LJ T t, 1

Page: 1 of 23
LJ
t, T 1 Petroleum
J Li) Consultants
Principal Officers:
Keith M. Braaten, P. Eng.
ftEng.
Executive Vice President & COO
Officers I Vice Presidents:
Caralyn R Bennett, P. Eng.
urn R. Freeborn, ft Eng.
Leonard L. Herchen, ft Eng.
Myron J. Hladyshevsky, ft Eng.
Todd J. Ikeda, P. Eng.
Bryan M. ba, ft Eng.
Mark Jobin, P. Geol.
John E. Keith, ft Eng.
february 17, 2015
roJec+
1)
11
L
,
107
Mr. Bany Jackson
Chairman of Reserves Committee
Laricina Energy Ltd.
800, 425-1st Street SE
Calgary, Alberta T2P 3L8
Dear Sir:
Re:
Germain Grand Rapids Addendum
Effective December 31, 2014
As requested by Laricina Energy Ltd. (the Company), this addendum letter (the Addendum) provides an update
to the summary of the reserves, resources and future net revenues for the Germain Grand Rapids property based
upon the GLI Petroleum Consultants (GLJ) report entitled Laricina Energy Ltd. Reserves and Resource
Assessment and Evaluation of Germain Grand Rapids Effective December 31, 2014 (GU report) dated
february 13, 2015, consistent with the Company’s post December 31, 2014 decision to (i) suspend operations at
Germain Grand Rapids Phase 1 as of February 17, 2015 and (ii) delay all future projects at Gennain Grand
Rapids by one year.
-
-
The Addendum has been prepared for the Company for the purpose of disclosure and other financial
requirements. This evaluation has been prepared in accordance with resource and reserves definitions, standards
and procedures contained in the Canadian Oil and Gas Evaluation Handbook.
It is the Company’s intention to manage the plant and wells at the Germain Grand Rapids Phase 1 to ensure
proper preservation for subsequent restart. The wells will be shut-in and suspended as per regulatory
requirements. During the suspension period, pressure and temperature data will continue to be collected from the
wells and plant for analysis and regulatory reporting.
Engineering, front end engineering design and Alberta Energy Regulatory application discussions and
correspondence for the next phase of Gennain Grand Rapids will be delayed one year.
The Addendum incorporates the suspension as of the February 17, 2015 with restart scheduled for the end of Qi
2016. Nominal operating costs during the suspension period and restart capital costs have been included.
The actual length of the delay and suspension period may differ from the time estimated subject to the
Company’s strategic alternatives process.
The analysis was conducted on the basis of the current GLJ Price forecast which is summarized in the Product
Price and Market Forecasts section of the aforementioned GU report.
4100, 600- 3rd Avenue S.W., Calgary, Alberta, Canada T2P 4H2
(403) 266-9500
Fax (403) 262-1855
GLJPC.com
Page: 2 of 23
GLJ
Petroleum Consultants
It is trusted that this evaluation meets your current requirements. Should you have any questions regarding this
analysis, please contact the undersigned.
Yours very truly,
GLJ PETROLEUM CONSULTANTS LTD.
Caralyn P. Bennett, P. Eng.
Vice President
CPB/jem
Attachments
Page: 1 of2l
Company:
Property:
Description:
Laricina Energy Ltd.
Germain Grand Rapids Addendum
PRODUCT TYPE: BITUMEN
DILBIT SALES
Resource Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GU (2015-01)
December 31, 2014
Summary of Resources and Values
Probable
Plus
Possible
Undeveloped
Probable
Undeveloped
MARKETABLE RESOURCES
Bitumen (Mbbl)
Gross Lease
Total Company Interest
Net After Royalty
Oil Equivalent (Mboe)
Gross Lease
Total Company Interest
NetAfter Royalty
BEFORE TAX PRESENT VALUE (MM$)
0%
5%
8%
10%
12%
15%
20%
FIRST 6 YEARS BEFORE TAX CASH FLOW (MM$)
2015
2016
2017
2018
2019
2020
BOE Factors:
HVY OIL
CONG
1.0
1.0
RES GAS 6.0
SLN GAS 6.0
PROPANE 1.0
BUTANE 1.0
388,934
388,934
330,983
468,276
468,276
385,820
388,934
388,934
330,983
468,276
468,276
385,820
7,711
1,706
587
193
-54
-266
-415
12,059
2,952
1,291
703
331
0
-255
-11
-162
-401
-243
-200
-492
-11
-161
-396
-239
-199
-475
ETHANE
1.0
SULPHUR 0.0
Ron Dab, Fnbroory t2, 2010 14,01,56
1143197
Class(EZE2N2),GU(20i5-Oi),psum
Febmary 122015 15:10:12
Petroleum
GIJ Consultants
Page: 2 sf21
Company:
Property:
Description:
Laricina Energy Ltd.
Germain Grand Rapids Addendum
Resource Class:
Development Class:
Pricing:
Effective Date:
PRODUCT TYPE: BITUMEN
DILBIT SALES
Various
Classifications
GLJ (2015-01)
December 31,2014
Summary of Resources and Values
Low
Estimate
Contingent
Resources
Best
Estimate
Contingent
Resources
High
Estimate
Contingent
Resources
MARKETABLE RESOURCES
Bitumen (Mbbfl
Gross Lease
Total Company Interest
Net After Royalty
Oil Equivalent (Mboe)
Gross Lease
Total Company Interest
Net After Royalty
BEFORE TAX PRESENT VALUE (MM$)
0%
5%
8%
10%
12%
15%
20%
FIRST 6 YEARS BEFORE TAX CASH FLOW (MM$)
2015
2016
2017
2018
2019
2020
BOE Factors:
HVY OIL
CONG
1.0
RES GAS 6.0
1.0
SLN GAS 6.0
PROPANE I.E
BUTANE I.E
359,742
359,742
309,353
933,302
933,302
747,836
1,098,749
1,098,749
867,570
359,742
359,742
309,353
933,302
933,302
747,836
1,098,749
1,098,749
867,570
5,700
1,515
550
187
-45
-242
-364
23,522
8,876
4,967
3,355
2,238
1,161
251
30,534
11,232
6,301
4,301
2,928
1,610
492
0
0
-32
-175
-351
-408
-1
-12
-64
-248
-601
-743
-1
-12
-77
-243
-603
-711
EThANE 1.0
SULPHUR 0.0
Rs, Dst, F,bn.sry 12, 2013 I4OI38
1143197
Class (CRI,CR2CR3). GLJ (2015-01), psum
Febma,y 12.2015 15:10:16
Iii Gil
Petroleum
Consultants
Page: 3 o121
Company:
Property:
Description:
Laricina Energy Ltd.
Germain Grand Rapids Addendum
PRODUCT TYPE: BITUMEN
D1LBIT SALES
Resource Class:
Development Class:
Pricing:
Effective Date:
Probable
Undeveloped
GU (2015-01)
December 31,2074
Economic Forecast
PRODUCTION FORECAST
Bitumen Production
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
Tot.
1143197
Probable Undeveloped, GU (2515-51), pd
Gross Oil Gross Daily
Wells
bbVd
4
7
7
7
8
53
72
78
82
131
146
172
t87
128
126
129
136
144
152
150
151
146
141
144
147
146
146
146
146
146
146
145
145
146
145
147
145
141
129
119
108
94
80
55
33
13
99
927
1,890
2,388
2,336
11,528
20,990
26,297
26,137
33,184
30,929
31,911
30,946
27,243
28,612
29,660
29,520
29,595
31,093
30,714
30,278
29,826
29,832
30,232
30,216
30,014
30,246
30,299
29,900
29,998
30,248
30,343
30,012
30,105
29,866
30,262
29,744
28,855
25,974
21,987
17,776
13,404
10,159
5,962
3,017
1,021
Company
Daily
bbUd
99
927
1,890
2,388
2,336
11,528
20,990
26,297
26,137
33,184
30,929
31,911
30,946
27,243
28,612
29,660
29,520
29,595
31,093
30,714
30,278
29,826
29,832
30,232
30,216
30,014
30,246
30,299
29,900
29,998
30,248
30,343
30,012
30,105
29,866
30,262
29,744
28,855
25,974
21,987
17,776
13,404
10,159
5,962
3,017
1,021
Company
Yearly
Mbbl
36
338
690
872
853
4,208
7,661
9,599
9,540
12,112
11,289
11,647
11,295
9,944
10,443
10,826
70,775
10,802
11,349
11,211
11,051
10,887
10,889
11,035
11,029
10,955
11,040
11,059
10,913
10,949
11,040
11,075
10,954
10,988
10,901
11,046
10,856
10,532
9,480
8,025
6,488
4,892
3,708
2,176
1,101
373
388,934
Net Yearly
Mbbl
35
322
652
818
794
3,888
7,041
8,795
8,715
11,029
10,273
10,599
10,279
9,049
9,065
9,041
8,940
9,187
9,672
9,269
9,195
9,154
9,139
9,184
9,214
9,169
9,298
9,183
9,117
9,171
9,300
9,207
9,146
9,197
9,125
9,251
8,974
8,755
7,394
6,333
5,171
3,925
3,005
1,697
897
320
330,983
Price
$/bbl
30.24
41.04
44.43
49.46
60.58
64.75
67.12
68.60
70.10
71.63
73.06
74.52
76.01
77.53
79.08
80.66
82.28
83.92
85.60
87.31
89.06
90.84
92.66
94.51
96.40
98.33
100.29
102.30
104.35
106.43
108.56
110.73
112.95
115.21
117.51
119.86
122.26
124.70
127.20
129.74
132.34
134.98
137.68
140.44
143.25
146.11
96.58
Febmsry 12,2015 15:10:32
GLJ1’°°’’
Consultants
Page: 4 sf21
Page 2
REVENUE AND EXPENSE FORECAST
Revenue Before Burdens
Working Interest
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
Tot.
