Introduction to Oil and Gas Reserves

This program focuses on Reserve Estimation, the Operational and Financial Principles of Decline Curves, and the effects of Reserves and Production Declines on the Value of Wells, Projects and Companies and the effect on SFAS 143 and SFAS 69.

Who Should Attend:

· Employees of Exploration and Production companies who have Production Estimating and Budgeting responsibility.

· Employees of E & P companies who are responsible for assessing project profitability, constructing AFE’s and appraising Management of those principles and results.

· Employees of Oil & Gas Companies responsible for financial reporting over reserves disclosures including SFAS 69 and SFAS 143.

· Employees of audit firms who do financial statement audits.

Objectives:

• To gain a working knowledge of Decline Curves, how they are calculated, what they mean and how they are projected forward
• To understand Reserves estimation principles and procedures, reasons and limitations and how they affect company value

• To understand how reserves and decline curves contribute to the economic analysis of a project, well, field and company
• To review how reserves effect SFAS 143 and SFAS 69 disclosures
• To understand potential changes in Oil & Gas reserve disclosures proposed by the SEC on December 12, 2007 in concept release 33-8870 which can be found at http://www.sec.gov/rules/concept/2007/33-8870.pdf.

Key Topics:

• Geology, Geography and Chemistry
• Overview of current oil & gas reserve definitions – SPEE and SEC
• Review of Estimation processes and decline curves
• Impact of Technology
• Impact of Geography on Pricing
• Reserve reports – impact on Full cost and Successful efforts companies
• SFAS 69
• How reserves effect SFAS 143
• The rest of the world - Canadian, IASB and UN definitions
• SEC proposed changes
• Valuation for Management planning and acquisition and divestment decisions

Professional Development Institute

University of North Texas

Quality programs – offered on-site and adapted for your company. Contact Jim Hoffman at 214.763.9644 or via email at jhoffman@pdi.org. Visit us online at energy.pdi.org