Company Internal

Petroleum Project
Evaluations

Resources
Evaluation
Standard

Financial
Accounting
Standard
Regulatory
Disclosure Rules

Public
Resources
Disclosures
AAPG/SPE International Multidisciplinary Reserves Conference

PRMS
Compared to COGEH and SEC

AAPG/SPE International Multidisciplinary Reserves Conference

Scope of Reporting
COMMERCIAL

1P

SB-COMMERCIAL

2P
Probable

3P
Possible

CONTINGENT
RESOURCES
1C

2C

3C

UNRECOVERABLE

PROSPECTIVE
RESOURCES
Low
Estimate

Best
Estimate

High
Estimate

UNRECOVERABLE

Range of Uncertainty
Not to scale

Increasing Chance of Commerciality

DISCOVERED PIIP

RESERVES

Proved

UNDISCOVERED PIIP

TOTAL PETROLEUM INITIALLY -IN-PLACE (PIIP)

PRODUCTION

Proved
Reserves

SEC allows disclosure of

Proved Reserves Only

Proved Probable
Reserves Reserves
NI 51-101 requires disclosure of Proved
(constant case) and 1P/2P (forecast case)
Optional to disclose Possible Reserves +
Contingent Resources + Prospective Resources

Technical guidelines designed to support assessment and

reporting of all resources - all classes and categories
AAPG/SPE International Multidisciplinary Reserves Conference

PRMS Building Global Consensus

Petroleum Resources Management System
2007

Origin and Status

Co-authored and endorsed by major petroleum professional organizations
(SPE, WPC, AAPG, SPEE, SEG) through SPE OGRC
PRMS provides Technical Guidelines
- not inherently linked to any disclosure regulations
- global input (companies, agencies, financial, )
- to be petroleum guidelines within UNFC
1997 definitions and 2000 classification are de facto industry standard
Endorsed by OPEC (2006)

AAPG/SPE International Multidisciplinary Reserves Conference

NI 51-101

COGEH
CIM

Origin and Status

- the Canadian Oil and Gas Evaluation Handbook(s) (COGEH) contains
evaluation guidelines that are referenced by NI 51-101 disclosure regulations
- COGEH is authored by the Calgary Chapter of the SPEE based on resource
definitions published by the Petroleum Society of the CIM

- COGEH provides Technical Guidelines

- Volume 1 - 2002: Evaluation guidelines
- Volume 2 2006: Implementation guide, examples
- Volume 3 - (2008): Unconventional, PSCs,

AAPG/SPE International Multidisciplinary Reserves Conference

SEC
US Securities and Exchange Commission

Origin and Status

The rules for oil and gas disclosures by companies listed on USA stock
exchanges are contained in:
SEC Regulation S-X Rule 4-10(a) Securities Exchange Act 1934
(Proved Reserves Definitions 1975)
FASB 19 - 1977
FASB 69 1982 (amends FASB 19)
SEC Staff Accounting Bulleting - Topic 12 : Oil and Gas Producing Activities - 1997
Interpretations and Guidance Definition of Proved Reserves - March 31, 2001
Exemption to Production Testing in Deep Water GOM April 15, 2004

[Note also SEC Industry Guide 7: Disclosures for Registrants Engaged in Mining Operations Updated May 21,
2001]

AAPG/SPE International Multidisciplinary Reserves Conference

Differences?
PRMS and COGEH are very similar systems
The major difference is in the treatment of probabilities in aggregation
Some COGEH Unproved would be classified as Contingent Resources in PRMS

SEC Proved is more conservative than PRMS and/or COGEH

The major difference is in presumed conditions (pricing)
PRMS is slightly more aggressive in its Proved Reserves Criteria (LKH)
SEC restricts recognizing unconventional petroleum (bitumen, oil shale)
The interpretative comparison of PRMS, NI 51-1-01 and SEC guidance on selected Proved reserves criteria and should not be considered complete
in content or scope. Issuers should rely on the source documents.

AAPG/SPE International Multidisciplinary Reserves Conference

Resource

Technical

Disclosures

Guidelines

How are they Linked?

AAPG/SPE International Multidisciplinary Reserves Conference

Referenced
in Securities
Regulations

Regulatory
Agencies

Reporting Standards

All CRIRSCO
Compliant

Technical Guidelines

Mining Approach to Disclosures

Australian
Model
JORC Code
2004

Canadian
Model

USA
Model

CIM Standards
2004
SEC uses internal
guidelines

Embedded
In Securities
Regulations

Referenced
in Securities
Regulations

ASX
Disclosure
Rules

CSA
NI 43-101
Disclosure Rules

SEC Industry
Guide 7
Disclosure Rules

AAPG/SPE International Multidisciplinary Reserves Conference

Referenced
in Securities
Regulations

Regulatory
Agencies

Reporting Standards

Various
Technical
Standards

Technical Guidelines

Petroleum Approach to Disclosures

UK
AIM Model

Canadian
Model

Either COGEH
or SPE

COGEH

USA
Model

SEC uses internal

guidelines
Referenced
in Securities
Regulations

Referenced
in Securities
Regulations

AIM 2006
Disclosure
Rules

CSA
NI 51-101
Disclosure Rules

SEC SX 4-10(a)
+ FASB 19 & 69

Disclosure Rules

AAPG/SPE International Multidisciplinary Reserves Conference