Search

Describes how Modern Asset Pricing (MAP) methods may be used for project evaluation in the upstream petroleum industry. Valuation of a project; Split of cash-flows into two components, namely, revenue and cost; Drawbacks of standard discounted cashflow methods; Comparison of two one-period gas production projects with different costs.

Demonstrates how Modern Asset Pricing (MAP) methods can be applied to petroleum projects where policies for the management of future flexibility must be considered within the context of the valuation. Flexibility in the timing of the exploration, delineation, and development of an oil prospect; Dependence of the value and management of flexibility on the amount of oil price and reserve size uncertainty.

Demonstrates how Modern Asset Pricing (MAP) methods can be applied to the general class of petroleum projects where the project manager does not have any future flexibility that must be analyzed. Usefulness of MAP in fiscal system analysis; Evaluation of a series of oil-field development projects under a variety of fiscal regimes; Comparison between MAP and discounted cash flow.

Presents a paper which aims to explain how option valuation may be applied to the petroleum industry. Examination of the valuation of discovered, but undeveloped oil and gas reserves; Use of discounted cash flow (DCF) approach to value petroleum properties; Description of lease-bidding and farm-out applications.