Reflecting Risks and Uncertainties in Reserves Estimations Using Reserves Classification Frameworks

The main target of all shareholders is to increase their income by producing oil and/or gas. The key parameter to produce oil and/or gas is the investments, such as purchasing licences, drilling wells, and constructing production facilities. Oil companies program their investments to a particular field by analyzing the ultimate recovery from that field, i.e. have to know their reserves and the associated risks and uncertainties. To have a better understanding on the risks and uncertainties in estimated results, resources are classified using international or local frameworks. This work will examine the two most widely used international frameworks (SPE-PRMS and UNFC), basic concepts concerning them.