||The volume of proved reserves gained by the purchase of an existing fields or properties,
from the date of purchase or transfer.
||The quantity which preserves an exact annual reserves balance within each State or State
subdivision of the following form:
Adjustments + Revision Increases - Revision Decreases - Sales + Acquisitions + Extensions +
New Field Discoveries + New Reservoir Discoveries in Old Fields - Report Year Production =
Published Proved Reserves at End of Report Year
These adjustments are the yearly changes in the published reserve estimates that cannot be
attributed to the estimates for other reserve change categories because of the survey and
statistical estimation methods employed. For example, variations as a result of changes in
the operator frame, different random samples or imputations for missing or unreported reserve
changes, could contribute to adjustments.
||The reserves credited to a reservoir because of enlargement of its proved area.
Normally the ultimate size of newly discovered fields, or newly discovered reservoirs
in old fields, is determined by wells drilled in years subsequent to discovery. When
such wells add to the proved area of a previously discovered reservoir, the increase
in proved reserves is classified as an extension.
|Natural Gas Liquids
||Those hydrocarbons in natural gas which are separated from the gas through the processes
of absorption, condensation, adsorption, or other methods in gas processing or cycling
plants. Generally such liquids consist of propane and heavier hydrocarbons and are
commonly referred to as condensate, natural gasoline, or liquefied petroleum gases.
Where hydrocarbon components lighter than propane are recovered as liquids, these
components are included with natural gas liquids.
|New Field Discoveries
||The volumes of proved reserves of crude oil, natural gas and/or natural gas liquids
discovered in new fields during the report year.
|New Reservoir Discoveries in Old Fields
||The volumes of proved reserves of crude oil, natural gas, and/or natural gas liquids
discovered during the report year in new reservoir(s) located in old fields.
||Proved reserves of natural gas as of December 31 of the report year are the estimated
quantities which analysis of geological and engineering data demonstrate with reasonable
certainty to be recoverable in future years from known reservoirs under existing
economic and operating conditions.
Reservoirs are considered proved if economic producibility is supported by actual production
or conclusive formation test (drill stem or wire line), or if economic producibility is
supported by core analyses and/or electric or other log interpretations.
The area of a gas reservoir considered proved includes: (1) that portion delineated by
drilling and defined by gas -- oil and/or gas -- water contacts, if any; and (2) the
immediately adjoining portions not yet drilled, but which can be reasonably judged as
economically productive on the basis of available geological and engineering data. In the
absence of information on fluid contacts, the lowest known structural occurrence of
hydrocarbons is considered to be the lower proved limit of the reservoir.
Volumes of natural gas placed in underground storage are not to be considered proved
For natural gas, wet after lease seperation, an appropriate reduction in the reservoir gas
volume has been made to cover the removal of the liquefiable portions of the gas in lease and/or
field separation facilities and the exclusion of nonhydrocarbon gases where they occur in
sufficient quantity to reder the gas unmarketable.
For dry natural gas, an appropriate reduction in the gas volume has been made to cover the
removal of the liquefiable portions of the gas in lease and/or field separation facilities,
and in natural gas processing plants, and the exclusion of nonhydrocarbon gases where they
occur in sufficient quantity to render the gas unmarketable.
It is not necessary that production, gathering, or transportation facilities be installed or
operative for a reservoir to be considered proved. It is to be assumed that compression
will be initiated if and when economically justified.
|Proved Reserves of Natural Gas Liquids
||Proved reserves of natural gas liquids as of December 31 of
the report year are those volumes of natural gas
liquids (including lease condensate) demonstrated
with reasonable certainty to be separable in the
future from proved natural gas reserves, under
existing economic and operating conditions.
||Changes to prior year-end proved reserves estimates, either positive or negative,
resulting from new information other than an increase in proved acreage (extension).
Revisions include increases of proved reserves associated with the installation of
improved recovery techniques or equipment. They also include correction of prior
report year arithmetical or clerical errors and adjustments to prior year-end
production volumes to the extent that these alter reported prior year reserves
||The volume of proved reserves deducted from an operator's total reserves when
selling an existing field or property, during the calendar year.