Proven Reserve Criterion
Proven, or 1P reserves, are those reserves which have a highly reasonable certainty or a 90 percent certainty of being recoverable under existing economic and political conditions, using existing technology. Under the category, proven reserves can be categorized as proven and developed reserves or proven and undeveloped reserves. Proven and developed reserves are those reserves which can be produced with existing wells or from additional reservoirs where minimal additional investment is required. Proven and undeveloped (PUD) reserves require additional capital investments such as drilling new wells to bring the oil to the surface.
The SEC acknowledges in Section 3. Definition of Proven Reserves: “. . . it is difficult, ...
Get Investing in Energy: A Primer on the Economics of the Energy Industry now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
