Possible Reserves
The SEC defines possible reserves to include those additional reserves that are less certain to be recovered than probable reserves. When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability to exceed the sum of proved, probable and possible reserves. When probabilistic methods are used, there must be at least a 10 percent probability that the actual quantities recovered will equal or exceed the sum of proved, probable and possible estimates.
How it’s important to us
Possible reserves factor into company valuation, forecasts and planning. Statistical models of reservoirs are used to determine and categorize reserves and predict recovery volumes from reservoirs. The three categories – proven, probable and possible – factor together to put a price tag on fields, developmental areas and a company’s overall portfolio of reservoirs.
