3P
Categories: Accounting, Company Valuation, Metrics, Tech
Oh, there are so many Ps we could cover here. By far, the most boring are the energy reserves accounting references that this 3P thing actually represents. You have oil in the ground under a million acres of land. Some is proven...that's the first P. It was found, sucked up, refined, sold, etc. So you know it's there. Then, with shmancy geologic tech devices, and a few bombs that went off 3,000 feet below the surface, you have Probable reserves. Likely there. Just not drilled yet. And then there's the 3rd P: Possible. Like, if there are measles in building A and C, isn't it likely building B will start scratching soon as well? The 3 Ps: Proven, Probable, Possible.
