The cornerstone of GaffneyCline’s advisory work and clients’ E&P value
One of the basic requirements of the engineering advisory world is to provide independent assessments of oil and gas reserves and resources. The estimation of reserves and resources underpins a large proportion of the work undertaken by GaffneyCline and utilizes the talents of many of the technical disciplines in the company, from geoscientists, reservoir and petroleum engineers, to facilities engineers and economists. Reserves and resources volumes are classified and categorized according to industry-recognized standards and systems. This complex process requires not only technical skills, but also an understanding of the guidelines and definitions of the various professional bodies that publish such information and the rules of stock exchanges.
GaffneyCline has extensive experience throughout the world’s petroleum basins in conducting grassroots reserves and resources estimations and audits following the rules of various stock exchanges (e.g. U.K., Australia, United States Securities and Exchange Commission (SEC), Canada, and Hong Kong); the guidelines and definitions of the Petroleum Resources Management System (PRMS) promulgated by the Society of Petroleum Engineers (SPE); World Petroleum Council (WPC); American Association of Petroleum Geologists (AAPG); the Society of Petroleum Evaluation Engineers (SPEE); the Canadian Oil and Gas Evaluation Handbook (COGEH), and other professional engineering bodies worldwide.
Reserves comprise those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Contingent resources comprise those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered commercially recoverable due to one or more contingencies. Prospective resources comprise those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.
GaffneyCline's work in this field is used for clients’ annual reporting; corporate restructuring; fundraising through IPOs or rights issues; project financing; reservoir management and development; and acquisitions and disposals. GaffneyCline personnel also sit on committees in professional societies from where such definitions emanate, and provide advice to stock exchanges in the creation of listing rules.
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