Note:
(1) Numbers in this table are subject to rounding error.
The Company's reserves provide a proved RLI of 16.0 years and a P+P RLI of 71.3 years, as compared to 16.4 and 71.7 years, respectively, at December 31, 2011, based on fourth quarter annualized sales. The growth in reserves volumes resulted from Painted Pony's successful 2012 drilling and acquisition program.
Painted Pony's total capital expenditures (unaudited) in 2012 were $241 million, including $109.3 million for the Kobes (Townsend) acquisition and non-cash charges such as share-based payments and decommissioning costs of approximately $7 million.
BRITISH COLUMBIA MONTNEY CONTINGENT RESOURCES EVALUATION
In addition to evaluating the Company's reserves, GLJ was engaged to prepare an independent contingent resources evaluation of the Company's BC Montney properties, using forecast prices and costs, dated effective December 31, 2012. The most significant positive and negative factors with respect to the contingent resources estimates relate to the fact that the field is currently at an evaluation/delineation stage. The Montney formation is aerially extensive in this region, however well control is limited. Both resources-in-place and productivity may be higher or lower than current estimates. Additional drilling and testing are required to confirm volumetric estimates and reservoir productivity for the contingent resources to be reclassified as reserves.
----------------------------------------------------------------------------Summary of Company Montney Contingent ResourcesNet Present Values of Future Revenue(1),(2),(3),(4),(5)Forecast Prices and CostsBefore Income Taxes ($millions)---------------------------------------------------------------------------- As at December 31, 2012 5% 8% 10% 12%----------------------------------------------------------------------------Low Estimate 2,001 1,120 774 540Best Estimate 3,597 2,047 1,449 1,045High Estimate 5,421 3,103 2,217 1,621----------------------------------------------------------------------------
Notes:
(1) Painted Pony's total working interest contingent resources are before royalties owned by others. The estimated future net revenues are stated before deducting income taxes and future estimated site restoration costs, and are reduced for estimated future abandonment costs and estimated capital for future development associated with the contingent resources.
(2) It should not be assumed that the undiscounted and discounted NPV represent the fair market value of the contingent resources.
(3) The estimates of NPV for individual properties may not reflect the same confidence level as estimates of NPV for all properties, due to the effects of aggregation.
(4) The price deck used for the evaluation as at December 31, 2012 was the GLJ price deck dated January 1, 2013.
(5) Numbers in this table are subject to rounding error.
----------------------------------------------------------------------------Summary of Company Montney Contingent Resources (1),(2),(3),(4),(5),(6)Forecast Prices and CostsAs at December 31, 2012---------------------------------------------------------------------------- Low Estimate Best Estimate High Estimate (Bcfe) (mmboe) (Bcfe) (mmboe) (Bcfe) (mmboe)----------------------------------------------------------------------------Gas 2,008 335 2,980 497 4,116 686Liquids 115 19 170 28 235 39----------------------------------------------------------------------------Total 2,123 354 3,150 525 4,352 725----------------------------------------------------------------------------
