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| The Securities
and Exchange Commission, in SX Reg. 210.4-10 dated November 18,
1981, as amended September 19, 1989, requires adherence to the
following definitions of "proved" oil and gas reserves. |
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(4) Proved undeveloped
reserves. Proved undeveloped oil and gas reserves we reserves that
are expected to be recovered from new wells on un-drilled acreage, or
from existing wells where a relatively major expenditure is required
for recompletion. Reserves on un-drilled acreage shall be limited to
those drilling units offsetting productive units that we reasonably
certain of production when drilled. Proved reserves for other
un-drilled units can be claimed only where it can be demonstrated with
certainty there is continuity of production from the existing
productive formation. Under no circumstances should estimates for
proved undeveloped reserves be attributable to any acreage for which
an application of fluid injection or other improved recovery technique
is unless such techniques have been proved effective by actual tests
in the area and in the same reservoir. |
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