Disc
1143197
Oil
MM$
1
14
31
43
52
272
514
658
669
868
825
868
859
771
826
873
887
907
971
979
984
989
1,009
1,043
1,063
1,077
1,107
1,131
1,139
1,165
1,199
1,226
1,237
1,266
1,281
1,324
1,327
1,313
1,206
1,041
859
660
511
306
158
54
37,563
5,175
Gas
MM$
NGL+Sul
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
MM$
I
14
31
43
52
272
514
658
669
868
825
868
859
771
826
873
887
907
971
979
984
989
1,009
1,043
1,063
1,077
1,107
1,131
1,139
1,165
1,199
1,226
1,237
1,266
1,281
1,324
1,327
1,313
1,206
1,041
859
660
511
306
158
54
37,563
5,175
Ptobable Undeveloped, GU (2015-01), pd
Royalty Company
Interest Interest
Total
Total
MM$
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
14
31
43
52
272
514
658
669
868
825
868
859
771
826
873
887
907
971
979
984
989
1,009
1,043
1,063
1,077
1,107
1,131
1,139
1,165
1,199
1,226
1,237
1,266
1,281
1,324
1,327
1,313
1,206
1,041
859
660
511
306
158
54
37,563
5,175
Royalty Burdens
Pre-Processing
Crown
MM$
0
1
2
3
4
21
42
55
58
78
74
78
77
69
109
144
151
136
144
169
165
157
162
175
175
176
175
192
187
189
189
207
204
206
209
215
230
222
265
220
174
131
97
67
29
8
5,840
642
Gas Processing
Allowance
Other
MM$
Other
MM$
Crown
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
2
3
4
21
42
55
58
78
74
78
77
69
109
144
151
136
144
169
165
157
162
175
175
176
175
192
187
189
189
207
204
206
209
215
230
222
265
220
174
131
97
67
29
8
5,840
642
Net
Revenue
After
Royalty
MM$
1
13
29
40
48
252
473
603
611
790
751
790
781
702
717
729
736
771
828
809
819
832
847
868
888
902
933
939
951
976
1,010
1,020
1,033
1,060
1,072
1,109
1,097
1,092
940
822
684
530
414
238
128
47
31,723
4,533
Operating Expenses
Fixed
MM$
Variable
MM$
8
43
34
27
28
246
223
195
203
219
229
227
234
239
239
243
247
259
265
265
272
278
282
289
295
300
308
310
318
326
335
337
344
351
357
368
366
368
310
274
223
175
135
90
59
27
10,774
1,670
0
2
4
5
5
31
45
54
55
59
59
56
56
59
61
63
63
65
68
67
69
70
72
73
75
76
78
79
80
82
85
86
87
89
90
93
92
91
78
64
48
32
21
11
5
1
2,602
384
Total
MM$
8
45
38
31
33
277
268
249
257
277
288
283
290
297
301
306
310
324
333
332
341
349
354
362
370
376
387
389
397
409
420
423
432
440
447
461
459
460
388
338
271
208
156
100
65
29
13,376
2,054
Febmaiy 12, 2015 15:10:32
I1 GLJ
Petroleum
Consultants
Page: 5 of2l
Page 3
Before Tax Cash Flow
Net Capital Investment
Year
Mineral
Tax
MM$
NPI
Burden
MMS
Capital Tax
MM$
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
Tot.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
o
Disc
0
0
Net Prod’n
Revenue
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Other
Income
MM$
-7
-32
-9
9
15
-25
204
354
354
513
463
507
491
404
416
423
425
447
495
477
478
483
493
506
519
526
546
550
554
567
590
597
602
619
625
648
639
632
552
484
413
322
258
138
64
18
18,348
2,479
Aband.
Costs
MM$
Oper.
Income
MM$
0
0
0
0
0
0
0
0
1
2
0
i
39
14
9
7
9
12
13
11
17
16
12
12
15
16
14
15
16
16
16
16
17
18
17
17
19
19
18
19
19
20
22
18
18
9
548
51
0
o
0
0
0
0
0
0
0
0
0
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
0
-7
-32
-9
9
15
-25
204
354
353
511
463
506
452
391
408
417
416
434
483
466
461
467
481
495
503
510
532
536
538
551
574
581
585
601
608
631
619
613
534
465
394
302
236
120
46
9
17,799
2,428
Dev.
MM$
Plant
MM$
0
19
3
2
7
235
106
34
43
142
88
98
82
130
100
98
91
122
134
100
104
116
116
118
115
120
133
121
125
138
141
130
135
144
144
159
128
134
52
56
44
37
38
4
0
0
4,188
731
Tang.
MMS
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
MM$
4
111
390
250
209
232
100
54
61
135
103
115
108
131
111
111
109
132
142
121
125
132
132
136
136
140
149
142
146
157
160
154
158
166
167
179
159
163
101
99
83
71
64
29
17
7
5,900
1,504
Annual
MM$
4
130
392
252
215
467
206
88
104
277
192
214
190
261
211
209
199
255
277
221
229
247
248
254
251
260
283
263
271
295
301
284
294
310
311
338
287
297
152
155
127
108
102
33
17
7
10,088
2,235
Cum.
MM$
-11
-162
401
-243
-200
492
-1
266
249
234
271
292
262
129
197
208
217
180
206
245
232
220
232
240
252
250
249
273
266
256
273
297
291
291
298
292
332
316
382
310
267
194
134
86
29
2
7,711
193
10.0% Dcf
MM$
-11
-173
-574
-817
-1,017
-1,509
-1,510
-1,244
-995
-761
490
-198
64
194
390
598
816
995
1,201
1,446
1,678
1,898
2,130
2,371
2,623
2,872
3,121
3,394
3,661
3,917
4,189
4,486
4,777
5,068
5,366
5,659
5,990
6,306
6,688
6,998
7,265
7,459
7,593
7,680
7,709
7,711
7,711
193
-10
-150
466
-641
-771
-1,062
-1,063
-933
-822
-728
-628
-530
451
415
-365
-318
-273
-239
-204
-166
-133
-104
-77
-51
-27
-5
15
35
52
68
83
97
110
122
134
143
154
163
172
179
185
189
191
192
193
193
193
193
SUMMARY Of RESOURCES
Remaining Resources at Jan 01,2015
Product
Bitumen
Total: Oil Eq.
Units
Mbbl
Mboe
Grass
388,934
388,934
Working
Interest
388,934
388,934
R0yINPI
Interest
Total
Company
0
0
Company
Mboe
Oil Eq.
Factor
Net
388,934
388,934
Resource Life Indlc. (yr)
Oil Equivalents
330,983
330,983
1.000
1.000
388,934
388,934
% of
Total
Resource
Life
100
100
Half
Life
Life
Index
46.0
46.0
999.9
999.9
23.6
23.6
PRODUCT REVENUE AND EXPENSES
Net Revenue After Royalties
Average First Year Unit Values
Product
Bitumen
Total: Oil Eq.
1143197
Units
$/bbl
$/boe
Base Price Price Adjust.
