New SEC Rule on Reserves May Benefit Oil, Natural-Gas Producers

Dec. 30 (Bloomberg) — A new U.S. Securities and Exchange Commission rule may make oil and natural-gas producers more attractive to investors by letting them declare reserves that have yet to be confirmed, according to the head of an Illinois- based energy research and consulting firm.

The new rule, approved by the commission yesterday and effective in January 2010, allows producers to include probable and possible reserves that reflect new technologies in their reporting, according to a statement from the commission. The value of the reserves will be based on average oil and gas prices over the previous 12 months, rather than at year