Verifying oil and gas estimates

Performing due diligence on the accuracy of oil & gas reserve estimates requires two elements:

  1. An understanding of the art and science of reserve estimation.  This blog post will provide a brief overview of reserve estimation techniques.
  2. Technical information on the methodology used and its key assumption.  Places to look for technical disclosures would be investor presentations, CORRESP filings, and (occasionally) the 10-Ks / annual reports.  However, this process can be tedious whenever investor presentations are difficult to locate.

Read More