A critical comparison of real option valuation methods: Assumptions, applicability, mechanics, and recommendations

Proceedings - SPE Annual Technical Conference and Exhibition

Volumn , Issue , 2005, Pages 3933-3942

  Bratvold, R B ^a   Laughton, D ^b   Enloe, T ^c   Borison, A ^c   Begg, S ^d  

^a UNIVERSITY OF STAVANGER   (Norway)

^b David Laughton Consulting

^c Unocal ^*  (United States)

^d UNIVERSITY OF ADELAIDE   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

BLACK-SCHOLES; OPTION VALUATION; TAXONOMY;

DECISION MAKING; INDUSTRIAL ECONOMICS; MARKETING; OFFSHORE OIL WELL PRODUCTION;

PETROLEUM INDUSTRY;

EID: 33644795160     PISSN: None     EISSN: None     Source Type: Conference Proceeding    
DOI: None     Document Type: Conference Paper

References (14)

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2. Bratvold, R.B., D.Laughton, T. Enloe, A. Borison and S. Begg (2005) "A Taxonomy of Methods to Value Real Assets with Managerial Flexibility" (may be requested from laughton.david@davidlaughtonconsulting.ca orreidar.bratvold@uis.no)
3. Brennan, M. and E. Schwartz (1985) "Evaluating Natural Resource Investments" Journal of Business 58(2) 135-157
4. Copeland, T., and V. Antikarov (2003) Real Options. Texere LLC, New York.
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8. Laughton, D. (2005) "The Banff Taxonomy of Asset Valuation Methods: Lessons from Financial Markets for Valuation in the Upstream Petroleum Industry" davidlaughtonconsulting.ca/publications/banff_taxonomy.html
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12. Smith, J.E., R.F. Nau (1995) "Valuing Risky Projects: Option Pricing Theory and Decision Analysis." Management Science 14(5), 795-816.
13. Wilkinson, D., W.J. Bailey and B.Couët "Alternative Approaches to Real Option Valuation: A Critical Appraisal" SPE 97065.
14. Woolley, S. and F. Cannizzo (2005) "Taking Real Options out of the Black Box" Journal of Applied Corporate Finance (2005) 17(2), 94-98.