Thursday, June 12, 2008
The SEC's Division of Corporation Finance and Office of the Chief Accountant announced that they have prepared for the Commission's consideration recommendations for updating and modernizing the reporting requirements for oil and gas companies. The current reporting requirements concerning oil and gas reserves were adopted more than 25 years ago. The recommendations that the SEC staff are providing to the Commission reflect the significant changes in the oil and gas industry since adoption of the original reporting requirements, including improved technology and alternate resources. Among other things, the recommended proposals would allow oil and gas companies to provide investors with additional information about their oil and gas reserves. The SEC staff's recommendations were preceded by a Concept Release issued by the Commission on Dec. 12, 2007, in which the Commission solicited comment on whether changes in the reporting requirements were needed and appropriate. The Commission received approximately 80 comment letters, which were generally supportive of updating the reporting requirements to reflect the changes that have taken place in the industry since adoption of the present requirements.
Issuance of a rule proposal by the Commission based on staff recommendations would require Commission approval, followed by a public comment period.