Fundamentals of Petroleum Reserves under PRMS 2018

Course Description

This course allows an in-depth look at the framework, classifications, categorization and applications of Petroleum Resources Management System (PRMS). Participants will gain a solid understanding of this valuable resources management tool, including insight into the latest updated version (PRMS 2018), as well as, the use of some indicators to reserves management.

In addition, this course will provide training in production forecasting and reserves estimation for conventional and unconventional reservoirs, by diverse methods such as field and reservoir analogy, volumetric estimations, material balance equation and rapidly applied decline models favored by the industry for routine forecasting.

Recommended methodology will be based on the resolution and discussion of some case studies to illustrate and clarify definitions.

Course Objectives

The aim of this course is to:

  1. Enhance background, criteria and technical skills of participants to classify, categorize and estimate reserves and resources in oil and gas assets;
  2. Make a brief and concise review and keep up with the latest definitions and regulations of reserves and resources definitions;
  3. Provide some guidelines and “rules of thumb” for a quick assessment of an oil and gas assets;
  4. Show that PRMS is a powerful management tool that is widely used in the industry.

Course Outline

Part I: PRMS Project Framework

  • PRMS project background
  • Major principles and key guidelines in PRMS
  • How PRMS captures risk and uncertainty
  • Assessing and reporting unconventional resources

Part II: Classification and Categorization of Reserves and Resources

  • 2018 Petroleum Resources Management System (PRMS)
  • Comparison of SEC and PRMS guidelines
  • Definitions of Prospective and Contingent Resources
  • Reserves Categories: Proved, Probable and Possible
  • Incremental vs. cumulative approach
  • Indicators of Reserves Management

Part III: Overview of Reserves and Resources Estimates in Conventional and Unconventional Reservoirs

  • Well / Field Analogy Applications
  • Volumetric Estimations
  • Material Balance Applications
  • Forecasting performance with traditional decline-curve analysis (DCA) and allied tools (Numerical Reservoir Simulation) and understand their relative strengths
  • Empirical and semi-theoretical decline models including Arps, Fetkovich’s, Stretched Exponential, Power-Law, Transient Linear Flow, and Duong

Part IV: Production Forecasts and Reserves Estimates in Unconventional Reservoirs

  • Traditional vs Modern Decline Curve Analysis
  • Empirical and semi-theoretical decline models including Arps, Fetkovich’s, Stretched Exponential, Power-Law, Transient Linear Flow, and Duong
  • Diagnostic plots for flow regime identification, pressure normalization of rate data, recommended workflow for pressure-rate-time production data analysis
  • Developing Probabilistic Production Type Well curves
  • Applications for tight oil and gas reservoirs

Part V: Oil and Gas Assets Value and Decision Analysis

  • Traditional Deterministic Cash Flow Analysis: NPV, IRR, Pay Out, PIR
  • Decision trees concepts and calculation of expected monetary value (EMV)
  • Monte Carlo simulation in estimating profitability indicators: Expected NPV and Financial Risk estimation

Participants’ Profile

This course is intended for technical staff, including managers, who are or will be responsible for reserve/resource estimation, or who will be responsible for the reporting of reserves and other resources to senior levels within the company or externally. Technical disciplines may include:

  • Reservoir Engineers
  • Geoscientists
  • Production Engineers


Participants should have a prior knowledge of basic concept of reservoir engineering, reservoir characterization and reservoir management.

Recommended Reading

  1. J. Lee. Notes Course PETE 652: Deterministic Reserves Evaluation.
  2. John D. Wright. Oil and Gas Property Evaluation, John D. Wright, Thompson-Wright, LLC, August 2015.
  3. R. Weijermars. Notes Course PETE 664: Petroleum Project Evaluation and Management. 
  4. C. Cronquist. Estimation and Classification of Reserves of Crude Oil, Natural Gas and Condensate.
  5. J. Lee. Oil and Gas Reserves: The New SEC Reporting Rules.
  6. J. Etherington & R. Seager. Managing your Business using PRMS and SEC Standards.
  7. Securities and Exchange Commission: Modernization of Oil and Gas Reporting; Final Rule.
  8. Oil and Gas Reserves Committee SPE. 2018 Petroleum Resources Management System (PRMS).
  9. SPE/WPC/AAPG. Guidelines for the Evaluation of Petroleum Reserves and Resources.
  10. T. Ahmed. Reservoir Engineering Handbook.
  11. G. Rojas. Ingeniería de Gas y Gas Condensado.
  12. C. Smith, G. Tracy & R. Farrar. Applied Reservoir Engineering, Vol. I and II.
  13. L. Dake. The practice of Reservoir Engineering.
  14. B. Craft & M. Hawkins. Applied Petroleum Reservoir Engineering.
  15. M. Economides. Petroleum Production Systems.
  16. M. Carlson. Practical Reservoir Simulation.
  17. R. Lee & D. Katz. Natural Gas Engineering: Production and Storage.
  18. H. Beggs. Gas Production Operations.

About the Instructor

Victor Alexei Huerta Quiñones is Technical Manager for Reservoir Management Consulting (RMC), a consulting company specialized in managing oil and gas fields, as well as, their reserves and resources.

Petroleum Engineer, graduated from the National University of Engineering, Lima - Peru, and Master of Science in Energy and The Environment from the University of Calgary, Canada. He has 19 years of experience as reservoir engineer for oil and gas fields.

He worked as Senior Numerical Simulation Engineer and Development Head at SAVIA PERÚ, working for subsurface projects of oil and gas fields, Blocks Z-2B and Z-6. He was also head of the Development and Production Department of PETROPERU in charge of the follow-up of the Development of Situche Central field, Block 64. He also worked for Repsol Peru as technical leader in the Development of Block 57 and for Pluspetrol Norte, in the surveillance of the heavy oil fields of Block 1AB.

Part-time Associate Professor of undergraduate and postgraduate Petroleum and Natural Gas engineering school at UNI for the courses “Applied Reservoir Engineering”, “Natural Gas Engineering”, “Enhanced Oil Recovery” and “Numerical Reservoir Simulation”. He was chairman of the Society of Petroleum Engineers (SPE) Lima Section during 2014-2015. He has published more than 20 technical papers in international conferences organized by SPE.