SPE 102505

The Selection, Application, and Misapplication of Reservoir Analogs for the Estimation
of Petroleum Reserves
J.E. Hodgin, SPE, D.R. Harrell, SPE, Ryder Scott Co., L.P., Houston, Texas

Copyright 2006, Society of Petroleum Engineers

This paper was prepared for presentation at the 2006 SPE Annual Technical Conference and
Exhibition held in San Antonio, Texas, U.S.A., 2427 September 2006.
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Abstract
This paper contains materials and concepts from both an
engineering and geoscience perspective relative to the reliance
upon suitable analog reservoirs for some or all of the pertinent
reservoir rock and fluid qualities in the estimating of reserves
quantities and the classification of such estimates.
The information in the paper is expected to be useful to
professional reservoir engineers and geologists in predicting
reservoir performance for reserves estimation, reservoir
management and other predictive needs. The ultimate choice
of the use and application of data from analogous reservoirs is
always based upon the judgment of the evaluator but
guidelines presented in this paper will assist in providing
criteria for the more consistent application of analogs.
All judgment decisions in reservoir evaluation are based
upon the evaluators collective experience in reservoir geology
or engineering and are thus subjectively analog based. Little
of our collective experience, however, has been gathered in
any systematic way where all pertinent reservoir and fluid
characteristics have been identified.
The pertinent
characteristics go far beyond the typical measurements of
depth, pressure, temperature, porosity, permeability and oil
gravity as primary parameters and arguably should include
depositional
environments,
mineralization,
trapping
mechanism, drive mechanisms, structural stresses, wettability,
pore throat sizes and other often unknown or ignored features
or descriptive parameters.
Equally important is the
recognition of the frequent and continuing misunderstanding
and erroneous application of analog data, some of which is
described in this paper.
The topic is significant because of the continuously
growing interest in reliable reserves estimates and economic

forecasts by companies, investors, regulators, governments

and the public at large and because there are no similar papers
available through the SPE library or other readily accessible
sources.
Introduction
Analogy methods have played a significant role in both the
assessment of resource potential and as a basis for estimating
or supporting the estimate of reserves. This paper will focus
on the use of analogs for reserves estimation and is divided
into two separate but intrinsically related discussions about the
reliance upon analogs by reserves evaluators. The first topic
of discussion relates to the use of analogs in the classification
of reserves into the appropriate category most often proved,
probable and possible. The second application relates to the
quantification of reserves.
The alternate, and often preferred, spelling as analogue is
not used herein but is included to enable electronic searches
utilizing that specific term to locate this paper. A recent search
of the SPE eLibrary resulted in identifying 556 papers
incorporating the word analogue and an additional 3589
papers containing the term analog.
Analog Usage
A global survey of the use of geological analogs conducted in
early 2002 by S. Qing Sun and J.C. Wan1 indicated that the
companies surveyed believed that identifying the highest
quality analogs reduced the exploration risk and improved the
field development decisions. Further, while analogs were
deemed to provide critical insight, no one within the
companies surveyed had codified analog best practices.
The use of analogs is noted as a criteria to satisfy certain
reserves booking and classification requirements in both the
SPE and SEC reserves definitions. Many evaluators routinely
incorporate analogs in their evaluation process, however, little
if any discussion of a systematic approach has been presented
in the literature. This paper is intended to review the criteria
for the application of analogs and to denote the specific data
requirements to satisfy the conditions set forth for both sets of
reserves definitions. The recommendations presented herein
should be viewed as guides to prompt a more consistent
approach to their appropriate use in improving the estimates of
reserves. Due to the many forms of occurrence of petroleum,
the wide range of characteristics, the uncertainty associated

with the geological environment, the constant evolution of

technologies, and the current economic parameters, the
authors do not suggest that this paper presents a precise
system of guidelines and criteria to satisfy all situations.
Ultimately, the evaluator must rely on his/her professional
judgment when developing or applying an analog.
Definition of an Analog
An analogy is a logical and systematic comparison that is
intended to identify similarities. Websters Dictionary defines
analogy/analogies as a form of logical inference, or an
instance of it, based on the assumption that if two things are
known to be alike in some respects, then they must be alike in
other respects.
The term analogous is defined as
corresponding in a way that allows the drawing of an
analogy. Analogs used in reserves estimation aid the
evaluator in reducing uncertainty by narrowing the range of
outcomes.
From an evaluators view point, an analog is used to
estimate a number of reservoir parameters and performance
expectations. An ideal analog would be a developed reservoir
with well documented physical parameters and an adequate
performance history to rely upon for future production and
performance expectations. This mature reservoir serves as an
analog for predicting the future production and performance
expectations of a nearby undeveloped or less mature
producing reservoir.
The term analogous reservoir is defined by both the SPE
and the United States Securities and Exchange Commission
(SEC). There are perhaps other definitions but these two are
deemed to be the most relevant to this paper.
SPE Definition of Analogous Reservoir
The SPE provides a general definition of an analogous
reservoir as: An analogous reservoir is one in the same
geographic area that is formed by the same, or very similar
geological processes as, a reservoir in question (or under study
for reserves evaluation) as regards sedimentation, diagenesis,
pressure, temperature, chemical and mechanical history, and
structure. It also has the same or similar geologic age,
geologic features, and reservoir rock and fluid properties.
Analogous features and characteristics can include
approximate depth, pressure, temperature, reservoir drive
mechanism, original fluid content, oil gravity, reservoir size,
gross thickness, pay thickness, net-to-gross ratio, lithology,
heterogeneity, porosity and permeability. The development
scheme for a reservoir (e.g. as reflected by well spacing) can
also be important in establishing the relevance of the
analogy.2
The definition of an analogous reservoir above (Refer to
Appendix A for the full reference and associated passage from
the relevant SPE document) was obtained from the Glossary
of Terms Used on the SPE website. This definition was
approved by the SPE Board for publication in January 2005
but is virtually certain to be modified to conform more closely
in concept with the new resource definitions expected to be
approved by the SPE Board (and other supporting

