E&P and Geothermal Project Economics and Risk Analysis

GESGB Training Course Information

✒️ Course Title: E&P and Geothermal Project Economics and Risk Analysis

🗣️ Facilitator: Mark Cook, Reservoir Engineer and Economist at Delta-T Energy Consultancy and TRACS International Associate 

📅 Dates: 17 | 18 | 19 February 2026 (3 x 2.5hr sessions)

⏰ Time: 14:00-16:30 (UK time) per session

This event will be delivered online. 

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Course overview

By hands-on practice, participants will build an Excel-based  project cashflow using an E&P example, and then investigate the economic attractiveness to the investor. You will then analyse the uncertainty elements of these projects and apply tools to manage the subsequent risks.   Comparisons will be made with geothermal (GT) project inputs and results.

👉 Participants will learn to:

• Gather information required as input to a project cashflow
• Build a project cashflow for an E&P project
• Review a project cashflow for a GT project, including grants and subsidies
• Analyse a project cashflow using profitability indicators including NPV, IRR, payback, capital efficiency and their use in ranking opportunities
• Compare key economic and market differences between typical E&P and GT projects
• Overlay development project value with the exploration risk of commercial success and understand mean success volume
• Apply decision tree analysis to justify value of information from further appraisal
• Apply tools to manage development project risks

Course Outline 

Day 1 |  Tuesday 17 February 2026 

With instruction, participants will complete an Excel-based project cashflow from inputs including production profile, capex, opex, taxation and incentives, and then discount the net cashflow to yield NPV and IRR. Comparisons will be made between the product price assumptions (hydrocarbon commodity pricing vs a power purchase agreements). Participants will require access to Excel during the session – a template model will be provided.

Day 2 | Wednesday 18 February 2026 

Review of geothermal subsurface uncertainties, types of GT development projects and conceptual models to describe GT systems. Introduction of an industry standard spreadsheet model for GT projects.  Project economic indicators (capital efficiency, unit costs, levelized cost of energy) and their application to ranking opportunities. Sensitivity analysis using the economic model and presentation on spider diagrams – a template Excel model will be provided.

Day 3 | Thursday 19 February 

Risking exploration projects using chance of technical and commercial success. Use of Mean Success Volume (MSV) in ranking alternative exploration projects. Appraisal techniques in E&P and GT projects including well testing, outstep drilling, slim hole coring.  Use of decision tree analysis (DTA) in justifying Value of Information (VoI) derived from appraisal activities.  Application of Quantitative Risk Assessment (QRA) techniques in risk management using the Bow Tie model for development projects and presentation on risk registers and matrices.

💡 Who Should Attend?

This course  is designed for geoscientists, engineers and those transferring into a commercial role who wish to understand how an E&P or geothermal project is evaluated as a potential investment opportunity.  It will enhance the conversation between technical and commercial disciplines and will provide practical experience in building and analysing an economic model.

Mark Cook (BSc, MBA) is a reservoir engineer and petroleum economist with over 40 years of industry experience gained with Shell International and TRACS International, a consultancy he co-founded in 1992. He is involved in project evaluation, reserves audit and consultancy in E&P and geothermal arenas. He runs the SPE Short Course in Petroleum Economics has been an SPE Distinguished Lecturer. He is author of “Petroleum Economics ad Risk Analysis” (Elsevier 2021). He has strong communication skills and takes participants through topics using an interactive and practical approach to enhance their subject knowledge.