Proposed System for Comparison of Classifications:

This Proposed System for Comparison of classifications is compiled by Per Blystad and Sigurd
Heiberg for discussion at the First task Force Meeting, Stavanger 23 - 24 September 2002.
It has since been updated.

Any suggestion for correction/improvement is welcome!

The structure of the compilation sheet is as follows:

Horizontal axis from left to right: SPE/WPC/AAPG system, NPD system, UNFC.
- UNFC is listed consecutively Economic (E), Feasibility (F), Geological (G) given a colur code
(yellow, green, orange).
- Each category (EFG) is divided into New Key Number, New description, UNFC Code, UNFC
Name UNFC Description. The last three columns contains the original UNFC information. The
darker colours are applied to the new proposals.
- The categories can be opened and closed by use of the (+) and (-) buttons on top of the sheet and
there are three levels.

Vertical axis: Subdivisions of the classification systems and the UNFC axes. Decreasing maturity
of categories downwards. The new Key number system has been introduced. Information can be
dislayed on two levels by use of the (+) and (-) buttons on the vertical axis far to the left.

In place quantities are classified outside the cube and is listed to the right of the Geology axis. The
nomenclature used is in accordance with the discussions at the Ad Hoc meeting in Geneva
14.11.02

Also attached is a sheet with the definitions as in App. A in the Note following this mail/file.

Stavanger 23.10.02
Per Blystad
Per Blystad and Sigurd
September 2002.

, UNFC.
G) given a colur code

, UNFC Code, UNFC

NFC information. The

ons on top of the sheet and

xes. Decreasing maturity

ced. Information can be
s far to the left.

ht of the Geology axis. The

meeting in Geneva

wing this mail/file.

 New New New UNFC UNFC

Project Status
Key Key Economic Economic
Class number
Category
number (E)
Code
viability
(SPE guide)

Sold -10 Production E-10

10 Reserves E10 Commercial E1 Economic

Reserves

11 On production

Under
12
development
Re Planned for
13
development

Contingent Contingent Potentially

20 E20 E2
resources commerciality Economic

Development
21
pending
Contingent Resources

Development on
22
hold

Development not
23
Viable
Cont

24

Prospective Intrincically
30 E30 Not commercial E3
Resources Economic
Prospective Resources

41
 Prospective Resource

43
42
 UNFC New New

Field Project
Key
Description (F)
number

F-10 Produced

Quantities, reported in tonnes/volume with grade/quality that justify

extraction under the technological, economic, environmental and other
relevant conditions, realistically demonstrated at the time of the
determination. F10 Committed
The term economic comprises both "normal" economic and
"exceptional" economic which are for optional use on a national level.

Normal economic reserves are reserves that justify extraction under

competitive market conditions. Thus, the average value of the
commodity mined per year must be such as to satisfy the required F11 Developed
return on investment.
Exceptional (conditional) economic reserves are reserves which at
present are not economic under competitive market conditions. Their
exploitation is made possible through government subsidies and/or
other support measures. F12 In Development
 F13 Undeveloped

Quantities, reported in tonnes/volume with grade/quality not justifying

extraction under the technological, economic, environmental and other
relevant conditions, realistically assumed under the time of
determination, but possibly so in the future. F20 Contingent
The term potentially economic comprises both "marginal" and
"submarginal" which are for optional use on a national level.

Marginal Economic resources are resources which at the time of

determination are not economic, but border on being so. They may
become economic in the near future as a result of changes in
technological, economic, environmental and/or other relevant F21 In Planning
conditions. Submarginal Economic resources are resources that would
require a substantially higher commodity price or a major cost-reducing
advance in technology to render them economic.

F22 Unclarified

F23 Undefined
 F24 Not very likely

Quantities, reported in tonnes/volume with grade/quality, estimated by

means of a Geological Study providing a preliminary evaluation of
Economic Viability. No distinction can be made between economic to
potentially economic. These Resources are therefore said to lie in the F30 Exploration
range of economic to potentially economic. Generally only ins-situ
quantities figures are reported.
 New UNFC

Description Code Feasibility

Petroleum removed from its natural state in the subsoil,

properly processed and measured at its reference point.

Projects where the parties who have the rights to undertake

development and production have committed to do so.
Mining Report /
F1
Feasibility Study

Developed projects are those from which reserves are

expected to be recovered from existing wells including
reserves behind pipe. Developed projects may be sub-
categorized as producing or non-producing.

A committed project whose plan for development has been

approved as required and where the development works
have started or are imminent.
Projects that the parties who have the right to undertake
development and production are committed to do so but
where the plans are not yet prepared for approval and
execution.

Projects depend upon conditions that may or may be not

fulfilled

F2 Prefeasibility Study

A project where a decisiont to develop a full plan for

development and operation has been made. Normally,
critical elements that may prevent development will have
been eliminated before planning of the full development
starts.