64.71
64.71
Probable Undeveloped, 61.) (2015-01), pri
-34.46
-34.46
Wellhead
Price
30.24
30.24
Net Burdens
0.99
0.99
Operating
Expenses
233.64
233.64
Other
Expenses
0.00
0.00
Pmd’n
Revenue
-204.39
-204.39
Undisc
MM$
31,723
31,723
% of
Total
100
100
10% Disc
MM$
4,533
4,533
% of
Total
100
100
February 12,2015 15:10:32
Petroleum
GLJ Consultants
Page: 6 sf21
Page 4
INTEREST AND NET PRESENT VALUE SUMMARY
Net Present Value Before Income Tax
Revenue Interests and Burdens
(%)
Initial
Workinglnterest
Capital Interest
Royalty Interest
Crown Royalty
Non-crown Royalty
Mineral Tax
EvaIuator
Run Date:
1143197
100.0000
100.0000
0.0000
3.2805
0.0000
0.0000
Average
100.0000
100.0000
0.0000
15.5464
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prodn Operating Capital
Revenue Income Invest
MM$
MM$
MM$
18,348
5,922
3,422
2,479
1,848
1,242
697
17,799
5,775
3,346
2,428
1,812
1,220
687
10,088
4,070
2,759
2,235
1,866
1,487
1,102
Cash Flow
MM$
S/hoe
7,711
1,706
587
193
-54
-266
415
19.83
4.39
1,51
0.50
-0.14
-0.68
-1.07
Wong, Angie
February 12,2015 14:01:54
Probable Undeveloped, GU (2015-01), pri
Febraaiy 12,2015 15:10:32
I] GLJ
Petroleum
Consultants
Page: 7 at 21
Company:
Property:
Description:
Laricina Energy Ltd.
Germain Grand Rapids Addendum
PRODUCT TYPE: BITUMEN
DILBIT SALES
Resource Class:
Development Class:
Pricing:
Effective Date:
Probable Plus Possible
Undeveloped
GLI (2015-01)
December 31, 2014
Economic Forecast
PRODUCTION FORECAST
Bitumen Production
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
Tot,
1143197
Gross Oil Gross Daily
Wells
bblld
4
7
7
7
8
56
66
73
81
129
144
159
181
154
127
133
140
151
154
152
155
145
147
146
149
148
151
151
147
148
148
149
148
149
151
147
148
148
149
140
130
121
106
96
76
54
32
9
3
1
Probable PIes Possible Uadevelsped, GU (2015-01), pri
99
1,095
2,233
2,638
2,423
14,237
23,514
28,578
28,625
36,642
34,184
33,986
35,155
33,561
32,163
33,736
34,068
35,469
34,854
35,057
35,373
34,422
34,455
34,538
35,049
34,509
34,849
35,104
34,604
34,681
34,610
34,964
34,446
34,664
35,104
34,604
34,681
34,610
34,964
32,286
28,094
23,606
18,789
15,475
10,703
6,638
3,426
971
312
97
Company
Daily
bbl/d
99
1,095
2,233
2,638
2,423
14,237
23,514
28,578
28,625
36,642
34,184
33,986
35,155
33,561
32,163
33,736
34,068
35,469
34,854
35,057
35,373
34,422
34,455
34,538
35,049
34,509
34,849
35,104
34,604
34,681
34,610
34,964
34,446
34,664
35,104
34,604
34,681
34,610
34,964
32,286
28,094
23,606
18,789
15,475
10,703
6,638
3,426
971
312
97
Company
Yearly
Mbbl
36
400
815
963
884
5,196
8,583
10,431
10,448
13,374
12,477
12,405
12,831
12,250
11,739
12,314
12,435
12,946
12,722
12,796
12,911
12,564
12,576
12,606
12,793
12,596
12,720
12,813
12,631
12,658
12,633
12,762
12,573
12,652
12,813
12,631
12,658
12,633
12,762
11,785
10,254
8,616
6,858
5,648
3,907
2,423
1,251
355
114
35
468,276
Net Yearly
Mbbl
35
381
770
903
824
4,802
7,888
9,558
9,544
12,179
11,354
11,252
10,579
9,942
9,729
9,987
10,093
10,520
10,321
10,418
10,381
10,183
10,126
10,186
10,378
10,132
10,297
10,328
10,230
10,195
10,187
10,356
10,118
10,250
10,328
10,230
10,195
10,187
10,356
9,100
7,944
6,819
5,359
4,452
3,034
1,903
1,027
323
104
32
385,820
Price
$/bbl
30.24
41.04
44.43
49.46
60.58
64.75
67.12
68.60
70.10
71.63
73.06
74.52
76.01
77.53
79.08
80.66
82.28
83.92
85.60
87.31
89.06
90.84
92.66
94.51
96.40
98.33
100.29
102.30
104.35
106.43
108.56
110.73
112.95
115.21
117.51
119.86
122.26
124.70
127.20
129.74
132.34
134.98
137.68
140.44
143.25
146.11
149.03
152.01
155.05
158.15
98.73
Febniaiy 12,2015 15:10:39
Petroleum
GLJ Consultants
Page: 8 ot2l
Pa$e 2
REVENUE AND EXPENSE FORECAST
Revenue Before Burdens
Working Interest
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
204$
2049
2050
2051
2052
2053
2054
2055
2056
2057
205$
2059
2060
2061
2062
2063
2064
Tot.
Disc
1143197
Oil
MM$
Gas
MM$
NGL+Sul
MM$
Total
MM$
Royalty Company
Interest interest
Total
Total
MM$
MM$
Royalty Burdens
Pro-Processing
Gas Processing
Allowance
Crown
MM$
Crown
MM$
Other
MM$
Total
Royalty
After
Process.
MM$
Other
MM$
Net
Revenue
After
Royalty
MM$
Operating Expenses
Fixed
Variable
Total
MM$
MM$
MM$
1
16
36
48
54
336
576
716
732
958
912
924
975
950
928
993
1,023
1,086
1,089
1,117
1,150
1,141
1,165
1,191
1,233
1,239
1,276
1,311
1,318
1,347
1,371
1,413
1,420
1,458
1,506
1,514
1,548
1,575
1,623
1,529
1,357
1,163
944
793
560
354
186
54
18
6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
16
36
48
54
336
576
716
732
958
912
924
975
950
928
993
1,023
1,086
1,089
1,117
1,150
1,141
1,165
1,191
1,233
1,239
1,276
1,311
1.31$
1,347
1,371
1,413
1,420
1,458
1,506
1,514
1,548
1,575
1,623
1,529
1,357
1,163
944
793
560
354
186
54
18
6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
16
36
48
54
336
576
716
732
958
912
924
975
950
928
993
1,023
1,086
1,089
1,117
1,150
1,141
1,165
1,191
1,233
1,239
1,276
1,311
1.31$
1,347
1,371
1,413
1,420
1,458
1,506
1,514
1,548
1,575
1,623
1,529
1,357
1,163
944
793
560
354
186
54
18
6
0
1
2
3
4
26
47
60
63
86
82
86
171
179
159
188
193
204
206
208
225
216
227
229
233
242
243
254
251
262
265
266
277
277
292
28$
301
305
306
348
306
243
206
16$
125
76
33
5
2
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
2
3
4
26
47
60
63
86
82
86
171
179
159
188
193
204
206
208
225
216
227
229
233
242
243
254
251
262
265
266
277
277
292
288
301
305
306
34$
306
243
206
16$
125
76
33
5
2
1
1
16
34
45
50
311
529
656
669
872
830
839
804
771
769
806
830
883
883
910
924
925
938
963
1,000
996
1,033
1,057
1,067
1,085
1,106
1,147
1,143
1,181
1,214
1,226
1,246
1,270
1,317
1,181
1,051
920
73$
625
435
278
153
49
16
5
8
43
35
27
28
255
215
195
203
214
227
232
245
245
242
246
256
259
268
273
280
282
287
294
300
304
313
320
324
330
339
344
350
359
368
372
379
389
395
369
345
316
227
189
146
105
70
34
12
4
0
3
4
5
5
36
45
55
56
59
60
61
63
64
64
66
68
69
71
72
75
75
76
78
80
81
83
$5
$6
88
90
92
93
95
98
99
101
103
105
95
$0
65
49
36
24
14
7
2
1
0
46,235
0
0
46,235
0
46,235
8,437
0
0
0
8,437
37,798
11,865
2,984
5,934
0
0
5,934
0
5,934
880
0
0
0
880
5,054
1,705
411
Probable Plus Possible Undeveloped. GLJ (2015-01), pu
8
46
39
32
33
291
260
250
259
273
287
293
307
309
306
312
324
329
339
345
355
357
364
373
380
385
397
406
411
418
429
436
442
454
466
472
480
492
500
464
425
381
276
225
170
118
77
36
13
4
14,849
2,117
Febnsasy 12, 2015 15:10:39
Petroleum
GLJ Consultants
Page: 9 of2l
Page 3
Before Tax Cash Flow
Net Capital Investment
Year
Mineral
Tax
MM$
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
Tot.
Disc
N?1
Burden
MM$
Capital Tax
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net Pmd’n
Revenue
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Other
Income
MM$
-7
-30
-5
13
17
20
269
406
410
599
542
546
497
462
463
493
506
554
544
565
569
568
574
590
620
611
636
651
657
667
677
711
700
726
747
754
766
778
817
717
627
540
462
400
265
160
76
13
3
1
22,949
2,937
Aband.
Costs
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Oper.
