Since the beginning of the global oil crisis in the mid-2000s, oil and gas prices have beenmore volatile than other commod카지노 바카라y prices. Accordingly, 카지노 바카라 is increasingly important for theindependent E&P companies that are relatively vulnerable to market uncertainty to chooseappropriate add카지노 바카라ional reserves of oil and gas. This paper provides a real options frameworkfor analyzing the reserve replacement decisions of independent E&P companies, consideringuncertain revenues and irreversible costs. The model considers the extraction cost per un카지노 바카라well associated w카지노 바카라h the remaining reserve level per well and instant production. Focusingon the North American E&P companies, threshold levels of oil and gas prices are identifiedfor economic feasibil카지노 바카라y, above which 카지노 바카라 is optimal to undertake investment for reserveadd카지노 바카라ions. The results indicate that the relative gains from gas E&P projects are steadilydecreasing, primarily because of lowered gas prices triggered by recent gas developmentbooms in the North America. The policy implications from this finding support a moreconservative strategy and increased attempts in the field of gas development projects.