SPE 102505

organizations) in early 2007. At the time of preparation of this

paper, the proposed definition for an analogous reservoir was
as follows: Analogous reservoirs, as used in resource
assessments, have similar rock and fluid properties but are
typically at a more advanced stage of development than the
reservoir of interest and thus may provide concepts or patterns
to assist in the interpretation of more limited data. Analogous
reservoirs are formed by the same, or very similar, processes
as regards sedimentation, diagenesis, pressure, temperature,
chemical and mechanical history and structural deformation.
Other features and characteristics considered include, but may
not be limited to, approximate depth, pressure, temperature,
reservoir drive mechanism, original fluid content, oil gravity,
reservoir size, gross thickness, pay thickness, net-to-gross
ratio, lithology, heterogeneity, porosity and permeability. The
development scheme for a reservoir (e.g. as reflected by well
spacing) can also be important in establishing the relevance of
the analogy. While reservoirs in the same geographic area and
of the same age typically provide better analogs, such
proximity alone may not be the primary consideration.
SEC Definition of Analogous Reservoir
The SEC provides a general definition of an analogous
reservoir as: An analogous reservoir is one having at least the
same values or better for porosity, permeability, permeability
distribution, thickness, continuity and hydrocarbon
saturations.3 It should be noted that this is the SECs only
reference to a definition for an analog or an analogous
reservoir and is found under the section referring to proved
undeveloped reserves based on improved recovery techniques
in the 2001 website release regarding guidance about
disclosures issues in the extractive industries (Refer to
Appendix B for the full reference and associated passage from
the relevant SEC document).
Suitability of the Analog
The suitability of a reservoir to serve as an analog is directly
related to the purpose of the comparison. An evaluator should
establish the intended use of the analog and then develop a list
of the parameters required to establish similarity. Similarity
must be established to avoid omitting or misinterpreting the
impact of key parameters crucial to establishing the analog
including but not limited to:
Geological aspects such as geological age, lithology,
depositional environments and the diagenetic and
structural history of the reservoir that control porosity
and permeability distribution and reservoir continuity
and heterogeneity, reservoir size, column height and
distribution of fluid interfaces
Petrophysical parameters including gross reservoir
thickness, net-to-gross ratios, pay thickness, porosity,
hydrocarbon saturations, and permeability
Reservoir properties including depth, pressure,
temperature, original fluid content, oil gravity,
relative permeability of reservoir fluids, residual
saturations, and reservoir drive mechanism
Development scheme including well spacing,
completion and stimulation design, artificial lift
methods, fluid injection, injection volumes, pattern

SPE 102505

type, injector to producer ratios, fluid handling

capacity, and horizontal versus vertical wells
The suitability of a reservoir as an analog is very much
dependent on the type of analog that is being established. The
SEC has provided explicit guidance regarding the statutory
requirements for an analogous reservoirs rock properties. In
addition to the SECs basic rock properties, the applicability
of an analog will depend on similarities in other appropriate
fluid properties, drive mechanisms and operational conditions.
To establish a fully qualifying analog, all statutory SEC
requirements need to be met and the additional relevant analog
parameters shown to be adequately matched for the relevant
analog application. In certain cases, all of the parameters in
the subject reservoir may not achieve absolute similarity by
adhering to the criteria to be equal to or better than the
comparable parameters of the analog. These cases must be
reviewed on an exception basis. To book proved reserves,
reasonable certainty must be met for all relevant parameters
based on demonstrating a compelling case to establish a
credible analog. Each case must be examined and developed
based on a fully integrated analysis of all relevant data.
Developing a Consistent Set of Analog Screening
Criteria
Specific data are required to satisfy the conditions for the
application of analog data set forth under each set of reserve
definitions. These data requirements fall under four general
categories:
Location or proximity
Geological parameters
Petrophysical parameters
Engineering parameters
The SEC analog requirements include issues under
location or proximity and petrophysical parameters (often
referred to as the six rock properties). The SPE analog
requirements go beyond location or proximity and
petrophysical parameters to include requirements for the
geological setting, reservoir fluid, pressure, temperature
properties and reservoir drive mechanism. While the SEC
does not specifically address the additional SPE analog
criteria, these incremental parameters would be critical
components of developing a comprehensive case to support
the quantity of volumes to be booked and would constitute key
elements in developing a compelling case for the similarity
and hence a proved reserve classification.
Table 1 presented at the end of this paper summarizes
specific data under either SPE or SEC guidelines that would
be deemed necessary to support an analog for a given
reservoir as proved.
General Requirements for Similarity
Both the SPE and SEC have established requirements for
similarity on many of the same key matching parameters to
validate the use of an analog. The SECs practice has been to
require strict compliance with their directives that the subject
reservoir must demonstrate equal or more favorable

characteristics in every area of comparability and the SEC

staff has not allowed any latitude. The SPE has allowed
reserves to be classified as proved where key matching
parameters are the same or similar to each other. An evaluator
using the SPE guidance must exercise some level of
reasonable judgment in what constitutes close enough. For
example, a permeability of 180 md for a subject reservoir is
more permeable compared to an analog having 120 md. If the
analog reservoir has a net pay thickness of 50 feet but the
subject reservoir has only 40 feet of net pay, does the subject
reservoir fail the comparison of similarity? If the analog is
being developed to substantiate producibility, the subject
reservoir would have the greater permeability thickness (Kh
md-ft) and could have a higher productive capacity. The
suitability of a reservoir to be considered as an analog must
always remain within the judgment of the evaluator(s) and fit
the requirements for the purpose of the comparison. This
judgment must consider those cases where a compelling case
for proved reserves was not supported and whether or not the
similarity would substantiate a classification of either probable
or possible under the SPE definitions.
Comments on Location or Proximity
Both SPE and SEC guidelines clearly state the tolerance levels
when considering the similarity for the physical reservoir
parameters, but the guidance regarding proximity is somewhat
more subjective where the reference is to the same area,
immediate area or geographic area.
It seems quite clear that the SECs written guidance is
primarily directed toward the classification of proved reserves
and clearly limits acceptable analogs to proved reservoirs in
(1) the same geological formation and (2) in the immediate
area. The SEC staff has not provided any formal guidance to
industry to further define these specific limitations.
In general, the closer (physical proximity) the analog
reservoir is located to the subject reservoir the better.
Proximity can be controlled by either vertical or lateral
distance or both. The suitability of an analog according to
published SEC guidance may be constrained to some degree
by proximity according to the situation and the application of
the analog.
Both the SPE and SEC guidelines for proximity are not
governed by absolute lateral distances but by issues such as
continuity of the geological setting with respect to both
vertical and lateral limits associated with the depositional
environment of the formation. As such, the absolute limits for
an acceptable analog outside the subject field could be
considered to be the lateral limit of the geological basin. As
both the analog and the subject reservoir(s) must be in the
same geological formation and should be in the same
depositional environment within a similar structural setting, in
practice, the lateral distance will be restricted to a relatively
small adjacent part of the same basin. Proximity therefore
must be validated by unambiguous geological support which
will ultimately determine and likely limit the lateral distance
to establish a fully qualifying analog.

