The Alberta-based company is focused on both oil and gas production.
Alberta-based oil and gas company Razor Energy (TSXV:RZE) has released a summary of its 2018 year-end reserve and net asset totals.
As quoted from the press release:
NEW AND REVISED RESERVES EVALUATION GUIDELINES AND BEST PRACTICES FOR INDUSTRY STAKEHOLDERS
For greater transparency and accuracy of current values and future cash flows, Razor has elected to include all abandonment, decommissioning and reclamation costs (ADR) and inactive well costs (IWC) in accordance with best practice recommendations into the company’s 2018 year-end reserves report.
In 2018, the Calgary Chapter of the Society of Petroleum Evaluation Engineers (SPEE) and associated industry professionals updated the COGE Handbook. The updates clarify and streamline existing guidelines and offer additional guidance regarding Canadian reserves evaluations.
With respect to ADR Costs, the SPEE provided increased guidance for sustainable best practices. Acknowledging the social and environmental responsibility of the oil and gas industry, the COGE Handbook supports the premise that ADR costs should always be considered in the evaluation process and each report must clearly describe ADR costs included and excluded from the report.
With respect to Operating Costs, the SPEE provided broader guidance for IWC and maintenance capital. There is a material change to COGE Handbook guidance with respect to active and inactive costs. Inactive costs such as mineral leases, shut-ins, suspended and capped well-operating costs, etc. should be included in the evaluation to properly represent the assets being evaluated but forecast separately from active asset costs at the property or corporate level, so economic production entities are not unduly burdened.