Agree corporate costs are excluded - think you will agree they should be too.
From the link in the report
http://www.spe.org/industry/docs/Petroleum_Resources_Management_System_2007.pdf
"The calculation shall reflect:
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• The expected quantities of production projected over identified time periods.
• The estimated costs associated with the project to develop, recover, and produce the
quantities of production at its Reference Point (see section 3.2.1), including environmental,
abandonment, and reclamation costs charged to the project, based on the evaluator’s view of
the costs expected to apply in future periods.
• The estimated revenues from the quantities of production based on the evaluator’s view of
the prices expected to apply to the respective commodities in future periods including that
portion of the costs and revenues accruing to the entity.
• Future projected production and revenue related taxes and royalties expected to be paid by
the entity.
• A project life that is limited to the period of entitlement or reasonable expectation thereof.
• The application of an appropriate discount rate that reasonably reflects the weighted average
cost of capital or the minimum acceptable rate of return applicable to the entity at the time of
the evaluation.
While each organization may define specific investment criteria, a project is generally considered
to be “economic” if its “best estimate” case has a positive net present value under the
organization’s standard discount rate, or if at least has a positive undiscounted cash flow."
The last sentence on a positive undiscounted series of cashflows may indicate why the nil discount rate figures were included.