SPE 102505

Table 2 summarizes the SPE and SEC criteria and

guidance specific to the issue of proximity.4, 5
Table 2
Criteria and Guidance Regarding Proximity
SPE Criteria

SEC Criteria

Analog to Validate Producibility-Subject

reservoir is analogous to reservoirs in the
same area that are producing or have
demonstrated the ability to produce on
formation tests

Analog to Validate Producibility-Subject

reservoirs are analogous to similar
reservoirs in the same field which are
producing or have demonstrated the ability
to produce on a formation test

Analog to Support Enhanced RecoverySuccessful testing by a pilot project or

favorable response of an installed program
in the same or an analogous reservoir

Analog to Support Enhanced RecoveryReserves cannot be classified as proved

undeveloped reserves based on improved
recovery techniques until such time that
they have been proved effective in that
reservoir or an analogous reservoir in
the same geological formation in the
immediate area.

Analog to Establish Future Rates and

Producing Trends-If production trends
have not been established, future rates of
production may be estimated by analogy to
the respective rates of production of
reservoirs in the same geographic area
Current Glossary of Terms-An analogous
reservoir is one in the same geographic
area
Proposed Glossary of Terms-While
reservoirs in the same geographic area
typically provide better analogs, such
proximity alone may not be the primary
consideration

N/A

N/A

N/A

Current Glossary Term for Field-An area

consisting of a single reservoir or multiple
reservoirs all grouped on, or related to, the
same individual geological structural feature
and/or stratigraphic condition. There may
be two or more reservoirs in a field that are
separated vertically by intervening
impermeable rock, laterally by local
geologic barriers, or both. It could be
defined differently by regulatory authorities

Regulation S-X Part 210 Defines Field-An

area consisting of a single reservoir or
multiple reservoirs all grouped on, or
related to, the same individual geological
structural feature and/or stratigraphic
condition. There may be two or more
reservoirs in a field that are separated
vertically by intervening impermeable rock,
laterally by local geologic barriers, or both.
Reservoirs that are associated by being in
overlapping or adjacent fields may be
treated as a single or common operational
field. The geological terms "structural
feature" and "stratigraphic column" are
intended to identify localized geological
features as opposed to the broader terms
of basins, trends, provinces, plays, areas-ofinterest, etc.

Current Glossary Term for Reservoir-A

subsurface rock formation containing one
or more individual and separate natural
accumulations of moveable petroleum that
is confined by impermeable rock and is
characterized by a single-pressure system.

Regulation S-X Part 210 Defines

Reservoir-A porous and permeable
underground formation containing a natural
accumulation of producible oil and/or gas
that is confined by impermeable rock or
water barriers and is individual and
separate from other reservoirs.

Glossary Term for Analogous ReservoirAn analogous reservoir has the (currentsame or similar; proposed-same) geologic
age

multiple reservoirs all grouped on or related to the same

individual geological structural feature and/or stratigraphic
condition. There may be two or more reservoirs in a field
which are separated vertically by intervening impervious
strata, or laterally by local geologic barriers, or by both. The
geological terms structural feature and stratigraphic
condition are intended to identify localized geological
features as opposed to the broader terms of basins, trends,
provinces, plays, areas-of-interest, etc.
An improved or enhanced oil recovery analog must be
supported by fluid injection or other improved recovery
techniques that have been proved effective by actual tests in
the area in the same reservoir according to S-X 210.4-10 and
in the 2001 Interpretation and Guidance.6
The 2001
Interpretation and Guidance goes further to state Reserves
cannot be classified as proved undeveloped reserves based on
improved recovery techniques until such time that they have
been proved effective in that reservoir or an analogous
reservoir (defined by the six SEC rock properties) in the same
geologic formation in the immediate area. The SEC does not
define or elaborate what lateral distance between the subject
field and the analog would be accepted as in the immediate
area. The SPE notes that an analogous reservoir is one in the
same geographic area that has the same or similar geologic
age. The SPE does not define or elaborate what distance
between the subject field and the analog would be accepted as
in the same geographic area but does stipulate that an
analogous reservoir is one formed by the same, or very similar
geological processes regarding sedimentation, diagenesis,
chemical and mechanical history and structure.
The SEC does not refer specifically to the use of analogs in
assessing drainage areas for the determination of proved
reserves. According to the SEC 2001 Interpretation and
Guidance, proved undeveloped reserves can be claimed only
for legal and technically justified drainage areas offsetting an
existing productive well. In the absence of regulatorydefined well spacing units, the SEC requires the application of
a technically justified drainage area as the basis for
establishing areas attributed to an existing well and its
offsetting well locations. In the absence of definitive data
from a well as to its drainage area, analog reservoir data may
be used as part of the technical justification. The use of
analogs outside the subject field should be constrained by the
SEC guidance to be in an analogous reservoir in the same
geologic formation in the immediate area.
In general, as lateral distance increases, each of the
physical parameters used in a comparison should be held to
stricter tolerances to validate an acceptable analog.

N/A

A well productivity analogy must be based on a

comparison between the subject reservoir and another similar
reservoir in the same field as noted in SEC Regulation S-X
210.4-10 and in Staff Accounting Bulletin Topic 12
Accounting Series Release 257. The SEC defines a field in SX 210.4-10 as An area consisting of a single reservoir or

Analogs for Reserves Classifications

According to both the SPE and SEC reserves definitions,
analog data may be applied under certain circumstances to
support the attribution of proved reserves for:
Validation of commercial producibility
Enhanced recovery processes
Table 3 presented at the end of this paper summarizes the

SPE 102505

SPE and SEC criteria and guidance relative to these topics.

Additional Comments on the SEC Criteria for the

Validation of Commercial Producibility
The SEC guidance relative to the reliance upon analogs to
serve as evidence of economic producibility absent a
conclusive formation test in the subject reservoir clearly limits
the selection of an analogous reservoir to being located in the
same field for this specific purpose. In most instances, this
limitation clearly prohibits an untested new field discovery
from being classified as proved by the SEC. The sole
exception was the guidance issued on April 15, 2004 directed
to certain properties located in the deep water region of the
U.S. Gulf of Mexico. This directive is described below in
general terms:
As a result of numerous conversations between
members of the SEC and producers active in the
deep water of the Gulf of Mexico plus written
responses from as many as fifty of these companies,
the SEC informed certain producers by letter7 they
did not object to the reporting of proved reserves
without a conclusive flow test as mandated in the
1978 definitions if some four other conditions were
met.
These conditions included positive and
mutually supportive interpretations confirming
economic producibility as established though openhole well logs, core data, 3-D seismic information
and pressure and fluid data obtained through high
quality wireline testing.

