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The volumes of crude oil, natural gas, and associated

products that can be recovered profitably in the future
from subsurface reservoirs

The amount of capital

retained to meet probable
future demands

Those quantities of petroleum which are

anticipated to be commercially recovered &
marketable from known accumulations from a
given date forward.
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Oil and gas reserves form an oil companys main assets!

It is
i very important
i
t t to
t quantify
tif forms
f
off reserves.
Quantifying of reserves is a complex problem!
limited data
varying interpretation
Reserve estimation
It is an on-going activity during exploration, development
planning, and during production.
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Proven reserves:
Di
Discovered
d reserves that
th t can b
be estimated
ti t d with
ith reasonable
bl certainty
t i t
to be recoverable under current economic conditions, technical
conditions and government regulations.
The proven reserves is further classified into the following:
1.

Developed reserves are expected to be recovered

from existing wells

2.

Undeveloped reserves are to be recovered from

new wells in undrilled acreage, deepening wells
to different reservoirs
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Unproven reserves:
Those reserves that are based on data similar to that used in the estimation of
proven reserves but technical, contractual, economic or regulatory
uncertainties prevent these reserves from being classified as proven.
The unproven reserves can also be divided into the following:
1. Probable reserves: More likely than not to be recovered
Have a reasonable probability of production with technology and profitability
close to those exist today.
2. Possible reserve: Less likely than likely to be recovered
It is presumed with reasonable degree of probability.

ULTIMATE RESERVES = proven + probable + possible.

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Considerations for proven reserve:

Significant data are available, particularly fluid production and reservoir pressure data, and the
reservoir drive is known.
Production and reservoir data are limited but the reservoir is analogous to reservoirs in the
immediate vicinity and same geologic horizon.
Where production and reservoir data are limited, but the estimate is supported by a calculation
of the hydrocarbons in place by the volumetric method.

Considerations for probable or possible reserve:

Where significant production data are available, but the reservoir drive mechanism is
uncertain or the magnitude of the reservoir drive is uncertain.
Where production and reservoir data are limited and there are no analogus reservoirs in the
immediate vicinity.
Where production and reservoir data are limited and the estimate is not supported by
volumetric determinations.
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1. Volumetric Reserves Calculation

The well is drilled and log and drainage area data must be available
with
ith th
the subsurface
b f
contour
t
map

2. Performance-Based Reserves Calculation

It is based on the existing producing wells performance
a. Material Balance Equation
b. Decline Curved Analysis
c. Reservoir Simulation

New

Early life

Analogy

Volumetric

Young
Reservoir
simulation

Young
Mature
Material
a a ce
Balance

Decline
D li
curve
analysis

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