JSI Services

Exploration & Development Analysis

Deal Analysis


Nearly 3000 deals have been screened from 130 countries (deals in North America and the North Sea are not part of the service). Around 400 deals are currently considered active; their distribution is shown on the pie chart and in the map on the home page. About 25% of the farm outs are for gas prospects with 75% for oil prospects. About 25% of all the farm outs have discoveries on them.

Trend of average value with time

This graph shows the average EMV (Risked reward minus risked cost) at $15 oil price with constant 2003 costs for the exploration farm outs in each month. A decline in deal quality is evident in 2009 due to the fall in the oil price. There is a slight correlation between oil price & deal quality with ?better? quality deals coming on to the market when oil prices are high (contrary to what you might believe)

Successful farm outs

This graph shows the distribution of the deals that have been farmed out in the last 12 months. The majority of the activity is in Europe, West Africa and South America followed by Australasia and the Far East. The known oil areas of North Africa, Middle East and the Caspian region are those showing the least amount of exploration oriented deal making. About 75% of all farm outs are eventually drilled with an average success rate of 21%.