Insights

Gas reporting needs to become clearer

Information on gas deposits is poor

Venmyn Deloitte is finding that the public reporting of gas resources and reserves is woefully inadequate.

Venmyn Deloitte is finding that the public reporting of gas resources and reserves is woefully inadequate.

This seems to be because, while the volumes of gas are typically given in reports in trillion cubic feet (tcf) or trillion cubic metres (tcm), the grade or quality of the gas resource is often not given in public reports. Furthermore, there is little disaggregation of field information and the standardised presentation of P1, P2 and P3 reserves is absent.

This was the finding of Venmyn Deloitte oil and gas researcher Christine Jacobs, who is compiling a database of gas resources that are reported in the public domain, starting with oil and gas deposits reported on the TSX and TSXV.

This is in stark contrast to the mining industry where public reporting insists that Inferred, Indicated and Measured Resources are quantified for each deposit. Therefore, calculating a market value based upon resource size is relatively easy.

“Information in public reports on petroleum deposits is poor, but information on gas deposits is even worse,” states Jacobs.

Natural gas is becoming an important source of energy globally, and particularly in the US, so assessing the quantity, along with the grade, of gas resources is crucial to determine the value of the gas contained in a resource.

To discuss this matter further, contact Venmyn Deloitte oil and gas researcher Christine Jacobs or Venmyn Deloitte MD Andy Clay on +27 (0)11 517 4205.

 

Did you find this useful?