PDP (Proved Developed Producing)
Reserves from wells already drilled and producing right now. The safest reserve category, since the well exists and is selling oil or gas.
PDP stands for proved developed producing — reserves tied to wells that are already drilled, completed, and selling oil or gas today. It is the most certain reserve category because the well exists and you can see real checks coming in. No new drilling or capital is needed to keep the volume flowing.
Buyers pay the most, per unit of value, for PDP. There is no drilling risk and the production history is on the record at the Texas Railroad Commission, the Oklahoma Corporation Commission, or another state agency. The main question is the decline rate — how fast the existing wells fade.
PDP sits at one end of the reserve scale; PUD sits at the other. A royalty package weighted toward PDP is lower risk than one banking on wells not yet drilled.