GREY:QEXXF - Post by User
Post by
elgaveenoon May 12, 2015 12:35pm
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Post# 23719626
Reserves for second year running have not been audited
Reserves for second year running have not been auditedOnce again, reserves have not been audited. They have been provided by managament to Delloite and they have used those numbers to "evaluate" the value of management's reserves.
You really need to see an audit to verify becasue the numbers don't pass the sniff test.
For Oil, the company added 537,000 BBLS to it's proved reserves numbers through "technical revisions" and "extensions & improved recovery". How did they do that? They had 24.97 net oil wells in 2014 compared to 22.29 net oil wells in 2013. Oil production was 243 bb/d Q4-2013 as compared to 317 bbl/d Q4-2014. So 2.68 wells increased produciton by 75 bbl/d and added over 200,000 bbls of reserves per added net well. That's pretty incredible. Unbelievable actually.
For Gas, the company added 4.9 Bcf to it's proved base reserves numbers through same "technical revisions" and "extensions & improved recovery". That's on the old wells only. The acquisition was accounted for separately. Considering that the base production is slightly declining, a nearly 50% jump in proved reserves from exisitng production is equally unbelievable.
An AUDIT of the reserves is required. that's what real companies do.