- Drilling prospects have increased on the acquired acreage.
- This points to a reason why reserve reports often increase even though oil is produced every year.
- As long as technology in the industry advances, then reserve reports for acreage are likely to increase long term for the foreseeable future.
- Reserve reports only cover the oil that can be recovered. Those reports usually do not show all the oil in place. That is usually a far greater amount.
- There is still a fair number of oil containing formations that we still do not know how to produce.
For further details see:
Laredo Petroleum: Reserve Report Implications