Thursday, October 18, 2018
Effective immediately, based on industry feedback, the SPEE Updating Committee is releasing further revisions to the Revised COGE Handbook released September 4th, 2018. The revisions relate to Abandonment, Decommissioning and Reclamation Costs (ADR) and acquisition reconciliations. Subscribers to COGE Handbook or those that purchased a download will receive a notification of changes from SPEE Committee directly.
The change to acquisition reconciliations provides a correction to the dates specified for the acquisition reconciliation and the reconciliation requirements for subsequent drilling activity.
Abandonment, Decommissioning and Reclamation Costs
Rather than state ADR must be included in an evaluation, the Revised COGE Handbook clarifies that best practice for reporting ADR is to include all costs required to restore existing development from the well’s bottom hole to the custody transfer point to a standard imposed by applicable regulatory authorities and include the ADR for both active and inactive development included in the assets evaluated. COGE Handbook remains clear in its guidance with respect to disclosure of information contained in an evaluation. “Each report must clearly describe the ADR costs: included in the evaluation; and those excluded from the evaluation.” Sproule will be revising their reports to adhere to the COGE Handbook requirement for clear disclosure of ADR content.
According to Nora Stewart, SVP Reserves Certification, Sproule and committee member, “The SPEE Updating Committee has concluded that the role of the COGE Handbook is not to set any regulatory requirements or minimum disclosure standard. Each jurisdiction may have unique and specific requirements.” Sproule acknowledges that all clients want a year-end evaluation comparable to their peers and consistent with ASC disclosure requirements. For more information about disclosure requirements please contact your reserves evaluator directly.
Learn more from Sproule’s review of the COGE Handbook 2018 update
For more information visit the SPEE website