Abstract: There are a lot of uncertain factors in the low permeability oilfield development project. Its investment is of irreversibility and delayability. The decision?maker has some flexibility in choosing development time. These features allow the project to be of typical real options property. Based on Black?Scholes model, this article establishes the real options method suitable for such a project, conducts case study and makes a comparison with net present value (NPV) method. However, the opposite results are obtained by these two methods. It is concluded that the reason is that using NPV method tends to underestimating the value of the project