Abstract
This paper contains observations, suggestions and recommendations from the perspective of an international reserves consultant on improving the reserves estimation and reporting process within publicly-owned oil and gas producers. Specifically addressed are the establishment and oversight of (1) an internal network of qualified reserves estimators having access to a secure database (2) an internal reserves audit team to ensure consistency, independence and compliance (SEC/ASC/Others) and (3) provision (if applicable) for ensuring efficient reserves verification by one or more independent third parties. Also addressed are several levels of third-party reserves authentication measures ranging from the design of internal processes through complete "grass roots" reserves determinations. These recommendations arise from experience gained through consulting assignments with more than 50 companies reporting reserves to the US SEC and other regulatory agencies as well as process controls and transparency standards arising from the Sarbanes-Oxley Act of 2002. The ultimate beneficiary of improved estimation, verification and reporting is the investor.
