CRUDE OIL CLASSIFICATION AND BENCHMARKS
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reservoir, provides support for the engineering analysis on which
the project or program was based. However, estimates of proved
reserves do not include the following:
1. Oil that may become available from known reservoirs
but is classified separately as indicated additional
reserves
2. Crude oil where the recovery subject to reasonable
doubt because of uncertainty as to geology, reservoir
characteristics, or economic factors
3. Crude oil that may occur in undrilled prospects, and
4. Crude oil, natural gas, and natural gas liquids, that
may be recovered from oil sale, coal, gilsonite, and
other such sources.
Proved reserves are further subdivided into proved developed
(PD) and proved undeveloped (PUD). PD reserves are reserves
that can be produced with existing wells and perforations, or
from additional reservoirs where minimal additional investment (operating expense) is required. Additional oil and gas
expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing
the natural forces and mechanisms of primary recovery can be
included as proved developed reserves only after testing by a
pilot project or after the operation of an installed program has
confirmed through production response that increased recovery
will be achieved.
Proved undeveloped reserves are reserves that will be recovered from new wells on undrilled acreage, or from existing wells
where a relatively major expenditure is required for recompletion.
Reserves on undrilled acreage are limited to those drilling units
offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units can
be claimed only where it can be demonstrated with certainty that
there is continuity of production from the existing productive formation. Estimates for proved undeveloped reserves are not allowed
for any acreage for which an application of fluid injection or other
improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in
the same reservoir.
121
reservoir, provides support for the engineering analysis on which
the project or program was based. However, estimates of proved
reserves do not include the following:
1. Oil that may become available from known reservoirs
but is classified separately as indicated additional
reserves
2. Crude oil where the recovery subject to reasonable
doubt because of uncertainty as to geology, reservoir
characteristics, or economic factors
3. Crude oil that may occur in undrilled prospects, and
4. Crude oil, natural gas, and natural gas liquids, that
may be recovered from oil sale, coal, gilsonite, and
other such sources.
Proved reserves are further subdivided into proved developed
(PD) and proved undeveloped (PUD). PD reserves are reserves
that can be produced with existing wells and perforations, or
from additional reservoirs where minimal additional investment (operating expense) is required. Additional oil and gas
expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing
the natural forces and mechanisms of primary recovery can be
included as proved developed reserves only after testing by a
pilot project or after the operation of an installed program has
confirmed through production response that increased recovery
will be achieved.
Proved undeveloped reserves are reserves that will be recovered from new wells on undrilled acreage, or from existing wells
where a relatively major expenditure is required for recompletion.
Reserves on undrilled acreage are limited to those drilling units
offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units can
be claimed only where it can be demonstrated with certainty that
there is continuity of production from the existing productive formation. Estimates for proved undeveloped reserves are not allowed
for any acreage for which an application of fluid injection or other
improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in
the same reservoir.