Oil & Gas Accounting: Oil & Gas Properties, AROs & Reserves Webinar

To provide CPAs and other financial professionals with specialized knowledge of accounting for oil and gas activities. You will learn about oil and gas interests, which costs to capitalize and which to expense and the tax issues specific to the oil and gas industry.

• Oil and gas reserves
  – Estimations
  – Proved reserves
  – Valuation of oil and gas assets
  – Reserve report
• Methods of Accounting for Oil and Gas properties
  – Full cost
  – Successful efforts
• Proved properties
• Inventories
• Gas imbalances
• Mineral property conveyances
• Production payments
• Income taxes
• Asset Retirement Obligations (ARO)
• Derivatives
• Financial reporting and disclosures

To provide CPAs and other financial professionals with specialized knowledge of accounting for oil and gas activities. You will learn about oil and gas interests, which costs to capitalize and which to expense and the tax issues specific to the oil and gas industry.

DETAILED LEARNING OBJECTIVES

• Understand the standard unit conversion for a barrel of crude oil to gallons

• Identify the standard industry measurement unit for natural gas volumes

• Recognize the typical range of Estimated Ultimate Recovery (EUR) under primary recovery methods

• Define the criteria for classifying reserves as proved

• Distinguish between categories of proved reserves including PUDs

• Recall the minimum likelihood of recovery for probable reserves

• Identify reserve estimation methods such as decline curve analysis

• Recall the SEC mandated discount rate used in reserve reports

• Recognize the role of petroleum engineers in preparing reserve reports

• Understand the primary uses of reserve reports in oil and gas accounting

• Identify the level at which costs are pooled under the Full Cost method

• Recall how dry hole costs are treated under the Full Cost method

• Understand how seismic costs are treated under the Successful Efforts method

• Recall the accounting treatment for unsuccessful exploratory wells under SE

• Understand the amortization basis for leasehold costs under SE

• Identify the ASC guidance for proved property impairment under SE

• Understand inventory accounting for oil in tanks including lower of cost or market

• Recall the accounting treatment for drilling materials inventory under LCM rules

• Identify what an overlift position represents in gas imbalance arrangements

• Understand the accounting treatment when reserves are insufficient to cover overlifts

• Recall how mineral property conveyances are recorded under the Full Cost method

• Understand the accounting treatment of volumetric production payments (VPPs) when risks are transferred

• Recognize the proportion of well costs typically classified as intangible drilling costs

• Identify when an Asset Retirement Obligation (ARO) must be initially recognized

• Understand how ARO liabilities are measured at discounted fair value of future costs

• Define basis risk in the context of oil and gas derivative contracts

• Recall which type of hedge is used for forecasted oil and gas sales under ASC 815

• Understand the financial reporting requirements for significant acquisitions under SX 3-05

• Recognize how purchase price is allocated in business combinations of oil and gas properties

• Recall SEC disclosure requirements for reserves under Regulation S-K

• Oil and gas reserves
  – Estimations
  – Proved reserves
  – Valuation of oil and gas assets
  – Reserve report
• Methods of Accounting for Oil and Gas properties
  – Full cost
  – Successful efforts
• Proved properties
• Inventories
• Gas imbalances
• Mineral property conveyances
• Production payments
• Income taxes
• Asset Retirement Obligations (ARO)
• Derivatives
• Financial reporting and disclosures