|
Torchlight Energy
|
|||||
|
Full Cost Ceiling Test
|
|||||
|
Year Ended December 31, 2012
|
|||||
|
12/31/2012
|
|||||
|
Total Capitalized Costs
|
$ | 4,013,576 | |||
|
Less Accumulated DD&A
|
(551,890 | ) | |||
|
Net Capitalized Costs
|
3,461,686 | ||||
|
PV-10 Value of Proved Reserves
|
3,299,600 |
Per NSAI Reserve Report
|
|||
|
Less Income Tax Effects (Discounted)
|
(391,000 | ) |
From SMOG Calculation
|
||
|
Plus Unevaluated Costs
|
577,658 |
Primarily Coulter #1
|
|||
|
Add Back Asset Retirement Obligation
|
11,521 |
To Prevent Double Counting
|
|||
|
Full Cost Ceiling
|
3,497,779 | ||||
|
Cushion / (Writedown Indicated)
|
36,093 | ||||
|
Torchlight Energy
|
||||||||||||
|
Standardized Measure of Discounted Future Net Cash Flows
|
||||||||||||
|
Relating to Proved Oil and Gas Reserves
|
||||||||||||
|
Year Ended December 31, 2012
|
||||||||||||
|
After-Tax
|
W-Out Tax
|
Diff
|
||||||||||
|
Future cash flows
|
41,103 | 41,103 | - | |||||||||
|
Future production costs
|
(12,413 | ) | (12,413 | ) | - | |||||||
|
Future development costs
|
(18,755 | ) | (18,755 | ) | - | |||||||
|
Future net cash flows
|
9,935 | 9,935 | - | |||||||||
|
Less Existing Tax Basis
|
(3,436 | ) | - | (3,436 | ) | |||||||
|
Less Future Percentage Depletion
|
(3,606 | ) | - | (3,606 | ) | |||||||
|
Future Taxable Expense
|
2,893 | - | 2,893 | |||||||||
|
Tax at Statutory Rates (35%)
|
(1,012 | ) | - | (1,012 | ) | |||||||
|
Future Net Cash Flows Undiscounted
|
8,923 | 9,935 | (1,012 | ) | ||||||||
|
Adjustment for 10% Discount
|
(6,014 | ) | (6,635 | ) | 621 | |||||||
|
Standardized Measure of FNCF
|
2,909 | 3,300 | (391 | ) | ||||||||
|
Ratio of Discounted to Undiscounted
|
32.6 | % | 33.2 | % | 38.6 | % | ||||||
|
Torchlight Energy
|
||||
|
Standardized Measure of Discounted Future Net Cash
|
||||
|
Flows Relating to Proved Oil and Gas Reserves
|
||||
|
Year Ended December 31, 2012
|
||||
|
2012
|
||||
|
($000's)
|
||||
|
Future cash flows
|
$ | 41,103 | ||
|
Future production costs
|
(12,413 | ) | ||
|
Future development costs
|
(18,755 | ) | ||
|
Future income tax expense
|
(1,012 | ) | ||
|
Future net cash flows
|
8,923 | |||
|
10% annual discount for estimated
|
||||
|
timing of cash flows
|
(6,014 | ) | ||
|
Standardized measure of discounted
|
||||
|
future net cash flows
|
$ | 2,909 | ||
|
Torchlight Energy, Inc.
|
||||||||||||||||||||||||||||||||||||||||||||
|
Discounted Tax Calculation for SMOG
|
||||||||||||||||||||||||||||||||||||||||||||
|
Year Ended December 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||
|
Discount
|
Est Tax
|
Tax
|
Discount
|
|||||||||||||||||||||||||||||||||||||||||
|
Factor
|
Basis
|
Rate
|
Factor
|
|||||||||||||||||||||||||||||||||||||||||
| 10% | $3,436.0 | 35% | 10% | |||||||||||||||||||||||||||||||||||||||||
|
Post-Depletion
|
||||||||||||||||||||||||||||||||||||||||||||
|
Discounted
|
Future
|
Estimated
|
Cumulative
|
Cumulative
|
Taxable
|
Estimated
|
Cumulative
|
Taxable
|
Future
|
Future
|
Discounted
|
|||||||||||||||||||||||||||||||||
|
Future
|
Future
|
# of
|
Gross
|
Percentage
|
Percentage
|
Taxable
|
Income
|
Depletion
|
Depletion
|
Income
|
Income
|
Cash Flows
|
After Tax
|
# of
|
||||||||||||||||||||||||||||||
