SERVICE DESCRIPTION
CREST Engineering Services provides traditional reserve evaluations to support financial reporting and oil & gas lending. These reviews are prepared according to industry standards established by the Society of Petroleum Engineers, Society of Petroleum Evaluation Engineers and the Security and Exchange Commission.
This information is widely used by oil and gas companies, banks, and other lending institutions for:
- Financial reporting to banks and regulatory agencies.
- Review of Acquisitions and Divestitures.
- Project inventory and portfolio management.
- Collateral evaluation to provide to banks and lending institutions to support debt.
WHAT WE VALUE AND HOW WE VALUE IT
Producing Reserves
Producing reserves (PDP) are typically evaluated using production trend analysis supported by volumetric calculations per industry guidance. These are reserves that are forecast to be recovered by the current completions with current economic parameters.
Non-Producing Reserves
Non-Producing reserves (PDNP) includes future reserves to be recovered from existing wellbores in both current completions and behind pipe completions. These reserves might include additional recovery from artificial lift, secondary recovery such as waterflood or possible behind pipe recompletions.
Undeveloped Reserves
Undeveloped reserves (PUD) includes reserves that are to be recovered through additional drilling and development. These may include additional wells to be drilled, or secondary recovery projects where higher than normal capital outlay might be required. These reserves are typically based on analogy to offset production and/or statistical evaluation where appropriate.
WHAT WE NEED TO GET STARTED
In addition to the Effective Date and intended purpose for the report, we use the following information for our evaluation:
For Producing Reserves
- Ownership information including decimal WI and NRI for each asset
- 12 month lease operating expense report.
- Explanation of any instances of abnormally high expenses or changes in production.
- Geologic information on the subject fields / producing intervals including structural and isopach maps when available.
For Non-Producing Reserves
- Description of the project and how the additional reserves will be recovered.
- Ownership information including decimal WI and NRI data for the new completion.
- Proposed timing of the work.
- Estimated cost for the work to bring the production on line.
- Supporting geologic information including structure and isopach maps.
- Well logs for any zones to be completed.
- Wellbore diagrams depicting the work to be completed.
For Undeveloped Reserves
- Ownership information including decimal WI and NRI data for the new development.
- Proposed timing of the drilling.
- Estimated cost to drill and complete each well plus surface requirements.
- Supporting geologic information including structure and isopach maps.