2018 Reserves Highlights
- Increased the weighting of crude oil and NGL reserves to 53% over the reserve base, from 39% in 2017.
- Proved Developed Producing reserves represent 81% of Proved Reserves.
- Proved reserves represent 78% of Proved plus Probable Reserves.
- Net Asset Value (NAV) per share on a Proved basis is $0.69 /share and $2.95 /share on a Proved plus Probable basis.
Note: NAV is calculated using reserve values discounted at 10% and reduced by estimated net debt at December 31, 2018
The reserves data set forth below is based upon independent reserve assessments and evaluations prepared by:
- Sproule Associates Limited (“Sproule”) dated February 26, 2019 with an effective date of December 31, 2018; and
- McDaniel and Associates Consultants Ltd. (“McDaniel”) dated February 26, 2019 with an effective date of December 31, 2018
(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 2018.
Proved reserves comprised 78% of the Corporation’s total proved plus probable reserves at December 31, 2018. The Corporation had 349 Mboe of proved undeveloped reserves at December 31, 2018, representing 5.8% of total proved and probable reserves and 7.8% of total proved reserves.
The Future Development Capital contained in the Reserve Reports (undiscounted) is $10.2 million for the proved and probable reserves and $7.8 million for total proved reserves.
The following tables provide summary reserve information from the Reserve Reports which were prepared using Sproule’s forecasts at December 31, 2018.
|Light and Medium Crude Oil||Conventional Natural Gas||NGL||Total Oil Equivalent|
|Total Proved plus Probable||2,854||2,591||16,763||15,496||364||274||6,012||5,447|
(1) “Net” reserves means the Corporation’s working interest (operated and non-operated) share after deduction of royalty obligations, and including the Corporation’s royalty interest in reserves.
(2) Rounding may affect totals within tables.
(3) Due to effects of rounding, certain totals may not be consistent from one table to the next.
The estimated net present values before income taxes of future net revenues associated with the Corporation’s reserves effective December 31, 2018 and based on the published future price forecasts are summarized in the following table:
|Reserve Values ($’000s)|
|Total Proved and Probable||120,735||91,945||73,312||60,496||51,249|