Economic Evaluation of Oil Exploration Projects

• Main Authors: Arso Putniković, Hrvoje Lipovac
• Format: Article
• Language: English
• Published: Croatian Geological Survey 2010-11-01
• Series: Geologia Croatica
• Online Access: http://www.geologia-croatica.hr/ojs/index.php/GC/article/view/367

<div>This paper has a goal to describe, in brief, the mathematical calculations</div><div>in economic evaluation of oil exploration projects.</div><div>Described are calculation of geological risks, reserve size, development</div><div>costs, production curves, production sharing and discounting.</div><div>Mathematical methods include expected value theory, probability theory</div><div>and Monte Carlo simulation. All is put toget her in the form of a</div><div>computer data input sheet, as a single procedure with the purpose of</div><div>giving the answer is expected profit from a potential prospect big</div><div>enough to justify the risk and money invested in exploration.</div>