Hydrocarbon Reserves - Estimation, Classification and Importance in Evaluation of Exploration Projects

Abstract

One of the key problems encountered by oil companies from countries in transition approaching the world market is in understanding the concept of reserves, their estimation and classification. As reserves are the basic value of a company, it is imperative that business policy includes continuous replacement of reserves. The study illustrates the use of estimated reserves in the evaluation of exploration areas, and the importance of reserves in business decisions and a company's future.