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Total future development costs included in the reserves evaluation were $66.8 million for total proved reserves and $145.3 million for proved plus probable reserves. Further details related to future development costs, including assumptions regarding the timing of the expenditures, will be included in the Company's AIF for the 2012 fiscal year. Future development costs are associated with the reserves as disclosed in the GLJ report and do not necessarily represent the Company's current exploration and development budget.
SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
As at December 31, 2012
GLJ Forecast Prices and Costs
Natural Oil Gas Edmonton Liquids Prices Light, Sweet AECO WTI Crude Gas Pentanes Cushing Edmonton Price Propane Butane Plus Exchange ($US/ ($Cdn/ ($Cdn/ ($Cdn/ ($Cdn/ ($Cdn/ Inflation rateYear bbl) bbl) MMBtu) bbl) bbl) bbl) Rate% (US$/Cdn)2013 90.00 85.00 3.38 34.06 65.45 96.63 2.0 1.0002014 92.50 91.50 3.83 45.75 70.46 97.91 2.0 1.0002015 95.00 94.00 4.28 56.40 72.38 97.76 2.0 1.0002016 97.50 96.50 4.72 57.90 74.31 100.36 2.0 1.0002017 97.50 96.50 4.95 57.90 74.31 100.36 2.0 1.0002018 97.50 96.50 5.22 57.90 74.31 100.36 2.0 1.0002019 98.54 97.54 5.32 58.52 75.11 101.44 2.0 1.0002020 100.51 99.51 5.43 59.71 76.62 103.49 2.0 1.0002021 102.52 101.52 5.54 60.91 78.17 105.58 2.0 1.0002022 104.57 103.57 5.64 62.14 79.75 107.71 2.0 1.000Thereafter 2%---------------------------------------------------------------------------CONTINUITY OF GROSS RESERVES (1) Oil and Natural Gas Liquids Natural Gas (Bcf) (Mbbls) Proved Probable Total Proved Probable TotalOpening balance December 31, 2011 89.0 52.3 141.4 6,106 4,655 10,760Extensions and improved recovery 1.7 2.5 4.2 672 752 1,425Technical revisions (3.5) (1.5) (4.9) 70 (210) (140)Economic factors (10.7) (13.6) (24.3) (29) (13) (42)Dispositions (32.8) (19.4) (52.2) (1,607) (1,104) (2,711)Production (8.7) - (8.7) (768) - (768) -----------------------------------------------------------Closing balance December 31, 2012(2) 35.1 20.4 55.5 4,444 4,081 8,523---------------------------------------------------------------------------(1) Columns and rows may not add due to rounding.(2) The closing balance for natural gas includes 0.06 Bcf of proved and 0.02 Bcf of probable Coal Bed Methane reserves.
The Company's reserves life indices are 7.0 years total proved and 12.0 years proved plus probable, based on the midpoint of the estimated first quarter 2013 production. With an average $0.91 per MMBtu reduction in GLJ's natural gas price outlook and $7.63 per bbl decrease in Edmonton crude oil in the years 2013 to 2021, the Company experienced a negative revision for economic factors of 1.8 MMBOE for total proved and 4.1 MMBOE for proved plus probable reserves. The economic factors negative revision was almost entirely related to the Company's undeveloped gas reserves in the Edmonton Sands properties. In addition to the economic factors, the Company experienced negative technical revisions of 0.5 MMBOE total proved and 1.0 MMBOE proved plus probable reserves. Reserves additions before revisions were 1.0 MMBOE total proved and 2.1 MMBOE proved plus probable, predominantly from Cardium oil horizontal drilling.
