5/28/2023 0 Comments Definition of cashflow![]() ![]() Cash flows for a month were assumed to occur at the end of the month in which the hydrocarbon was produced.”Ĭash flows calculated on an annual basis should be discounted using mid-period discounting. Suggested language for the discussion would be: “The cash flows in this report were determined on a monthly basis and discounted using an interest rate of X% per annum compounded annually. ![]() The methodology used for discounting should be discussed in either the cover letter or the body of the reserve report in such a manner that the user of the report can easily understand the assumptions used.
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