Deepwater statistics ///

Discovery Cost (DC) is the exploration spend divided by the total new field resources discovered in a given period. Lower DC indicates more efficient exploration. In deepwater, we expect higher drilling costs to be offset by larger volumes. DC is similar to the Finding Cost (FC) metric. DC is based on resources in the year in which they were discovered, whereas FC is based on reserves in the year in which they are proven and booked. We looked at DC for all 10 deepwater basins, where over 1 billion boe was discovered between 1997 and 2006. We then compared these results to the average DC over the last three years to understand how costs are changing, and whether cost increases and basin maturity are having an impact on exploration efficiency. Looking at the 10-yr average, DC is around $1 per boe for most basins.

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