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RICHARDSON, Texas (5 January 2009) — The Society of Petroleum Engineers praised the US Securities and Exchange Commission for modernizing its rules governing oil and natural gas reserves reporting, which the SEC announced in a press release on December 29, 2008.
“The SEC is to be commended for updating the rules on oil and natural gas reserves reporting to reflect changes in technology, and for using SPE’s Petroleum Resources Management System (PRMS) primarily as the basis for the technical changes. The updated rules recognize the importance of new technologies in making accurate and reliable estimates of oil and natural gas reserves as the industry develops resources in harsher environments including ultra-deep water and the arctic as well as more unconventional resources,” said Leo Roodhart, 2009 SPE president.
The PRMS was developed by SPE in collaboration with the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).
“SPE’s Oil and Gas Reserves Committee is gratified that our work has served as a foundation for improving the information provided to investors and the public about the reserves controlled by public companies. The updated rules allow companies the flexibility to provide additional reserve information to the investing public and should result in better reserve estimates due to the inclusion of the advanced technologies and evaluation practices now in use around the world,” said Delores Hinkle, SPE Oil and Gas Reserves Committee chairperson.
SPE serves the oil and gas industry, and regulatory and reporting bodies by maintaining globally accepted standards for reserves and resource definitions, and providing an associated set of estimating guidelines, which will be maintained evergreen as current best practices. Issued in 2007, the PRMS updated and combined SPE’s previous reserves and resources definitions and the associated glossary into a single document, designed to support a wide group of stakeholders.