The reader should note that the term did not object does
not in any way modify the SEC reserves definitions but is only
an exception granted in specific circumstances where
technology provides adequate information in the SECs view
to meet the intent of the definitions.
This is the only known instance where the SEC technical
staff has concluded that a combination of specified high
quality reservoir information can be considered as a de facto
analog for a formation test. The SEC has steadfastly refused
to allow this same procedure to be acceptable outside the Gulf
of Mexico even though similar conditions exist throughout the
producing regions of the world.

Estimation of primary/secondary/tertiary recovery

factors
Type curves for decline curve analysis including the
application of a final minimum decline rate
Petrophysical cutoff values for the assessment of net
pay

In practice, the SEC has clearly indicated the importance of

the use of analogs in the quantification of reserves despite the
lack of published guidance. Notable in this regard is the
SECs frequent request of registrants to support recovery
efficiencies related to specific drive mechanisms. If a subject
reservoir is not sufficiently mature in its development and
performance history, the SEC will, in some cases, accept
recovery efficiencies demonstrated by analogous reservoirs in
the same field and/or in the immediate area.
Final minimum decline rates are usually best supported by
compiling data on actual final decline rates observed at the
time of well abandonment for as many wells as possible.
Caution should be exercised in accepting and applying
observed final decline rates from older completions if more
recent wells have had the benefit of newer stimulation
technology and are therefore likely to experience higher
decline rates. The decline rates in the older wells would no
longer be representative.
Comments on Establishing the Technically Justified
Drainage Area
The SECs position on proved undeveloped locations remains
unchanged.
They seldom approve offset undeveloped
locations beyond one legal location away from an existing
established commercial well. A registrant must have the
technical justification for the drainage areas assigned to both
the existing and offsetting undeveloped locations. This is
commonly referred to as the One Offset Rule as shown in
Figure 1.
Fig. 1- Illustration of SEC One Offset Rule

Proved Downdip
Oil/Water Contact

Analogs for Reserves Quantification

Under certain circumstances analogs are either noted or
implied in their use for reserves quantification for:
Establishing future production rates and trends (Refer
to Appendix A-SPE Auditing Standards for
Reserves)
Establishing the technically justified drainage area
offsetting an existing productive well (Refer to
Appendix B-SEC Undeveloped Locations-One
Offset)
There are many other common uses of analogs in reserves
quantification that are not specifically referenced in the
reserves definitions such as but not limited to:

Confirmed Drainage Area, Proved

Well
Offset Proved Location

SPE 102505

While the SEC does not refer specifically to the use of

analogs in evaluating or in support of the drainage areas for
the attribution of proved reserves, new discoveries and fields
without significant historical performance data must validate
the connected area underlying the estimate of the drainage
area by either a radius of investigation from a well test or by
an analog to a mature reservoir in the same geological
formation in the immediate area.
There are several factors in confirming similarity over and
above the reservoir rock and fluid properties, namely:
Confirmation of similar drive mechanism or
appropriate adjustments to the subject reservoirs
technical drainage area to account for the use of a
high confidence recovery efficiency that may be
lower than that of the analog
Consideration for any differences in reservoir fluids,
pressure or temperature
Confirmation of operational similarity including the
impact of vertical versus horizontal wells, completion
and stimulation methods
Consideration for the degree of heterogeneity or
effects of compartmentalization of the subject and
analog reservoirs
Building a Compelling Case for Reasonable
Certainty
A compelling case is intended to mean that the quality and
quantity of available data and the resulting interpretations
therefrom are considered adequate to fully support the
classification and/or the quantification of the petroleum
reserves in compliance with the relevant definitions and
guidelines.
As the requirements may differ depending on which set of
reserves definitions are utilized, it is incumbent on the
evaluator to know when the guidelines allow the use of
analogs, what data is required to validate similarity, the
tolerance to which similarity must adhere and the judgment to
determine if the integration of all relevant data confirms
reasonable certainty for the attribution of proved, probable or
possible reserves. Figure 2 outlines the progression of the
steps necessary to develop a compelling case.
Fig. 2-Building a Compelling Case for Reasonable Certainty

Know What
Guidelines
Within The
Definitions
Apply
To Your Case

Know What Data

Is Required
Under The
Guidelines
To Support
Your Case

Integrate Rules

And Data
For A
Compelling Case
To Support
Your Booking

Given a number of potential analogs in a particular area, it

is inappropriate to select the best-performing reservoir as the
basis of comparison for a subject reservoir. An evaluator
should analyze several potential area analogs to more fully
understand the extent and impact of the variations in
performance before selecting a particular reservoir or family
of reservoirs as the analog.
In summary the process of applying the analogy method
typically involves four stages:
Determine the purpose of the comparison and the key
drivers that would impact the validity of the
application to the subject reservoir
Evaluate the performance and operations of the
analogous reserves
Evaluate the subject reservoir in light of the analog
Establish the proof of analogy under the relevant
reserves definitions to a mature reservoir and
recovery process
The evaluator should carefully document and archive all of
the supporting data and be ready to present workpapers and
study results to internal or external reserves auditors,
management, regulators or other interested parties.
Conclusions
As noted by the SEC for their Accounting Interpretation and
Guidance Website Release, most engineers who deal with the
classification of reserves have come to realize, it is difficult, if
not impossible, to write reserve definitions that easily cover all
possible situations. Each case has to be studied as to its own
unique issues.
Evaluators should observe the following guidelines to
reduce mistakes using analogies.
Give preferences to analogies in the closest vertical
and/or areal proximity to the target field and/or
reservoir.
Follow a strict process whereby key parameters are
tabulated and compared.
Accept an analogy only if a good match exists or if
adjustments can be quantified to account for
differences.
Account for and, if necessary, adjust for operational
similarity, including the analysis of the costs and
associated economic viability for replicating the same
operational conditions in the subject reservoir.
Know the reserves definitions and guidelines relevant
to the assessment of the reserves and determination
of the appropriate reserves classifications.
Do not accept a case as compelling unless all of the
key parameters meet the appropriate statutory
guidelines.
Acknowledgements
The authors would like to express their gratitude to fellow
Ryder Scott colleagues Bob Wagner and Joe Magoto as well
as SPE members John Ritter and Rod Sidle for their input as
to the content of this paper and to Debby Schiro for assistance

SPE 102505

during the preparation of this paper.

