The Industry’s Reserves

Estimation Meeting:

June 20-21, 2018

Houston, TX

Day One
Wednesday June 20, 2018

Day Two
Thursday June 21, 2018

08.30
Chair’s Opening Remarks

Industry Trends & Optimizing Evaluation & Reliability of Well Performance Forecasting With Minimal Data

08.40
Understanding the Impacts of the Commodity Price and Costs on Reserves Estimation: Lessons Learned from the Past and Innovations to Take Us Into the Future

  • Tiffany Smith Market Analyst, Fundamentals & Analytics, Constellation Energy

Synopsis

  • Commodity price forecasting basics for engineers
  • Delving into industry trends on reserves development and reserves economic evaluations
  • Increasing recoverable resources in light of the pricing environment and impact of technology
  • Price sensitivities in reserves and planning: Handling the challenges of expected higher vendor costs and how improved reserves estimation can better support investment decisions
  • Driving value from increasingly reliable forecasting to develop a balanced portfolio of new wells, infills and refracs within the FDP
  • Sustaining and growing profitability through deeper subsurface understanding

09.10
Panel Discussion: Leveraging Minimal Data for the Optimal Evaluation and Reliability of Well Performance Forecasting

Synopsis

  • Evolutions of the B factor and terminal decline discussion within and outside of the typical model
  • Which decline curve analyses are most accurately tracking longer-term decline across major basins, and why?
  • Understanding the uncertainties of decline curve analysis vs production time evaluated – how does that error bar shrink with time?
  • Exploring developments and practical limits of Arps and other methods: Applicability for field development and reporting
  • Optimizing type well selection for reliability
  • Benchmarking well performance using 60 month estimated cum vs EUR
  • Understanding data requirements and sources for data gathering, including collaboration within the industry

10.00
Top 10 Things We Don’t Know About Shales

  • Thad Toups President, Haas Petroleum Engineering Services

10.10
Speed Networking & Morning Refreshments

Improving Reserves Evaluation & Reporting to Better Meet SEC & Investor Requirements

11.00
Panel Discussion: Better Understanding the Reserves Evaluation Parameters that Investors Are Most Focused On

  • Stephen Gardner Senior Reservoir Engineer, BBVA Compass
  • Joe Davis Senior Vice President, Geosciencies, Kalnin Ventures

Synopsis

  • Responsible financial metrics to understand unconventional investments: Long-lived, front-end and dominated forecasts
  • Reserves in a private equity world: Exploring the balance between full-field and mid-field in terms of risk, return and field development
  • How are people qualifying proved volume beyond the standard 1 offset rule?

11.50
SEC Keynote: Trends and Developing Issues in Reserves Reporting and Enforcement

  • Mike Jackman Senior Counsel, Securities & Exchange Commission

Synopsis

  • Gaining knowledge from the regulator to provide investors with “apples-to-apples” comparison of their investment options
  • SEC Enforcement priorities for oil & gas industry reporting and examples of enforcement actions
  • The importance of effective internal controls over proved reserves reporting
  • Comments and issues from the 2017 filings season

12.20
Lunch & Networking

14.00
Refresher on 2007 Principle-Based Reserves Estimating and Auditing Standards

Synopsis

  • Professional qualifications for preparers of petroleum reserves estimates or audits
  • Discussing standards pertaining to the estimating and auditing of oil and gas reserves information
  • Gaining industry alignment on estimates or audits
  • Clarifying audit guidelines

14.20
Panel Discussion: Clarifications on the Five Year Rule as We Move into the Mature Phase of the Rule

  • Jim Shuss Manager, Business Development & Evaluations, PDC Energy
  • Ron Harrell Chairman Emeritus, Ryder Scott
  • Rod Sidle Industry Advisor - Reserves Management, 3esi Enersight

Synopsis

  • Exploring previous letters for comment: What are the core experiences and aspects to learn from?
  • What the rule means for acreage trades and asset swaps that aren’t cash transacted, and accounting for these in the reserves record
  • How do we marry SEC reporting requirements with increasingly reliable technical estimations that may not be accepted by SEC, but work for field development planning?
  • Understanding the balance of drivers for level or accuracy of estimation
  • Is it accurate to declare reserves technically proven but not SEC proven in specific cases?

15.00
Afternoon Refreshments & Networking

15.30
When Disclosing 3P Reserves Makes Sense: A Jones Energy Case Study

  • Tracy Lenz Area Engineering Manager, Jones Energy

Synopsis

  • Exploring the financial drivers surrounding the decision
  • Providing background on Anadarko “Merge” development and upside
  • What reserves process made Jones Energy comfortable with the disclosure?
  • Considering the business impacts

16.00
Session Topic to be Confirmed

  • Elizabeth DeStephens Vice President Reserves and Corporate Development, California Resources Corporation

16.30
Chair’s Closing Remarks

Close of Day One