Hi barneydigs,
I think SM was being very polite and diplomatic in describing the independent Prospective Resources estimate as just overly conservative. And IMO, on a confirmed discovery, considerable potential upside to these resources exists (ASX 5/7/22).
From my >25 years in direct oil and gas exploration I found the independent Reserves & Resources certification area to be the most distasteful of all. I would go so far as to say it was little more than a scam. And I base this on having worked for two companies that provided theses certifications and having been involved with having my volumetric work "assessed" by certifying companies on many occasions. Basically, there key focus is to "lock-in" the Oil & Gas company for future work on the project - future revenue stream; up-sell the current certification review wherever possible - we really need to establishes this or that and do as little work as possible (i.e use percentages of the P10 volume for establishing other volumes!) and all for exorbitant day rates!
For those interested, my review of the description IVZ has provided of what the Certifiers did for the Mukuyu Prospect Resource Upgrade released on the 5/7/22 is below.
GLTAH
Cheers
VOGC
