ASX-listed oil and gas companies currently report their reserves and resources in 33 different ways, research by Perth-based consulting group RISC Advisory has found.
RISC been commissioned by the ASX to help with a national education program for the petroleum industry, ahead of the introduction of new reporting rules later this year.
The aim of the new rules is to bring increased consistency and rigour to the reporting of reserves and resources, and to make it easier for investors to assess the value of reported assets.
RISC partner Geoff Barker (pictured) said the new disclosure requirements would come into full effect on December 1 2013.
“The new requirements have significant implications for oil and gas companies’ disclosure and compliance obligations,” he said.
Mr Barker was a member of the Society of Petroleum Engineers (SPE) Reserve Committee when the current regime was developed.
The new regime requires oil and gas companies to report in accordance with the Society of Petroleum Engineers - Petroleum Resources Management System.
The ASX has also revised the JORC reporting standards for mining and exploration companies.
For petroleum companies, an annual reserves and resources statement and reconciliation will be required at entity and aggregated level, and must be signed off by a qualified evaluator.
Changes must be reconciled with the previous year’s statement and an explanation provided for material changes.
‘Low’ and ‘best’ estimates of prospective resources must be reported if ‘high’ estimates are reported.
Reporting of in-place quantities is prohibited unless accompanied by recovery estimates.
Tenement interests and location must also be identified.
Mr Barker, along with RISC principal adviser Bruce Gunn, will accompany ASX officials on a national series of seminars and talks to explain the new system.