What type of reserves can be recovered from new wells, deepening wells, or when a large expenditure is required to obtain production?

What type of reserves can be recovered from new wells, deepening wells, or when a large expenditure is required to obtain production?

• A. Proved Reserves
• B. Undeveloped Reserves
• C. Reserves
• D. Contingent Resources

Answer: (B)

Undeveloped reserves are reserves that are known to exist and are recoverable, but they are not yet being produced because they require development work—such as drilling new wells, deepening existing wells, or a substantial capital expenditure to bring them on production. The scenario described fits this category because it involves additional drilling or significant investment to unlock production from those reserves. This differs from proved reserves that are already accessible with current wells and facilities, and from contingent resources, which depend on conditions not yet met to be considered economically recoverable.

Undeveloped reserves are reserves that are known to exist and are recoverable, but they are not yet being produced because they require development work—such as drilling new wells, deepening existing wells, or a substantial capital expenditure to bring them on production. The scenario described fits this category because it involves additional drilling or significant investment to unlock production from those reserves.

This differs from proved reserves that are already accessible with current wells and facilities, and from contingent resources, which depend on conditions not yet met to be considered economically recoverable.