Tweet - FAR 12 Month Value Drivers, page-82

JC

u r missing a few steps at the start & finish in yr calculation. So that 274m * annFctr isn't the NPV, its more like the PV. U need to apply 30% tax rate to the PBT of A$274 mil times the annfctr & also deduct FAR's net share of the USD2.3bil Capital outlay for Phase-1. That should give u a rough NPV (ignoring a 5yr straight line depr). 

Also try using a 8-10 yr field life to deplete 240 mmbbls (u need to break the DCF model at say 8-9% hurdle rate & USD35/bbl POO, USD15-20/bbl costs). 240 mmbbls in less then 10 yrs should b doable, assuming no reservoir or technical dramas. Jubilee is a good analog for now. It's produced 230 mmbbls in 7.5 yrs from first oil lift in Jan 2011 till June end this year and the JV are targeting 2P 330 mmbbls & 2C 130 mmbbls over the next decade. 

For SNE if u were to consider Full field reserves depletion of 561 mmbbls, then u need to apply a higher capex (ie USD 6.9b gross) & 20 yr field life. This should just b the basics as the calc's ignore the finer details such as Depr, 75% capped cost recovery per year to the JV, Profit share tiers, abandonment costs etc.   Hope this helps.