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Proven reserves refer to the estimated quantities of oil and natural gas that can be extracted, with a high degree of confidence, using existing technology and under current economic conditions. These reserves have been thoroughly studied and evaluated, with geological and engineering data confirming their existence and potential for extraction. Proven reserves are also known as 1P reserves.

Conventional reserves refer to oil and natural gas deposits that are found in traditional porous rock formations, such as sandstone or limestone. These reservoirs are generally easy to access and extract using standard drilling and pumping techniques. Conventional reserves typically have higher recovery rates and lower production costs compared to unconventional reserves.

Unconventional reserves are oil and natural gas deposits that are trapped in unique geological formations or have unique properties that make them more difficult or expensive to extract using traditional methods. Examples of unconventional reserves include shale gas, tight oil, coalbed methane, and oil sands. Extracting unconventional resources often requires advanced drilling technologies and techniques, such as hydraulic fracturing (fracking) or horizontal drilling, to access and recover the resources effectively.

The primary differences between proven, conventional, and unconventional reserves are the certainty of their existence and the extraction methods required. 1. Proven reserves have been extensively studied and confirmed, with a high degree of confidence in their recoverability. Both conventional and unconventional reserves can be classified as proven, as long as there is sufficient geological and engineering evidence to support their recoverability. 2. Conventional reserves refer specifically to oil and natural gas deposits that can be extracted using standard drilling and pumping methods. They are generally easier and cheaper to access than unconventional reserves, with higher recovery rates. 3. Unconventional reserves are more challenging to extract due to their unique geological formations or properties. Advanced drilling technologies and techniques, such as fracking or horizontal drilling, are often required to access and extract unconventional resources effectively. In conclusion, proven reserves are determined by the level of confidence in their existence and recoverability, while conventional and unconventional reserves are differentiated by the geological formations they are found in and the extraction methods required to access them.