Tag: reserve report

This is a report produced by a geological engineering firm that attempts to estimate the total amount of oil or gas in place, how much of it is recoverable and over what length of time. Typically a reserve report will attempt to provide an estimate of the net present value of this production. The typical discount rate is 10%, and thus you will tend to see a lot of discussions concerning NPV(10), which is the value today of the cash flows at an interest rate of 10%. The reserve report should be produced by a well known petroleum engineering firm.

Micro-Cap Review Article – Performing Due Diligence on a Micro-Cap Oil & Gas Company

This is a reprint of the article “Performing Due Diligence on a Micro-Cap Oil & Gas Company” written by Erik Nelson, President of Coral Capital Partners, Inc. that was published in the Fall, 2011 edition of Micro-Cap Review Magazine. It takes a look at some of the essential items to consider when evaluating a micro-cap oil and gas company as a potential investment. It is an excellent primer on understanding the various terms and their definitions when looking at a potential oil and gas investment. This is the 2nd article authored by Erik Nelson to be published in Micro-Cap Review Magazine, and the 1st through Coral Capital Partners.