New Software Release

Product details

Merak Fiscal Model Library is a world-class collection of standardized fiscal models that supports accurate economic results. The library contains more than 219 models, covering most petroleum-producing countries. These customizable models can be used with the Peep module in Merak planning, risk, and reserves software.

Merak Fiscal Model Library is available through an annual subscription, and custom fiscal model solutions are available through a custom license. The easy installation format enables direct loading to machines with the Peep module in Merak software and any current Merak Fiscal Model Library models and add-ins.

Key features of this release

Updated models

The Merak Fiscal Model Library 2018.2 release includes the following fiscal updates to models:

US Model Default

• Updated model in accordance with the 2017 Tax Cuts and Jobs Act
• Updated severance tax rates
• Updated state income tax rates
• Updated federal income tax rate to 21%, effective January 1, 2018.
• Updated federal income tax net operating loss (NOL) to carry forward indefinitely, but limit this to 80% of taxable income (model default).
• Updated tangible capital and enhanced oil recovery (EOR) tangible capital depreciation to use MACRS7 bonus depreciation rules introduced in the Tax Cuts and Jobs Act.
• Updated pipelines capital depreciation to use MACRS15 bonus depreciation rules introduced in the Tax Cuts and Jobs Act.
• Enhanced EOR capital report.
• Corrected model logic for steam, CO2 recycle, and CO2 purchase volumes in EOR tax credit calculation.
• Updated before tax cash flow (BTCF) calculation to correctly account for net profits interest (NPI).
• Updated total capital costs calculation to correctly account for salvage value.

This model update occurred in conjunction with an update on the Merak FML_Depr.ddl add-in. Refer to the Merak Fiscal Model Library add-in library enhancements and fixes section in this release for more information on this add-in update.

Canada Alberta RT (2016)

• Updated model in accordance with the 2017 Modernized Royalty Framework: Reentry Wells on or after January 1, 2017.
• Enhanced the OLE control extension (OCX) files for the user to select the three types of reentry wells in the OCX for both Alberta Royalty Framework (ARF) and modernized royalty framework (MRF) regime and calculate the C* new and C* incremental based on the incremental parameters of the reentry well (TVDmax, total lateral length [TLL], total equivalent proppant placed [TPP], and TVDavg).
• Enabled tracking of other income sources for a project apart from the sales revenue generated from oil, gas, and NGLs.
• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.
• Updated ethane quantity component for MRF wells.

Canada BC RT (2009)

• Incorporated the Minimum Royalty Program for tier 1 and 2 wells in the model update.
• Updated model so users can calculate the final royalty for gas and NGLs when the producer cost of service (PCOS) and deep well gas credit are simultaneously enabled.
• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.
• Provision to enter the posted minimum price (PMP) for various plants from various PMP plant price and gas cost allowance price files from model settings.

Canada Alberta Oil Sands RT (2009)

• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.

Canada Alberta RT (2009)

• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.

Canada Frontier RT (2009)

• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.

Canada NFLD RT (2003)

• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.

Canada Nova Scotia RT (2009)

• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.

Canada Saskatchewan RT (2009)

• Updated model to take into consideration the working interest of the company for the operating costs and abandonment costs in the company’s cash flow reporting.