The average success probability for a wildcat oil well drilled in the Wind River basin 7 miles

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The average success probability for a wildcat oil well drilled in the Wind River basin 7 miles from the nearest existing production well is estimated to be 13%. If the value of the oil has equal chances of being $1.5 million, $1.9 million, and $2.4 million, what is the expected income from the well?

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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