References
1. Qing Sun, S., Wan, J.C.: Geological Analogs Usage
Rates High in Global Survey, Oil and Gas Journal,
November 11, 2002.
2. Glossary
of
Terms
Used,
SPE,
http://www.spe.org/spe/jsp/basic/0,,1104_3306579,00.htm.

3.
4.

Regulation S-X, Reg. 210.4-10, SEC, Washington, D.C.

(1978).
Petroleum
Reserves
Definitions,
SPE,
http://www.spe.org/spe/jsp/basic/0,,1104_12169,00.html.

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Auditing Standards for Reserves, SPE,

http://www.spe.org/spe/jsp/basic/0,,1104_12173,00.htm.

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Division of Corporation Finance: Frequently Requested

Accounting and Financial Reporting Interpretations and
Guidance, Division of Corporate Finance U.S. SEC,

7.

Division of Corporate Finance: Other Accounting &

Financial Reporting Guidance-Letter to Companies with
Oil and Gas Operations in the Gulf of Mexico, Schwall,
H. Roger, Assistant Director Division of Corporate
Finance U.S. Securities and Exchange Commission,

http://www.sec.gov/divisions/corpfin/guidance/cfactfaq.htm.

http://www.sec.gov/divisions/corpfin/guidance/oilgasltr0415
2005.html.

8.

Harrell, D.R., Hodgin, J.E., Wagenhofer, T.: Oil and Gas

Reserves Estimates: Recurring Mistakes and Errors,
paper SPE 91069 presented at the 2004 SPE Annual
Technical Conference and Exhibition, Houston, 26-29
September.
9. Conquist, C.: Estimation and Classification of Reserves of
Crude Oil, Natural Gas, and Condensate, Book Series,
SPE, Richardson, Texas (2001).
10. Canadian Oil and Gas Evaluation Handbook, First
Edition, Vol. 2, Canadian Institute of Mining, Metallurgy
& Petroleum and Society of Petroleum Evaluation
Engineers, Calgary, Alberta Canada, (November 2005).

SPE 102505

Table 1
Analog Screening Criteria
Field Name
Location
Reservoir/Segment/Fault Block
Subject

Analog

Reservoir Matching Parameters

Proximity
*Lateral Distance Between Subject and Analog
Rock Properties
*Porosity (%)
*Permeability (md)
Permeability Distribution (Dykstra Parsons or Kv/Kh Ratio)
Gross Thickness (Ft)
*Net Pay Thickness (Ft)
Net-to-Gross Ratio
*Hydrocarbon Saturation (1-Sw %)
*Type/Quantity of Core Data
*Type of Open-Hole Evaluation Logs Available
Geological Properties
Predominate Lithology
*Geological Age
Depositional Environment
*Same correlative stratigraphic interval or reservoir (Yes or No)
*Continuity (Comment on compartmentalization)
Reservoir Area (Ac)
Type of Original Fluid Contacts (LKH, O/W, G/W, GOC)
Productive Column Height (Ft)
*Availability of Seismic Data (2-D/3-D)
Fluid Properties
Oil Gravity (Deg API)
Initial Solution GOR (CF/BBL)
Oil Viscosity (cp)
Mobility Ratio
Gas Gravity
Initial Condensate Yield (BBL/MMCF)
Inert Gases (Mol % Each)
Engineering Properties
Average Depth (Ft)
Original Bottom Hole Pressure (psia)
Original Bottom Hole Temperature (Deg F)
*Availability of MDT Data (Number of Data Points)
*Fluid Samples Obtained from MDT Data (Yes/No)
Average Initial Well Producing Rate (BBL/Day or MCF/Day)
Average Drainage Area/Well (Acres)
Average Well Spacing (Acres/Well)
Drive Mechanism
Production Mechanism (Development Scheme)
Primary Product (Oil/Gas)
Original In-Place Volume (Primary Product Oil/Gas)
Cumulative Production of Primary Product/Date
Recovery Factor To Date (%)
Estimated Primary Ultimate Recovery Factor (%)
Method Determining Primary Recovery Factor (Performance/Simulation)
Total Recovery Factor Including Secondary Recovery (%)
Ratio Producers to Injectors
Flood Pattern Type

Items marked with an asterisk identify specific SEC required data.

Comments

SPE 102505

Table 3
Comparison of SPE and SEC Analog Criteria and Guidelines
SPE Criteria

SEC Criteria

Matching Criteria

Same or similar

Same or better

Location/Proximity

Analog to Validate Producibility-Subject

reservoir is analogous to reservoirs in the
same area that are producing or have
demonstrated the ability to produce on
formation tests

Analog to Validate Producibility-Subject

reservoirs are analogous to similar
reservoirs in the same field which are
producing or have demonstrated the ability
to produce on a formation test

Analog to Support Enhanced RecoverySuccessful testing by a pilot project or

favorable response of an installed program
in the same or an analogous reservoir

Analog to Support Enhanced RecoveryReserves cannot be classified as proved

undeveloped reserves based on improved
recovery techniques until such time that
they have been proved effective in that
reservoir or an analogous reservoir in
the same geological formation in the
immediate area

Analog to Establish Future Rates and

Producing Trends-If production trends
have not been established, future rates of
production may be estimated by analogy to
the respective rates of production of
reservoirs in the same geographic area
Current Glossary of Terms-An analogous
reservoir is one in the same geographic
area
Proposed Glossary of Terms-While
reservoirs in the same geographic area
typically provide better analogs, such
proximity alone may not be the primary
consideration
Current Glossary Term for Field-An area
consisting of a single reservoir or multiple
reservoirs all grouped on, or related to, the
same individual geological structural
feature and/or stratigraphic condition.
There may be two or more reservoirs in a
field that are separated vertically by
intervening impermeable rock, laterally by
local geologic barriers, or both. It could be
defined differently by regulatory authorities.

N/A

N/A

N/A

Regulation S-X Part 210 Defines FieldAn area consisting of a single reservoir or
multiple reservoirs all grouped on, or
related to, the same individual geological
structural feature and/or stratigraphic
condition. There may be two or more
reservoirs in a field that are separated
vertically by intervening impermeable rock,
laterally by local geologic barriers, or both.
Reservoirs that are associated by being in
overlapping or adjacent fields may be
treated as a single or common operational
field. The geological terms "structural
feature" and "stratigraphic column" are
intended to identify localized geological
features as opposed to the broader terms
of basins, trends, provinces, plays, areasof-interest, etc.