A project that has been properly evaluated, and where the

possibility for development is high. The planning of a
development project has not been initiated, normally pending
the clarification of certain critical factors that may prevent
successful development and production.

New discovery where the evaluation of the acquired data are

not yet evaluated. An undefined project may also be a
possible, or conceptual improved recovery project aimed at
improving the recovery that may be achieved through other,
more firmly defined projects in the reserves or contingent
resources categories.
Discovered and technically recoverable petroleum resources
for which a project to recover them is not very likely, even in
the long term. This includes resources in small, untested
discoveries whose recovery seems unlikely. This category
contains petroleum resources that require substantial
changes in technology, prices, etc., to be recovered
profitably, and where it is not very likely that the changes
required would take place.

Exploration of undiscovered quantities of petroleum that are

estimated, on a give date, to be potentially recoverable.

F3 Geological Study
 New New

Geological Study
Key
Description (G)
number

G-10

A Mining Report is understood as the current documentation of the state of

development and exploitation of a deposit during its economic life including
current mining plans. It is generally made by the operator of the mine. The
study takes into consideration the quantity and quality of the minerals G10 Proved
extracted during the reporting time, changes in Economic Viability
categories due to changes in prices and costs, development of relevant
technology, newly imposed environmental or other regulations, and data on
exploration conducted concurrently with mining. It presents the current
status of the deposit, providing a detailed and accurate, up-todate statement
on the reserves and the remaining resources.
A Feasibility Study assesses in detail the technical soundness and
Economic Viability of a mining project, and serves as the basis for the
investment decision and as a bankable document for project financing. The
information basis associated with this level of accuracy comprises the
reserve figures based on the results of Detailed Exploration, technological
pilot tests and capital and operating cost calculations such as quotations of
equipment suppliers.
A detailed list of the items addressed in a Feasibility Study is given in
Appendix III of the UN/ECE document: ENERGY/WP.1/R.70,
17 February 1997: UNITED NATIONS INTERNATIONAL FRAMEWORK
CLASSIFICATION FOR RESERVES/RESOURCES – Solid Fuels and
Mineral Commodities.
A Prefeasibility Study provides a preliminary assessment of the Economic
Viability of a deposit and forms the basis for justifying further investigations
(Detailed Exploration and Feasibility Study). The Prefeasibility Study
addresses the items listed under the Feasibility Study, although not in as Explored and
G20
much detail. delineated
A Geological Study is an initial evaluation of Economic Viability. This is
obtained by applying meaningful cut-off values for grade, thickness, depth,
and costs estimated from comparable mining operations. Economic Viability
categories, however, cannot in general be defined from the Geological G30 Discovered
Study because of the lack of detail necessary for an Economic Viability
evaluation. The resource quantities estimated may indicate that the deposit
is of intrinsic economic interest, i.e. in the range of economic to potentially
economic. A Geological Study is generally carried out in the following four
main stages: Reconnaissance, Prospecting, General Exploration and
Detailed Exploration (for definition of each stage see below). The purpose of G41
the Geological Study is to identify mineralization, to establish continuity,
quantity, and quality of a mineral deposit, and thereby define an investment
opportunity.
G42

G43
 UNFC

Code Geological study Description Classific

Detailed exploration involves the detailed three-dimensional

delineation of a known deposit. Size, shape, structure, grade, and
other relevant characteristics of the deposit are established with a
Detailed
G1 high degree of accuracy. A decision whether to conduct a
exploration Feasibility Study can be made from information provided by
Detailed Exploration.
 General Exploration involves the initial delineation of an identified
deposit. The objective is to establish the main geological features
of a deposit, giving a reasonable indication of continuity and
General providing an initial estimate of size, shape, structure and grade.
G2
Exploration The degree of accuracy should be sufficient for deciding whether a
Prefeasibility Study and Detailed Exploration are warranted.

I0
G4 Reconnaissance A Reconnaissance study identifies areas of enhanced mineral
potential on a regional scale based primarely on results of regional
geological studies, regional geological mapping, airborne and
indirect methods, primarely field inspection, as well as geological
inference and extrapolation. The objective is to identify mineralized
areas worthy further investigation towards deposit identification.
Estimates of quantities should only be made if sufficient data are
available and when an analogy with known deposits of similar
geological character is possible, and then only within an order of
magnitude.
Classification of In Place Quantities

