DETAILED RESERVE INFORMATION:
Reserves included herein are stated on a gross company working interest basis unless otherwise noted. All reserves information has been prepared in accordance with National Instrument 51-101 Standards of Disclosure ("NI 51-101"). In addition to the detailed information disclosed in this press release, more detailed information will be included in Zargon's 2012 Annual Information Form to be filed on SEDAR (www.sedar.com) and posted on our website (www.zargon.ca) in March 2013.
Based on the independent reserves evaluation conducted by McDaniel effective December 31, 2012, and prepared in accordance with NI 51-101, Zargon had proved and probable reserves of 31.19 million barrels of oil equivalent. Reserve reductions from exploration and development activities (including revisions) and corporate and net property acquisitions/dispositions were negative 0.13 million barrels of oil equivalent.
Company Reserves(1) Oil and Equivalents Liquids Natural Gas (2)At December 31, 2012 (mmbbl) (bcf) (mmboe)----------------------------------------------------------------------------Proved producing 12.74 26.61 17.18Proved non-producing 0.44 3.23 0.98Proved undeveloped 0.23 0.08 0.24----------------------------------------------------------------------------Total proved 13.41 29.92 18.40Probable additional producing 4.56 9.14 6.08Probable non-producing and undeveloped 5.08 9.76 6.71----------------------------------------------------------------------------Total probable additional 9.64 18.90 12.79--------------------------------------------------------------------------------------------------------------------------------------------------------Total proved and probable producing 17.30 35.75 23.26----------------------------------------------------------------------------Total proved and probable 23.05 48.82 31.19--------------------------------------------------------------------------------------------------------------------------------------------------------Proved producing reserve life index, years (3) 6.9 4.6 6.1Proved reserve life index, years (3) 7.2 5.1 6.5Proved and probable producing reserve life index, years (3) 9.3 6.1 8.2--------------------------------------------------------------------------------------------------------------------------------------------------------Proved and probable reserve life index, years (3) 12.4 8.4 11.0--------------------------------------------------------------------------------------------------------------------------------------------------------1. Company working interest reserves are gross reserves before deduction of royalties, boe (6:1).2. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.3. Reserve life is calculated using annualized fourth quarter 2012 production.
