Public Reporting - Annual reports or material transactions. Turrett helps you report the facts.
Reserve reports are prepared according to the regulatory guidance of the exchange on which the company trades. Alternately, if the company is not publicly traded, Turrett will prepare the report according to the exchange standards requested by the client. For example, many clients prefer to maintain United States Securities and Exchange Commission (SEC) rules to allow for consistency in the methods to prepare the report. This allows for a more “apples to apples” comparison knowing that the same reserve categories are used and the oil and gas price forecast is similar.
Public reporting for oil and gas assets utilizes the Petroleum Resources Management System (PRMS). This is a standardized method for reporting oil and gas assets and is sponsored by the major industry professional organizations including the Society of Petroleum Engineers (SPE), the American Association of Petroleum Geologists (AAPG), the World Petroleum Council (WPC), and the Society of Petroleum Evaluation Engineers (SPEE).
Oil and gas assets are categorized into a resources classification framework. The Total Petroleum Initially in Place (PIIP) is categorized based on the range of uncertainty and the chance of commerciality. Discovered resources are categorized as either Commercial or Sub-Commercial. Commercial Resources are called Reserves while Sub-Commercial Resources are called Contingent Resources. Undiscovered Resources are called Prospective Resources.
Pricing for reserves under the SEC rules require that the average price during the past 12-month period is used. This price is generated by taking the unweighted arithmetic average of the first-day-of-the-month price for each month in the 12-month period preceding the reporting period. One acceptable alternative to this price scenario is if there is a contractually obligated price to be paid for the reserves.
Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities require that reserve estimates are prepared in accordance with the Canadian Oil and Gas Evaluation Handbook (COGE). The COGE Handbook is prepared jointly by The Society of Petroleum Evaluation Engineers (SPEE) (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy and Petroleum (Petroleum Society).