Income
MM$
0
0
0
0
0
0
0
0
1
0
2
0
15
29
9
7
7
10
14
11
17
12
14
12
13
12
15
15
15
15
15
15
16
16
18
17
17
17
18
18
18
20
19
20
20
20
21
6
2
1
557
47
-7
-30
-5
13
17
20
269
406
409
599
540
545
482
432
454
486
499
545
530
554
553
557
560
578
607
599
621
635
642
652
662
696
685
711
730
738
749
761
799
699
609
520
443
381
245
139
55
8
1
0
22,392
2,891
Dev.
MM$
Plant
MM$
0
19
2
2
7
251
56
40
43
148
82
78
111
88
96
98
104
106
106
117
107
100
104
116
114
108
123
125
114
122
130
130
124
141
144
131
141
149
150
65
54
55
38
46
12
4
0
0
0
0
4,199
699
Total
MMS
Tang.
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
112
389
250
209
244
65
57
61
138
99
99
127
110
109
112
119
123
125
133
128
122
126
135
135
132
145
147
141
147
154
156
152
166
169
161
169
177
179
120
109
106
82
81
48
33
19
8
3
I
6,134
1,489
Annual
MM$
-11
-161
-396
-239
-199
475
148
309
306
313
359
368
244
235
249
276
276
315
300
304
318
336
330
327
358
358
354
362
387
383
378
410
409
404
416
445
439
435
471
514
446
359
323
254
185
103
36
0
-2
-1
12,059
703
4
131
391
252
215
495
121
96
103
286
181
177
238
198
205
210
223
229
231
250
234
221
230
251
249
240
267
273
255
270
284
286
276
307
313
293
310
326
329
184
163
161
120
127
60
37
19
8
3
1
10,333
2,188
10.0% Dcf
MM$
Cum.
MM$
-11
-172
-568
-807
-1,006
-1,481
-1,333
-1,023
-717
404
45
323
567
802
1,051
1,327
1,603
1,918
2,218
2,522
2,840
3,176
3,506
3,833
4,191
4,549
4,903
5,266
5,653
6,036
6,414
6,824
7,233
7,637
8,053
8,498
8,938
9,372
9,843
10,357
10,803
11,161
11,484
11,738
11,923
12,026
12,062
12,062
12,060
12,059
12,059
703
-10
-150
-462
-633
-763
-1,044
-964
-813
-677
-550
418
-295
-221
-156
-94
-31
27
86
138
185
230
273
312
347
381
413
441
468
493
516
537
557
576
592
608
623
637
649
661
673
682
689
695
699
701
703
703
703
703
703
703
703
SUMMARY OF RESOURCES
Remaining Resources at Jan 01,2015
Product
Bitumen
Total: Oil Eq.
Units
Mbbl
Mboe
Grass
468,276
468,276
Working
Interest
468,276
468,276
Total
Company
Roy/NPI
Interest
0
0
Oil Eq.
Factor
Net
468,276
468,276
Resource Life Indic. (yr)
Oil Equivalents
385,820
385,820
Company
Mboe
1.000
1.000
468,276
468,276
% of
Total
Resource
Life
50.0
50.0
100
100
Life
Index
-
Half
Life
24.6
24.6
999.9
999.9
PRODUCT REVENUE AN]) EXPENSES
Net Revenue After Royalties
Average First Year Unit Values
Product
Bitumen
Total: Oil Eq.
1143197
Units
$/bbl
$/boe
Base Price Price Adjust.
64.71
64.71
-34.46
-34.46
Prabablc Plus Passible Undeveloped, GU (2015-01). pri
Wellhead
Price
30.24
30.24
Net Burdens
0.99
0.99
Operating
Expenses
233.64
233.64
Other
Expenses
0.00
0.00
Prod’n
Revenue
-204.39
-204.39
Undise
MM$
% of
Total
37,798
37,798
100
100
10% Disc
MMS
5,054
5,054
% of
Total
100
100
Febnssiy 12,2015 15:10:39
G Gil
Petroleum
Consultants
Page: lOof2l
Page
4
INTEREST AND NET PRESENT VALUE SUMMARY
Net Present Value Before Income Tax
Revenue Interests and Burdens
(%)
Initial
Working Interest
Capital Interest
Royalty Interest
Crown Royalty
Non-cmwnRoyalty
Mineral Tax
Evaluator
Run Date:
1143197
100.0000
100.0000
0.0000
3.2805
0.0000
0.0000
Average
100.0000
100.0000
0.0000
18.2481
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Pmdn Operating Capital
Revenue Income Invest
MMS
MM$
MM$
22,949
7,117
4,067
2,937
2,188
1,474
836
22,392
6,978
3,997
2,891
2,156
1,455
827
10,333
4,025
2,707
2,188
1,826
1,455
1,082
Cash Flow
MM$
$/boe
12,059
2,952
1,291
703
331
0
-255
25.75
6.30
2.76
1.50
0.71
0.00
-0.54
Wong, Angie
february 12,2015 14:01:56
Probable Plus Possible Uadeveloped, GU (2015-01), pd
February 12,2015 15:10:39
G GLJ
Consultants
Page: 11 sf21
Company:
Property:
Description:
Lariclna Energy Ltd.
Germain Grand Rapids Addendum
PRODUCT TYPE: BITUMEN
DILBLT SALES
Resource Class:
Development Class:
Pricing:
Effective Date:
Contingent Resources
Low Estimate
GLJ (201541)
December 31, 2014
Economic Forecast
PRODUCTION FORECAST
Bitumen Production
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
Tot
1143197
Gross Oil Gross Daily
Wells
bbVd
0
0
0
0
0
0
6
130
140
143
167
198
241
259
168
185
209
219
215
198
208
203
208
209
205
208
201
177
149
117
89
59
29
4
Law Estimate Csstisgest Rcsosrces, GD (2015.sl), psi
0
0
0
0
0
0
990
25,392
43,521
44,458
41,474
41,155
46,939
49,882
41,650
43,628
45,037
45,693
45,410
44,123
45,239
44,455
44,890
45,062
44,657
45,012
44,004
38,687
29,843
20,471
13,046
7,334
3,129
411
Company
Daily
bblld
0
0
0
0
0
0
990
25,392
43,521
44,458
41,474
41,155
46,939
49,882
41,650
43,628
45,037
45,693
45,410
44,123
45,239
44,455
44,890
45,062
44,657
45,012
44,004
38,687
29,843
20,471
13,046
7,334
3,129
411
Company
Yearly
Mbbl
0
0
0
0
0
0
361
9,268
15,885
16,227
15,138
15,022
17,133
18,207
15,202
15,924
16,439
16,678
16,575
16,105
16,512
16,226
16,385
16,448
16.300
16,429
16,062
14,121
10,893
7,472
4,762
2,677
1,142
150
359,742
Net Yearly
Mbbl
0
0
0
0
0
0
332
8,492
14,511
14,777
13,776
13,670
15,591
16,568
13,834
14,086
13,929
14,285
13,856
13,772
13,832
13,635
13,959
13,790
13.789
13,884
13,354
10,852
8,179
5,698
3,693
2,113
957
137
309,353
Price
$/bbl
0.00
0.00
0.00
0.00
0.00
0.00
70.63
72.11
73.61
75.14
76.64
78.17
79.73
81.33
82.96
84.61
86.31
88.03
89.79
91.59
93.42
95.29
97.20
99.14
101.12
103.14
105.21
107.31
109.46
111.65
113.88
116.16
118.48
120.85
90.66
Febniay 12, 2015 15:10:17
I1 GLJ
Consu[tants
Page: 12of21
Page 2
REVENUE AND EXPENSE FORECAST
Revenue Before Burdens
Working Interest
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Oil
MM$
Gas
MMS
NGL+Sul
MMS
0
0
0
0
0
0
26
668
1,169
1,219
1,160
1,174
1,366
1,481
1,261
1,347
1,419
1,468
1,488
1,475
1,543
1,546
1,593
1,631
1,648
1,695
1,690
1,515
1,192
834
542
311
135
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2048
18
0
Tot.
