Proved Reserves

DEFINITION of 'Proved Reserves'

A classification used in mining sectors that refers to the amount of resources that can be recovered from the deposit with a reasonable level of certainty. Proved reserves is a common metric quoted by companies such as oil, natural gas, coal and other commodity-based companies.

Also known as proven reserves.

BREAKING DOWN 'Proved Reserves'

Proved reserves are usually determined through extensive geologic and engineering studies. It can take mining companies several years to complete a study to determine the amount of proven resources. A company that increases its level of proven resources over time generally sees a favorable response in the price of its shares.

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RELATED FAQS
  1. What is the difference between proven and probable reserves in the oil and gas sector?

    Learn how those in the oil and gas sector classify oil reserves and the specific differences between proven and probable ... Read Answer >>
  2. How does an oil and gas company measure and state their reserves?

    Understand how oil and gas companies estimate possible reserves and how different classifications are used to designate the ... Read Answer >>
  3. What developed countries have the greatest exposure to oil & gas drilling?

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  4. What other sectors are most similar to oil & gas drilling?

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