ORIGIN AND OCCURRENCE OF OIL 47
Reservoirs from which oil can be recovered using improved recovery techniques are included 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.
On the other hand proved undeveloped reserves are the reservoirs from which crude oil is expected to be recovered from new
wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for reservoir recompletion.
Undrilled reservoirs can be claimed as proven only where it can
be demonstrated with certainty that there is continuity of production from the existing productive reservoir formation. Under no circumstances should estimates for proved undeveloped reservoirs be
attributable to any reservoir 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.
Furthermore, the Securities and Exchange Commission (SX Reg
210.4-10, November 19, 1981, as amended September 19, 1989)
requires adherence to the SEC definition of proved oil and gas
reserves from which classification of reservoirs can be derive.
Thus proven reservoirs (proved reservoirs) are those reservoirs
where the estimated quantities of crude oil, which geological and
engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing
economic and operating conditions, i.e. prices and costs as of the
date the estimate is made. Prices include consideration of changes
in existing prices provided only by contractual arrangements, but
not on escalations based upon future conditions.
Reservoirs are considered proven if economic producibility is
supported by either actual production or a conclusive formation
test. The area of a reservoir considered proven includes that portion delineated by drilling and defined by gas-oil and /or oil-water
contacts, if any, and the immediately adjoining portions not yet
drilled, that can be reasonably judged as economically productive
on the basis of available geological and engineering data. In the
absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proved limit of
the reservoir.
Reservoirs from which crude oil can be produced economically
through application of improved recovery techniques, such as fluid
injection, are included in the proven classification when successful
testing by a pilot project, or the operation of an installed program
Reservoirs from which oil can be recovered using improved recovery techniques are included 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.
On the other hand proved undeveloped reserves are the reservoirs from which crude oil is expected to be recovered from new
wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for reservoir recompletion.
Undrilled reservoirs can be claimed as proven only where it can
be demonstrated with certainty that there is continuity of production from the existing productive reservoir formation. Under no circumstances should estimates for proved undeveloped reservoirs be
attributable to any reservoir 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.
Furthermore, the Securities and Exchange Commission (SX Reg
210.4-10, November 19, 1981, as amended September 19, 1989)
requires adherence to the SEC definition of proved oil and gas
reserves from which classification of reservoirs can be derive.
Thus proven reservoirs (proved reservoirs) are those reservoirs
where the estimated quantities of crude oil, which geological and
engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing
economic and operating conditions, i.e. prices and costs as of the
date the estimate is made. Prices include consideration of changes
in existing prices provided only by contractual arrangements, but
not on escalations based upon future conditions.
Reservoirs are considered proven if economic producibility is
supported by either actual production or a conclusive formation
test. The area of a reservoir considered proven includes that portion delineated by drilling and defined by gas-oil and /or oil-water
contacts, if any, and the immediately adjoining portions not yet
drilled, that can be reasonably judged as economically productive
on the basis of available geological and engineering data. In the
absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proved limit of
the reservoir.
Reservoirs from which crude oil can be produced economically
through application of improved recovery techniques, such as fluid
injection, are included in the proven classification when successful
testing by a pilot project, or the operation of an installed program