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CAPITAL EXPENDITURES
The Company spent $10.1 million on capital expenditures and proceeds on dispositions were $37.0 million in the fourth quarter of 2012. Capital expenditures were $34.9 million for the year ended December 31, 2012 and proceeds on disposition were $73.9 million. The breakdown of expenditures is shown below:
Three months ended Year ended December 31 December 31(thousands of dollars) 2012 2011 2012 2011Land, geological and geophysical costs $ 101 $ 642 $ 511 $ 4,609Acquisitions - 66 - 66Drilling, completion and recompletion 8,333 32,196 22,683 127,456Drilling incentive credits - - - (400)Facilities and well equipment 1,300 7,417 8,884 35,418Capitalized G&A 515 674 2,999 3,569 -------------------------------------- 10,249 40,995 35,077 170,718Change in compressor and other equipment inventory (162) (24) (217) 104Office equipment and furniture 15 14 41 84Proceeds on disposition (36,982) (61) (73,891) (11,631) --------------------------------------Total net cash capital expenditures $(26,880) $ 40,924 $(38,990) $159,275----------------------------------------------------------------------------Drilling statistics are shown below: Three months ended December 31 Year ended December 31 2012 2011 2012 2011 Gross Net Gross Net Gross Net Gross NetGas - - - - - -Oil 4 4.0 10 9.6 7 6.5 51 43.8Dry - - 1 1.0 - - 1 1.0 ----------------------------------------------------------------Total 4 4.0 11 10.6 7 6.5 52 44.8----------------------------------------------------------------------------Success rate 100% 100% 91% 91% 100% 100% 98% 98%----------------------------------------------------------------------------
For the year ended December 31, 2012, the Company drilled 7 gross (6.5 net capital) Cardium horizontal wells. Of the total 7 gross wells drilled, the Company drilled 4 gross (4 net capital) Cardium horizontal wells in the fourth quarter of 2012. The Company completed its winter drilling program with an additional 2 gross (1.75 net capital, 1.5 net revenue) wells drilled during the first quarter of 2013.
RESERVES
The Company's reserves were evaluated by GLJ Petroleum Consultants ("GLJ") in accordance with National Instrument 51-101 ("NI 51-101") as of December 31, 2012, prepared in accordance with procedures and standards contained in the Canadian Oil and Gas Evaluation ("COGE") Handbook. The reserves definitions used in preparing the report are those contained in the COGE Handbook and the Canadian Securities Administrators National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). The tables in this section are excerpts from what will be contained in the Company's Annual Information Form for the year ended December 31, 2012 ("AIF") as the Company's NI 51-101 annual required filings.
