"Borrowing bases are redetermined roughly every six months....

"Borrowing bases are redetermined roughly every six months. Figures used by banks to calculate the value of the reserves used to borrow against are based on market oil prices. "

Hi Mr H the above is one of the lesser known realities of oil reserves and it's why any Company that have reserves are taking some very large write downs on their assets, COP and CNE will be amongst them. Reserves unlike resources are based on the estimated economic amount of oil recoverable with the price of oil at the time of the reserves statement....

At this stage FAR and SNE have no reserves placed on them so of no consequence but will have when SNE 2 is completed . CNE believes SNE is profitable at $ US 40-45 bbl, which is about where it is now. Any reserves given for SNE will reflect the oil price at that time....there is good news and bad news with that, a lower oil price will reduce the amount of reserves given and higher oil price increase them. We will certainly be adding reserves at the low end of the oil price .

The fact production is 5-6 years away, the odds are highly in favour of the reserves growing not just by adding wells but also by an increasing oil price....

Cheers Whisky