Estimated Ultimate Recovery - EUR

Categories: Insurance, Accounting

It sounds like a kind of dour pronouncement a doctor might make in a conversation that also involves the muttered phrase "pulling the adult plug." But, finance-wise, the phrase "estimated ultimate recovery" involves the total amount of oil and gas present in a reserve.

The "recovery" part involves the amount of resource (either oil or gas) that can theoretically get pulled from the ground. Basically, it represents the lifetime total oil and gas that a company can pull from a particular reservoir. It dictates the value of the find. A higher EUR, the more oil and gas available, the more valuable the field.

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