A weekly update on the latest “no-fluff” insight and analysis of the energy industry.
EUR is calculated using historical production data, reservoir characteristics and recovery technology. It often involves simulation models and statistical methods to estimate future recoverable volumes, requiring several months of production data for accuracy.
EUR can change due to technological advancements, oil price fluctuations and infrastructure improvements. For example, higher oil prices may make previously uneconomical reserves viable, increasing the EUR.
EUR is divided into Proven Reserves (90%+ chance of recovery), Probable Reserves (50%+ chance), and Possible Reserves (<50% chance). These categories reflect the confidence level in the recoverability of the resource using current technology.
EUR impacts asset valuation, depreciation schedules and future revenue projections. It is often disclosed in financial statements and investor reports to provide transparency about a company’s resource base and future earning potential.
