Simple, effective models for evaluating portfolios of exploration and production projects

摘要

This paper describes an approach for evaluation the risk and reward of exploration and production project portfolios. These models allow radpid, reasonably accurate assessment of the risk and reward of different exploration and development project mixes. They facilitate testing sensitivity to price, risk, and data assumptions. The methos described are also useful for evaluation of reserve acquisitions. The methods described in the paper are being used at Equitable Resources Energy Company.