Submitted by: Submitted by PNgu
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Category: Business and Industry
Date Submitted: 02/02/2015 01:09 AM
Classifications and definitions
For a quantity of petroleum to be classified as reserves the decision must be made that the accumulation will be developed and put into production within a reasonable timeframe. Other quantities are designated as resources. All estimates of resources and reserves involve a certain degree of uncertainty, which is primarily due to the geological data available at the time of appraisal and the interpretation of this data. Reserves are therefore divided into various categories depending on the relative uncertainty that exists.
Reserves
Proven reserves (1P)
Proven reserves (1P) means the estimated amount of petroleum which has a very high probability (greater than 90 percent) of being able to be recovered from proven accumulations in the current financial circumstances and under current operating conditions.
Probable reserves (2P)
Probable reserves are reserves that are likely to consist of recoverable oil and gas accumulations. Proven plus probable reserves (2P) must have more than 50 percent probability of being technically and financially recoverable in the current or future financial circumstances.
Possible reserves (3P)
Possible reserves are reserves for which analyses indicate that it is less likely that they will be able to be recovered. Proven plus probable plus possible reserves must have more than 10 percent probability of being technically and financially recoverable in the current or future financial circumstances.
Resources
Contingent resources
Contingent resources means the estimated recoverable volumes from known accumulations that have been proven through drilling but which do not yet fulfil the requirements for reserves.
Prospective resources
Prospective resources means the resources estimated to exist in prospect areas considered viable to drill, but which have not yet been proven by drilling. PA Resources includes resources in leads in this category.
Risked prospective resources
Risked prospective...