SEC Modernizes Reporting Requirements of Oil and Gas Companies
In its release of December 31, 2008, the U.S. Securities and Exchange Commission adopted amendments to its oil and gas reserve disclosure requirements to allow investors to better evaluate companies’ reserves and their attendant values. The revisions modernize and update the disclosure requirements to align them with current industry practices and changes in technology. The amendments revise Regulation S-K, Regulation S-X and Industry Guide 2, as well as concurrently aligning the full cost accounting rules with the revised disclosure requirements. Additionally, the changes seek to harmonize oil and gas disclosures by foreign private issuers with the disclosures made by domestic companies. The amendments take effect on January 1, 2010.