Proved in-place quantities

I1
 In-place quantities Unclassified

I1-3
Discovered in-place quantities

I2
Explored and delineated in-place quantities Proved in-p
 In-place qua

I4
I3

Prospective in-place quantities

Discovered in-place quantities Explored and d

 I4

Prospective in-place quantities

Reference Term
Merriam- Webster
online
Commercial

New Committed project

New Contingent
New Contingent project

Adapted Contingent resources

from SPE

Adapted Developed projects

from SPE

New Discovered
(on the geology axis)
Adapted Discovery
from NPD

New Exploration project

New Explored and

delineated geology

New Field

Webster New
World Dictionary
Hydrocarbons

Adapted Lead
from NDP

New Lead/play under

exploration

New Lead or play under

reconnaissance

New Not commercial

SPE has been

requested to
Petroleum
consider refining
the definition with
respect to the
heavy fractions
Adapted Play
from NPD

New Produced Petroleum

New Project in
development

New Project in planning

New Project not very likely

NPD: Prospect

New Prospect matured for

drilling

New Prospect not matured

for drilling

New Prospective resources

SPE Proved reserves

New Proved geology

Adapted Reserves
from SPE

New Resources

New Standard commercial

conditions

New Unclarified project

New Undefined project

New Undeveloped project

New Unexplored lead or

play
Definition
Suitable, adequate, or prepared for the exchange or buying and selling of
commodities on a large scale involving transportation from place to
place

A project where the parties who have the rights to undertake it have
done so. Projects are committed when they produce hydrocarbons, are
developed, or are in development. Undeveloped projects are committed
only when the relevant parties have undertaken to carry them out within
a reasonable timeframe, or when decisions of the parties and prior
committed projects de facto provide a commitment to define and execute
them later. These commitments should be unconditional, except for
timing that may be dependent on the development of prior committed
projects. An example of this would be where fields are dedicated to a
long-term supply contract and will only be developed as and when they
are required to satisfy the contract.

Dependent upon conditions that may or may not be fulfilled.

Project dependent upon conditions that may or may not be fulfilled.

Contingent resources are those quantities of petroleum which are

estimated, on a given date, to be potentially recoverable from known
accumulations, but which are not currently considered to be
commercially recoverable.
Contingent Resources may include, for example, accumulations for
which there is currently no viable market, or where commercial recovery
is dependent on the development of new technology, or where
evaluation of the accumulation is still at an early stage.

Developed projects are those from which reserves are expected to be

recovered from existing wells including reserves behind pipe.
Developed projects are committed and may be sub-categorized as
producing or non-producing.

Petroleum that has been observed directly (in wellbore).

A discovery is one petroleum accumulation (also called deposit or pool),
or several petroleum accumulations collectively that have been
discovered in the same wildcat well, in which there has been established
a probability of the existence of mobile petroleum (includes both a
commercial and a technical discovery) through testing, sampling or
logging. This includes the hydrodynamically accumulated as well as the
distributed or continuous resources. Examples of such distributed or
continuous resources are heavy oil, basin centre gas, gas hydrates, coal
bed methane, etc.

Exploration of undiscovered quantities of petroleum that are estimated,

on a give date, to be potentially recoverable.

Discoveries where the geologic conditions, fluid properties and flow

characteristics are well enough known to form the basis for a
development commitment for the production of reserves.

A field is one or more discoveries together that are comprised in one

plan for development and operation.

Any compound containing only hydrogen and carbon: benzene and

methane are hydrocarbons.

A lead is a petroleum trap (or more than one trap) where the quantity
and quality of available data are inadequate to map and delimit the
reservoir rock volume.
A lead or play for which a decision has been taken to gather geological,
geophysical, geochemical and other adequate data to map and delimit
the reservoir. The pupose shall be to prepare a decision of whether or
not proceed to direct detection of petroleum through.

Unexplored lead or play under reconnaissance or without exploration

effort.

Not commercial under current economic conditions and fiscal terms that
may be expected in the future based on current information.
All liquid and gaseous hydrocarbons, including gas hydrates and
bitumen which exist in their natural state in the subsoil, as well as other
substances produced in association with such hydrocarbons.
A play is a geographically and stratigraphically delimited area where a
specific set of geological factors exists that are required for petroleum to
be found in commercial quantities. Such geological factors are reservoir
rock, trap, mature source rock and migration paths. The trap must have
formed before termination of the migration of petroleum. All discoveries
and prospects within the same play are characterised by the specific set
of geological factors of the play. Confirmed play contains at least one
discovery of commercial quantities of petroleum. It is thus confirmed
that the critical geological factors are simultaneously present for the
play. Unconfirmed play is a play in which no petroleum has been
discovered, either because exploration has still not started, or because
only dry wells have been drilled in the play.

Petroleum removed from its natural state in the subsoil, properly

processed and measured at its reference point.

A committed project whose plan for development has been approved as

required and where the development works have started or are
imminent.

A project where a decision to develop a full plan for development and

operation has been undertaken. Normally, critical elements that may
prevent development will have been eliminated before planning of the
full development starts.

