Abstract
This paper explores the influences of both stochastic and deterministic correlations on single and multiple hydrocarbon exploration opportunities within the framework of both unlimited and limited corporate risk tolerances. In addition, both similar and dissimilar opportunities are considered, as well as geologic similarities and fiscal dissimilarities to illustrate the influences of different combinations of factors on risk adjusted values for both single and multiple opportunities.
Numerical illustrations are provided to illuminate each of the influences and patterns of behaviour that are sketched, so that a pictorial representation is available of the topological structure of each of the individual points being addressed. The numerical examples include both the stochastic and deterministic effects of correlated and similar behaviours of opportunities in relation to variable success probabilities, corporate risk tolerance, and constraints due to a fixed corporate budget.
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