SEC adopts new oil and gas reserve reporting standards

December 29, 2008 by · Leave a Comment
Filed under: Legal News 

I am not sure the benefit on probable and possible reserves, hopefully it will spur more investment in the sector but with that said, some investors might get duped by investing on numbers that are not the reality of what the energy company will really produce.  The average price rule will give an improved outlook on revenue.  If someone has a strong opinion for or against this, I would love to read what you have to say.

News:

U.S. securities regulators adopted rules giving investors a more complete picture of the oil and natural gas reserves that a company holds, the Securities and Exchange Commission said on Monday.

Under the new SEC rules that are supported by the energy industry, oil and gas companies will be allowed to disclose their probable and possible reserves to investors. Current rules require disclosure of only proved reserves, but many companies provide all three.

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