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(present or contingent) in the Group or in any of the assets being evaluated, and is not remunerated by way of a fee that
is linked to the admission or value of the Group.
The CPR was produced at the request of the Issuer and is included in this document. GCA (in its capacity as competent
person) has given and has not withdrawn its written consent to the inclusion in this document of its name, the CPR and
references to its name and the CPR in the form and context in which they appear.
Reserves and Resources Reporting
Basis of Preparation
Unless otherwise stated herein, the reserves and resources information relating to the Group presented in this Offering
Memorandum has been audited by GCA.
The Group has engaged GCA to conduct reviews of the Group’s hydrocarbon reserves in some or all of its assets starting
in 2009 and of the Group’s hydrocarbon resources starting in 2013. Prior to 2013, the Group’s hydrocarbon resources
were reviewed by Fugro Robertson Limited, and as a result public information regarding the Group’s resources prior to
2013 has been reviewed on a different basis, and using different assumptions, compared to those applied by GCA. The
CPR has been prepared according to the Petroleum Resource Management System approved in March 2007 by the
Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists and
the Society of Petroleum Evaluation Engineers (the “
SPE-PRMS
”). For further information regarding these standards,
see “
Competent Person’s Report.
”
GCA has reviewed the reserves and resources statements compiled by the Group and has stated the reserves and
resources as set out under “
Competent Person’s Report
” to be in accordance with the criteria for internationally
recognised reserve and resource categories as included in the SPE-PRMS. The reserves and resources estimates
contained in the CPR were prepared by GCA as at 31 May 2014.
Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development
projects to known hydrocarbon accumulations from a given date forward under defined conditions. Reserves must
further satisfy four criteria: they must be discovered, recoverable, commercial and remaining (as at the evaluation date)
based on the development project(s) applied.
According to the definitions and classifications specified in SPE-PRMS, reserves are further categorised in accordance
with the level of certainty associated with the estimates:
Proved reserves (
“
1P
”
)
– those quantities of petroleum which, by analysis of geoscience and engineering data,
can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from
known reservoirs and under defined economic conditions, operating methods, and government regulations. If
deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence
that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability
that the quantities actually recovered will equal or exceed the estimate. Proved reserves may be further
categorised as “proved developed” and “proved undeveloped” reserves:
o
“Proved developed” reserves - those proved reserves that can be expected to be recovered through
existing wells and facilities and by existing operating methods.
o
“Proved undeveloped” reserves - those proved reserves that are expected to be recovered from future
wells and facilities, including future improved recovery projects which are anticipated with a high
degree of certainty in reservoirs which have previously shown favourable response to improved
recovery projects.
Probable reserves
– those additional reserves which analysis of geoscience and engineering data indicate are
less likely to be recovered than proved reserves but more certain to be recovered than possible reserves. For
probable reserves, it must be equally likely that actual remaining quantities recovered will be greater than or less
than the sum of the estimated proved plus probable (“
2P
”) reserves. In this context, when probabilistic methods
are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed
the 2P estimate. It should also be noted that 2P reserves include 1P reserves. The 2P reserves information
included in the Offering Memorandum is derived from reserves information contained in the CPR.
Possible reserves
– those additional reserves which analysis of geoscience and engineering data suggest are less
likely to be recoverable than probable reserves. The total quantities ultimately recovered from the project must
have a low probability to exceed the sum of proved plus probable plus possible (“
3P
”) reserves, which is
equivalent to the high estimate scenario. In this context, when probabilistic methods are used, there should be at
