Aloha, Don't know if I'm the only one up. Saw this on Kingfine
Anything to it. I'm strong on ICVI
Message 7756 of 7756 by smallcaps
A message to all
June 1 98
1:08 am EDT
Kevin--ICVI
I think I can tell you the news now. Company says it has 200 mill in assets.
Assets=hydrocarbons in place
To calculate hydrocarbons in place or reserves, you multiply the thickness of the strata by the porosity by the hydrocarbon ratio (oil to water) by the acreage leased to the well. That gives you the amount of hydrocarbons, not recoverable hydrocarbons.
To get recoverable, you must factor in permability, recovery ratios, strata lens characteristics, assisted recovery methods, etc.
Reserves are calculated by Pet engrs and are relatively solid.
Recoverable reserves are set by the management. How much are they going to spend for assisted recovery (fracing, surfactants, steam, etc)? A pet engr cannot make that economic decision.
The bad news will probably refer to their estimates versus estimates made in the 70's as to reserves. The reserves are a taxable item and are public info as is the appraised value of your house. Someone will note the difference on the same wells. Betcha
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