptions, our inventory days assumption, and our accounts payables days. We also have our inventory buildup. Percentage in this case is 50%, and that is the amount of inventory we're gonna have to have on hand in the last year of the construction phase, and that is 50% of a normal year of inventory.

Lastly, we have assumptions on the asset retirement obligation, and these are the estimated costs of shutting down the oil well. And if you go toward the end of a timeline, you will see that the costs are gonna be incurred in the last three years of this project. Now these costs are gonna have to be present valued, so we have an assumption here of a discount rate of 6%.