Evaluating Reserves

Reserves evaluation is the process of forecasting the production of existing and planned wells, and using these forecasts in combination with economic data to estimate monetary value. This value can be used for determining whether to develop a reservoir, buy or sell a field, or attract investment in a company. In order to account for consistent comparisons between projects, properties, and total companies, evaluations of the value of current and future production use a classification system. The classification system is used to categorize the uncertainty of production forecasts. For more information, see Reserves Evaluation.

There are three key dates to consider when conducting a reserves evaluation:

1. End of production — the last date for which production data was recorded / imported.

2. Reference date — the effective date of a reserves evaluation. Net present value, or remaining recoverable volumes are referenced to this point in time.

3. Forecast start date — the start date for the forecast production.

The entity’s name in the Analysis Manager changes to reflect the classification and reference date.

These tasks apply to evaluating reserves:

• Setting a Reserve Classification
• Initializing a Reference Date
• Adding a Reference Date
• Removing a Reference Date
• Renaming a Reference Date
• Archiving Reserve Evaluations
• Changing the Reference Volume Order