Ray, You misunderstand the nature of reserves. Reserves are what...

Ray,

You misunderstand the nature of reserves. Reserves are what can economically be extracted.

So if the cut off point for an economic return on proven undeveloped reserves was $80/bbl and oil price was $100/bbl, all your barrels would feature in your 1P reserves. If the predicted oil price was $60/bbl, 1P undeveloped reserves would drop to zero.

If you already have drilled wells (proven developed reserves) as is the case for RFE, then you just need to keep pumping. These reserves have an economic return at much lower values because they just have to justify operating costs , not developmental cost as well. So these reserves would still stay on the books (unless oil price was so low that even operating costs could not be justified) but the NPV would be lower because the margins are less.

RFE did not differentiate between PDP / PDNP / PU reserves. Since they have so many wells, I would assume that most of the reserves are PDP and will remain on the books. However NPV could take a huge hit - possibly now less than the debt levels.

When you owe the bank $1,000,000 you have the problem.
When you owe the bank $100.000.000 the bank has the problem.