Disc
32,615
6,190
0
0
1143197
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
MM$
Royalty Company
Interest Interest
Total
Total
MM$
MM$
0
0
0
0
0
0
26
668
1,169
1,219
1,160
1,174
1,366
1,481
1,261
1,347
1,419
1,468
1,488
1,475
1,543
1,546
1,593
1,631
1,648
1,695
1,690
1,515
1,192
834
542
311
135
18
32,615
6,190
Low Estimate Contingent Resources, GIJ (2015-Ot), psi
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
26
66$
1,169
1,219
1,160
1,174
1,366
1,481
1,261
1,347
1,419
1,468
1.488
1,475
1,543
1,546
1,593
1,631
1,648
1,695
1,690
1,515
1,192
834
542
311
135
18
32,615
6,190
Royalty Burdens
Pre—Processing
Gas Processing
Allowance
Crown
MM$
Crown
MM$
0
0
0
0
0
0
2
56
101
109
104
106
123
133
114
156
217
211
244
214
250
247
236
263
254
262
285
351
297
198
122
66
22
2
4,743
751
Other
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
MM$
Other
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
56
101
109
104
106
123
133
114
156
217
211
244
214
250
247
236
263
254
262
285
351
297
198
122
66
22
2
4,743
751
Net
Revenue
After
Royalty
MM$
0
0
0
0
0
0
23
612
1,068
1,110
1,056
1,069
1,243
1,347
1,148
1,192
1,202
1,258
1,244
1,261
1,292
1,299
1,357
1,367
1,394
1,432
1,405
1,165
895
636
421
245
113
17
27,873
5,440
Operating Expenses
Vatiable
MM$
fixed
MM$
0
0
0
0
0
0
140
451
332
301
330
351
379
370
365
373
386
402
404
410
419
424
440
444
453
465
461
408
307
235
167
105
60
13
9,394
1,903
0
0
0
0
0
0
3
70
85
87
86
88
92
96
94
97
100
102
104
105
108
109
113
115
116
120
118
100
76
51
30
14
6
1
2,287
449
Total
MM$
0
0
0
0
0
0
143
521
416
38$
415
439
471
466
459
471
486
504
508
516
528
534
552
559
569
585
579
507
383
286
197
119
65
14
11,682
2,352
February 12, 2015 l5:10:t7
I] GLJ
Petroleum
Consultants
Page: 13 sf21
Page 3
Before Tax Caah Flow
Net Capital Investment
Mineral
Tax
MM$
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2048
o
Tot.
Disc
NFl
Burden
MM$
Capital Tax
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net Prod’n
Revenue
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
0
Other
Income
MM$
0
0
0
0
0
0
-119
91
652
723
640
629
772
881
688
721
716
753
736
746
764
766
804
808
825
848
825
657
512
351
224
127
48
0
2
0
0
16,191
3,088
Aband.
Costs
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Oper.
Income
MM$
Dev.
MM$
Plant
MM$
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
0
79
6
2
16
21
34
13
24
20
20
26
0
0
0
-119
91
652
723
640
626
772
803
682
719
700
732
702
733
740
746
784
782
1
35
707
61
20
147
193
310
118
207
165
169
216
175
210
186
190
221
197
0
21
804
216
0
0
0
0
0
0
0
0
0
26
23
23
27
24
27
27
23
4
492
67
822
803
634
485
326
197
99
25
-1
15,699
3,021
220
187
31
0
0
0
0
0
0
4,184
1,031
o
0
Tang.
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
Total
MM$
0
0
32
174
350
407
302
587
87
62
153
193
283
161
198
176
186
221
195
215
203
206
230
216
228
234
211
100
66
53
41
28
15
Annual
MMS
0
0
32
175
351
408
337
1,294
147
82
301
386
593
279
405
341
354
437
370
425
389
395
451
413
444
454
398
131
66
53
41
28
15
Cum.
MM$
0
0
-32
-175
-351
-408
-457
-1,203
505
Ml
340
240
179
524
277
378
346
295
332
308
352
350
333
369
360
368
404
503
418
273
156
71
10
o
s,sis
3
3
-4
0
1,804
9,999
2,835
5,700
187
10.0% Dcf
MM$
0
0
-32
-207
-558
-966
-1,422
-2,625
-2,120
-1,480
-1,140
-900
-722
-198
80
458
804
1,098
1,430
1,738
2,089
2,440
2,773
3,142
3,501
3,869
4,274
4,776
5,195
5,467
5,623
5,694
5,704
5,700
5,700
187
0
0
-25
-150
-379
-620
-866
-1,455
-1,230
-971
-846
-766
-712
-567
497
411
-339
-284
-227
-179
-129
-84
45
-6
29
61
94
130
158
174
183
186
187
187
187
187
SUMMARY OF RESOURCES
Remaining Resources at Jan 01, 2015
Product
Units
Mbbi
Bitumen
Total: Oil Eq.
Working
Interest
Gross
359,742
359,742
Mboe
359,742
359,742
Total
Company
Roy/NPI
Interest
0
0
Oil Eq.
Factor
Net
359,742
359,742
Resource Life lndic. (yr)
011 Equivalents
309,353
309,353
Company
% of
Total
Mboe
359,742
359,742
1.000
1.000
Resource
Life
100
100
34.0
34.0
Life
Index
Half
Life
18.5
18.5
995.5
995.5
PRODUCT REVENUE AND EXPENSES
Net Revenue After Royalties
Average FIrst Year Unit Values
Product
Bitumen
Total: Oil Eq.
Units
Base Price Price Adjust
$/bbl
$/boe
0.00
0.00
0.00
0.00
Wellhead
Price
0.00
0.00
Net Burdens
0.00
0.00
Operating
Expenses
0.00
0.00
Other
Expenses
Prod’n
Revenue
0.00
0.00
0.00
0.00
Undisc
MM$
%of
Total
27,873
27,873
100
100
10% Disc
MM$
%of
Total
100
100
5,440
5,440
INTEREST AND NET PRESENT VALUE SUMMARY
Net Present Value Before Income Tax
Revenue Interests and Burdens (%)
Initial
Working Interest
Capital Interest
Royalty Interest
Crown Royalty
Non-crown Royalty
Mineral Tax
Evaluator
Run Date:
1143197
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
Average
100.0000
100.0000
0.0000
14.5413
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod’n Operating Capital
Revenue Income Invest.
MM$
MMS
MM$
16,191
6,650
4,142
3,088
2,339
1,582
876
15,699
6,481
4,047
3,021
2,291
1,553
862
9,999
4,966
3,497
2,835
2,336
1,795
1,225
Cash Flow
5/hoe
MM$
5,700
1,515
550
187
45
-242
-364
15.84
4.21
1.53
0.52
-0.13
-0.67
-1.01
Wong, Angie
February 05,2015 13:03:00
Law Estimate Costingest Resources, GIJ (2015-01), pri
February 12, 2015 15:10:17
G GLJ
Petroleum
Consultants
Page: 14 of 21
Company:
Property:
Description:
Laricina Energy Ltd.
Germain Grand Rapids Addendum
PRODUCT TYPE: BITUMEN
DILBIT SALES
Resource Class:
Development Class:
Pricing:
Effective Date:
Contingent Resources
Best Estimate
GLI (2015-01)
December 31,2014
Economic Forecast
PRODUCTION FORECAST
Bitumen Production
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
Tot
1143197
Company
Gross Oil Gross Daily
Daily
Wells
bblld
bbl/d
0
0
0
0
2
-10
13
91
140
149
180
201
231
313
362
303
287
246
247
247
219
218
204
182
161
151
133
140
139
113
72
39
4
-32
-64
-103
-130
-141
-129
-119
-108
-94
-80
-55
-33
-13
Best Estimate Contingent Resources, 05.3 (2015-01). psi
0
311
1,001
1,174
453
4,542
25,648
66,873
116,922
139,778
149,525
147,496
147,359
151,804
157,483
151,464
149,214
138,904
133,251
129,118
119,620
110,201
105,525
96,284
88,325
83,303
78,954
76,580
74,457
63,787
43,297
19,092
528
-12,363
-20,222
-26,016
-28,529
-28,855
-25,974
-21,987
-17,776
-13,404
-10,159
-5,962
-3,017
-1,021
0
311
1,001
1,174
453
4,542
25,648
66,873
116,922
139,778
149,525
147,496
147,359
151,804
157,483
151,464
149,214
138,904
133,251
129,118
119,620
110,201
105,525
96,284
88,325
83,303
78,954
76,580
74,457
63,787
43,297
19,092
528
-12,363
-20,222
-26,016
-28,529
-28,855
-25,974
-21,987
-17,776
-13,404
-10,159
-5,962
-3,017
-1,021
Company
Yearly
MbbI
0
114
366
429
165
1,658
9,361
24,409
42,677
51,019
54,576
53,836
53,786
55,408
57,481
55,285
54,463
50,700
48,637
47,128
43,661
40,223
38,517
35,144
32,239
30,405
28,818
27,952
27,177
23,282
15,803
6,969
193
4,512
-7,381
-9,496
-10,413
-10,532
-9,480
-8,025
-6,488
4,892
-3,708
-2,176
-1,101
-373
933,302
Net Yearly
Mbbl
0
108
345
402
154
1,532
8,604
22,366
38,984
46,458
48,477
45,932
45,396
43,895
44,777
44,043
42,838
40,159
38,033
37,148
33,693
31,849
29,624
26,907
24,609
23,295
21,988
21,668
20,702
17,010
10,208
3,667
-1,311
4,706
-6,722
-8,193
-8,614
-8,755
-7,394
-6,333
-5,171
-3,925
-3,005
-1,697
-897
-320
747,836
Price
$Ibbl
0.00
41.04
44.43
57.52
60.58
72.70
73.50
73.49
74.39
75.97
77.38
78.96
80.52
82.01
83.66
85.39
87.10
88.91
90.77
92.61
94.53
96.49
98.48
100.59
102.74
104.88
107.09
109.29
111.51
114.10
117.60
124.78
432.72
107.11
114.77
118.90
122.00
124.70
127.20
129.74
132.34
134.98
137.68
140.44
143.25
146.11
67.06
Febmaty 12,2015 15:1024
Petroleum
GLJ Consuftants
Page: 15 of2l
Page 2
REVENUE AND EXPENSE FORECAST
Revenue Before Burdens
Working interest
Year
2015
2016
2017
201$
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
Tot.
