Wednesday, June 1, 2016
Differences in PRMS Resource Classes
Founded in 2005 as a privately held oil and gas company, Ambit Energy Corporation sets out to identify and acquire participating interests in promising oil and natural gas projects in West Africa. Currently focusing on the Niger Delta Basin in Nigeria, Ambit Energy Corporation looks to purchase proved producing and proved non-producing assets in the region.
According to the Petroleum Resources Management System (PRMS) established by the Society for Professional Engineers, oil and gas resources can be classified in a number of different ways based on chance of commerciality. The term “reserves” refers to resources that can be commercially recovered and used for additional development. Reserves feature a high degree of certainty regarding commercial viability.
Contingent resources rank below reserves in terms of certainty. Although potentially recoverable, contingent reserves are typically not mature enough to meet the technological or business standards for commercial activity. The lowest resource category involves prospective resources, which include estimated volumes of accumulations that have not yet been discovered. For this reason, prospective resources carry the highest levels of risk for investment.