Resource Evaluation Conveys the Complete Equity Story
Multiple contingencies prevented a midsize Canadian E&P company from classifying large portions of their asset base as reserves. Yet, these contingent resource volumes accounted for a significant portion of the company’s future value proposition to stakeholders. The company required expert geoscience and engineering analysis to convey a complete equity story.
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Project Highlights
- 500 million barrels of recoverable bitumen and heavy oil
- Complex in situ thermal and EOR flood recovery schemes
- Future value predicated on contingent resource volumes
- Required COGEH Resources Other Than Reserves expertise
Challenges:
Multiple contingencies prevented the company from classifying large portions of their asset base as reserves under The Canadian Oil and Gas Evaluation Handbook (COGEH) and National Instrument 51-101 (NI 51-101) guidance
Contingent resource volumes accounted for a significant portion of the company’s future value proposition to stakeholders
Recoverable volumes were associated with technically complex In Situ thermal and chemical flooding Enhanced Oil Recovery (EOR) techniques
Contingent resource volumes accounted for a significant portion of the company’s future value proposition to stakeholders
Recoverable volumes were associated with technically complex In Situ thermal and chemical flooding Enhanced Oil Recovery (EOR) techniques
Solutions:
Sproule ERCE identified applicable contingencies under COGEH Resources Other Than Reserves (ROTR) guidelines and provided guidance to the company as to how and when the contingencies could be addressed and lifted
Sproule ERCE geoscience and engineering experts assessed and quantified the full extent of the company’s resource base using advanced evaluation techniques, including static geomodelling and dynamic reservoir simulation
Sproule ERCE geoscience and engineering experts assessed and quantified the full extent of the company’s resource base using advanced evaluation techniques, including static geomodelling and dynamic reservoir simulation
Values:
Sproule ERCE’s independent resource evaluation helped substantiate the company’s extensive undeveloped asset base and articulate the significant upside potential to investors
Sproule ERCE’s expertise with NI 51-101 and COGEH regulations provided the insight required to deliver a well-defined plan to stakeholders as to how and when contingent resource volumes were likely to be reclassified as reserves
Sproule ERCE’s expertise with NI 51-101 and COGEH regulations provided the insight required to deliver a well-defined plan to stakeholders as to how and when contingent resource volumes were likely to be reclassified as reserves