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SUMMARY OF OIL AND GAS RESERVES
December 31, 2012 --------------------------------------------- Natural Pre-taxGross Working Interest Oil and Oil NGL Gas Total NPV 10 Gas Reserves (Mbbls) (Mbbls) (MMcf) (MBOE) ($M)Proved developed producing 2,089 595 25,150 6,875 114,369Proved developed producing and proved developed non-producing 2,158 640 29,785 7,762 121,807Total proved 3,480 964 35,118 10,297 143,960Proved plus probable 6,709 1,814 55,475 17,770 224,826---------------------------------------------------------------------------- December 31, 2011 --------------------------------------------- Natural Pre-taxGross Working Interest Oil and Oil NGL Gas Total NPV 10 Gas Reserves (Mbbls) (Mbbls) (MMcf) (MBOE) ($M)Proved developed producing 2,576 1,534 50,783 12,573 207,906Proved developed producing and proved developed non-producing 2,617 1,556 57,315 13,724 215,272Total proved 4,124 1,982 89,042 20,945 233,078Proved plus probable 7,444 3,316 141,389 34,325 355,311----------------------------------------------------------------------------
Finding, development and acquisition ("FD&A") costs on a total company basis were indeterminate in 2012, as the Company's proceeds from selling assets exceeded its field capital program expenditures. The Company believes that finding and development costs should include acquisition and disposition costs as these functions are not segregated operationally in the Company, and it is a useful and commonly used reference for shareholders and analysts. In the Cardium play, full-cycle, three year average FD&A costs including future development capital were $36.77 per BOE on a TP basis and $25.81 per BOE on a P&P basis. This compares to 2012 one year FD&A costs of $1.15 per BOE on a TP basis and $3.12 per BOE on a P&P basis and 2011 one year FD&A costs of $39.16 per BOE on a TP basis and $26.68 per BOE on a P&P basis. Using three-year production weighted average Cardium operating netbacks, this yields a recycle ratio of 2.03 before hedging gains, on a P&P basis. The aggregate of the exploration, development and acquisition costs incurred in the most recent financial year and the change during the year in estimated future development costs generally will not reflect total FD&A costs related to reserve additions for that year.
The Company's reserve life indices are 7.0 years TP and 12.0 years P&P based on an annualized mid-point estimate of the first quarter production for 2013.
Anderson's P&P pre-tax NPV 10 at December 31, 2012 was $224.8 million, 37% lower than at December 31, 2011 as a result of the property sales in the year and lower price forecasts used by GLJ. At December 31, 2012, GLJ's natural gas price and Edmonton crude oil price forecasts for the years 2013 to 2021 were an average of $0.91 per MMBtu and $7.63 per bbl lower respectively than they were last year.
In 2012, the Company experienced negative technical revisions of 0.5 MMBOE TP and 1.0 MMBOE P&P as well as negative economic factor revisions of 1.8 MMBOE TP and 4.1 MMBOE P&P. These negative economic factors were related to the reduction of undeveloped natural gas reserves in the Edmonton Sands formation.
CONTINUITY OF GROSS WORKING INTEREST RESERVES Total Proved Developed Total Proved Producing Total Proved plus Probable (MBOE) (MBOE) (MBOE)Opening Balance, December 31, 2011 12,573 20,945 34,325Additions 560 961 2,130Dispositions (4,579) (7,068) (11,410)Technical revisions 545 (509) (963)Production (2,224) (2,224) (2,224)Economic factors - (1,808) (4,088) ---------------------------------------------Closing Balance, December 31, 2012 6,875 10,297 17,770----------------------------------------------------------------------------
