Reserves 2010
Zhaikmunai relies on US firm Ryder Scott as an independent consultant to evaluate its oil and gas reserves.
According to Ryder Scott, the Group's gross estimated hydrocarbon reserves (before government share and royalty) at Chinarevskoye field as of December 31, 2010 stands at 143.5 mmboe of proven and 395.1 mmboe of probable, resulting in a total of 538.6 mmboe of 2P reserves. This is a 2.7 fold increase on the 198.5 mmboe recorded in 2004, when the current management team took over.
Reserves are the quantities of oil, condensate, LPG and gas estimated to be commercially recoverable by application of development projects from a given date forward under defined conditions. Oil and gas producers categorize reserves as proven (1P), Proven plus Probable (2P) and Proven, Probable plus Possible reserves (3P):
- Proven Reserves (1P) are those reserves that, to a high degree of certainty (90% confidence), are recoverable. There is relatively little risk associated with these reserves. Proven developed reserves are reserves that can be recovered from existing wells with existing infrastructure and operating methods. Proven undeveloped reserves require a major expenditure for increased recovery.
- Proven plus Probable Reserves (2P) are those reserves that analysis of geological and engineering data suggests are more likely than not to be recoverable. There is at least a 50% probability that reserves recovered will equal or exceed Proven plus Probable reserves.
- Proven, Probable plus Possible Reserves (3P) are those reserves that, to a low degree of certainty (10% confidence), are recoverable. There is relatively high risk associated with these reserves.