Multiple contingencies prevented a midsize Canadian E&P company from classifying large portions of their asset base as reserves. Yet, these contingent resource volumes accounted for a significant portion of the company’s future value proposition to stakeholders. The company required expert geoscience and engineering analysis to convey a complete equity story.
Project Highlights
- 500 million barrels of recoverable bitumen and heavy oil
- Complex in situ thermal and EOR flood recovery schemes
- Future value predicated on contingent resource volumes
- Required COGEH Resources Other Than Reserves expertise
Challenge
- Multiple contingencies prevented the company from classifying large portions of their asset base as reserves under The Canadian Oil and Gas Evaluation Handbook (COGEH) and National Instrument 51-101 (NI 51-101) guidance
- Contingent resource volumes accounted for a significant portion of the company’s future value proposition to stakeholders
- Recoverable volumes were associated with technically complex In Situ thermal and chemical flooding Enhanced Oil Recovery (EOR) techniques
Solution
- Sproule identified applicable contingencies under COGEH Resources Other Than Reserves (ROTR) guidelines and provided guidance to the company as to how and when the contingencies could be addressed and lifted
- Sproule geoscience and engineering experts assessed and quantified the full extent of the company’s resource base using advanced evaluation techniques, including static geomodelling and dynamic reservoir simulation
Value
- Sproule’s independent resource evaluation helped substantiate the company’s extensive undeveloped asset base and articulate the significant upside potential to investors
- Sproule’s expertise with NI 51-101 and COGEH regulations provided the insight required to deliver a well-defined plan to stakeholders as to how and when contingent resource volumes were likely to be reclassified as reserves
Manager, Engineering
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