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Value of Information

Competency Statement:

You will analyze the economic “value of information” that can be achieved during the exploration process by applying various decision making technologies at progressively higher costs to reduce uncertainty, thereby providing better estimates during the decision process.

Learning Objective:

The objectives of this learning module are to:

  • Measure the value of data vs. the cost to acquire the data.
  • Determine multiple data acquisition scenarios that can accomplish the goals and measure their impact on the prospects economics
  • Understand the cost-benefit decision process and exploration uncertainty in making both technical and business decisions.

Review all the supplied reference materials included under both the Reference Selector, and Background Knowledge buttons. The reference material file includes downloadable tools you will use to answer the assignment questions

 

Assignment Instruction:

The exploration team has presented both structure and stratigraphic maps associated with a prospect. However, the maps and therefore the associated reservoir economic estimates are based on old vintage 2D data and low density well and outcrop data in the area. Based on the available data it appears that both structure and traps are present and that reservoir properties (sand/shale, porosity, and permeability) are sufficient for hydrocarbon trapping and production, however, you recognize the uncertainty associated with this assumption and the risks it presents to the success of the prospect.

To reduce this uncertainty and improve your estimate of resources you ask your team to evaluate the introduction of various technology solutions. The team will need to look at their costs, the potential amounts of uncertainty reduction, and the potential upside it would bring to the prospects economics. Your team will then rank the technology solutions based on the value they can bring to the project.

Review all the supplied reference materials included under both the Reference Selector, and Background Knowledge buttons above. The reference material file includes downloadable tools you will use to answer the assignment questions.