Insight
Exploration without development - the high returns strategy
This report is currently unavailable
Report summary
Exploration returns are higher than full-cycle returns. Explorers can choose to sell their discoveries rather than continue through to development and production. The disposal option is often value-neutral but achieves faster payback. Higher returns reward the greater risk in wildcatting. Development costs exceed exploration costs six-fold. Early monetisation offers talented but capital-constrained explorers a route to accelerate reinvestment in their core strengths. By staying small,...
Table of contents
- Executive summary
- Undeveloped discoveries can be attractive assets with prices to match
- A few explorers have already enhanced their returns through disposals
- Many more could yet transform exploration returns by selling discoveries
- Show us the money - investors need explorers to prove value creation
- But governments' attitudes to explorers selling discoveries can be mixed
- Should I stay or should I go?
Tables and charts
This report includes 6 images and tables including:
- Implied long-term oil price (ILTOP) of transactions by asset development stage
- Impact of disposal of recent discoveries on conventional exploration returns
- Hypothetical impact of future disposals of recent discoveries on conventional exploration returns
- Contrasting investor and industry perception of value through the exploration life cycle
- Generic develop or divest factors for explorers to consider
- Evolution of asset value and risk through exploration life cycle
What's included
This report contains:
Other reports you may be interested in
Commodity Market Report
LNG short-term analytics: Demand tracker
Frequently updated short-term LNG demand forecasts (by regas terminal)
$4,000
Commodity Market Report
Global gas & LNG weekly summary: 18 April 2024
Geopolitics and upcoming Norwegian maintenance overshadow global LNG price movements
$4,000
Insight
End of the road for China’s teapots - Asia's swing producers
Will China teapot refineries perform well in short term? what is the impact?
$900
