Ridiculous Assumptions 120 billion barrels of conventional oil-in-place. A volume of oil discovered. No flow tests. 2D seismic is based on assumptions that become forgone conclusions. Really, what are those guys smoking?? Totally, a pump job.
SEC policy states plainly "...The existing definition of the term “proved oil and gas reserves” incorporates certain specific concepts such as “lowest known hydrocarbons” which limit a company’s ability to claim proved reserves in the absence of information on fluid contacts in a well penetration, notwithstanding the existence of other engineering and geoscientific evidence...The current rules limit the use of alternative technologies as the basis for determining a company’s reserves disclosures. For example, under the current rules, a company must use actual production or flow tests to meet the “reasonable certainty” standard necessary to establish the proved status of its reserves. Similarly, the current rules provide bright line tests for determining fluid contacts, such as lowest known hydrocarbons and highest known oil, which establish the volume of the hydrocarbons in place"