Hi everyone
I found this article on the Society of Petroleum Engineer's website:
www.spe.org/specma/binary/files/6859920Reserves_Audit_Standards_2007.pdf
It is a guide that lists how oil and gas reserves can/are estimated.
It is quite a detailed document, about 27 pages long! I quickly had a read through it and a couple of things stood out:
Firstly, there is no mention that you have to drill x number of wells to get an estimate. In fact, an estimate can be determined by a number of different ways.
Read this section to see what I am talking about:
"Article V—Standards for Estimating Reserves and Other Reserves
Information"
Secondly, it is interesting to note WHO is allowed to estimate a reserve. See this section:
"3.2 Professional Qualifications of Reserves Estimators"
John (Hasleby) is a member of the Society of Petroleum Engineers. Obviously for conflict of interest purposes he won't be doing the estimate.
See this link for what qualifications the director's of GDN have:
http://www.goldenstate.com.au/CorpDir.shtml
Is this a production/commercial well? Only the tests will tell definitively.
I believe that there is a distinct PROBABILITY that it is and that is why I own GDN shares. Note that this is a probability only and I stand to take a large loss if the well is not commercial.
But that is the risk portion of the whole risk/reward concept that goes with owning investments.
Good luck to all holders, lets hope we will be cooking with lots of gas from GDN shortly. :-)
- Forums
- ASX - By Stock
- GDN
- estimating oil and gas reserves
estimating oil and gas reserves
-
- There are more pages in this discussion • 6 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GDN (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online