Probable Reserves

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Dictionary Says

Definition of 'Probable Reserves'

After an oil exploration firm conducts a seismic survey of a piece of land, it obtains the proven and probable reserves in that area. Probable reserves are those which have a 50% chance of being present. For example if an oil company believes that there is descent chance of a successful drilling operation, they would classify those reserves as "probable."
Investopedia Says

Investopedia explains 'Probable Reserves'

If a reserve is considered probable, only 50% of the expected recovery amount is factored into the total reserve. Oil companies are often valued based on a PP (proven+probable) reserve ratio basis. Probable reserves vary from possible reserves, which only have a 10% chance of full extraction.

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'Probable Reserves'

  • 5 Common Trading Multiples Used In Oil And Gas Valuation

    http://www.investopedia.com/articles/basics/11/common-multiples-used-in-oil-and-gas-valuation.asp
    ... (To learn more, see Unearth Profits In Oil Exploration And Production.) Enterprise
    Value/Proven + Probable Reserves: EV/2P This easily calculated metric, which ...

  • Talisman Energy - North Sea Review

    http://stocks.investopedia.com/stock-analysis/2011/Talisman-Energy---North-Sea-Review-TLM-NXY-STO-E0606.aspx
    ... The company estimates that production from this project will peak in 2011 and 2012
    at approximately 14,000 BOE per day, with proven and probable reserves of 23 ...

  • Canadian Natural Resources: International Properties

    http://stocks.investopedia.com/stock-analysis/2011/Canadian-Natural-Resources-International-Properties-CNQ-E-HES-PBR0620.aspx
    ... Canadian Natural Resources estimates that the company's gross proved plus probable
    reserves in the international portfolio total 553 million barrel of oil ...

  • Silver Wheaton In Review Before Earnings

    http://stocks.investopedia.com/stock-analysis/2011/Silver-Wheaton-In-Review-Before-Earnings-SLW-PAAS-AG-HL-SVM-ABX-GG1108.aspx
    ... It looks like investors have high expectations. Another good way to compare is to
    look at its enterprise value to 2P (proven + probable reserves). ...

  • A Snapshot Of Canadian Natural Resources Limited

    http://stocks.investopedia.com/stock-analysis/2011/A-Snapshot-Of-Canadian-Natural-Resources-Limited-CNQ-SU-CVE-IMO1207.aspx
    ... $8.50. 12.63. Imperial Oil (AMEX:IMO). $36.3B. 11.8. 7.8. $126,323. $8.64. 6.38.
    *based on fiscal 2010 proved and probable reserves (million barrels of oil equivalent ...

  • Denbury Resources Works The Bakken

    http://stocks.investopedia.com/stock-analysis/2012/Denbury-Resources-Works-The-Bakken-DNR-REN-OXY-WLL0208.aspx
    ... Texas. The company estimates that this field holds between 70 million and
    100 million barrels of proved and probable reserves. Denbury ...

  • Met-Coal Mash Up

    http://stocks.investopedia.com/stock-analysis/2010/Met-Coal-Mash-Up-WLT-BTU-ACI-RIO-MEE-ANR-PKX-ACH-MT-BHP-TCK1205.aspx
    ... Western presently has eight mines in the US, Canada, and the UK, with proven
    and probable reserves of nearly 209 million tons. The ...

  • Carrizo Shifts Focus To Marcellus Shale In 2010

    http://stocks.investopedia.com/stock-analysis/2010/-Carrizo-Shifts-Focus-To-Marcellus-Shale-In-2010-CRZO0114.aspx
    ... Make Your First $1 Million Barnett Shale In its core Barnett Shale properties, Carrizo
    will continue to convert its probable reserves to the proved category. ...

  • Taking A Look At Barrick Gold

    http://stocks.investopedia.com/stock-analysis/2011/Taking-A-Look-At-Barrick-Gold-ABX-GG-GFI-NEM-AU1013.aspx
    ... Along with that, it also has the largest gold reserves in the world with over 140
    million ounces of proven and probable reserves, and a substantial amount of ...

  • Why Gold Companies Love Africa

    http://stocks.investopedia.com/stock-analysis/2011/Why-Gold-Companies-Love-Africa-KGC-NEM-ABX-GFI-IAG0421.aspx
    ... Gold (NYSE:ABX), which expects to get only 7% of its 2011 gold production from its
    operations here, and has 9% of its proved and probable reserves located in ...

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