So we're gonna start with our users of funds. We have our CapEx, our non-interest, soft costs, the interest during construction working capital, as well as our debt service reserve account. Now for the interest and for the working capital lines, we're gonna have to wait until we have modeled out our debt schedule to get the interest and our working capital buildup to get our working capital. So here we're gonna start by calculating the debt service reserve account initial funding. Now this is an an additional protection to the lender and what it means is that the project should have cash on hand, typically somewhere between six months to a year of interest and debt repayments to cover the interest and and debt repayments in case things don't go as planned.

We're gonna be basing our debt service reserve account on our syndicated loan below and the loan amount is estimated to be 1850 and we have a pricing for that loan of 2% over LIBOR. So let's begin by computing the interest rate and that's gonna be 2% spread plus the LIBOR assumption, which is down below another 2%. That gives us 4%. Now we can go up here and we can estimate our debt service reserve account. We're gonna take first the debt repayment estimate. We're gonna take the loan amount and divide it by seven, which is our estimate of the maturity of the loan. We're gonna add the interest payment and that should be 4% times the loan amount of 1850.

And that gives us a debt service reserve account, initial funding of 338.3. Now we can move on to our development CapEx. If we go down here, we have a separate section where we can calculate our total development CapEx. So that has three components. We have this pre-spud CapEx and these are the cost related to the pre-drilling process. Then we have our drilling costs, of course, as well as testing and completion costs. So we can add up all three of these lines to get our total development CapEx and we can actually copy this to the right all the way until the end of our timeline. And now we can go up to the top to our uses of funds and link that down to our calculation of total development CapEx. We copy that right now for our soft costs. We have a separate section as well. So let's go back down.

And we see here our soft costs section and that consists of course of some legal and accounting fees, consultants fees. We also have a big ticket item here, which is a license purchase to develop the well, which we purchase from the government. We have two lines for interest here. We have our cash interest, which is capitalized during the construction phase. We also have our non-cash interest or our pik interest, which is also capitalized during the construction phase. Again, we won't have these numbers available until later when we complete our debt schedule. So for now, we can compute the total soft costs by adding all five lines. We can copy this, right? And then we're gonna also compute an additional line, which is the total cash, soft cost excluding interest. So that would just be the sum of the top three lines, and we can copy that right. Now that we have this, we can go back up to our uses of funds and we can link our non-interest, cash, soft cost spend to the separate section below, specifically to row 56 because we wanna exclude interest from this line. And the reason we're excluding interest is because we wanna have a different line, a separate line for our interest during the construction. And finally, we have a separate column here where we're gonna be computing the total uses of funds across all three years in the construction period. So we can just take the sum of all three columns here to get our total development CapEx. I can copy this down all the way, and then we can finish our total uses of funds by summing up all of our totals.