Competent Person’s Reports (CPR)
These reports are specialized appraisal reports for oil and gas properties with components dictated by certain regulators in various venues around the world. The term was first applied to mineral and petroleum reports (discussed in Chapter 19 of the exchange rules in effect at the time) for companies that listed on the London Stock Exchange. Likely due to the Commonwealth connections, CPRs then extended to the Hong Kong Stock Exchange, as well as the Australian Securities Exchange.
Currently, a Competent Person’s Report is defined by certain regulatory documentation in each exchange venue where a CPR is a component of filings. However, the most-often referenced regulation documentation with the broadest application is that of the European Union prospectus regulations under which the United Kingdom exchanges also operate. This specific reference to a Competent Person’s Report is in the European Securities and Markets Authority (ESMA) Update of the Committee of European Securities Regulators (CESR) Recommendations on the consistent implementation of Commission Regulation (EC) No. 809/2004 implementing the Prospectus Directive, dated March 20, 2013 (ESMA/2013/319).
The Hong Kong Stock Exchange Listing Rules references the CPR in Chapter 18 and Appendix 25. Chapters 5 and 19 in the Australian Securities Exchange Listing Rules describe reporting by mineral and petroleum companies, including a CPR. The Singapore Exchange also has references to a CPR, as do multiple other exchanges and regulations for public companies around the world.
Over time, a CPR has become synonymous (to some) with an independent evaluation under all circumstances, not just for regulatory filings. However, it is important to be aware of the implications of selecting a CPR as a report of choice. There are specific requirements in order to officially refer to a report as a “CPR”, and there can be potential regulatory issues that might arise if a report that does not contain all CPR elements is submitted to public review.
DeGolyer and MacNaughton has significant experience with CPRs and can produce compliant CPRs around the world for clients. Our professionals are always available to discuss the intrinsic need for a CPR in certain situations and the values and costs of producing CPRs relative to standard reserves/resources and appraisal reports.