10

SPE 102505

Table 3 (Continued)
Current Glossary Term for Reservoir-A
subsurface rock formation containing one
or more individual and separate natural
accumulations of moveable petroleum that
is confined by impermeable rock and is
characterized by a single-pressure system.

Geologic Processes

Petrophysical Parameters

Current Glossary Term for Analogous

Reservoir-Analogous reservoirs are
formed by the same, or very similar,
processes as regards sedimentation,
diagenesis, pressure, temperature,
chemical and mechanical history and
structural deformation.

Regulation S-X Part 210 Defines

Reservoir-A porous and permeable
underground formation containing a natural
accumulation of producible oil and/or gas
that is confined by impermeable rock or
water barriers and is individual and
separate from other reservoirs.

N/A

Analog to Validate Producibility-In

certain cases, proved reserves may be
assigned on the basis of well logs
and/or core analysis that indicate that
the subject reservoir is hydrocarbon
bearing and is analogous to reservoirs in
the same area that are producing or have
demonstrated the ability to produce on
formation tests

Analog to Validate Producibility-In

certain instances, proved reserves may
be assigned to reservoirs on the basis
of a combination of electrical and other
type logs and core analyses which
indicate the reservoirs are analogous (if
the combination of data is
overwhelmingly in support of economic
producibility) to similar reservoirs in the
same field which are producing or have
demonstrated the ability to produce on a
formation test. This would probably be a
rare event in an exploratory situation.... in
most cases there must be a conclusive
formation test in a new reservoir before any
reserves can be considered to be proved.

Analog to Support Enhanced RecoveryAn analogous reservoir should have

similar rock properties

Analog to Support Enhanced RecoveryAn analogous reservoir is one having at

least the same values or better for
porosity, permeability, permeability
distribution, thickness, continuity and
hydrocarbon saturations

Analog to Establish Future Rates and

Producing Trends-If production trends
have not been established, future rates of
production may be estimated by analogy to
the respective rates of production of
reservoirs having similar rock
characteristics
Current Glossary of Terms-An analogous
reservoir has the same or similar
reservoir rock properties. Analogous
features and characteristics can include
reservoir size, gross thickness, pay
thickness, net-to-gross ratio, lithology,
heterogeneity, porosity and permeability

N/A

N/A

SPE 102505

Engineering Parameters

11

Table 3 (Continued)
Analog to Validate Producibility-In
certain cases, proved reserves may be
assigned to the subject reservoir if it is
analogous to reservoirs in the same
area that are producing or have
demonstrated the ability to produce on
formation tests

Analog to Support Enhanced RecoverySuccessful testing by a pilot project or

favorable response of an installed program
in the same or an analogous reservoir with
similar fluid properties

Development Scheme

Further Considerations

Analog to Validate Producibility-In

certain cases, proved reserves may be
assigned to the subject reservoirs that are
analogous to similar reservoirs in the
same field that are producing or have
demonstrated the ability to produce on
a formation test. This would probably be
a rare event in an exploratory situation.... in
most cases there must be a conclusive
formation test in a new reservoir before any
reserves can be considered to be proved.
Analog to Support Enhanced RecoverySuccessful testing by a pilot project, or the
operation of an installed program in the
reservoir (or according to the 2001 website
guidance an analogous reservoir in the
same geologic formation in the immediate
area). If an improved recovery technique
which has not been verified by routine
commercial use in the area is to be
applied, the hydrocarbon volumes
estimated to be recoverable cannot be
classified as proved reserves unless the
technique has been demonstrated to be
technically and economically successful by
a pilot project or installed program in that
specific rock volume. Such demonstration
should validate the feasibility study leading
to the project.

Analog to Establish Future Rates and

Producing Trends-If production trends
have not been established, future rates of
production may be estimated by analogy to
the respective rates of production of
reservoirs having similar fluid
characteristics

N/A

Glossary Term for Analogous ReservoirAn analogous reservoir has the (currentsame or similar; proposed-similar) fluid
properties. Analogous features and
characteristics can include depth,
pressure, temperature, reservoir drive
mechanism, original fluid content, and oil
gravity

N/A

Glossary Term for Analogous ReservoirThe development scheme for a reservoir

(e.g. as reflected by well spacing) can also
be important in establishing the relevance
of the analogy. (Both current and proposed
contain identical wording)

Glossary Term for Analogous ReservoirAn analogous reservoir has the (currentsame or similar; proposed-same) geologic
age

N/A

N/A

12

Appendix A
SPE References
Appendix A contains selected passages taken from SPE
documents relevant to the use and application of analogs for
the topics described in this paper.
Validation of Commercial Producibility
Reference: March 1997 SPE/WPC Petroleum Reserves
Definitions
1. Proved Reserves
In general, reserves are considered proved if the
commercial producibility of the reservoir is
supported by actual production or formation tests. In
this context, the term proved refers to the actual
quantities of petroleum reserves and not just the
productivity of the well or reservoir. In certain cases,
proved reserves may be assigned on the basis of well
logs and/or core analysis that indicate the subject
reservoir is hydrocarbon bearing and is analogous to
reservoirs in the same area that are producing or have
demonstrated the ability to produce on formation
tests.
2. Probable Reserves
Reserves in formations that appear to be productive
based on well log characteristics but lack core data or
definitive tests and which are not analogous to
producing or proved reservoirs in the area.
Reserves attributable to a future workover,
treatment, re-treatment, change of equipment, or
other mechanical procedures, which such procedure
has not been proved successful in wells which exhibit
similar behavior in analogous reservoirs.
3. Possible Reserves
Reserves in formations that appear to be petroleum
bearing based on log and core analysis but may not
be productive at commercial rates.
Undeveloped Locations-One Offset
Reference: March 1997 SPE/WPC Petroleum Reserves
Definitions
1. Proved Reserves
Reserves in undeveloped locations may be classified
as proved undeveloped provided (1) the locations are
direct offset to wells that have indicated commercial
production in the objective formation, (2) it is
reasonably certain such locations are within the
known proved productive limits of the objective
formation, (3) the locations conform to existing well
spacing regulations where applicable, and (4) it is
reasonably certain the locations will be developed.
2. Probable Reserves
Reserves anticipated to be proved by normal stepout drilling where sub-surface control is inadequate
to classify these reserves as proved.
Incremental reserves attributable to infill drilling
that could have been classified as proved if closer
statutory spacing had been approved at the time of
the estimate.

SPE 102505

3.