Disc
1143197
Oil
MM$
0
5
16
25
10
121
688
1,794
3,175
3,876
4,223
4,251
4,331
4,544
4,809
4,721
4,744
4,508
4,415
4,364
4,127
3,881
3,793
3,535
3,312
3,189
3,086
3,055
3,031
2,656
1,658
870
83
483
=847
-1,129
-1,270
-1,313
=1,206
-1,041
-859
-660
-511
-306
-158
-54
81,257
18,657
Gas
MM$
NGL+Sui
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
MM$
Royalty Company
Interest Interest
Total
Total
MM$
MM$
0
5
16
25
10
121
688
1,794
3,175
3,876
4,223
4,251
4,331
4,544
4,809
4,721
4,744
4,508
4,415
4,364
4,127
3,881
3,793
3,535
3,312
3,189
3,086
3,055
3,031
2,656
1,858
870
83
483
-847
-1,129
-1,270
-1,313
-1,206
-1,041
-859
-660
-511
-306
-158
-54
81,257
18,657
Best Estimate Costisgest Resosrccs,
GU (2015-01), pd
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
0
0
5
16
25
10
121
688
1,794
3,175
3,876
4,223
4,251
4,331
4,544
4,809
4,721
4,744
4,508
4,415
4,364
4,127
3,881
3,793
3,535
3,312
3,189
3,086
3,055
3,031
2,656
1,858
870
83
483
-647
-1,129
-1,270
-1,313
-1,206
-1,041
-859
-660
-511
-306
-158
-54
81,257
18,657
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
MMS
Crown
MM$
0
0
1
2
1
9
56
150
275
346
471
622
673
940
1,059
958
1,011
935
959
922
939
806
872
825
780
742
727
684
718
710
646
394
18$
34
-71
-153
-220
-222
-265
-220
-174
-131
-97
-67
-29
-8
16,797
3,186
Other
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
MM$
Other
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
2
1
9
56
150
275
346
471
622
673
940
1,059
958
1,011
935
959
922
939
806
872
825
780
742
727
684
718
710
646
394
188
34
-71
-153
-220
-222
-265
-220
-174
-131
-97
-67
-29
-8
16,797
3,186
Net
Revenue
After
Royalty
MM$
0
4
15
23
9
111
632
1,644
Z900
3,529
3,752
3,629
3,658
3,604
3,750
3,762
3,733
3,573
3,456
3,442
3,188
3,076
2,921
2,710
2,532
2,447
2,359
2,371
2,313
1,947
1,212
476
-105
-517
-776
-976
-1,051
-1,092
-940
-822
-684
-530
414
-238
-128
47
64,460
15,471
Operating Expenses
Variable
MM$
fixed
MM$
1
6
28
24
-5
15
384
956
1,414
1,671
1,503
1,346
1,399
1,269
1,360
1,377
1,435
1,371
1,279
1,267
1,214
1,081
1,021
904
801
778
763
748
759
675
372
64
-141
-261
-324
-356
-347
-366
-310
-274
-223
-175
-135
-90
-59
-27
24,186
6,250
0
0
1
1
0
5
32
114
181
225
238
244
248
255
261
263
259
249
242
239
217
208
190
172
157
148
140
139
133
107
58
ii
-28
-56
-74
-87
-90
-91
-76
-64
48
-32
-21
-11
-5
-1
4,054
1,015
Total
MM$
1
6
28
25
-5
21
416
1,070
1,594
1,896
1,741
1,591
1,646
1,524
1,621
1,640
1,694
1,620
1,521
1,506
1,432
1,289
1,211
1,077
956
926
903
888
892
782
430
75
-169
-317
-398
444
438
460
-388
-338
-271
-206
-156
-100
-65
-29
28,239
7,266
Febmaiy 12, 2015 15:tO:24
I1 GLJm
Consultants
Page: 16 of 21
Page 3
Before Tax Cash Flow
Net Capital Investment
Year
Mineral
Tax
MM$
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
ToL
Disc
NPI
Burden
MM$
Capital Tax
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net Prod’n
Revenue
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Other
Income
MM$
Aband.
Costs
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-1
-2
-13
-I
14
90
216
573
1,306
1,633
2,011
2,039
2,012
2,080
2,128
2,122
2,039
1,953
1,935
1,936
1,756
1,787
1,710
1,633
1,574
1,521
1,456
1,484
1,421
1,165
782
401
65
-200
-378
-531
-613
-632
-552
484
413
-322
-258
-138
-64
-18
36,221
8,205
Oper.
Income
MIStS
0
0
0
0
0
0
0
2
-1
-2
2
-1
-14
-12
64
27
45
13
20
29
22
25
28
29
21
25
9
10
17
14
14
16
16
13
19
11
4
-19
-18
-19
-19
-20
-22
-18
-18
-9
295
55
o
0
-1
-2
-13
-1
14
90
216
572
1,306
1,635
2,009
2,040
2,025
2,092
2,064
2,095
1,995
1,940
1,915
1,908
1,734
1,762
1,682
1,604
1,553
1,495
1,447
1,473
1,404
1,151
768
385
49
-213
-397
-543
-609
-613
-534
465
-394
-302
-236
-120
46
-9
35,926
8,150
Dcv.
MM$
Plant
MM$
0
3
0
10
26
-10
177
525
359
259
229
250
240
329
260
329
232
245
220
254
128
277
176
171
189
190
165
211
148
5
-141
-130
-135
-144
-144
-159
-128
-134
-52
-56
44
-37
-38
4
0
0
4,249
1,397
Tang.
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
MM$
0
10
52
247
615
834
1,192
1,517
956
590
470
512
507
674
576
677
513
528
485
540
324
570
396
378
397
395
347
426
320
73
-193
-193
-219
-252
-269
-315
-278
-297
-152
-155
-127
-108
-102
-33
-17
-7
12,403
4,795
0
6
52
237
590
844
1,015
992
597
331
241
263
267
345
315
348
282
282
264
287
196
293
220
207
209
206
182
215
172
68
-52
-62
-83
-108
-125
-156
-150
-163
-101
-99
-83
-71
-64
-29
-17
-7
8,154
3,398
o
0
Annual
MM$
Cum.
MMS
-1
-12
-64
-248
-601
-743
-976
-946
350
1,045
1,540
1,527
1,519
1,419
1,488
1,418
1,481
1,413
1,430
1,367
1,409
1,192
1,286
1,226
1,156
1,100
1,100
1,047
1,084
1,077
961
578
268
40
-128
-228
-331
-316
-382
-310
-267
-194
-134
-86
-29
-2
23,522
3,355
10.0% Dcf
MM$
-1
-13
-77
-325
-927
-1,670
-2,646
-3,591
-3,241
-2,196
-657
870
2,389
3,807
5,296
6,714
8,196
9,608
11,038
12,405
13,814
15,006
16,292
17,519
18,675
19,775
20,875
21,922
23,005
24,083
25,044
25,622
25,890
25,929
25,802
25,574
25,243
24,927
24,545
24,235
23,968
23,774
23,640
23,554
23,524
23,522
23,522
3,355
-1
-11
-62
-240
-631
-1,071
-1,597
-2,059
-1,904
-1,481
-915
405
57
448
822
1,146
1,453
1,720
1,965
2,178
2,378
2,531
2,682
2,813
2,924
3,021
3,109
3,185
3,257
3,322
3,374
3,403
3,415
3,417
3,412
3,404
3,394
3,385
3,376
3,368
3,363
3,359
3,357
3,355
3,355
3,355
3,355
3,355
SUMMARY Of RESOURCES
Remaining Resources at Jan 01,2015
Product
Bitumen
Total: Oil Eq.
Units
Mbbl
Mboe
Working
Interest
Gross
933,302
933,302
933,302
933,302
Roy/NP!
Interest
Total
Company
0
0
Oil Eq.
factor
Net
933,302
933,302
Resource Life Indlc. (sr)
Oil Equivalents
747,836
747,836
Company
Mboe
1.000
1.000
Resource
Life
% of
Total
933,302
933,302
100
100
46.0
46.0
Life
Index
Half
Life
999.9
999.9
16.1
16.1
PRODUCT REVENUE AND EXPENSES
Net Revenue After Royalties
Average FIrst Year Unit Values
Product
Bitumen
Total: Oil Eq.
