GREY:LSTMF - Post by User
Comment by
ltrabson Jun 02, 2011 7:15pm
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Post# 18664805
RE: Re: Oh Really:
RE: Re: Oh Really:
Schussing, this is my take on reserves. .
The reserves data on plate 13 is more straight forward than most things in the May presentation.
For the most part it comes from their independent reserves engineers, Sproule Associates.
See the Feb. 21, 2011reserves release.
I read this as, Proved+ Probable (2P) is $8.38 billion, based on $88.40 USD oil, and a 0.933 Can$ to USD $.
Depreciated at 10% over the life of each included well nets out at $4.14 billion.
Every year Sproule Associates come up with new reserves values .... industry wide, reserves increase yearly while prices are increasing.
Presently, the dollar tempers these increases.
Reserves value is always a moving target.
- The Bakken did not receive much upgrade in the 2010 annual update, I suppose because of unknowns such as watercuts that have been resolved .. Plate 22 and probably a bunch of other things.
- The Cardium reserves are only beginning with hardly any reserves because there was very little data as of year end.
- That's why in spite of the extra initial cost, they have spread out their Cardium drilling this year, to obtain data sufficient to determine the reserves.
- The Northern BC gas plays had very little data at year end and have very little in reserves recognized ....
- There are other considerations with Gas, such plate 36, the one new producing well is producing a lot of liquid.
- The New Emerging, plate 35, will start to contribute recognized reserves once they've drilled a few wells later this year.
- They have a hell of a lot of remaining land that either they don't talk about or that hasn't enough data to determine reserves.A lot of this is sitting over the greater Bakken play, I assume economics have not yet been determined and no reserves attributed.