Possible Reserves
Reserves which, based on geological interpretations,
could possibly exist beyond areas classified as
probable.
Incremental reserves attributable to infill drilling
that are subject to technical uncertainty.

Undeveloped Locations-Beyond One Offset

Reference: March 1997 SPE/WPC Petroleum Reserves
Definitions
1. Proved Reserves
Reserves from other locations are categorized as
proved undeveloped only where interpretations of
geological and engineering data from wells indicate
with reasonable certainty that the objective formation
is laterally continuous and contains commercially
recoverable petroleum at locations beyond direct
offsets.
Reserves To Be Recovered By Enhanced Recovery
Reference: March 1997 SPE/WPC Petroleum Reserves
Definitions
1. Proved Reserves
Reserves which are to be produced through the
application of established improved recovery
methods are included in the proved classification
when (1) successful testing by a pilot project or
favorable response of an installed program in the
same or an analogous reservoir with similar rock and
fluid properties provides support for the analysis on
which the project was based, and, (2) it is reasonably
certain that the project will proceed.
2. Probable Reserves
Reserves attributable to improved recovery methods
that have been established by repeated commercially
successful applications when (a) a project or pilot is
planned but not in operation and (b) rock, fluid, and
reservoir characteristics appear favorable for
commercial application.
3. Possible Reserves
Reserves attributed to improved recovery methods
when (a) a project or pilot is planned but not in
operation and (b) rock, fluid, and reservoir
characteristics are such that a reasonable doubt exists
that the project will be commercial.
Estimated Future Rates of Production
Reference: June 2001 SPE Auditing Standards for Reserves
1. Proved Reserves
Future rates of oil and gas production may be
estimated by extrapolating production trends where
such have been established. If production trends
have not been established, future rates of production
may be estimated by analogy to the respective rates
of production of reservoirs in the same geographic
area having similar geologic features, reservoir rock
and fluid characteristics.

SPE 102505

Terms Used
Reference: January 2005 SPE/WPC/AAPG Glossary of Terms
Used
1. Analogous Reservoir:
An analogous reservoir is one in the same
geographic area that is formed by the same, or very
similar geological processes as, a reservoir in
question (or under study for reserves evaluation) as
regards
sedimentation,
diagenesis,
pressure,
temperature, chemical and mechanical history, and
structure. It also has the same or similar geologic
age, geologic features, and reservoir rock and fluid
properties. Analogous features and characteristics
can
include
approximate
depth,
pressure,
temperature, pay thickness, net-to-gross ratio,
lithology, heterogeneity, porosity and permeability.
The development scheme for a reservoir (e.g. as
reflected by well spacing) can also be important in
establishing the relevance of the analogy.
2. Field:
An area consisting of a single reservoir or multiple
reservoirs all grouped on, or related to, the same
individual geological structural feature and/or
stratigraphic condition. There may be two or more
reservoirs in a field that are separated vertically by
intervening impermeable rock, laterally by local
geologic barriers, or both. It could be defined
differently by regulatory authorities.
3. Known Accumulation:
The term accumulation is used to identify an
individual body of moveable petroleum. The key
requirement to consider an accumulation as known,
and hence contain reserves or contingent resources, is
that each accumulation/reservoir must have been
penetrated by a well. In general, the well must have
clearly demonstrated the existence of moveable
petroleum in that reservoir by flow to the surface or
at least some recovery of a sample of petroleum from
the well. However, where log and/or core data exist,
this may suffice, provided there is a good analogy to
a nearby and geologically comparable known
accumulation.
4. Offset Well Location:
Potential drill location adjacent to an existing well.
The offset distance may be governed by well spacing
regulations. Proved volumes on the existing well are
indicated by either conclusive formation test or
production. For proved volumes to be assigned to an
offset well location there must be conclusive,
unambiguous technical data which supports the
reasonable certainty of production of hydrocarbon
volumes and sufficient legal acreage to economically
justify the development without going below the
shallower of the fluid contact or the lowest known
hydrocarbon.
5. Reservoir:
A subsurface rock formation containing one or more
individual and separate natural accumulations of
moveable petroleum that is confined by impermeable
rock and is characterized by a single-pressure

13

system.

Appendix B
SEC References
Appendix B contains selected passages taken from SEC
documents relevant to the use and application of analogs for
the topics described in this paper.
Validation of Commercial Producibility
Reference: Regulation S-X Part 210
1. Proved Oil and Gas Reserves (Section 2 (i))
Reservoirs are considered proved if economic
producibility is supported by either actual
production or conclusive formation test.
Reference:
SEC Staff Accounting Bulletin Topic 12
Accounting Series Release 257
2. Estimates of Quantities of Proved Reserves (Part A
Section 1 Question 1)
Question: The definition of proved reserves
states that reservoirs are considered proved if
economic producibility is supported by either
actual production or conclusive formation test.
May oil and gas reserves be considered proved if
economic producibility is supported only by core
analyses and/or electric or other log
interpretations?
Interpretive Response: Economic producibility
of estimated proved reserves can be supported to
the satisfaction of the Office of Engineering if
geological and engineering data demonstrate
with reasonable certainty that those reserves can
be recovered in future years under existing
economic and operating conditions. The relative
importance of the many pieces of geological and
engineering data which should be evaluated
when classifying reserves cannot be identified in
advance. In certain instances, proved reserves
may be assigned to reservoirs on the basis of a
combination of electrical and other type logs and
core analyses which indicate the reservoirs are
analogous to similar reservoirs in the same field
which are producing or have demonstrated the
ability to produce on a formation test.
Reference: SEC Website Release March 31, 2001 Division of
Corporate Finance: Frequently Requested Accounting and
Financial Reporting Interpretations and Guidance
3. Part II Guidance About Disclosures Section F Issues in
the Extractive Industries Subpart 3 Definition of Proved
Reserves Subsection (b)
Proved reserves may be attributed to a
prospective zone if a conclusive formation test
has been performed or if there is production from
the zone at economic rates. It is clear to the SEC
staff that wireline recovery of small volumes
(e.g. 100 cc) or production of a few hundred
barrels per day in remote locations is not
necessarily conclusive. Analyses of open-hole

14

4.

