Uncovering the Mystery of Unproven Reserves

What are unproven reserves?

When can they be recovered from new wells, deepening wells, or when a large expenditure is required to obtain production?

Answer:

Unproven reserves are resources that are known to exist but not economically feasible to retrieve. These reserves can be recovered from new wells, deepening wells, or when a large expenditure is required to obtain production.

Unproven reserves refer to natural gas resources that have been identified but were previously not economically viable to extract. This could be due to technological limitations or low market prices for the resource. As technology advances and extraction methods improve, unproven reserves could become economically feasible to tap into.

When a new well is drilled or an existing well is deepened, there is a possibility of discovering previously unknown reserves or accessing reserves that were previously considered unproven. Additionally, significant investments in production infrastructure or technologies can make it financially viable to extract reserves that were once deemed unproven.

Unproven reserves play a crucial role in resource management and planning for future production. As technological innovation continues and market conditions change, these reserves may transition into proven reserves, adding to the overall resource base available for extraction.