ROCKMAN wrote:BOE: based on what ever method you choose to use. That's why it's important to know what the source used. Most common is 1 bbl = 6 mcf. Obviously doesn't come close to a monetary equivalent given that 1 bbl of oil is selling for the price of 25 or so mcf.
ROCKMAN wrote:BOE: based on what ever method you choose to use. That's why it's important to know what the source used. Most common is 1 bbl = 6 mcf. Obviously doesn't come close to a monetary equivalent given that 1 bbl of oil is selling for the price of 25 or so mcf.
he use of BOE to report reserves seems like a bit of a smoke screen. At one time Natural gas and oil were fairly close on a $/BTU basis, but when a BOE of natural gas is worth one fifth of a BOE of crude, it seems that it is no longer even apples to oranges, more like apples to watermelons.
third party reserve audits/evaluations conducted by the likes of DeGolyer MacNaughton, Ryder Scott, Sproule, Gaffney Cline etc usually report both barrels of liquids and Mcf of gas. They also roll it up as a single number BOE. This is pretty consistent across the group so it is pretty easy to see what reserves and types of reserves a company has by simply looking at their 10K (US) or 51-101 (CAN). These reserve reports tend also to calculate out NPV10 for 1P and 2P using a price model usually based on current prices escalated at inflation.
Most corporate presentations will replicate these numbers (anything contradictory is illegal) in a manner that is often more easy to digest.
ROCKMAN wrote:DC - The best I could find was initial production dates. For 2011: 11 fields, 2012: 7 fields, 2013 far: 2 fields. Go to the BOEM website and you can find a very long list of all the DW fields. A lot more developed fields out there than most would guess.
Seems like the common range is 100 to 500 million bbls. Expensive neighborhood to play and can take 10 years to get on production but no where else to find such large individual fields. And on a per bbl cost to develop much more profitable than the shales. But these are large structures and their numbers are vey small compared to the number of shale wells left to drill. Just my WAG but I would say just 10 to 15 more years of big discoveries out there.
rockdoc123 wrote:Is NPV10 a 10 year NPV or is the 10 the annual discount rate, what discount is typically used (if 10 is for years)?
Its simply the NPV through the life of the reserves calculated at a 10% discount rate. In actuality the reserve reports issued often quote 10, 15 and 20% discount rates.
I'm always cautious about what liquids are lumped together. If the product in question can be used to offset actual C5+ use then I think it should be included. So if, for example, fuel use is being offset by propane it makes some sense to include that in the liquids tally IMHO
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