Description:
Formal booking of geothermal energy reserves, for accounting
purposes or annual reporting to shareholders or
portfolio management, is not yet a common practice among
geothermal companies. In the petroleum industry booking
of oil and gas reserves is a routine practice, and at least
two geothermal operators that are subsidiaries of petroleum
companies book geothermal reserves. As in the petroleum
industry, the reserves should be booked in appropriate resource
uncertainty categories. To this end we propose three reserve
categories with reference to the cumulative probability of
exceeding the estimated reserves level: "proved" (equivalent
to the 90th percentile), "proved-plus-probable" (equivalent to
the lesser of the median and most-likely values), and "proved plus
probable-plus-possible" (equivalent to the 10th percentile).
However, before any reserves are booked in the proved category,
we believe prospects for commercial productivity from
the reservoir should be demonstrated. For the purpose of
booking, reserves can be expressed in kilowatt-hours and also
in equivalent barrels of oil.