From the Executive’s Desk: How Should a Lay Investor Read an Oil & Gas Qualified Person’s Report?
- Rex Content
- Mar 28
- 2 min read

As a lay retail investor, do you find the jargon and numbers in an oil & gas Qualified Person’s Report (QPR) hard to understand? What can you learn from a QPR to help you assess the value of an energy company’s assets before making an informed decision to invest in the company? Read on and learn how to unlock strategic insights in a QPR.
Why a QPR matters
Beyond regulatory compliance in countries such as Singapore, an oil & gas company will typically prepare or commission a QPR under these circumstances:
Before investment into an asset
When there is a discovery
To give an update following production and/or appraisal drilling
When development work has been done
The QPR is prepared by an independent or in-house Qualified Person (QP), who is a certified professional with expertise in petroleum geology, engineering, or reservoir management, typically with years of industry experience and certifications from recognised organisations.
The Rex Group consistently commissions QPRs to provide updated assessments of its oil and gas reserves and resources, typically on an annual basis or when significant developments occur in its projects.
Unlocking Strategic Insights in a QPR
A QPR usually includes:
An Executive Summary;
Name and credentials of the qualified person writing the report;
Aim and scope of the report;
Basis of the report — including data sources, data validation and reliance on other experts; and
Asset information
Property description and history
Description of the economic conditions
Geological and geophysical setting
Exploration Data
Resource and reserve estimates and exploration results
Planned extraction method, processing method, capital costs, operating costs, considerations
Reserves and Resources Classifications Simplified
So what are the classifications for reserves and resources and what do they mean?
1P – Proved Reserves: High certainty of recovery under existing conditions.
2P – Proved and Probable Reserves: Includes proved reserves plus those reasonably expected to be recoverable.
3P – Proved, Probable, and Possible Reserves: Most speculative category with higher uncertainty but potential upside.
1C – Low estimate scenario for Contingent Resources.
2C – Best estimate scenario for Contingent Resources.
3C – High estimate scenario for Contingent Resources.
In short, reserves are oil/gas in the ground that have been discovered and are being produced or in development; while Contingent Resources are oil/gas in the ground that have been discovered but a decision for development has not yet been made.
Conclusion
So the next time you read a QPR, check out the 2P and 2C figures of the assets, and consider the asset information and the assumptions underlying the production and revenue forecasts, such as oil prices and operating costs.
Why not start with the recently issued Independent Summary QPR on Lime Petroleum AS’s Norway assets (published 3 March 2025)?
Mr Lars Hübert is also Chief Executive Officer of Lime Petroleum Holding AS and an in-house QP for the Rex Group.