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A summary reconciliation of the 2012 year end reserve assignments with the reserves reported in the 2011 year end report based on McDaniel's forecast prices and costs is presented below:
Reserve Reconciliation (All Categories)---------------------------------------------------------------------------- Oil and Liquids (mmbbl)---------------------------------------------------------------------------- Proved Proved Probable & Prob.----------------------------------------------------------------------------December 31, 2011 14.60 9.45 24.05Discoveries and extensions 0.97 0.45 1.42Revisions 0.57 0.03 0.60Acquisitions and dispositions (0.81) (0.29) (1.10)Production (1.92) - (1.92)----------------------------------------------------------------------------December 31, 2012 13.41 9.64 23.05--------------------------------------------------------------------------------------------------------------------------------------------------------Reserve Reconciliation (All Categories)---------------------------------------------------------------------------- Natural Gas (bcf) Equivalents (mmboe)---------------------------------------------------------------------------- Proved Proved & & Proved Probable Prob. Proved Probable Prob.----------------------------------------------------------------------------December 31, 2011 39.37 22.06 61.43 21.16 13.13 34.29Discoveries and extensions 0.43 0.18 0.61 1.05 0.48 1.53Revisions (3.66) (3.36) (7.02) (0.04) (0.53) (0.57)Acquisitions and dispositions 0.06 0.02 0.08 (0.80) (0.29) (1.09)Production (6.28) - (6.28) (2.97) - (2.97)----------------------------------------------------------------------------December 31, 2012 29.92 18.90 48.82 18.40 12.79 31.19--------------------------------------------------------------------------------------------------------------------------------------------------------
On a proved and probable basis, Zargon's oil and liquids reserves from development activities increased by 2.02 million barrels, and after net dispositions of 1.10 million barrels the net increase was 0.92 million barrels before production of 1.92 million barrels. Overall, field capital exploration and development programs provided 1.53 million barrels of oil equivalent of new additions. Net property acquisitions/dispositions for 2012 removed 1.09 million barrels of oil equivalent, and provided $34.5 million of net proceeds to Zargon. During the year, positive technical revisions pertaining to Alberta Plains Taber and Little Bow and the Williston Basin Elswick and Ralph oil exploitation properties were partially offset by negative oil reserve adjustments at Alberta Plains North St. Anne property and other minor properties. With the sharply lower natural gas prices in 2012, negative proved and probable natural gas revisions totaling 7.02 billion cubic feet were booked at Jarrow, Pembina and other selected Alberta properties. As a result, overall technical reserve revisions were a negative 0.57 million barrels of oil equivalent.
Reserve Reconciliation (Developed Producing)---------------------------------------------------------------------------- Oil and Liquids (mmbbl)---------------------------------------------------------------------------- Proved Proved Probable & Prob.----------------------------------------------------------------------------December 31, 2011 13.69 4.71 18.40Discoveries and extensions 0.92 0.37 1.29Revisions 0.86 (0.26) 0.60Acquisitions and dispositions (0.81) (0.25) (1.06)Production (1.92) - (1.92)----------------------------------------------------------------------------December 31, 2012 12.74 4.57 17.31--------------------------------------------------------------------------------------------------------------------------------------------------------Reserve Reconciliation (Developed Producing)---------------------------------------------------------------------------- Natural Gas (bcf) Equivalents (mmboe)---------------------------------------------------------------------------- Proved Proved & & Proved Probable Prob. Proved Probable Prob.----------------------------------------------------------------------------December 31, 2011 33.71 11.53 45.24 19.31 6.63 25.94Discoveries and extensions 0.43 0.19 0.62 0.99 0.40 1.39Revisions (1.31) (2.60) (3.91) 0.65 (0.70) (0.05)Acquisitions and dispositions 0.06 0.02 0.08 (0.80) (0.25) (1.05)Production (6.28) - (6.28) (2.97) - (2.97)----------------------------------------------------------------------------December 31, 2012 26.61 9.14 35.75 17.18 6.08 23.26--------------------------------------------------------------------------------------------------------------------------------------------------------
