Accounting for Uncertainty in Discounted Cash Flow Valuation of Upstream Oil and Gas Investments by William H. Knull, III, Scott T. Jones, Timothy J. Tyler & Richard D. Deutsch
Mayer Brown Article
August 2007 - Valuing future income streams from the production of oil and gas is a well-developed discipline within the industry and among sophisticated investors. Valuations drive companies' investment decisions and market transactions every day. In the context of resolving disputes, especially international ones, arbitration tribunals are frequently called on to perform a similar exercise: to determine a lump-sum damages award to compensate for the loss of an income-producing asset.