Proven Reserves

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Dictionary Says

Definition of 'Proven Reserves'

After an oil exploration firm conducts a seismic survey on a piece of land, it obtains the proven and probable reserves in that area. Proven reserves are those which have an over 90% chance of being present. For example if a oil company believes that there is good chance of a successful drilling operation, they would classify those reserves as "proven."
Investopedia Says

Investopedia explains 'Proven Reserves'

If a reserve is considered to be proven, this does not guarantee a successful operation. After the total reserves of a piece of land are determined, the oil company makes a decision whether or not to pursue drilling. The initial seismic test is considered a sunk cost.

Total Reserves = Proven + Probable (unproven)

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'Proven Reserves'

  • Williams: Breaking Up Is Easy To Do

    http://stocks.investopedia.com/stock-analysis/2011/Williams-Breaking-Up-Is-Easy-To-Do-WMB0221.aspx
    ... diversified. The company reported proven reserves of 4.5 tcfe at the end
    of 2010, with 94% of the reserves composed of natural gas. ...

  • 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
    ... reserves. Proven reserves are typically known as 1P, with many analysts referring
    it to P90, having 90% probability of being produced. ...

  • California Budget Crisis: Here We Come

    http://stocks.investopedia.com/stock-analysis/2009/California-Budget-Crisis-Here-We-Come-XOM-RDS.B-VQ-PXP-WRES0623.aspx
    ... Los Angeles Basin. Warren Resources had proven reserves of 9.4 million barrels
    of oil equivalent in this basin at the end of 2008. ...

  • Petroquest Energy Balances Out

    http://stocks.investopedia.com/stock-analysis/2009/Petroquest-Energy-Balances-Out-PQ-SWN-XTO-CLR-GDP-SM0609.aspx
    ... Arkoma Basin and East Texas. The company had proven reserves of 185.3 Bcfe
    at the end of 2008. Petroquest has spent the past several ...

  • Energen Tilts Toward Oil

    http://stocks.investopedia.com/stock-analysis/2009/Energen-Tilts-Toward-Oil-EGN1126.aspx
    ... respectively. Energen has proven reserves of 1.6 Tcfe (trillion cubic feet
    equivalent) located in four different basins in the US. San ...

  • Canada's Commodity Currency: Oil And The Loonie

    http://www.investopedia.com/articles/forex/09/canadian-dollar-loonie-commodity-oil.asp
    ... future, is the fact that not only did Canada surpass Saudi Arabia as the top supplier
    of crude to the US, Canada has the second-largest proven reserves of crude ...

  • Apache Corporation Still Loves Egypt

    http://stocks.investopedia.com/stock-analysis/2011/Apache-Corporation-Still-Loves-Egypt-APA0524.aspx
    ... produces approximately 660,000 barrels of oil per day, according to the Energy
    Information Administration, and has 4.4 billion barrels of proven reserves. ...

  • 3 Reasons To Own Iamgold

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-Iamgold-IAG-GG-EGO-AUY1018.aspx
    ... Gold producers profit from the spread between what it costs them to acquire and
    extract proven reserves from the ground and the price people are willing to pay ...

  • A Win-Win For Chespeake And BHP?

    http://stocks.investopedia.com/stock-analysis/2011/A-Win-Win-For-Chespeake-And-BHP-BHP-CHK-XOM-HK-BP-PTR-ECA0224.aspx
    ... BHP Billiton is acquiring about 2.5 trillion cubic feet (natural gas equivalent)
    of proven reserves, with a total potential reserve base of maybe 10 trillion ...

  • Worried About Natural Gas In 2010? Go For Oil

    http://stocks.investopedia.com/stock-analysis/2010/Worried-About-Natural-Gas-in-2010-Go-For-Oil--WLL-DNR-REN0104.aspx
    ... acquisition of Encore Acquisition Company (NYSE:EAC), another oily name, and estimates
    that the combined company has about 70% of its proven reserves in oil. ...

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