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Notes:
1. BOE's may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Net Present Value of Reserves
Net Present Values of Before Tax Future Net Revenue Discounted at-------------------------------------------------------------------------------------------------------------------------------------------------------- 0% 5% 8% 10% 12%---------------------------------------------------------------------------- ($000)Proved Developed producing 175,025 163,722 157,760 154,078 150,608 Developed non-producing 62,287 51,291 45,936 42,783 39,920 Undeveloped 86,247 65,459 55,459 49,616 44,341----------------------------------------------------------------------------Total proved 323,558 280,472 259,155 246,478 234,868Probable 4,247,695 1,885,997 1,211,397 911,737 688,921----------------------------------------------------------------------------Total proved plus probable 4,571,253 2,166,469 1,470,552 1,158,214 923,789----------------------------------------------------------------------------Notes:Columns may not add due to rounding
Reconciliation of Changes in Reserves
The following table summarizes the changes in the Company's share of oil and natural gas reserves (before royalties) from December 31, 2011 to December 31, 2012.
Oil & NGLs Natural gas BOE---------------------------------------------------------------------------- Proved Probable Total Proved Probable Total Total---------------------------------------------------------------------------- (Mbbls) (Mbbls) (Mbbls) (MMcf) (MMcf) (MMcf) (Mboe)Balance, Dec 31, 2011 15,163 20,313 35,476 695 1,311 2,007 35,811 Production -3,422 0 -3,422 -137 0 -137 -3,445 Extensions 3,111 180,068 183,179 10 -79 -69 183,167 Discoveries 0 0 0 0 0 0 0 Technical revisions -1,443 -1,549 -2,992 -149 -571 -720 -3,112 Improved recovery 2,277 -1,650 627 14 -603 -589 529 Acquisitions 199 228 427 0 0 0 427 Dispositions 0 0 0 0 0 0 0 Economic factors -40 29 -11 -200 -56 -255 -54----------------------------------------------------------------------------Balance, Dec 31, 2012 15,846 197,438 213,284 234 2 236 213,324----------------------------------------------------------------------------
The pricing assumptions used in the Sproule evaluation are summarized below.
Pricing Assumptions
Western WTI Edmonton Par Canadian Cushing Price Select Alberta 40 degrees 40 degrees 20.5 degrees AECO-C Inflation ExchangeYear API API API Spot rate rate-------------------------------------------------------------------------------------------------------------------------------------------------------- (US$/bbl) (CDN$/bbl) (CDN$/bbl) (CDN$/MMBtu) (%/yr) (US$/Cdn$)----------------------------------------------------------------------------2013 89.63 84.55 69.33 3.31 1.5 1.0012014 89.93 89.84 74.57 3.72 1.5 1.0012015 88.29 88.21 73.21 3.91 1.5 1.0012016 95.52 95.43 80.17 4.70 1.5 1.0012017 96.96 96.87 81.37 5.32 1.5 1.0012018 98.41 98.32 82.59 5.40 1.5 1.0012019 99.89 99.79 83.83 5.49 1.5 1.0012020 101.38 101.29 85.08 5.58 1.5 1.0012021 102.91 102.81 86.36 5.67 1.5 1.0012022 104.45 104.35 87.66 5.76 1.5 1.0012023 106.02 105.92 88.97 5.85 1.5 1.001 Escalation rate of 1.5% thereafter
