FDM 0.00% 1.1¢ freedom oil and gas ltd

Reserves are confirmed based on an estimated economical recovery...

  1. 3,147 Posts.
    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.
 
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