Introduction

Introduction............................................................................................................101 What Is the Question? ...........................................................................................102 Categories and Variables........................................................................................103 Field-Development Risk Model Equations ...........................................................104 Populating the Model with Data ...........................................................................107 Results from Model Execution..............................................................................113 So, So What? .........................................................................................................117

Part of the job of an investment broker is to ferret out worthwhile opportunities in which a bank or individuals can invest. Entrepreneurial or small independent oilfield-development companies typically are engaged in never-ending quests to attract such investors. Such companies, after successfully funding and drilling an exploration well, have to seek funding to develop the oil field. In the scenario described below, one such development scheme will be considered.