Services / Reserve Red-Flag Review
Independent reservoir-engineering review of a reserve summary, DCA assumptions, price deck, LOE and PUD compliance. Founder-led, Stanford PhD. 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 assumptions sanity-checked against basin norms and vintage.
SEC 5-year rule, drilling-pace credibility, capital allocation.
PV-10 sensitivity under price-deck stress cases scoped to the asset.
Operating cost trajectory benchmarked against basin norms.
Methodology references documented in the delivered memo — defensible to auditor, credit committee or buyer.
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
Classification, timing and capital-plan support reviewed for defensibility.
Decline-curve & type-curve support
Type-curve assumptions and decline support reviewed against basin norms and vintage.
PDP economic-limit risk
Economic-limit assumptions reviewed against current operating realities.
LOE, taxes & netback pressure
Operating cost and netback assumptions reviewed for how they move PV-10.
Capex & rig-schedule feasibility
Capital plan reviewed against actual activity and execution constraints.
Ownership & burden mismatches
Ownership and burden assumptions reviewed for consistency with the cash-flow case.
Price-deck & sensitivity exposure
Price-deck assumptions reviewed for PV-10 robustness under stress cases scoped to the asset.
Why us
Stanford PhD in energy systems optimization. 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.
the founder 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
Final scope and price depend on portfolio size, basin mix, complexity, and the audience for the output (credit committee, board, auditor, buyer, internal).
Most engagements land between $7.5k and $35k. Larger portfolios or full restatement support are scoped on the scoping call.
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.