|
Cash Flows
|
Cash Flows
|
Periods
|
Revenue
|
Depletion
|
Depletion
|
Income
|
by Year
|
Deduction
|
Deduction
|
by Year
|
Tax
|
After Tax
|
Cash Flows
|
Periods
|
||||||||||||||||||||||||||||||
|
12/31/2013
|
$ | (6,065.0 | ) | $ | (5,790.7 | ) | $ | 0.5 | $ | 1,064.5 | $ | - | $ | - | $ | (9,501.0 | ) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (6,065.0 | ) | $ | (5,790.7 | ) | 0.5 | ||||||||||
|
12/31/2014
|
(2,100.8 | ) | (1,828.4 | ) | 1.5 | 7,981.3 | - | - | (11,601.8 | ) | - | - | - | - | - | (2,100.8 | ) | (1,828.4 | ) | 1.5 | ||||||||||||||||||||||||
|
12/31/2015
|
3,245.9 | 2,575.2 | 2.5 | 6,888.8 | 775.0 | 775.0 | (8,355.9 | ) | - | - | - | - | - | 3,245.9 | 2,575.2 | 2.5 | ||||||||||||||||||||||||||||
|
12/31/2016
|
3,696.8 | 2,673.6 | 3.5 | 4,641.3 | 522.1 | 1,297.1 | (4,659.1 | ) | - | - | - | - | - | 3,696.8 | 2,673.6 | 3.5 | ||||||||||||||||||||||||||||
|
12/31/2017
|
2,523.4 | 1,663.6 | 4.5 | 3,366.7 | 378.8 | 1,675.9 | (2,135.7 | ) | - | - | - | - | - | 2,523.4 | 1,663.6 | 4.5 | ||||||||||||||||||||||||||||
|
12/31/2018
|
1,866.6 | 1,121.8 | 5.5 | 2,653.5 | 298.5 | 1,974.4 | (269.1 | ) | - | - | - | - | - | 1,866.6 | 1,121.8 | 5.5 | ||||||||||||||||||||||||||||
|
12/31/2019
|
1,443.1 | 790.6 | 6.5 | 2,193.1 | 246.7 | 2,221.1 | 1,174.0 | 1,174.0 | 763.1 | 763.1 | 410.9 | 143.8 | 1,299.3 | 711.8 | 6.5 | |||||||||||||||||||||||||||||
|
12/31/2020
|
1,145.9 | 572.3 | 7.5 | 1,870.2 | 210.4 | 2,431.5 | 2,319.9 | 1,145.9 | 744.8 | 1,507.9 | 401.1 | 140.4 | 1,005.5 | 502.2 | 7.5 | |||||||||||||||||||||||||||||
|
12/31/2021
|
925.5 | 421.3 | 8.5 | 1,631.0 | 183.5 | 2,615.0 | 3,245.4 | 925.5 | 601.6 | 2,109.5 | 323.9 | 113.4 | 812.1 | 369.7 | 8.5 | |||||||||||||||||||||||||||||
|
12/31/2022
|
755.6 | 313.6 | 9.5 | 1,435.6 | 161.5 | 2,776.5 | 4,001.0 | 755.6 | 491.1 | 2,600.7 | 264.5 | 92.6 | 663.0 | 275.2 | 9.5 | |||||||||||||||||||||||||||||
|
12/31/2023
|
611.5 | 231.3 | 10.5 | 1,268.0 | 142.7 | 2,919.2 | 4,612.5 | 611.5 | 397.5 | 2,998.1 | 214.0 | 74.9 | 536.6 | 203.0 | 10.5 | |||||||||||||||||||||||||||||
|
12/31/2024
|
507.9 | 175.1 | 11.5 | 1,140.7 | 128.3 | 3,047.5 | 5,120.4 | 507.9 | 330.1 | 3,328.3 | 177.8 | 62.2 | 445.7 | 153.7 | 11.5 | |||||||||||||||||||||||||||||
|
12/31/2025
|
395.7 | 124.4 | 12.5 | 990.4 | 111.4 | 3,158.9 | 5,516.1 | 395.7 | 257.2 | 3,585.5 | 138.5 | 48.5 | 347.2 | 109.2 | 12.5 | |||||||||||||||||||||||||||||
|
12/31/2026
|
326.4 | 93.5 | 13.5 | 898.8 | 101.1 | 3,260.0 | 5,842.5 | 326.4 | 21.0 | 3,606.5 | 305.4 | 106.9 | 219.5 | 62.9 | 13.5 | |||||||||||||||||||||||||||||
|
12/31/2027
|
251.0 | 65.6 | 14.5 | 789.7 | 88.8 | 3,348.9 | 6,093.5 | 251.0 | - | 3,606.5 | 251.0 | 87.9 | 163.2 | 42.6 | 14.5 | |||||||||||||||||||||||||||||
|
Remainder
|
405.5 | 96.6 | 15.5 | 2,289.9 | 257.6 | 3,606.5 | 6,499.0 | 405.5 | - | 3,606.5 | 405.5 | 141.9 | 263.6 | 62.8 | 15.5 | |||||||||||||||||||||||||||||
| $ | 9,935.0 | $ | 3,299.5 | $ | 41,103.5 | $ | 3,606.5 | $ | 3,606.5 | $ | 6,499.0 | $ | 6,499.0 | $ | 3,606.5 | $ | 3,606.5 | $ | 2,892.5 | $ | 1,012.4 | $ | 8,922.6 | $ | 2,908.2 | |||||||||||||||||||
|
% Disc to Undisc
|
33.2% | 32.6% | ||||||||||||||||||||||||||||||||||||||||||