Oil Price, page-11

Hi AJLD I was refering to the estimated world reserves and it's relationship to production , reserves and increasing reserves guarantee the world will have production in the future and that is vital but they don't guarantee a continued increase in the production rate, so in effect become largely irrelevant on a day to day because if we can't produce as fast as we need it and have no way of increasing it then we have a problem.

There is a point where the decline rate in existing wells and fields overcome the new wells coming online, in the case of conventional crude there is considerable evidence to that point having been reached already.

On a Company basis of course reserves are essential to their continuing future and it's why many of the larger ones are struggling to find enough conventional oil to maintain reserves and production hence
many turned to shale .

In FAR's case reserves are everything as we havn't got any production and they are the future, also something we can sell.

Cheers Whisky