The valuation of crude oil and gas reserves is a critical step in pricing crude oil and gas producing firms. This is of interest both to academics and practitioners who are called upon to value these firms. It is also of interest to regulators, particularly in their oversight of mergers and...

This paper examines how oil and gas companies' reserves growth affects their share price returns. In particular, we examine three issues affecting the relation between reserves changes and oil and gas firm returns. First, we examine if investors value reserves replacement because of exploration...