Taking the technological advances into account, the US Securities and Exchange Commission has modernized its reporting prerequisites of oil and gas companies, thereby helping investors to assess the companies better while making investments.

While the rules currently operational - adopted nearly 25 years back - require oil and gas companies to disclose proved reserves, the new disclosure requirements will allow companies to additionally reveal their probable and possible reserves as well to prospective investors.

Companies have to act in accordance with the new reporting requirements after December 15, 2009.

The new rules also include some other important requirements, from oil and gas companies, like - reporting the independence and qualifications of a reserves preparer or auditor; filing of reports in case the company relies upon a third party for preparation of reserves estimates or for conducting a reserves audit; and reporting oil and gas reserves at an average price based upon the foregone annual period, instead of the prices at the end of the year.

In a statement, SEC Chairman Christopher Cox said the newly-announced updates of SEC rules would be greatly helpful in a broader and more consequential disclosure of information, which though does not appear on the balance sheet of a company, is still of immense "significance to investors in making informed investment decisions."