search query: @author Casassus, J. / total: 1
reference: 1 / 1
« previous | next »
| Author: | Cortazar, G. Schwartz, E. S. Casassus, J. |
| Title: | Optimal exploration investments under price and geological-technical uncertainty: a real options model |
| Journal: | R. and D. Management
2001 : VOL. 31:2, p. 181-190 |
| Index terms: | INVESTMENT GEOLOGY UNCERTAINTY OPTIONS |
| Language: | eng |
| Abstract: | This article develops a real options model for valuing natural resource exploration investments (e.g. oil or copper) when there is joint price and geological- technical uncertainty. After a successful several-stage exploration phase, there is a development investment and an extraction phase. All phases are optimized contingent on price and geological-technical uncertainty. Several real options are considered. There are flexible investment schedules for all exploration stages and a timing option for the development investment. Once the mine is developed, there are closure, opening and abandonment options for the extraction phase. The authors' model maintains a relatively simple valuation structure by collapsing price and geological-technical uncertainty into a one-factor model. |
« previous | next »
SCIMA