RE: RNS23 Jan 2026 14:00
Paygrove, have you heard of ChatGPT? a very useful tool this day and age and will answer all the questions you're posting on here.
Its good that you're probing though... going deeper in your research than most punters that just chase noise
Alright, oil & gas resources 101—this is a good question and one a lot of people mix up.
### What are **2C Contingent Resources**?
**2C** is the *best estimate* (or “most likely”) volume within **Contingent Resources** under the PRMS (Petroleum Resources Management System).
Contingent Resources are:
* **Discovered** hydrocarbons (there’s been a well, test, or solid evidence)
* **Not yet commercial** because of *contingencies* like:
* No development plan yet
* Economics not approved
* Regulatory or fiscal uncertainty
* Missing infrastructure
* Pending technology or market access
Think of **2C** as:
> “We know the hydrocarbons are there, and this is our most realistic volume — we just haven’t cleared all the business or technical hurdles yet.”
---
### What are **Prospective Resources**?
Prospective Resources are:
* **Undiscovered**
* Based on geological interpretation, seismic, and analogs
* Dependent on:
* A future discovery
* Development feasibility
* Commercial approval
In plain terms:
> “We *think* hydrocarbons might be there, but we haven’t drilled and proven it.”
They’re typically expressed with:
* **Low / Best / High estimates**
* **Chance of Discovery (Pg)**
---
### Why **2C is better than Prospective**
“Better” here means **lower risk and higher confidence**.
| Aspect | 2C Contingent | Prospective |
| ------------------- | ------------------------ | ----------------------- |
| Discovery status | ✅ Discovered | ❌ Undiscovered |
| Geological risk | Low | High |
| Data quality | Wells + tests + seismic | Mostly seismic + models |
| Key risk | Commercial / development | Geological + commercial |
| Closer to reserves? | ✅ Yes | ❌ Much earlier |
| Typical value | Higher | Lower |
So:
* **2C has already cleared geological risk**
* **Prospective still has to prove hydrocarbons even exist**
That’s why investors, lenders, and partners usually:
* Discount **Prospective Resources heavily**
* Take **2C much more seriously**, especially if contingencies are clear and solvable
---
### Simple analogy
* **Prospective**: *“There might be gold in that mountain.”*
* **2C Contingent**: *“We’ve found gold, measured it, but we haven’t built the mine yet.”*
Sign In
Follow the stocks
