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ECONOMIC STUDIES AND EVALUATIONS

When evaluating exploration potential, our reports identify the chances of adequacy of the key
elements and the independent minimum field sizes for oil and gas cases and drainage areas with rates for individual wells, economic cut off limits, future investment requirements, time to payback and other critical information to confidently integrate an asset to financial statement forecasts.

Within the range of outcomes the client can analyze the rate of return and Net Present Value (NPV)of the development and field management options.For comparison, reserve certificates categorize resources under a standardized set of assumptions,not providing a reliable indicator of the impact on the cash-flow of the financial statement.NPV derived from information contained within the reserves certificate does not capture an accurate
future cash-flow, as the uncertainties are simply too numerous and great for a simplified, formulaic approach.

THEREFORE, NAGSA BUILDS ECONOMIC FORECASTS UNIQUE TO EACH PROJECT.