TORCHLIGHT ENERGY INC Ceiling Test - 12/31/13 | ||||||
| Net net book value calc | ||||||
| Proved and unproven costs in Amortization base | 9,484,014 | TB | ||||
| Costs Excluded from Amortization base | 4,758,805 | TB | ||||
| Less accumulated DD&A | (1,204,069 | ) | TB | |||
| Net Book Value | 13,038,750 | <A> | ||||
| Less tax value | 12,060,015 | SMOG.4 | ||||
| Book-Tax Difference | 978,735 | |||||
| Effective tax rate | 0.34 | |||||
| Equals related deferred income taxes | 332,770 | <B> | ||||
| Net net book value | 12,705,980 | <A> - <B> = | ||||
| Ceiling Calc | ||||||
| PV of Future Net Revenues | 26,524,574 | Reserve Report | ||||
| Value of excluded costs | 4,758,805 | TB | ||||
| Value of unproven in amortization base | - | |||||
| Ceiling Value before income tax effects | 31,283,379 | <C> | ||||
| Year-by-year income tax effect | (7,093,985 | ) | SMOG.4 | <D> | ||
| Ceiling | 24,189,394 | <C> - <D> = | ||||
| Less Net net book value | 12,705,980 | |||||
| EXCESS CEILING | 11,483,414 | |||||
