Systematic Growth of our Reserves Values
Large Established Bitumen Reserve Base
| 30/06/10 mmbbl | 30/06/10 $mm (9) |
|---|---|---|
| Proved Reserves (1P) (1) | 182 | $1,345 |
| Proved and Probable Reserves (2P) (1)(2) | 502 | $2,702 |
| Proved, Probable and Possible Reserves (3P) (1)(2)(3) | 606 | $3,383 |
| Low Estimate Contingent Resources (4)(6) | 216 | $587 |
| Best Estima te Contingent Resources (4)(7) | 223 | $422 |
| High Estimate Contingent Resources (4)(8) | 320 | $663 |
| Low Estimate Prospective Resources (5)(6) | 0 | $0 |
| Best Estimate Prospective Resources (5)(7) | 72 | $129 |
| High Estimate Prospective Resources (5)(8) | 195 | $381 |
| (1) | Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is 90 percent likely that the actual remaining quantities recovered will exceed the estimated proved reserves. |
| (2) | Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. |
| (3) | Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is only a 10 percent probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. Possible reserves were only estimated for bitumen. Possible bitumen reserves were estimated to be 104 million barrels. |
| (4) | Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. |
| (5) | Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. |
| (6) | Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, this term reflects P90 confidence level. |
| (7) | Best Estimate is considered to be the best estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, this term is a measure of central tendency of the uncertainty distribution (P50). |
| (8) | High Estimate is considered to be an optimistic estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, the term reflects a P10 confidence level. |
| (9) | Does not include bitumen resources or undeveloped land value. |
Refer to legal disclaimer for forward-looking information disclaimer and resource advisory.
Total Corporate Bitumen and Conventional (Combined Equivalent boe) Reserves
On a combined equivalent basis, at June 30, 2010 1P bitumen and conventional reserves were estimated by GLJ to be 189 million boe; 2P combined equivalent reserves were estimated to be 512 million boe and 3P combined equivalent reserves were estimated to be 616 million boe.
The company’s 1P combined equivalent reserves at June 30, 2010 were forecast to have a 10 % PV of $1.45 billion, a decrease of 2 percent over 2009 levels.
The company’s 2P combined equivalent reserves at June 30, 2010 were forecast to have a 10 % PV of $2.85 billion, an increase of 32 percent over 2009 levels.
Connacher’s 3P combined equivalent reserves were forecast to have a 10 % PV of $3.53 billion, an increase of 7 percent over 2009 levels.
On a per share basis, this estimated 10% PV of approximately $2.85 billion for 2P combined equivalent reserves equates to approximately $6.66 per Connacher common share outstanding, before provision for the value of Contingent and Prospective resources as estimated in the GLJ Mid Year 2010 Report, the value of the company’s refinery and its investment in Petrolifera Petroleum Limited and balance sheet adjustments. There are presently approximately 428 million Connacher common shares outstanding. This indicates the achievement of a substantial uplift of reserve value per share of approximately 32 percent thus far in 2010.
Similarly, the 10% PV of the company’s combined equivalent 3P reserves equates to approximately $8.22 per common share outstanding.
No reserve volumes or future net revenue or present value thereof were assigned herein to Connacher’s 19 percent equity interest in Petrolifera Petroleum Limited’s crude oil and natural gas reserves.
Future net revenues disclosed herein do not represent fair market value. Also, estimations of reserves and future net revenue to be discussed constitute forward-looking information. See forward-looking information disclaimer and resource advisory on our legal disclaimer page.
For more information on Connacher’s Reserves, please view the most recent annual report.