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effective as of January 1, 1986, but also the other information
provided in conjunction with TPC's offer.
Sometime during October 1986, petitioner engaged LAM, Tri-
Power's independent reserve engineer since at least 1985,19 to
update the 1986 LAM reserve report. Petitioner requested LAM to
roll forward its earlier projections to November 1, 1986, using
petitioner's oil and gas price forecast. The Society of
Petroleum Evaluation Engineers (SPEE) conducts an annual survey
of oil and gas price forecasts by producers, consultants, and
bankers. The SPEE survey published during July 1986 (1986 SPEE
survey) provides an accurate compilation of the responses to that
survey. The oil and gas price forecast provided by petitioner to
LAM for use in the rollforward was higher than the mean reported
by the 1986 SPEE survey (1986 SPEE mean), but within one standard
deviation of the 1986 SPEE mean.
Tri-Power provided its updated 1986 production data to both
petitioner and LAM. Accordingly, LAM had available its
production curves, updated through June 1986, and the production
data necessary to plot production curves through October 1986.
LAM's updated reserve report (the 1986 LAM updated reserve
report), however, did not incorporate any of the updated
19 The record indicates that LAM began work for Tri-Power's
predecessor during 1982. Aside from a reserve report dated Jan.
22, 1985, however, the record contains no evidence that LAM was
involved with the Tri-Power properties prior to 1985.
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