Reserves are confirmed based on an estimated economical recovery rate. Oil price decline could impact viability of drilling for previous stated reserves and therefore require a reduced rating of reserves based on revised down oil price. Theoretically reserves could reduce to zero if they can only be drilled at a loss.
I take the quote to mean an independent has confirmed 88% of reserves are economical to drill at current prices. Meaning, 12% of previously stated reserves are currently uneconomical at today's oil price. A pretty good outcome I would think, however we know our current operation is not the end game.
FDM Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held