Services / Reserve Red-Flag Review
Independent reservoir-engineering review of a reserve summary, DCA assumptions, price deck, LOE and PUD compliance. Stanford PhD reservoir engineer. Fixed scope, fixed price, no surprises.
From $7,500 · 72 hours from signed engagement letter to PDF for portfolios under 200 wells · Aries (.adb / CSV), PHDwin or generic reserves PDF accepted.
Who this is for
Energy lender
Borrower's reserves report is from a trusted firm but the numbers are aggressive. You want an independent reservoir engineer to flag the issues in 72 hours, not commission a full Ryder Scott engagement.
Small-cap E&P CFO
Reservoir manager left. Reserves engineer is overworked. Auditor is pushing back on the PUD bucket. You need a fast independent read before the filing deadline.
PE-backed E&P CEO
Buyer-side diligence should find clean books, not a list of red flags. Surface and fix what you can before the data room opens.
What you get
60-minute walkthrough call included. One follow-up round included — credit committee or auditor pushback responded to within 48 hours.
Every PDP, PUD and undeveloped category reviewed against a structured red-flag framework. Issues flagged CRITICAL / WARNING / NOTE.
Type-curve coefficients (b-factor, Di, qi) sanity-checked against basin norms.
SEC 5-year rule, drilling-pace credibility, capital allocation.
PV-10 sensitivity at −20% WTI / −30% HH.
Operating cost trajectory benchmarked against basin norms.
References to SPE PRMS, SEC Regulation S-X and basin-norm sources.
Drops into a credit memo or diligence packet. Excel detail file gives your team the per-well evidence behind every flag.
What we surface
A reserve red-flag review covers themes like the ones below. Specific findings depend on your portfolio and your audience — we describe full findings on the walkthrough call, not on a public page.
PUD timing & classification support
SEC five-year exposure, drilling-schedule credibility, capital required to keep booked PUDs compliant.
Decline-curve & type-curve support
High b-factors, shallow terminal declines, vintage mismatch and basin-norm outliers.
PDP economic-limit risk
Wells kept economic by stale LOE, optimistic differentials or unsupported terminal assumptions.
LOE, taxes & netback pressure
Operating cost escalation, gathering/transport deductions and price realisations that move PV-10.
Capex & rig-schedule feasibility
Booked development pace versus actual rig count, permit status and available capital.
Ownership & burden mismatches
NRI / WI changes, overrides, non-op exposure or lease terms that don't match the cash-flow case.
Price-deck & sensitivity exposure
PV-10 movement under lower WTI / Henry Hub, basis widening and delayed first production.
Why us
Stanford PhD in reservoir engineering & optimization. Founder authored multiple SPE papers on DCA, type-curve generation and production forecasting.
No drilling services, completions, or field operations — no incentive to write a friendly report.
72 hours from signed engagement letter to PDF delivery for portfolios under 200 wells.
$7,500 starting. No "estimated hours billed monthly."
How it works
20 minutes, free. Portfolio + audience + deadline.
24-hour turn.
Aries (.adb / CSV export), PHDwin or generic reserves PDF.
Mehrdad personally + our analysis stack.
PDF executive summary + Excel detail file + 60-min walkthrough call.
Credit committee or auditor pushback responded to within 48 hours, no additional cost.
Pricing
Fixed scope, fixed price.
| Scope | Price |
|---|---|
| Up to 100 wells, single basin | $7.5k |
| 100–500 wells, multi-basin | $12k–$18k |
| 500–2,000 wells, multi-basin | $20k–$35k |
| 2,000+ wells, or full restatement | Custom |
Scope honesty
This is a fast, defensible decision-support package. It is not a substitute for field execution, legal advice or a signed statutory opinion.
Not a reserves report. We're not a registered reserves auditor and we don't issue SEC-filing reserves opinions. For signed reserves opinions, use Ryder Scott, NSAI, DeGolyer or another qualified reserves auditor.
Not a fairness opinion. We do not opine on deal fairness or valuation fairness. We identify reserve, cash-flow and compliance assumptions that should be addressed before a credit or bid decision.
Not legal advice. Counsel owns securities, credit-agreement and disclosure conclusions. We provide the engineering evidence counsel, auditors and committees can review.
FAQ
It's a sanity check, not a restatement. Output is a red-flag scorecard, not a 200-page report. Lender redetermination and bid deadlines don't wait.
No. For a signed reserves opinion, talk to Ryder Scott, NSAI, DeGolyer or another qualified reserves auditor. Our role is to flag the issues an auditor is likely to ask about, before you engage them.
We accept CSV export, native Aries (.adb), PHDwin (.phw), or PDF.
Most valuable form is when an independent third party (lender, buyer, audit committee) is the one who sees the output. If a borrower commissions for internal use only, tell us on the call — we'll be honest whether the work is worth it.
Book a 20-minute scoping call. Tell us the portfolio, the audience and the deadline. We'll come back with fixed scope and fixed price.
Or email info@petropt.com directly.