Do this every time you submit to the regulator

This post is brought to you by one of our information partners, Proven Reserves Exploitation Ltd.

Don't submit to the AER data that you don't believe. Before you submit anything to the regulator, read it with a different set of eyes. Read it with the eye of quality control.

The operator that submitted an amendment to his flood stating that the reservoir pressure is lower than 3 MPa. But the most recent pressure in his data set shows almost 16 MPa. The regulator called him on it. The operator back tracked discounting the high pressure for several reasons. Luckily the regulator finally (and reluctantly) bought his story. We found this using AppIntel.

You can get his application right away from our self-serve application portal.

Don't submit conflicting data

If you want your application approved quickly, don't submit information that conflicts with your message. If you must submit conflicting data, explain up front why you discount it.

Don't submit data to the AER that you don't believe. Look at all the data you intend to submit and ask:

• Does the data support my conclusion?
• Does the data support my request?
• Does the data seem reasonable in the context of the application?
• Is the data legible and congruent with the scope of the application?

Review all data in the application including pressures, PVT, maps, reserves information, logs, cross sections, net pay maps, and structure maps.

Haste and waste

We know you're feeling pressed for time. We know you promised to get the application submitted yesterday. We know you think that the earlier you submit the application, the earlier it will be approved.

But don't submit inconsistent data that makes the regulator question your integrity. They will certainly hold up your application.

And if you try to soothe their concerns with more inconsistent data, they will likely disbelieve your story and refuse to approve your application. You might apply again later. But in the end, you may have to go without the approval you seek.

Our experience shows that over half of applications refused by the AER are never resubmitted. If each application is the key to unlocking just a half million dollars in additional asset value, large companies have lost $11.5 billion dollars due to closed applications.

Bad data is a fact of life

Let's face it, oil and gas data is noisy at best and conflicting at worst. Knowing which data to trust takes mature judgment and local experience.

But when you submit information to a regulator, you must present a story that is consistent and supports your proposal. Filtering data to create worthy information is an important part of this story.

If there's data that conflicts or even discredits your proposal you really should investigate and discount the offending data. But don't submit it to the regulator in its raw and unfit state.

Proven experience can help smooth the approval path

Proven has submitted over a thousand applications. We know how to protect you while getting the best approval. Can we help?

If nothing else, Proven can audit your application before you submit it. This can save you millions of dollars by avoiding closed applications.

Tags: AER application, Closure, Flood

Proven Reserves   18 Jul 2016

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