Economic Risk in Hydrocarbon Exploration Quotes

“Even when the corporate risk tolerance is low it is still possible to take some working interest in a risky project. Clearly, zero working interest is the lower limit and 100% working interest is the high limit. Somewhere between these two extremes there must be an optimum working interest to take which depends on both the parameters of the project (success probability, estimated gains, and estimated costs) and on the corporate risk tolerance.”
― Ian Lerche, Economic Risk in Hydrocarbon Exploration