The second instalment of our three-part video series on subsurface exploration focuses on the potential of investing in frontier plays.
Getting into a new play early can yield massive rewards. Timing is key: as plays mature, discovery sizes shrink dramatically and returns on investment dwindle as fiscal terms change. But how can companies feel informed about taking such risks?
Are frontier plays worth the risk?
In the second of her three-part video series, Research Director Julie Wilson uses Brazil's Santos Basin to explain how companies can engage in proactive screening.
Brazil's super-giant discoveries — especially in its prolific pre-salt play — have elicited fierce bidding as companies vie for a piece of the action. But with billions of dollars in play, investors want actionable information up front.
EV2, an exploration volume and valuation tool, uses data visualisation to help companies model yet-to-find data within 180 basins around the world. Assessing prospectivity and commerciality prior to licensing rounds helps make investments more competitive and exploration more profitable.
In our next video instalment, Julie will explore how volume doesn't always correlate to value.
This analysis was prepared using:
PART ONE: May 23, 2018
Conventional exploration has played second fiddle to the shale boom that offered many upstream companies a lifeline during the oil market's downturn.
But with deepwater project economics becoming competitive to tight oil and a renewed international interest in areas such as deepwater Mexico and pre-salt Brazil, exploration is once again in the limelight.
Part 1 of 3: Subsurface data and the rise of offshore Mexico and Brazil
Research Director Julie Wilson uses the first of her three-part video series to explain how the right data and mapping tools are vital to screening new opportunities in Mexico and Brazil.
This year's cautious but optimistic first half has yielded renewed confidence, but most companies are still playing it safe, looking for opportunities in proven provinces with existing infrastructure. But there is still much to be discovered in less mature areas that can offer high-impact potential.
Unlocking that potential requires actionable data — both historical and yet-to-find — along with licensing status, portfolio detail, mapping systems and the ability to use your own assumptions. Our exploration solutions deliver those capabilities, and more.
In our next video instalment, Julie will explain why frontier plays can be worth the risk.