- Continued to grow its high quality, long life, low decline asset base with forecast decline of 7%.
- Excluding dispositions, increased total Proved plus Probable reserves by approximately 7%.
- Proved Developed Producing reserves represent approximately 90% of Proved Reserves.
- Proved reserves represent approximately 72% of Proved plus Probable Reserves with $10 MM of future development capital to capture Probable reserves upside.
- 18% reduction in forecast operating costs.
- Net Asset Value per share on a Proved basis is $4.94 /share and $8.76 /share on a Proved plus Probable basis.
Note: Net Asset Value calculated using estimated net debt at December 31, 2016
The reserves data set forth below is based upon independent reserve assessments and evaluations prepared by:
- Sproule Associates Limited (“Sproule”) dated February 22, 2017 with an effective date of December 31, 2016;
- GLJ Petroleum Consultants (“GLJ”) dated January 25, 2017 with an effective date of December 31, 2016; and
- McDaniel and Associates Consultants Ltd. (“McDaniel”) dated February 21, 2017 with an effective date of December 31, 2016
(together referred to as the “Reserve Reports”).
The following tables summarize the Corporation’s crude oil, natural gas liquids and natural gas reserves and the net present values before income taxes of future net revenue for the Corporation’s reserves using forecast prices and costs based on the Reserve Reports. The Reserve Reports have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101).
All evaluations and reviews of future net revenues are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein for the fiscal year ended 2016.
The Corporation’s total proved plus probable reserves (including royalty interests) decreased by 5.7% in fiscal 2016 to 9,828 Mboe. Proved reserves decreased by 5.6% to 7,048 Mboe. Excluding the effect of dispositions, total proved plus probable reserves (including royalty interests) increased by 6.8% and proved reserves increased by 6.5%.
Proved reserves comprised 72% of the Corporation’s total proved plus probable reserves at December 31, 2016. The Corporation had 319 Mboe of proved undeveloped reserves (including royalty interests) at December 31, 2016, representing 3.2% of total proved and probable reserves and 4.5% of total proved reserves.
The future capital expenditures assumed in the Reserve Reports (undiscounted) is $10.0 million for the proved and probable reserves and $5.4 million for total proved reserves.
The following tables provide summary reserve information based upon the Reserve Reports and using published price forecasts used by each of Sproule, GLJ and McDaniel.
|Light and Medium
|Total Proved plus Probable||2,725||2,499||32,873||33,287||773||793||8,977||8,839|
- “Net” reserves means the Corporation’s working interest (operated and non-operated) share after deduction of royalty obligations, plus the Corporation’s royalty interest in reserves.
- Due to rounding, certain totals may not be consistent from one table to the next.
|Light and Medium
|Royalty Interest||Royalty Interest||Royalty Interest||Royalty Interest|
|Total Proved plus Probable||92||3,182||230||851|
|Light and Medium
|Company Interest1||Company Interest1||Company Interest1||Company Interest1|
|Total Proved plus Probable||2,817||36,055||1,003||9,828|
- “Company Interest” reserves means the Corporation’s working interest (operating and non-operating) share before deduction of royalties and including royalty interests of the Corporation.
The estimated before tax net present value of future net revenues associated with the Corporation’s reserves effective December 31, 2016 and based on the published future price forecasts are summarized in the following table:
|Reserve Values ($’000s)|
|Total Proved and Probable||214,365||149,576||114,851||93,166||78,355|
(1) The estimated future net revenues are stated after deducting future estimated site restoration costs and are reduced for estimated future abandonment costs and estimated capital for future development associated with the reserves.
(2) The net present value of future revenues does not represent fair market value.