S-K 302(b)

• Supplementary Financial Information

• Oil and gas producing activities

S-K 102

• Description of Property

S-K 801(b)

• Securities Act -- Guide 2
  Disclosure of oil and gas operations

S-K 801(d)

• Securities Act -- Guide 4
  Prospectus for oil and gas programs
• See SEC FAQs below

S-K 802(b)

• Exchange Act -- Guide 2
  Disclosure of oil and gas operations

S-X 4-10

• Accounting and reporting standards

FASB 69 1982
Oil and Gas Producing Activities

• Amends FASB 19, 25, 33, and 39
• FASB summary
• FASB status
• See 2.04 SEC letter above

FASB 25 1979
Suspension of Requirements

• Amends FASB 19
• FASB summary
• FASB status

FASB 19 1977
Oil and Gas Producing Activities

• Supercedes FASB 9
• FASB summary
• FASB status
• FASB Staff Position 19-1 2005

• Suspended Well Costs

FIN 36 1981

SEC summary 12.01.05

SAB 106 2004

• Re: application of FASB 143,
  Accounting for Asset Retirement Obligations, 
  to oil and gas producing companies following the full cost accounting method

SEC Letters to the Industry

• February 2005 letter

• Buy / Sell arrangements
• Exploratory drilling costs
• Dispositions of properties (S-X 4-10(c))

• February 2004 letter

• FASB 69 - Capitalized costs
• FASB 69 - Costs incurred
• FASB 69 - Results of operations
• FASB 69 - Standardized measures of future cash flows

SAB 103

• Topic 2.D      Financial statements for exchange offers
• Topic 12.A.1  Estimates of quantities of proved reserves
• Topic 12.A.2  Estimates of future net revenues
• Topic 12.A.3  Disclosure of reserve information
• Topic 12.C    Methods of accounting by producers
• Topic 12.D    Full cost method of accounting
• Topic 12.E    Financial statements of royalty trusts
• Topic 12.F    Amortizing capitalized costs
• Topic 12.G    Inclusion of methane gas in proved reserves

Accounting FAQs Mar. 2001

• Topic II.F     Issues in the extractive industries
• Topic II.F.2   ~ Inventories above cost
• Topic II.F.3   ~ Definition of proved reserves
• Topic II.F.4   ~ Goodwill -purchase business combinations
• Topic II.F.6   ~ Depreciation, depletion and amortization
• Topic II.F.7   ~ Full-cost accounting
• Topic II.F.8   ~ Cash flows statements
• Topic II.F.9   ~ Hedging transactions
• Topic III.C   Acquired Oil & Gas producing properties

Accounting FAQs May 2001

• For Foreign Private Issuers

SEC's Current accounting issues 2005

• Topic II.B      Oil and Gas

Royal Dutch/Shell Group

• Cuts reserves again 2005

• Reduces SEC proved reserves by 1.4 billion barrels
• A further 10% decrease
• Analyst presentation 2.03.05

• Recategorizes its reserves 2004

• Reduces company's proved reserves by 3.9 billion barrels of oil equivalent (boe),
  or 20% of company's total proved reserves
• SEC press release
• C&D Order Aug. 2004
• Form 6-K 1.09.04
• Form 6-K 2.05.04
• Press release 2.05.04

In re Exxon Mobil
Re: Asset impairment

Royal Dutch Shell
Re: Oil Reserves

• Settles ERISA litigation for $90 million 7.12.05
• Settles non-US shareholder claims for $352.6 million 4.11.07

Cambridge Energy Research Associates 2005

• Industry-financed study critical of SEC rules
• CERA press release 2.27.05
• Study overview
• Study summary

Accounting Issues

Energy Companies