Much can be observed in the statistics of bonus bids. For one thing, more information about a lease may not mean bidders agree more with their bids. However, whether any or all bidders are achieving satisfactory results at their bottom lines cannot be observed from bid statistics. Indeed, it does appear that bidders' results are not satisfactory. Furthermore, an aggressive bidder who "wins" at bidding time appears, in this study, less profitable than a conservative bodder.

Keywords:
statistics, internal rate, pre-tax internal rate, individual bidder, spe 12024, disagreement, lohrenz, upstream oil & gas, bottom line, actual bid
Subjects:
Asset and Portfolio Management
Copyright 1983, Society of Petroleum Engineers of AIME
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