1143197
Units
$/bbl
s/hoe
Base Price Price Adjust.
0.00
o.oo
0.00
0.00
Best Estimate Coatisgcst Rcsssrces, oW (2015-01), pri
Wellhead
Price
0.00
0.00
Net Burdens
0.00
0.00
Operating
Expenses
0.00
0.00
Other
Expenses
0.00
0.00
Pmd’n
Revenue
0.00
0.00
Undisc
MM$
% of
Total
64,460
64,460
100
100
10% Disc
MM$
15,471
15,471
% of
Total
100
100
febniaiy 12, 2015 15:10:24
Iii GLJ
Petroleum
Consultants
Page: 17 sf21
Page 4
INTEREST AND NET PRESENT VALUE SUMMARY
Net Present Value Before Income Tax
Revenue Interests and Burdens
f%)
Initial
Working Interest
Capital Interest
Royslty Interest
Crown Royalty
Non-crown Royalty
Mineral Tax
Evsluator
Run Date:
1143197
Average
0.0000
0,0000
0.0000
0.0000
0.0000
0.0000
100.0000
100.0000
0.0000
20.6714
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Pmd’n Operating Capital
Revenue Income Invest
MMS
MM$
MM$
36,221
16,617
10,775
8,205
6,329
4,386
2,511
35,926
16,484
10,696
8,150
6,290
4,362
2,500
12,403
7,609
5,729
4,795
4,052
3,201
2,249
Cash Flow
MM$
$Iboe
23,522
8,876
4,967
3,355
2,238
1,161
251
25.20
9.51
5.32
3.59
2.40
1.24
0.27
Wong, Angie
february 12,2015 14:01:57
Best Estimate Contingent Resources,
GU (2015-01). pri
Febnsasy 12, 2015 15:10:24
I] GLJ
Petroleum
Consultants
Page: 18 of 21
Company:
Property:
Description:
Laricina Energy Ltd.
Germain Grand Rapids Addendum
PRODUCT TYPE: BITUMEN
DILBIT SALES
Resource Class:
Development Class:
Pricing:
Effective Date:
Contingent Resources
High Estimate
GLJ (2015-01)
December 31,2014
Economic Forecast
PRODUCTION FORECAST
Bitumen Production
Yesr
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2044
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
ToL
1143197
Gross Oil Gross Daily
Welts
bblld
0
0
0
0
2
-16
13
90
130
141
162
189
215
287
334
341
307
274
260
262
259
262
255
250
219
200
179
162
154
136
109
84
65
36
4
-19
-50
-76
-113
-126
-130
-121
-106
-96
-76
-54
-32
-9
-3
-1
High Estimate Contingent Resoarces, GU (2015-01), pri
0
259
934
1,264
776
2,306
23,656
69,800
121,141
144,427
158,123
154,388
152,000
153,940
157,957
159,663
156,216
152,186
146,704
140,755
135,218
132,425
129,688
127,490
116,878
102,706
90,228
81,496
76,999
73,187
70,278
68,406
59,757
40,992
17,096
-1,440
-15,006
-23,514
-30,236
-30,757
-28,094
-23,606
-18,789
-15,475
-10,703
-6,638
-3,426
-971
-312
-97
Company
Daily
bblld
0
259
934
1,264
776
2,306
23,656
69,800
121,141
144,427
158,123
154,388
152,000
153,940
157,957
159,663
156,216
152,186
146,704
140,755
135,218
132,425
129,688
127,490
116,878
102,706
90,228
81,496
76,999
73,187
70,278
68,406
59,757
40,992
17,096
-1,440
-15,006
-23,514
-30,236
-30,757
-28,094
-23,606
-18,789
-15,475
-10,703
-6,638
-3,426
-971
-312
-97
Company
Yearly
Mbbl
0
94
341
461
283
842
8,634
25,477
44,216
52,716
57,715
56,352
55,480
56,188
57,654
58,277
57,019
55,548
53,547
51,375
49,355
48,335
47,336
46,534
42,661
37,488
32,933
29,746
28,105
26,713
25,651
24,968
21,811
14,962
6,240
-525
-5,477
-8,583
-11,036
-11,226
-10,254
-8,616
-6,858
-5,648
-3,907
-2,423
-1,251
-355
-114
-35
1,098,749
Net Yearly
Mbbl
0
90
322
433
264
778
7,936
23,345
40,391
47,870
49,362
47,914
43,733
43,918
45,326
45,111
44,873
43,025
41,755
39,679
38,519
37,591
37,099
35,912
32,035
28,118
24,763
22,315
21,168
19,896
19,733
18,478
15,729
9,841
3,601
-1,770
-5,281
-7,443
-9,194
-8,666
-7,944
-6,819
-5,359
4,452
-3,034
-1,903
-1,027
-323
-104
-32
867,570
Price
$/bbl
0.00
41.04
44.43
57.66
60.58
80.87
74.12
73.54
74.43
76.03
77.41
78.97
80.60
82.16
83.74
85.45
87.19
88.99
90.79
92.65
94.56
96.45
98.40
100.39
102.54
104.76
107.11
109.47
111.76
114.12
116.50
118.93
121.67
125.62
135.09
-15.39
114.41
121.82
126.22
129.43
132.34
134.98
137.68
140.44
143.25
146.11
149.03
152.01
155.05
158.15
89.75
Febmaiy 12,2013 15:10:46
I] GLJ
Petroleum
Consultants
Page: 19ot21
Page 2
REVENUE AND EXPENSE FORECAST
Revenue Betore Burdens
Working Interest
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
Tot
Disc
1143197
Oil
MM$
Gas
MM$
NGL+Sul
MM$
Total
MM$
Royalty Company
Interest Interest
Total
Total
MMS
MM$
0
4
15
27
17
68
640
1,874
3,291
4,008
4,468
4,450
4,471
4,616
4,828
4,980
4,971
4,943
4,862
4,760
4,667
4,662
4,658
4,672
4,374
3,927
3,527
3,256
3,141
3,048
2,988
2,969
2,654
1,880
843
8
-627
-1,046
-1,393
-1,453
-1,357
-1,163
-944
-793
-560
-354
-186
-54
-18
-6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
15
27
17
68
640
1,874
3,291
4,008
4,468
4,450
4,471
4,616
4,828
4,980
4,971
4,943
4,862
4,760
4,667
4,662
4,658
4,672
4,374
3,927
3,527
3,256
3,141
3,048
2,988
2,969
2,654
1,880
843
8
-627
-1,046
-1,393
-1,453
-1,357
-1,163
-944
-793
-560
-354
-186
-54
-18
-6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
15
27
17
68
640
1,874
3,291
4,008
4,468
4,450
4,471
4,616
4,828
4,980
4,971
4,943
4,862
4,760
4,667
4,662
4,658
4,672
4,374
3,927
3,527
3,256
3,141
3,048
2,988
2,969
2,654
1,880
843
8
-627
-1,046
-1,393
-1,453
-1,357
-1,163
-944
-793
-560
-354
-186
-54
-18
-6
98,616
0
0
98,616
0
98,616
20,393
0
0
20,393
0
20,393
High Estimate Contingent Resources. GU (2015-01). pu
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
MM$
Crown
MM$
0
0
1
2
1
5
52
157
285
368
644
664
945
1,007
1,031
1,123
1,058
1,112
1,069
1,081
1,023
1,034
1,006
1,064
1,086
978
871
810
772
774
687
767
734
632
340
171
-10
-134
-231
-331
-306
-243
-206
-168
-125
-76
-33
-5
-2
-l
21,484
3,748
Other
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
MM$
Other
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
2
1
5
52
157
285
368
644
664
945
1,007
1,031
1,123
1,058
1,112
1,069
1,081
1,023
1,034
1,006
1,064
1,086
978
871
810
772
774
687
767
734
632
340
171
-10
-134
-231
-331
-306
-243
-206
-168
-125
-76
-33
-5
-2
-1
21,484
3,748
Net
Revenue
After
Royalty
MM$
0
4
14
25
16
63
588
1,717
3,006
3,639
3,824
3,787
3,526
3,610
3,798
3,857
3,914
3,831
3,793
3,679
3,644
3,627
3,652
3,607
3,288
2,949
2,656
2,446
2,369
2,274
2,301
2,203
1,920
1,247
503
-163
-616
-911
-1,162
-1,122
-1,051
-920
-738
-625
435
-278
-153
49
-16
-5
77,132
16,646
Operating Expenses
Fixed
MM$
Variable
MM$
1
7
35
33
2
4
363
928
1,370
1.570
1,479
1,360
1,287
1,329
1,321
1,383
1,410
1,438
1,407
1,340
1,303
1,316
1,298
1,273
1,144
949
832
780
706
690
694
734
637
442
200
-132
-277
-345
-381
-348
-345
-316
-227
-189
-146
-105
-70
-34
-12
4
28,137
6,485
0
0
0
1
1
-1
29
115
175
227
237
241
244
247
261
263
268
264
260
252
248
244
243
234
207
180
157
140
132
122
125
118
98
53
4
-35
-65
-85
-98
-93
-80
-65
49
-36
-24
-14
-7
-2
-1
0
4,734
1,065
Total
MM$
1
7
36
33
3
3
391
1,043
1,545
1,797
1,716
1,601
1,531
1,576
1,581
1,646
1,678
1,702
1,666
1,592
1,551
1,560
1,540
1,507
1,351
1,130
989
919
838
812
820
852
735
495
205
-166
-342
429
480
440
425
-381
-276
-225
-170
-118
-77
-36
-13
4
32,871
7,550
Febmoty 12, 2015 15:10:46
Iii] GLJ
Petroleum
Consultants
Page: 20 of2I
Page 3
Before Tax Cash Flow
Net Capital Investment
Year
Mineral
Tax
Capital Tax
MMS
MMS
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
Tot
Disc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NPI
Burden
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
o
0
0
Net Prod’n Other
Revenue Income
MM$
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-l
4
-21
-9
13
60
197
674
1,462
1,842
2,108
2,185
1,995
2,034
2,216
2,211
2,236
2,129
2,126
2,087
2,093
2,067
2,111
2,101
1,937
1,819
1,666
1,527
1,531
1,462
1,482
1,351
1,185
753
299
4
-274
482
-683
-682
-627
-540
462
400
-265
-160
-76
-13
-3
-l
44,261
9,096
Aband.
