Abstract
The estimation of oil and gas reserves is necessary for assessing the value of oil and gas properties, and for meeting the reporting and disclosure requirements imposed on oil and gas companies by various governmental and regulatory bodies. Reservoir simulation is a sophisticated technique of forecasting future recoverable volumes and production rates, and is an increasingly popular tool for reservoir management and optimization. Reservoir simulation is also progressively being used in the process of forecasting and estimating reserves. However, as with any reservoir engineering technique, certain precautions must be taken when relying on reservoir simulation as the means for estimating reserves. This paper identifies some of the unique issues encountered in the reserves evaluation process when reservoir simulation is utilized, and offers strategies for addressing these issues.
