Reserves and Resources
Resources are hydrocarbons which may or may not be produced in the future. A resource number may be assigned to an undrilled prospect or an unappraised discovery. Appraisal by drilling additional delineation wells or acquiring extra seismic data will confirm the size of the field and lead to project sanction. At this point the relevant government body gives the oil company a production licence which enables the field to be developed. This is also the point at which oil reserves can be formally booked.
Read more about this topic: Hydrocarbon Exploration
Famous quotes containing the words reserves and/or resources:
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—George Eliot [Mary Ann (or Marian)