Basics of the Reserves Report
September 14, 2017 | Online :: 4:00 - 5:30 p.m. Eastern
Many professionals in the oil and natural gas industry have likely heard of the “Reserves Report”, but unless you’re a reserves engineer, it’s unlikely you’ve been exposed to the technical complexity found beyond the title. The Reserves Report is the single point of reference for the value of your resource assets, and is a report required by the Security Exchange Commission (SEC) for all publicly-traded energy companies. It can be used a powerful business tool, helping build forecasts for planning budgets, production growth, and expected project payouts. But what is the true value of this report, and what information and assumptions go into building it? That is what attendees of this course will discover.
This course will provide a general overview of the Reserves Report, both why it is useful and what is needed to build one. We will take a methodical approach, learning how to build a reserves report from the ground up, reviewing the key assumptions, and identifying common pitfalls and how to avoid them. Also included is a discussion of pushback you might receive when reviewing your report, and what technical products will help justify your assumptions. This course will conclude with a Q&A session.
- Review the value of a reserves report to both public and private companies
- Identify the best way to characterize the value of your assets – operated and OBO/non-op
- Identify and evaluate key technical assumptions
- Discuss possible pitfalls when building the report
- Discuss supporting documentation needed for audit – third-party or internal
EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.
EUCI is authorized by IACET to offer 0.2 CEUs for this event.
Requirements for Successful Completion of Program
Participants must be logged on for the entirety of the webinar to be eligible for continuing education credit.
A Web-based PowerPoint presentation and online interactive question/answer session will be used in this webinar for each learning outcome.
What is a Reserves Report? Why do you need one?
- Publicly-traded vs private-equity
- Externally audited (or not)
- 2P vs 3P
- Planning or marketing
Where do you start?
- Operated vs OBO/non-op
- Technical evaluation – geology, reservoir
- Surface evaluation – acreage position, permitting requirements, regulatory hurdles
- Cost evaluation – drilling, completion, facilities
- Price Deck – internal and SEC
Where are the key assumptions? The pitfalls?
- OPEX and CAPEX
- Well spacing
- Well timing
- Acreage purchase costs, JV payments, etc.
- Inflation and taxes
How do you check your work?
- Third-party auditor
- Economic hurdles
- Comparison to previous forecasts (if applicable)
Learning outcome review and Q&A session
NOTE: Assessment will be emailed at the adjournment of the webinar.
Christina Schappacher, President, Elemental
Christina is the president of Elemental, a company that teaches complex topics by focusing on the fundamentals. As an engineer, Christina has always approached work by engaging those around her, looking for ways to break down challenges into more approachable pieces. As a tutor, mentor, and collaborative team leader, Christina believes strongly in the value of sharing ideas, information, and problem-solving methods.
With many years of managing reserves – both building reports and performing reserves analysis – Christina brings a methodical approach to identifying and understanding the key assumptions and data needed for quality reserves work. She managed reserves booking for Permian and STACK/SCOOP assets at ExxonMobil and Marathon Oil, and was instrumental in building the initial 3P-SEC Reserve Reports for two private equity start-up companies focused on multiple unconventional basins in the US.
She received her B.S. in Chemical-Petroleum Engineering from the University of Southern California (Fight On!).