Discovered and technically recoverable petroleum resources for which a

project to recover them is not very likely, even in the long term. This
includes resources in small, untested discoveries whose recovery seems
unlikely. This category contains petroleum resources that require
substantial changes in technology, prices, etc., to be recovered
profitably, and where it is not very likely that the changes required
would take place.

A prospect is a possible petroleum trap with a mappable, delimited

reservoir rock volume.

A prospect for which the decision to explore by drilling has been taken.

A prospect for which the decision to explore by drilling has not been
taken.

Prospective resources are those quantities of petroleum that are

postulated from geological information and theory, on a given date, to
be potentially recoverable from outside of known oil and gas fields.
Proved reserves are those quantities of petroleum which, by analysis of
geological and engineering data, can be estimated with reasonable
certainty to be commercially recoverable, from a given date forward,
from known reservoirs and under current economic conditions,
operating methods, and government regulations. Proved reserves can be
categorized as developed or undeveloped.

If deterministic methods are used, the term reasonable certainty is

intended to express a high degree of confidence that the quantities will
be recovered. If probabilistic methods are used, there should be at least a
90% probability that the quantities actually recovered will equal or
exceed the estimate.

Establishment of current economic conditions should include relevant

historical petroleum prices and associated costs and may involve an
averaging period that is consistent with the purpose of the reserve
estimate, appropriate contract obligations, corporate procedures, and
government regulations involved in reporting these reserves.

In general, reserves are considered proved if the commercial

producibility of the reservoir is supported by actual production or
formation tests. In this context, the term proved refers to the actual
quantities of petroleum reserves and not just the productivity of the well
or reservoir. In certain cases, proved reserves may be assigned on the
basis of well logs and/or core analysis that indicate the subject reservoir
is hydrocarbon bearing and is analogous to reservoirs in the same area
that are producing or have demonstrated the ability to produce on
formation tests.

The area of the reservoir considered as proved includes (1) the area
delineated by drilling and defined by fluid contacts, if any, and (2) the
undrilled portions of the reservoir that can reasonably be judged as
commercially productive on the basis of available geological and
engineering data. In the absence of data on fluid contacts, the lowest
known occurrence of hydrocarbons controls the proved limit unless
otherwise indicated by definitive geological, engineering or performance
data.

Reserves may be classified as proved if facilities to process and

transport those reserves to market are operational at the time of the
estimate or there is a reasonable expectation that such facilities will be
Reserves which are to be produced through the application of
installed. Reserves in undeveloped locations may be classified as proved
established improved recovery methods are included in the proved
undeveloped provided (1) the locations are direct offsets to wells that
classification when (1) successful testing by a pilot project or favorable
have indicated commercial production in the objective formation, (2) it
response of an installed program in the same or an analogous reservoir
is reasonably
Geology certain such
is considered locations
proved whenare iswithin
knownthe
itprovides toknown proved detail
the extent
with similar rock and fluid properties support for theand
analysis
productive
specified limits of the objective formation, (3) the locations conform to
on which inthethe definition
project of proved
was based, and,reserves.
(2) it is reasonably certain that the
existing well spacing regulations where applicable, and (4) it is
project will proceed. Reserves to be recovered by improved recovery
reasonably certain the locations will be developed. Reserves from other
methods that have yet to be established through commercially successful
locations are categorized as proved undeveloped only where
applications are included in the proved classification only (1) after a
interpretations of geological and engineering data from wells indicate
favorable production response from the subject reservoir from either (a)
with reasonable certainty that the objective formation is laterally
a representative pilot or (b) an installed program where the response
continuous and contains commercially recoverable petroleum at
provides support for the analysis on which the project is based and (2) it
locations beyond direct offsets.
is reasonably certain the project will proceed.
Reserves are those quantities of petroleum that are anticipated to be
commercially recovered from known accumulations from a given date
forward as a result of development and production commitments.

Resources are comprised of reserves, contingent resources and

prospective resources.

Standard economic conditions are fixed by agreement or regulation.

They normally include relevant historical petroleum prices and
associated costs (including listed future prices) and may involve an
averaging period that is consistent with the purpose of the reserve
estimate, appropriate contract obligations, corporate procedures, and
government regulations involved in reporting these reserves.

A project that has been properly evaluated, and where the possibility for
development is high. The planning of a development project has not
been initiated, normally pending the clarification of certain critical
factors that may prevent successful development and production.

New discovery where the evaluation of the acquired data are not yet
evaluated. An undefined project may also be a possible, or conceptual
improved recovery project aimed at improving the recovery that may be
achieved through other, more firmly defined projects in the reserves or
contingent resources categories.

Projects that the parties who have the right to undertake development
and production are committed to undertake but where the plans are not
yet prepared for approval and execution.
An unconfirmed lead or play where at most reconnaissance exploration
has been conducted