AGR is a leading provider of petroleum engineers and asset evaluation services, and brings extensive experience in navigating Petroleum Resources Management Systems (PRMS) to the table.
In this article, we'll explore the benefits of using petroleum resources management systems (PRMS), the key features of these systems, and how AGR can help companies implement and optimise these systems.
Why choose AGR:
- Experienced in petroleum resources management system projects.
- Follows guidelines for sustainability.
- Highly respected evaluator by banks and financial institutions.
Petroleum resources management systems are essential tools for oil and gas companies to optimize their operations and make informed decisions about their assets. AGR, a leading provider of petroleum engineering and reservoir management services, has extensive experience in this field and has a unique perspective on the importance of effective reserves and resources management.
Why petroleum resources management systems (PRMS)?
Independent Oil and Gas Reserves evaluations and certifications are critically crucial for oil and gas projects. This is a highly complex and technical field and needs professional expertise. The complexity increases as the consultant on the job need to be fully aware and well-versed with Petroleum Resources Management System PRMS. Additionally, it is imperative that the independent consulting company is seasoned in the use of industry-standard procedures.Independent Oil and Gas Reserve Evaluation and Valuation
The entire evaluation process needs to be based on the SPE-PRMS guidelines. Most of the international community, including the World Petroleum Council, the Society of Petroleum Engineers, the American Association of Petroleum Geophysicists, the American Association of Petroleum Geologists, and the Society of Petroleum Evaluation Engineers, accept these guidelines. In Canada, the processes need to adhere to the Canadian Oil and Gas Evaluation Handbook. In the case of independent oil and gas evaluation, the assessment involves reviewing the estimates given by the client so that data and method adequacy can be determined. Independent estimation is also undertaken of reserves and is done based on client data and requirements. Reserves evaluation by an independent consultant supports the business of the client. Since reserves are an asset for the company and feature on the financial statement, independent evaluation helps in protecting the interests of investors, stakeholders, and shareholders. The evaluation process allows companies to report their cashflows and assets to regulatory authorities. With the evaluation report, companies can seek to improve business confidence and secure investment. That said, it is essential that the independent reserve evaluation is conducted by a credible and trustworthy third party. This helps establish a credible and established track record for the client. It gives confidence and trust to investors with the potential of risk mitigation. Thus, the chances of investment in your project are dramatically increased. When the evaluation and valuation process is done by a consultant of international repute, there are better chances of attracting foreign investment and even interest from the government.
Reserves Certification
The Certificate is issued by a third-party consultant who must be a licensed and seasoned firm, a geologist, or a petroleum engineer. The official document needs to bear the signature and stamp of the consultant. The Reserve Certificate is produced by the consultant after they estimate petroleum reserves following multiple steps of a reserve evaluation process that is in accordance with internationally-accepted guidelines. Details of the petroleum reserves, quantities of oil and gas in place, mapping of the production profiles, future production potential of the site, income, potential cash flows potential, etc., are all mentioned on the Certificate. It can also include definitions pertaining to resources and reserves, pricing assumptions, initial primary data, income data, gross and net reserves, ranked properties of wells, discounted net present value, well data, lease projections, reserves calculations, reservoir data, etc. Maps and geographical descriptions are also included wherever applicable. Depending on the purpose, this independent reserve certificate can be used to submit to the government, official agencies, and regulatory bodies; the management & stakeholders of the company; banks and funding companies; courts and law firms; stock exchanges, etc.Independent reserves and resources reporting
Oil and Gas Reserve independent reports are accepted by global stock exchanges pertaining to certain conditions. The report should be in accordance with the SPE’s Petroleum Resource Management System (PRMS). When compliant, the report is accepted by all major international stock exchanges, including Australia, London, Hong Kong, and Singapore. For acceptance by the US Securities and Exchange Commission, there are certain specific requirements, and a seasoned independent consultant needs to have a thorough knowledge of the same. Similarly, in Canada, for acceptance of the Oil and Gas Reserve independent report, it should be aligned with the National Instrument 51-101. It is crucial to hire an independent consultant with expertise in the various mandatory requirements of the specific country/region. Independent reporting forms the crux for the client to go ahead with the project. This is because consultants give a fair and impartial opinion that helps the client take the right decision. Also, the fact that independent consultants are subject matter experts and have years of technical and commercial experience ensures that the report is a thorough piece of work. The competent Person’s Reports or CPRs are required for stock exchanges. The reports help during the process of fundraising - private or IPOs, annual reserves reporting, and valuation reports during project financing or lending against reserves from banks and FIs or private investment groups.About AGR
We at AGR are renowned providers of asset evaluations and reserve certifications. Our experts follow a multi-disciplinary approach to ensure that all commercial and technical factors of the reserves & resources are fully considered. With more than 1000 reserves audits completed, we assure you of the best-in-class experience. Contact us today.
Uses for Independent Reserves Certifications
The certifications have multi-purpose uses. These certificates are required by stock exchanges during the listing process for asset valuation, financing the project, development planning, statutory reporting, and so on. Here are the various uses of the independent reserves certificates: 1. The certificates may be required to be submitted to the government, official agencies, oil and gas ministry and departments, national oil companies, etc. 2. During the regulatory filing processes, the certificates need to be submitted to the concerned authorities. 3. When the client company announces an IPO (initial public offering), this is an essential document that needs to be submitted to the stock exchange. 4. If the project is commercially viable, then the Certificate becomes the supporting document for the DoC or the Declaration of Commerciality. 5. In the case of strategic financial events like mergers, acquisitions, divestitures, etc., it is imperative to submit the independent reserve certification. 6. For funding from banks or other financial institutions, this document helps in borrowing-base determination, acts as a covenant during a commercial loan, etc. 7. In other financial events like liquidations and bankruptcies, the Certificate is an essential supporting document. 8. For legal filings, in the case of testimony by an expert witness, for the submission of affidavits and exhibits in a court of law, etc., the independent reserve document is very much required. 9. During the process of estate tax planning, the document helps the client in reducing tax liabilities. Thus the essence of independent oil and gas reserve evaluation, valuation, and certification herald new business and growth opportunities.Contact Us
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