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Case Studies

Resource Evaluation Conveys the Complete Equity Story

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
Jason Robottom, P.Eng.
Manager, Engineering

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