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Economic Evaluation of Oil Exploration Projects

Arso Putniković ; INA–Industry of Oil Plc. (Naftaplin)
Hrvoje Lipovac ; INA - Industrija nafte d. d.

Abstract

This paper has a goal to describe, in brief, the mathematical calculationsin economic evaluation of oil exploration projects.Described are calculation of geological risks, reserve size, developmentcosts, production curves, production sharing and discounting.Mathematical methods include expected value theory, probability theoryand Monte Carlo simulation. All is put toget her in the form of acomputer data input sheet, as a single procedure with the purpose ofgiving the answer is expected profit from a potential prospect bigenough to justify the risk and money invested in exploration.

Keywords

Hrčak ID:

61181

URI

https://hrcak.srce.hr/61181

Publication date:

31.12.1996.

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