-- THAI® proved plus probable plus possible ("3P") reserves at our Kerrobert project were reduced to 5.4 million barrels from 8.5 million barrels at the end of 2011. THAI® proved plus probable ("2P") reserves at our Kerrobert THAI® project were reduced to zero from 3.6 million barrels at the end of 2011. These revisions are due to 2012 production from the project not sustaining economic production rates assumed by McDaniel in its year end 2011 report. The Exploitable Oil Initially in Place ("EOIIP") at our Kerrobert THAI® project lands remained unchanged at 18.7 million barrels (see "Exploitable Oil/Bitumen Initially in Place").-- In addition to our THAI® project, McDaniel also evaluated our North Kerrobert and Luseland properties ("Kerrobert Trend Lands"), recognizing best estimate contingent resources of 20.6 million barrels (see "Resources and Contingent Resources") and EOIIP of 48.8 million barrels. Together with the Kerrobert THAI® project lands, EOIIP associated with our Saskatchewan assets totalled 67.5 million barrels.-- Sproule conducted an evaluation of our assets at Dawson, assigning initial proved reserves of 0.7 million barrels, 2P reserves of 1.2 million barrels and 3P reserves of 1.7 million barrels. These reserves were based on cold production from horizontal wells.-- Sproule assigned best estimate contingent resources of 58.3 million barrels at Dawson and Exploitable Bitumen Initially in Place (see "Exploitable Oil/Bitumen Initially in Place") of 436.2 million barrels based on cyclic steam stimulation, up from 33.2 million barrels of Exploitable Bitumen Initially in Place assigned by McDaniel in 2011, primarily as a result of the evaluation of additional lands outside our proposed Dawson THAI® project area.
Q4 and Year-End 2012 Financial and Operating Review
-- We completed a corporate reorganization on December 31, 2012 that saw Old Petrobank shareholders effectively receive Old Petrobank's proportionate interest in its PetroBakken shareholdings while maintaining their interest in the remaining Petrobank assets. Petrobank shareholders received 1.1051 PetroBakken shares and one Petrobank share for each Old Petrobank share held at December 31, 2012. Petrobank continued operations as a well capitalized junior heavy oil exploration and production company leveraging unique patented technology.-- We entered 2013 with over $90 million of positive working capital, including over $100 million of cash, cash equivalents and marketable securities with no debt.-- Average production at our Kerrobert THAI® project increased to 307 barrels of oil per day ("bopd") in Q4 2012 compared to 305 bopd in Q3 2012 and 41 bopd in Q4 2011. Kerrobert THAI® production averaged 261 bopd in 2012.-- Petrobank reported a net loss of $119.8 million in 2012 ($1.23 per share) compared to $129.5 million in 2011 ($1.33 per share), primarily as a result of an increase in impairment expense from $65.9 million to $185.9 million offset by a deferred income tax recovery in 2012 compared to a deferred income tax expense in 2011.-- Petrobank reported expenditures on exploration assets of $41.3 million in 2012 compared to $166.9 million in 2011. The decrease was primarily related to the elimination of expenditures on our May River property (along with our Conklin demonstration project) as a result of the disposition of the property in February 2012 and the completion of our Kerrobert expansion development capital in late 2011, offset by an increase in capitalized pre-commercial operating costs at our Kerrobert project from a full year of operations.-- Concurrent with the completion of the Arrangement, we recognized a non- cash accounting impairment related to our Kerrobert THAI® project and our patents and other intangible assets of $185.9 million, reflecting assessed value in use at December 31, 2012. We remain focused on increasing the value of our THAI® related assets through the commercialization of our Kerrobert THAI® project, while continuing to conservatively steward our capital resources and maximize the future potential of our other assets.