Reserve Report
Mineral Rights & Energy Royalties
Definition
A reserve report is an engineering analysis estimating recoverable oil, gas, or mineral reserves, production forecasts, expenses, and discounted future net revenue.
Why it matters
Reserve reports anchor valuation and lending against mineral assets, but results depend on price decks, engineering assumptions, operator data, and reserve category quality.
Common misconceptions
- •A reserve report is an estimate, not a guarantee of production or cash flow.
- •Proved developed producing reserves carry different risk than undeveloped or probable reserves.
Technical details
Reserve Categories
Reports often distinguish proved developed producing, proved developed non-producing, proved undeveloped, probable, and possible reserves.
Valuation Outputs
Common outputs include forecast volumes, lease operating expenses, capital costs, price assumptions, PV-10, and sensitivity cases.