Terminology Exchange
The Terminology Exchange is an attempt at trying to understand term definition differences. This can be particularly useful when meeting with or reading documents from different countries and companies.
The idea is, a word will be chosen each quarter. Most often, the definition of the term will be taken from the Dictionary of Petroleum Exploration Drilling and Production by Norman J. Hyne, Ph.D. In this newsletter most of the definitions from this book will reflect those used in the U.S.
If you use a different definition for this term than the one printed, please e-mail the editor giving your name, company and country with your version of the term’s definition. I will then print a white paper on each term at the end of the year.
The first word we will look at is “Reserves.”
“RESERVES - the amount of gas and/or oil that is estimated to be produced from a well, lease, or field in the future. Types of reserves include proven, probable and possible, primary and secondary, and developed and undeveloped. Proven reserves are well defined by drilling and have geological and economic certainty. Probable or prospective reserves are based on estimates made by the probable geological extent of the reservoir which has yet to be confirmed by drilling and have a 50% certainty. Possible reserves have less geological control than probable reserves and have a 25% certainty. Proven developed reserves are economically recoverable from existing wells with present operating methods. Proven undeveloped reserves are economically recoverable from wells to be drilled or with deepening or recompletion of existing wells. Reserves can also be divided into a) proved and b) potential which includes probable, possible, and speculative reserves. Reserves are often estimated by the volumetric formula or the decline curve method. (RESV)”