With exploration companies coming under pressure to maximise shareholder returns, the need to find the most valuable opportunities is continually increasing.Having analysed the 10 hottest frontier basins across the globe, we estimate they hold 77 bnboe of undiscovered resources spread across 2.4 million km2.

Our research shows there is huge potential to be found in open areas – around 74% of undiscovered resources in these basins can be found in areas that are currently unlicensed.  In comparison, 97% of discovered resources lie within licensed acreage.

We calculate the average value of exploration potential to be around US$100,000 per km2 but our data shows significant variations in volume and value between blocks and the tool provides a better understanding of risk and reward.

With this level of detail, we can also evaluate portfolios in each basin and assess how exposed different companies are to upside and risks. Taking into account current oil price volatility, we can see that the value of portfolios across these basins would drop by 90% on average if the oil price were to stay around $70 per barrel.

In such a challenging exploration climate, it's never been more important to have an in-depth understanding of the opportunities available and how they might impact future returns.

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EV2 is a brand new exploration valuation tool from Wood Mackenzie and CGG Robertson which helps you accurately assess the future potential of licensed and unlicensed acreage in the frontier basins that matter.

It combines CGG Robertson’s unique geological knowledge with Wood Mackenzie's industry-leading commercial analysis expertise, allowing you to rapidly evaluate exploration portfolios within a given basin by providing the potential risk, volumes and block value.
Source: Wood Mackenzie