A philistine would not be aware of the strict reporting criteria for claiming a Reserve is 1P and how strict the criteria is for certifying an economically extractable reserve - flows MUST MUST MUST MUST be demonstrated and it MUST MUST MUST MUST result in profitability.
Some people couldnt care less about the facts and curiosly enough have forgotten how a FACT cannot be opinionated, only its effects can be discussed. And the effect of an economical 1P reserve is just that...its economical aspect and flowability cant be opinionated - impossible. They are or are not and in this case, due to strict criteria they have proven to BE.
When the other reserves are economical (when gas rises a bit) we will have many more potential 1 and 2P reserves that can be booked as they were only discluded from those categories due to the economics. A possible future buyer knows this as they are in the same game and know potential from dry.
Call the EIA in the USA for the criteria if you wish to check for yourself on the criterias for booking reserves - i like the crossexamination as it educates others in their process of doing it.
Cheers.
L
MAE Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
