Estimated Net Proved Reserves
−Removed: The table below summarizes our estimated net proved reserves at December 31, 2021 and 2020 based on reports prepared by Cawley, Gillespie & Associates, Inc.
−Removed: (“Cawley”), our third-party independent reserve engineers for the years ending December 31, 2021 and 2020.
−Removed: In preparing its reports, Cawley evaluated properties representing all of our proved reserves at December 31, 2021 and 2020 in accordance with the rules and regulations of the SEC applicable to companies involved in oil and natural gas producing activities.
+Added: The table below summarizes our estimated net proved reserves at December 31, 2022 based on reports prepared by the Company for the year ended December 31, 2022 and audited by Cawley, our third-party independent reserve engineers.
+Added: In preparing its reports, the Company evaluated properties representing all of our proved reserves at December 31, 2022 in accordance with the rules and regulations of the SEC applicable to companies involved in oil and natural gas producing activities.
Our estimated net proved reserves in the table below do not include probable or possible reserves and do not in any way include or reflect our commodity derivatives.
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The table below shows our proved reserves utilizing the 2022 SEC case compared with the $70 Flat Case.
+Added: 2022 SEC Case (1)
$70 Flat Case (2)
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GAAP does not prescribe a corresponding measure for PV-10 of proved reserves based on other than SEC prices.
−Removed: As a result, it is not practicable for us to reconcile the PV-10 of our proved reserves based on the alternate pricing scenarios.
+Added: As a result, it is not practicable for us to reconcile the PV-10 of our proved reserves based on alternate pricing scenarios.
Independent Petroleum Engineers
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Cawley is a reservoir-evaluation consulting firm who evaluates oil and natural gas properties and independently certifies petroleum reserves quantities for various clients throughout the United States.
−Removed: Cawley has substantial experience calculating the reserves of various other companies with operations targeting the Bakken and Three Forks formations and, as such, we believe Cawley has sufficient experience to appropriately determine our reserves.
+Added: Cawley has substantial experience calculating the reserves of various other companies and, as such, we believe Cawley has sufficient experience to appropriately audit our reserves.
Cawley utilizes proprietary technology, systems and data to calculate our reserves commensurate with this experience.
−Removed: The reports of our estimated proved reserves in their entirety are based on the information we provide to them.
Cawley is a Texas Registered Engineering Firm (F-693).
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Internal Controls Over Reserves Estimation Process
−Removed: We utilize a third-party reservoir engineering firm, as our independent reserves evaluator for 100% of our reserves base.
+Added: We utilize a third-party reservoir engineering firm as our independent reserves auditor for 100% of our reserves base.
In addition, we employ an internal reserve engineering department which is led by our Executive Vice President and Chief Engineer, who is responsible for overseeing the preparation of our reserves estimates.
Our executive internal reserve engineer has a B.S.
−Removed: in petroleum engineering from Montana Tech, has over fifteen years of oil and gas experience on the reservoir side, and has experience working for large independents and financial firms on projects and acquisitions.
+Added: in petroleum engineering from Montana Tech, has over seventeen years of oil and gas experience on the reservoir side, and has experience working for large independents on projects and acquisitions.
Our technical team meets with our independent third-party engineering firm to review properties and discuss evaluation methods and assumptions used in the proved reserves estimates, in accordance with our prescribed internal control procedures.
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During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and amortization.
−Removed: We historically have acquired our unproved properties by purchasing individual or small groups of leases directly from mineral owners, landmen, or lease brokers, which leases historically have not been subject to specified drilling projects, and by purchasing lease packages in identified project areas controlled by specific operators.
−Removed: We generally participate in drilling activities on a heads up basis by electing whether to participate in each well on a well-by-well basis at the time wells are proposed for drilling.
−Removed: We believe that the majority of our unproved costs will become subject to depletion within the next five years by proving up reserves relating to our acreage through exploration and development activities, by impairing the acreage that will
−Removed: expire before we can explore or develop it further or by determining that further exploration and development activity will not occur.
+Added: We believe that the majority of our unproved costs will become subject to depletion within the next five years by proving up reserves relating to our acreage through exploration and development activities, by impairing the acreage that will expire before we can explore or develop it further or by determining that further exploration and development activity will not occur.
The timing by which all other properties will become subject to depletion will be dependent upon the timing of future drilling activities and delineation of our reserves.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.