reserves & corporate governance, page-5

I have never said they are misleading people, it is wrong for you to say I have. I rely on the same statements as every other oil and gas company about the subjectivity of reserves, as can be readily picked up in disclaimers on all presentations.

I do not necessarily say the issues are obvious, I'm simply cautioning investors that if their entire valuation thesis is based on 100MMbbl of proved reserves they should be extremely careful, and ideally seek out advice from someone within the oil industry who they can show the basic data to.

The benefit of oil and gas companies using a known consultancy is in their experience and processes. A top or mid tier reserves consultant will be staffed with people who are very experienced in analysing reserves, they also have a process of review and sign off within the firm that ensures some level of independent check on the results. This does not make them infallible but does add a reasonable level of QC. These companies take this seriously as performing quality evaluations is their bread and butter, if they compromise their brand in the eyes of investors and other customers of their reports they will have no business. The same cannot be true of a sole trader, at least from the perspective that he cannot independently review his own work.