Developed Reserves Sample Clauses
The 'Developed Reserves' clause defines the portion of oil, gas, or mineral reserves that have been discovered and are accessible for production using existing wells and infrastructure. In practice, this clause distinguishes between reserves that are currently extractable due to completed development activities, such as drilling and installation of necessary equipment, and those that remain undeveloped or speculative. Its core function is to provide clarity in contracts or reports by specifying which reserves are considered immediately available for production, thereby aiding in accurate valuation, planning, and risk assessment.
Developed Reserves. Developed reserves are those reserves that are expected to be recovered from existing ▇▇▇▇▇ and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non-producing.