Jaarverslag 2014

The computer lab of the AMS high school was renovated by Staatsolie.
3. New geologic, reservoir or production data;
4. Changes in prices and costs that are used in the
estimation of reserves;
5. Revised reservoir model.
Although Staatsolie is reasonably certain that proved
reserves will be produced, the timing and amount
recovered can be affected by a number of factors
including completion of development projects, reservoir
performance and significant changes in long-term oil
price levels.
Proved reserves can be further subdivided into
developed and undeveloped reserves. The proved
developed reserves were 66 percent (2013: 68 percent)
of total proved reserves at year end 2014, and have
been over 50 percent for more than five years. This
indicates that proved reserves are consistently moved
from undeveloped to developed status, as new wells
are drilled and facilities to collect and deliver the
production from those wells are installed.
Development projects typically take two to five years
from the time of recording proved reserves to the
start of production from these reserves. However,
a longer time frame is applied where reserves are
only developed until actually required to meet the
company’s production target.
Staatsolie uses the “successful efforts” method to account
for its exploration and production activities. Under this
method, costs are accumulated on a field by field basis
with certain exploratory expenditures and exploratory
dry holes being expensed as incurred. Costs of economic
productive wells, development dry holes, other wells
drilled to support development of the field (e.g. observation
wells, injection wells, delineation wells etc.) and
production equipment are capitalized and amortized
based on the Unit of Production Method (UPM).
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