See "Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" for additional cautionary language, explanations and discussions and "Forward Looking Information and Statements" for a statement of principal assumptions and risks that may apply.
Reserves Summary
In 2012, the Company's total proved plus probable reserves increased to 153.0 mmboe while proved reserves increased to 85.1 mmboe. The year over year growth in proved plus probable reserves was achieved even when including 10.2 mmboe of 2012 production, 11.9 mmboe of dispositions and 6.3 mmboe of negative technical revisions. Of the increase in proved plus probable reserves, pool extensions and improved recoveries accounted for 32.1 mmboe which was concentrated at Crew's Septimus Montney property in northeast British Columbia ("NEBC") and Deep Basin property in Alberta. Negative technical revisions were concentrated in the Helmet area in the Cordova Embayment in NEBC and the Company's CBM assets in Wimborne. In the 2012 year end Sproule Report, approximately 200 undeveloped locations are booked in Crew's four core areas out of an inventory of over 2500 potential drilling locations.
Septimus
Proved plus probable reserves increased 44% after production. A majority of this increase occurred in the proved producing category recognizing better type well performance as a result of improved completion techniques and facility enhancements. Average probable undeveloped Montney reserves increased to 3.2 bcf per well from 2.6 bcf per well in Crew's 2011 year end reserves report. Crew currently has 40 locations booked at Septimus at an average proved plus probable reserve booking of 640 mboe per location, with 24 of those locations booked in the proved undeveloped category. Only 15 of Crew's 234 Montney sections have been assigned reserves in the 2012 Sproule Report. The Company also has an outstanding option to purchase an additional 140 sections of Montney rights from a third party.
Deep Basin
Proved plus probable reserves increased 55% after production. This increase is related to the successful 2012 Cardium drilling program and the continued out performance of the previous year's type curve. Crew currently has 98 Cardium locations booked in the Deep Basin at an average proved plus probable reserve booking of 442 mboe per location, with 64 of those locations booked in the proved undeveloped category.
Princess
Proved plus probable reserves increased more than 7% after production to 25.8 mmboe. The high production declines observed during the first quarter of 2012, due to well interference on certain pools, resulted in negative technical revisions which were offset by reserve increases due to the positive response observed at Crew's pools under waterflood. Crew currently has 26 locations booked (21 horizontal) at Princess at an average proved plus probable reserve booking of 101 mboe per location, with 21 of those locations booked in the proved undeveloped category.
Lloydminster
Proved plus probable reserves increased 20% after production, reflecting the successful 2012 drilling and recompletion program. Crew currently has 41 locations booked at Lloydminster at an average proved plus probable reserve booking of 48 mboe per location, with 28 of those locations booked in the proved undeveloped category.
The following table provides summary reserve information based upon the Sproule Report and using the published Sproule (2012-12-31) price forecast.
-------------------------------------------------------------------------------------------------------------------------------------------------------- Barrels of Natural oil Gas Natural equivalent Oil (3) Liquids gas (2)---------------------------------------------------------------------------- Gross(1) Gross(1) Gross(1) Gross(1) (mbbl) (mbbl) (mmcf) (mboe)----------------------------------------------------------------------------Proved Producing 11,887 6,422 158,128 44,664 Non-producing 4,282 148 4,369 5,158 Undeveloped 4,449 7,912 137,425 35,265----------------------------------------------------------------------------Total proved 20,617 14,483 299,922 85,087Probable 14,074 11,312 255,023 67,889----------------------------------------------------------------------------Total proved plus probable 34,691 25,794 554,945 152,976--------------------------------------------------------------------------------------------------------------------------------------------------------
