Quantitative real option intelligent completion valuation system and method

摘要

A capital investment that creates operational flexibility using a financial framework and adequately valuing the capital investment using financial mathematics. The capital investment may be an intelligent well completion connecting surface production and injection facilities with an oil and gas reservoir. The intelligent well completion may reduce potential well intervention costs, increase production rate, and increase ultimate recovery. The capital investment described by the financial framework may also affect one or more physical variables that, in turn, affect valuation of a real asset. One or more financial formulas may be applied to the physical variable to adequately value the capital investment.