In the oil and gas industry, accurate evaluation of reserves and resources is fundamental to investment decisions, operational planning, and strategic growth. A resource assessment provides a comprehensive analysis of both discovered and prospective hydrocarbon volumes, enabling operators, investors, and regulators to understand the full potential of an asset portfolio.
What Is a Resource Assessment?
A resource assessment is a detailed evaluation of a company’s oil and gas assets, covering:
- Proven, probable, and possible reserves
- Contingent and prospective resources
- Geological and reservoir characteristics
- Production forecasts and recovery factors
By systematically analysing geological, technical, and economic data, resource assessments help quantify the value and potential of an asset in a transparent and reliable manner.
The Role of Competent Persons Reports
A Competent Persons Report (CPR) is often a key output of a resource assessment. Prepared by independent technical experts, a CPR validates reserves and resource estimates, confirms recovery assumptions, and assesses project feasibility. For stakeholders such as investors, lenders, and regulators, CPRs provide confidence that the resource assessment is accurate, robust, and compliant with industry standards.
Supporting Reserves Based Lending
Reserves based lending (RBL) relies heavily on accurate resource assessments. By verifying the volume and quality of reserves, lenders can determine borrowing capacity and monitor loan covenants. A thorough resource assessment ensures that financing structures are grounded in reliable data, reducing risk for both borrowers and lenders.
Integration with Reserves Audits and Evaluation
Resource assessment is closely linked to reserves audits and the work of a reserves evaluator. These independent reviews provide technical verification of reported data, including historical production, reservoir models, and volumetric calculations. Combining these analyses enhances transparency, credibility, and confidence in the reported resource base.
Benefits of Resource Assessment
For oil and gas operators:
- Provides a clear understanding of asset potential for development or divestment
- Supports strategic planning, project prioritisation, and portfolio optimisation
- Enhances credibility with investors, lenders, and regulators
For investors and lenders:
- Offers confidence in reported volumes and economic potential
- Supports financing, mergers, and acquisitions with verified technical data
- Reduces risk through independent validation of reserves and resources
A resource assessment is an essential component of responsible oil and gas asset management. By integrating the expertise of reserves evaluators, reserves audits, and Competent Persons Reports, it provides transparent, accurate, and actionable insights into both current reserves and prospective resources. This ensures that operators, investors, and lenders can make informed decisions, unlock the full value of assets, and support sustainable growth in the energy sector.