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Auction

In each OF Day, the program will select one province for a new well to be auctioned. The program will also randomly select an initial flow rate for that well between 50 and 500 m³/OF Day. And finally, the program will randomly select a decline rate for that well between 0.5% and 3.0% per OF Day. All this information will be available with the auction notice.

Financiers have seven OF Days to determine value for that oil well. If they want to bid on that well, they then submit their bids to the program. Once a bid has been submitted, it cannot be removed or changed.

Image coming soon.

In seven OF Days, the program will select the highest bid as the owner of the oil well. This asset will be transferred to the new owner's accounting statements—the new owner will then have control of and benefit from that well's production.

Bidding on an oil well is optional. However, there is a procurement cost of $1,000 for each bid made, which is not refundable. However, this procurement cost can be applied to the Loss Account to reduce taxes later in that province.

 
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