As at 31 December 2012, the Company had Proven (1P) reserves of 338 million barrels of oil equivalent (mmboe) and Proven and Probable (2P) reserves of 552 mmboe. The Company also had 395 mmboe of 2C contingent resources, taking the Company’s total 2P reserves plus 2C resources to 948 mmboe. Of these resources, 504 mmboe is associated with the Company’s share of the PNG LNG Project and SE Gobe gas sales volumes.
Under the Company’s audit rotation schedule, all oil fields were audited in 2012 by independent auditors, Netherland Sewell & Associates, Inc. (NSAI) in Dallas.
Estimates of reserves (IP and 2P) and contingent resources (2C) are conducted to Society of Petroleum Engineers (SPE) standards.
Oil field proven reserves (1P) and proven and probable reserves (2P) are as certified by NSAI.
1P PNG LNG Project reserves are as certified in 2008 by NSAI. PNG LNG Project 2P reserves and 2C contingent resources have been estimated by a combination of independent audit, PNG LNG Project operator estimates and internal assessments.
In 2012, a comprehensive independent review of oil reserves in all the Company’s producing oil fields was carried out by Netherland Sewell and Associates Inc (NSAI). This work included a full analysis of the impact on our oil fields of the commencement of gas production for the PNG LNG Project. This year, liquids reserves associated with PNG LNG were included in the proven (1P) category for the first time.
The review resulted in a 7.6 mmboe increase in 1P reserves, to 337.7 mmboe, after accounting for 2012 production of 6.4 mmboe, with proven and probable (2P) reserves remaining essentially flat at 552.4 mmboe.
In addition to changes related to the PNG LNG Project, other key drivers included:
Gas associated with the oil fields has not been recertified.
A key objective for Oil Search is to build its gas resource position to underpin our LNG expansion strategy. One of the highlights of 2012 was the discovery of gas and liquids at P’nyang South. This was the primary driver of a 77.4 mmboe, or 24%, increase in best estimate (2C) contingent resources, comprising oil, gas and associated liquids, from 317.7 mmboe in 2011 to 395.1 mmboe.
The 2012 resource position also reflected the following:
The Company’s total 2P reserves and 2C resources increased by 9%, from 870.3 mmboe to 947.5 mmboe. Of these reserves, 503.8 mmboe is associated with the Company’s share of the PNG LNG Project and SE Gobe gas sales volumes.
As at 31 December 2012 (1)(2) NET TO OIL SEARCH
End 2011 Reserves
Discoveries/ Extensions/ Revisions
End 2012 Reserves
Proven & Probable (2P)
Oil Search Interest
Liquids (3) MMBBL
Gas (4)(5) BSCF
The information in this reserves statement has been compiled by Jon Rowse, Oil Search’s General Manager - Subsurface, who is a full-time employee of the Company. Dr. Rowse has over 24 years of relevant experience, is qualified in accordance with ASX Listing Rule 5.11 and has consented to publish this report.