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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (67204)	8/11/2005 3:13:27 AM
From: energyplay	Read Replies (1) \| Respond to of 74559

The publically stated reserves are reliable - it is rare that there will be less than the stated oil available. Petroleum Engineers can be sued by the bank if loan money based on a reserve estimate and the oil isn't there... Some fields with multiple possible pay zones - like some of those yummy German Chocolate cakes - will have proven reservers calculated ONLY on the zone producing now,and maybe one or two that are highly likely to produce in the near future. THIS WILL VASTLY UNDERSTATE THE ACTUAL RECOVERABLE OIL, even with yesterday's technology. Cheseapeake CHK has much of their acerage in the above category. There tends to be less arm waving on some of these situations, since there will probably be wells within 10 miles that are producing from the other zones... Other structures, like Salt Domes, Austin Chalk, and others will tend toward the single zone and reservoir model, and will not have this upside.