Course Details

Objective

By the end of this course, participants will be able to:

1. Understand the Principles of Reserves and Resources: Gain a deep understanding of the different classifications of reserves and resources and their significance in the oil and gas industry.
2. Learn Reserve Estimation Techniques: Be able to apply both deterministic and probabilistic methods to estimate hydrocarbon reserves and resources.
3. Master Classification Systems: Understand the SPE-PRMS and other global reserve classification systems and how to use them for reporting.
4. Apply Reporting Standards: Be able to report reserves and resources in accordance with international standards and regulatory requirements.
5. Prepare for Audits and Reviews: Learn the best practices for managing, updating, and auditing reserves estimates.
6. Stay Informed on Future Trends: Understand the emerging trends in reserves estimation, technology, and reporting.

Content

COURSE PROGRAM:

Day 1: Introduction to Reserves and Resources

• Overview of Reserves and Resources
  • Definition of reserves vs. resources in the context of the oil and gas industry.
  • The importance of reserves and resources for financial reporting, investment decisions, and regulatory compliance.
  • Key differences between proved, probable, and possible reserves, and how they are estimated.
• Types of Hydrocarbon Resources
  • Conventional vs. unconventional resources.
  • Conventional and unconventional reserve types: oil, gas, and condensate.
  • Exploration vs. development and production reserves.
• Regulatory Frameworks and Reporting Standards
  • Introduction to key industry standards: SEC (Securities and Exchange Commission), SPE-PRMS (Society of Petroleum Engineers – Petroleum Resources Management System), and national regulations.
  • The role of the reserve auditor and the importance of third-party verification.
  • Understanding the role of reserves in financial reporting, taxation, and investment.

Day 2: Estimation Methods for Reserves and Resources

• Overview of Reserve Estimation
  • The role of subsurface data: geological, geophysical, and engineering data in estimating reserves.
  • Different approaches to estimating reserves: deterministic vs. probabilistic methods.
  • Tools and techniques for reserve estimation: material balance, decline curve analysis, volumetric methods, and reservoir simulation.
• Deterministic Methods of Estimation
  • Introduction to deterministic estimation and when it is applicable.
  • Volumetric calculations and material balance methods.
  • Pros and cons of deterministic approaches in reserve estimation.
• Probabilistic Methods of Estimation
  • Understanding the probabilistic approach and its advantages for estimating reserves and resources.
  • Monte Carlo simulations, risk analysis, and statistical methods.
  • The role of uncertainty and risk in probabilistic estimations.

Day 3: Classification of Reserves and Resources

• SPE-PRMS Classification System
  • Detailed exploration of the SPE-PRMS classification of reserves and resources: Proved, Probable, Possible, and Contingent Resources.
  • The criteria for classification and how reserves are assigned categories based on economic viability and development status.
  • Understanding the distinction between reserves, contingent resources, and prospective resources.
• Economic Considerations in Classification
  • The importance of economic factors in the classification of reserves and resources.
  • The role of project economics, costs, and market prices in determining commerciality.
  • The use of future cash flow projections and discounted cash flow (DCF) models in classification.
• Global Classification Systems and Guidelines
  • An overview of different regional and national reporting standards for reserves classification (e.g., SEC, Canadian Oil and Gas Evaluation Handbook).
  • Comparison of SPE-PRMS with other classification systems.
  • The impact of classification on corporate governance and reporting.

Day 4: Reporting Reserves and Resources

• Reservoir Management and Reporting
  • Best practices for managing and updating reserve estimates as new data becomes available.
  • Regular reserve audits and updates: why they are essential and how to incorporate changes in reporting.
  • Reporting on reserves and resources: formats and expectations for stakeholders.
• Legal and Financial Reporting Requirements
  • Regulatory requirements for reporting reserves and resources to investors, regulators, and other stakeholders.
  • SEC regulations on reserves reporting for public companies and the role of independent third-party audits.
  • How to prepare comprehensive reports for regulatory bodies and investors: summary of reserves, resources, and the methodologies used.
• The Role of Technology in Reporting
  • The use of software tools and databases for reserve estimation and reporting.
  • The role of digital platforms, cloud computing, and automated reporting systems in improving efficiency and accuracy.
  • Emerging technologies and their impact on reserves estimation and reporting (e.g., AI, machine learning, and big data analytics).

Day 5: Case Studies, Best Practices, and Future Trends

• Case Studies in Reserves Estimation and Reporting
  • Real-world examples of reserves estimation and the challenges faced in the process.
  • Case studies of successful and unsuccessful reserve reporting in the oil and gas industry.
  • Key takeaways from industry examples and lessons learned in reserves management.
• Best Practices in Reserves Management
  • Best practices for accurate and reliable reserves estimation: data collection, quality assurance, and cross-functional collaboration.
  • The importance of transparency and integrity in reporting reserves and resources.
  • How to effectively communicate reserves estimates to investors, regulators, and other stakeholders.
• Emerging Trends in Reserves Estimation and Reporting
  • The future of reserves and resources reporting: challenges and opportunities in the digital age.
  • The impact of unconventional resources, deepwater reserves, and renewable energy on reserves estimation.
  • Regulatory changes and the future of global reporting standards.

NOTE:

Pre-& Post Tests will be conducted.

Case Studies, Group Exercises, Group Discussions, Last Day reviews, and assessments will be carried out.

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Methodology

A highly interactive combination of lectures and discussion sessions will be managed to maximize the amount and quality of information and knowledge transfer. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. You will also be encouraged to raise your own questions and to share in the development of the right answers using your own analysis and experiences.  Tests of multiple-choice type will be made available on daily basis to examine the effectiveness of delivering the course.

Very useful Course Materials will be given.

• 30% Lectures
• 30% Workshops and work presentation
• 20% Group Work& Practical Exercises
• 20% Videos& General Discussions