Exploratory drilling is still in incipient or youthful stages in those areas of the world where the bulk of the potential petroleum resources is yet to be discovered. Methods of assessing resources from projections based on historical production and reserve data are limited to mature areas. For most of the world's petroleum-prospective areas, a more speculative situation calls for a critical review of resource-assessment methodology. The language of mathematical statistics is required to define more rigorously the appraisal of petroleum resources. Basically, two approaches have been used to appraise the amounts of undiscovered mineral resources in a geologic province: (1) projection models, which use statistical data on the past outcome of exploration and development in the province; and (2) estimation models of the overall resources of the province, which use certain known parameters of the province together with the outcome of exploration and development in analogous provinces. These two approaches often lead to widely different estimates. Some of the controversy that arises results from a confusion of the probabilistic significance of the quantities yielded by each of the two approaches. Also, inherent limitations of analytic projection models-such as those using the logistic and Gomperts functions --have often been ignored. The resource-assessment problem should be recast in terms that provide for consideration of the probability of existence of the resource and of the probability of discovery of a deposit. Then the two above-mentioned models occupy the two ends of the probability range. The new approach accounts for (1) what can be expected with reasonably high certainty by mere projections of what has been accomplished in the past; (2) the inherent biases of decision-makers and resource estimators; (3) upper bounds that can be set up as goals for exploration; and (4) the uncertainties in geologic conditions in a search for minerals. Actual outcomes can then be viewed as phenomena subject to statistical uncertainty and responsive to changes in economic and technologic factors.