Proven Reserves
The SEC has established definitions of what the industry refers to as proven reserves. Investors require comfort and assurance as to the quality and transparency of securities issued by oil and gas corporate issuers. Investors purchase corporate stocks and bonds of oil and gas companies (the issuers) who claim they have certain amounts of proven hydrocarbons as part of their asset base. Investors, bankers, and other constituents must have assurances as to the quality and quantity of the reserve base.
Reserves refer to the hydrocarbons still in the ground, including both oil and gas. Reserves are measured in terms of barrels of oil equivalent (BOE). Natural gas reserves must be converted to barrels and then added to the oil reserve ...
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