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You will find the answer in the SEC, IRS, USGS, FTC,definitions for fiscal reporting of" RESERVES". In your case, the wells not only represent Proved Producing Reserves, but Proved Non-Producing Reserves. Based on the science of decline cures for the wells both the PPR and PNR Reserves are ratifying the previous estimates as the inventories of defined Reserves become more defined, the values become more defined. In accounting terms, the NPV increased because the discount rate adjusted for risk became lower. Hedge fund managers live and die on being able to understand how to measure risk of recovery and prices against Proven Reserves.
The economic limit will be based on geologic and production potential not on competitive bids.
Gary L Hutchinson