• Companies operating or owning interest in petroleum operation for in-house valuation
• Banks and other financial institutions involved in financing
• Stock markets around the world
• Regulatory bodies to protect the general public, to manage natural resources, and to promote uniformity
• Taxation agencies with authority over petroleum products
• Investors in petroleum companies
• Mineral rights owners
• Arbitration parties
• Governments for energy policies and strategic planning

• Analogy
• Volumetrics
• Performance (decline curve) analysis
• Material balance
• Reservoir simulation

• Best in Blanket Sands
• Basis for infill statistical models
• Best applications prior to production or where Volumetrics do not work

• Can be used in conjunction with other methods any time, but needs good history match & other confirmation techniques to use for proved reserve bookings for SEC purposes.
• SPE/AAPG/WPC/SPEE considers simulation an extension of material balance, that can be used at any phase of evaluation, but more conclusive with good history match.

Deterministic is a single, best estimate of reserves based on best eimates of each parameter while the probabilistic approach is a range of estimates and their associated probabilities generated from a distribution of paramaters.

The Deterministic approach is preferred by the SEC, but they will accept the Probabilistic approach as long as no parameter distribution or values lies outside SEC rules and guidelines.

• Exponential decline
• Rate vs Cumulative plots
• Hyperbolic decline
• Harmonic decline

• Facilitates comparisons
• Removes scale
• Data reduction tool

(Extensions and Discoveries + Improved Recovery) / Production

Net Wells / Gross Wells

Net well: Sum of the net interest in all wells

Gross well: Number of wells in which the company has any working interest

• Different accounting methods (SE vs FC)
• Consistent calculations of the ratios
• Reliance on values at a single point in time
• Over reliance on quatitative data as a measure of the financial health of a firm

Technical analysts predict stock prices based on past prices, trading volumes, and other factors such as trading highs, lows, and the breadth of the market.

Fundamental analysis is the interpretation of financial data to estimate stock value and forecast future price movements.

• Weak-form: If the market value of stock reflects only historical information, market efficiency is weak.
• Semistrong: Reflects all historical and publicly available information. The U.S. markets are semistrong.
• Strong-form: Stock prices reflect all public information and inside information.