E&Y backs SEC proposals on reserves reporting

BP auditor Ernst & Young has thrown its backing behind SEC proposals to
revamp oil and gas reserves reporting, calling the current regime ‘three decades
out of date’.

Speaking at the World Petroleum Congress in Madrid, E&Y’s global oil and
gas transactions leader Michael Lynch-Bell said the proposals ‘go beyond what
the industry and investors had hoped for’ and should bring thirty years of
‘opaque’ reserves reporting to an end.

‘It will also allow the disclosure of the three P’s of reserves reporting –
probable, possible as well as proved – creating a consistent standard for
investors, who will be able to apply true market value to M&A transactions
in the oil and gas sector, ultimately leading to better comparisons, more
believable prices, cheaper money and less risk,’ said Lynch Bell.

Lynch Bell also believes the new proposals compliment the efforts of the IASB
and will assist in the global convergence of financial reporting.

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