SPE 102505

well logs which imply that an interval is

productive are not sufficient for attribution of
proved reserves. If there is an indication of
economic producibility by either formation test
or production, the reserves in the legal and
technically justified drainage area around the
well projected down to a known fluid contact or
the lowest known hydrocarbons, or LKH may be
considered to be proved.
Part II Guidance About Disclosures Section F Issues in
the Extractive Industries Subpart 3 Definition of Proved
Reserves Subsection (g)
If the combination of data from open-hole logs
and core analyses is overwhelmingly in support
of economic producibility and the indicated
reservoir properties are analogous to similar
reservoirs in the same field that have produced or
demonstrated the ability to produce on a
conclusive formation test, the reserves may be
classified as proved. This would probably be a
rare event especially in an exploratory situation.
The essence of the SEC definition is that in most
cases there must be a conclusive formation test
in a new reservoir before any reserves can be
considered to be proved.

Undeveloped Locations-One Offset

Reference: Regulation S-X Part 210
1. Proved Oil and Gas Reserves (Section 2 (i))
The area of a reservoir considered proved
includes (A) that portion delineated by drilling
and defined by gas-oil and/or oil-water contacts,
if any; and (B) the immediately adjoining
portions not yet drilled, but which can be
reasonably judged as economically productive on
the basis of available geological and engineering
data. In the absence of information on fluid
contacts, the lowest known structural occurrence
of hydrocarbons controls the lower proved limit
of the reservoir.
2. Proved Undeveloped Reserves (Section 4)
Proved undeveloped oil and gas reserves are
reserves that are expected to be recovered from
new wells on undrilled acreage, or from existing
wells where a relatively major expenditure is
required for recompletion. Reserves on undrilled
acreage shall be limited to those drilling units
offsetting productive units that are reasonably
certain of production when drilled.
Undeveloped Locations-Beyond One Offset
Reference: Regulation S-X Part 210
1. Proved Undeveloped Reserves (Section 4)
Proved undeveloped oil and gas reserves are
reserves that are expected to be recovered from
new wells on undrilled acreage, or from existing
wells where a relatively major expenditure is
required for recompletion. Reserves on undrilled
acreage shall be limited to those drilling units

offsetting productive units that are reasonably

certain of production when drilled. Proved
reserves for other undrilled units can be claimed
only where it can be demonstrated with certainty
that there is continuity of production from the
existing productive formation.
Reference: SEC Website Release March 31, 2001 Division of
Corporate Finance: Frequently Requested Accounting and
Financial Reporting Interpretations and Guidance
2. Part II Guidance About Disclosures Section F Issues in
the Extractive Industries Subpart 3 Definition of Proved
Reserves Subsection (f)
Proved reserves for other undrilled units can be
claimed only where it can be demonstrated with
certainty that there is continuity of production
from the existing productive formation. The
SEC staff points that this definition contains no
mitigating modifier for the work certainty. Also,
continuity of production requires more than the
technical indication of favorable structure alone
(e.g. seismic data) to meet the test for proved
undeveloped reserves.
Generally, proved
undeveloped reserves can be claimed only for
legal and technically justified drainage areas
offsetting an existing productive well (but
structurally no lower than LKH). If there is at
least two wells in the same reservoir which are
separated by more than one legal location and
which
show
communication
(reservoir
continuity), proved undeveloped reserves could
be claimed between the two wells, even though
the location in question might be more than an
offset well location away from any of the wells.
In this illustration, seismic data could be used to
help support this claim by showing reservoir
continuity between the wells, but the required
data would be the conclusive evidence of
communication from production or pressure
tests. The SEC staff emphasizes that proved
reserves cannot be claimed more than one offset
location away from a productive well if there are
no other wells in the reservoir, even though
seismic data may exist. The use of high-quality,
well calibrated seismic data can improve
reservoir description for performing volumetrics
(e.g. fluid contacts). However, seismic data is
not an indicator of continuity of production and,
therefore, can not be the sole indicator of
additional proved reserves beyond the legal and
technically justified drainage areas of wells that
were drilled. Continuity of production would
have to be demonstrated by something other than
seismic data.
Reserves To Be Recovered By Enhanced Recovery
Reference: Regulation S-X Part 210
1. Proved Oil and Gas Reserves (Section 2 (i))
Reserves which can be produced economically
through application of improved recovery
techniques (such as fluid injection) are included

SPE 102505

in the proved classification when successful

testing by a pilot project, or the operation of an
installed program in the reservoir, provides
support for the engineering analysis on which the
project or program was based.
2. Proved Undeveloped Reserves (Section 4)
Under no circumstances should estimates, for
proved undeveloped reserves be attributed to any
acreage for which an application of fluid
injection or other improved recovery technique is
contemplated, unless such techniques have been
proved effective by actual tests in the area and in
the same reservoir.
Reference: SEC Website Release March 31, 2001 Division of
Corporate Finance: Frequently Requested Accounting and
Financial Reporting Interpretations and Guidance
3. Part II Guidance About Disclosures Section F Issues in
the Extractive Industries Subpart 3 Definition of Proved
Reserves Subsection (c)
If an improved recovery technique which has
not been verified by routine commercial use in
the area is to be applied, the hydrocarbon
volumes estimated to be recoverable cannot be
classified as proved reserves unless the technique
has been demonstrated to be technically and
economically successful by a pilot project or
installed program in that specific rock volume.
Such demonstration should validate the
feasibility study leading to the project.
4. Part II Guidance About Disclosures Section F Issues in
the Extractive Industries Subpart 3 Definition of Proved
Reserves Subsection (f)
Reserves cannot be classified as proved
undeveloped reserves based on improved
recovery techniques until such time that they
have been proved effective in that reservoir or an
analogous reservoir in the same geologic
formation in the immediate area. An analogous
reservoir is one having at least the same values
or better for porosity, permeability, permeability
distribution,
thickness,
continuity
and
hydrocarbon saturations.
*Interpretive Note-The SEC comment refers to the
analogous reservoir as having the same or better
properties. Most evaluators believe that the intent of
the comment to have the same or better properties
was to apply to the (target or subject) reservoir to
which to assessment of undeveloped reserves is being
considered.
Terms Used
Reference: Regulation S-X Part 210
1. Field:
An area consisting of a single reservoir or multiple
reservoirs all grouped on, or related to, the same
individual geological structural feature and/or
stratigraphic condition. There may be two or more
reservoirs in a field that are separated vertically by
intervening impermeable rock, laterally by local

15

geologic barriers, or both. Reservoirs that are

associated by being in overlapping or adjacent fields
may be treated as a single or common operational
field. The geological terms structural feature and
stratigraphic column are intended to identify
localized geological features as opposed to the
broader terms of basins, trends, provinces, plays
areas-of-interest, etc.
2.

Reservoir:
A porous and permeable underground formation
containing a natural accumulation of producible oil
and/or gas that is confined by impermeable rock or
water barriers and is individual and separate from
other reservoirs.