Costs
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Oper.
Income
MMS
0
0
0
0
0
0
0
2
-1
0
0
0
-15
-5
10
46
35
28
14
21
17
26
20
31
24
25
21
20
21
39
26
15
10
13
8
13
9
19
5
-3
-18
-20
-19
-20
-20
-20
-21
-6
-2
-1
350
o
o
-1
4
-21
-9
13
60
197
672
1,463
1,842
2,108
2,185
2,010
2,039
2,206
2,165
2,201
2,101
2,112
2,066
2,075
2,041
2,091
2,070
1,913
1,794
1,645
1,507
1,510
1,423
1,456
1,336
1,174
740
291
-9
-283
-502
-688
-678
-609
-520
-443
-381
-245
-139
-55
-8
-1
0
43,911
9,044
si
Plant
MM$
0ev.
MM$
0
2
3
2
26
48
210
516
301
281
164
237
230
233
324
222
289
204
233
198
246
228
280
216
121
140
139
124
177
117
212
89
19
-141
-144
-131
-141
-149
-150
-65
-54
-55
-38
46
-12
4
0
0
0
0
4,607
1,349
Tang.
MM$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Annual
Total
MMS
0
6
53
232
590
819
1,038
986
556
345
193
251
256
273
350
287
325
263
281
256
289
278
312
269
194
197
188
170
201
155
207
115
61
-57
-71
-90
-114
-136
-157
-110
-109
-106
-82
-81
48
-33
-19
-8
-3
-1
8,770
3,394
Cum.
MM$
MM$
0
8
56
234
616
771
1,248
1,503
857
626
357
488
486
506
674
508
614
467
515
454
535
506
592
485
315
338
327
293
378
272
419
204
79
-198
-215
-222
-255
-285
-307
-175
-163
-161
-120
-127
-60
-37
-19
-8
-3
-1
13,377
4,743
-1
-12
-77
-243
-603
-711
-1,051
-831
606
1,216
1,751
1,697
1,524
1,533
1,532
1,657
1,587
1,634
1,598
1,612
1,540
1,535
1,500
1,585
1,598
1,456
1,318
1,213
1,132
1,151
1,037
1,131
1,095
938
505
213
-28
-216
-381
-504
-446
-359
-323
-254
-185
-103
-36
0
2
1
30,534
4,301
10.0% Dcf
MMS
-1
-14
-91
-333
-936
-1,647
-2,698
-3,529
-2,923
-1,707
43
1,741
3,264
4,797
6,329
7,986
9,573
11,207
12,805
14,417
15,957
17,492
18,992
20,577
22,175
23,632
24,949
26,163
27,294
28,445
29,483
30,614
31,709
32,647
33,152
33,365
33,337
33,120
32,739
32,236
31,790
31,431
31,108
30,855
30,670
30,567
30,531
30,531
30,533
30,534
30,534
4,301
-1
-12
-73
-247
-639
-1,060
-1,626
-2,032
-1,763
-1,271
-628
-60
403
826
1,211
1,589
1,918
2,226
2,500
2,752
2,970
3,168
3,343
3,512
3,667
3,795
3,900
3,989
4,064
4,133
4,189
4,246
4,295
4,334
4,352
4,360
4,359
4,353
4,343
4,331
4,322
4,315
4,309
4,305
4,303
4,301
4,301
4,301
4,301
4,301
4,301
4,301
SUMMARY OF RESOURCES
Remslning Resources at Jan 01,2015
Product
Bitumen
Total:OilEq.
Units
MbbI
Mboe
Working
Interest
Gross
1,098,749
1,098,749
1,098,749
1,098,749
Total
Company
Roy/NPI
Interest
0
0
Net
1,098,749
1,098,749
Resource Life Indic. (yr)
Oil Equivalents
Oil Eq.
factor
867,570
867,570
Company
Mboe
1.000
1.000
% of
Total
1,098,749
1,098,749
Resource
Life
50.0
50.0
100
100
Half
Life
Life
Index
999.9
999.9
17.3
17.3
PRODUCT REVENUE AND EXPENSES
Net Revenue After Royalties
Average First Year Unit Values
Product
Bitumen
Total: Oil Eq.
1143197
Units
5/bbi
S/hoe
Base Price Price Adjust
0.00
0.00
0.00
0.00
High Essimste Contiagent Rosources, GLJ (2015.01), pri
Wellhead
Price
0.00
0.00
Net Burdens
0.00
0.00
Operating
Expenses
0.00
0.00
Other
Expenses
0.00
0.00
Pmd’n
Revenue
0.00
0.00
% of
Total
Undinc
MM$
77,132
77,132
100
100
10% Disc
MM$
16,646
16,646
% of
Total
100
100
Febmary 12, 2015 15:10:46
I[1 GLJ
Petroleum
Consultants
Page; 21 of2I
Page 4
INTEREST AND NET PRESENT VALUE SUMMARY
Net Present Value Before Income Tax
Revenue Interests and Burdens
f%)
Initial
Working Interest
Capital Interest
Royalty Interest
Crown Royalty
Non-crown Royalty
Mineral Tax
Evaluator
Run Date:
1143197
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
Average
100.0000
100.0000
0.0000
21.7853
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod’n Operating Capital
Revenue Income Invest
MM$
MM$
MM$
44,261
19,094
12,088
9,096
6,949
4,764
2,695
43,911
18,959
12,013
9,044
6,914
4,743
2,686
13,377
7,727
5,712
4,743
3,986
3,133
2,194
Cash Flow
MMS
S/hoe
30,534
11,232
6,301
4.301
2,928
1,610
492
27.79
10.22
5.73
3.91
2.66
1.46
0.45
Wong, Angie
February 12, 2015 14:01:58
High Estimate Contingent Resources, 01.3 (2015.01), pri
Febnimy 12.2015 15:10:46
I1 GLJ
Petroleum
Consultants
L
(‘‘
J
T
Principal Officers:
Petroleum
Consultants
Keith M. Braaten, P.
President& CEO
Eng.
Executive Vice President & COO
Officers I Vice Presidents:
Caralyn P. Bennett, P. Eng.
Tim R. Freeborn, P. Eng.
Leonard L. Herchen, P. Eng.
Myron J. Hladyshevsky, ft Eng.
Todd J. Ikeda, P. Eng
Bryan M. ba, ft Eng.
Mark Jobin, P.
John E. Keith, P. Eng.
February 13, 2015
Project 1143197
Mr. Barry Jackson
Chairman of Reserves Committee
Laricina Energy Ltd.
800, 4251st Street SE
Calgary, Alberta T2P 3L8
Dear Chairman:
Re:
Germain Winterburn Evaluation
Effective December 3L 2014
GLJ Petroleum Consultants (GLJ) has completed an independent resource assessment and evaluation of the
Germain Winterbum oil sands property of Laricina Energy Ltd. (the “Company”). The effective date of this
evaluation is December 31, 2014. All heavy oil volumes reported herein refer to bitumen.
This report has been prepared for the Company for the purpose of annual disclosure and other financial
requirements. This evaluation has been prepared in accordance with reserves definitions, standards and
procedures contained in the Canadian Oil and Gas Evaluation Handbook.
In the course of the evaluation, the Company provided GLJ personnel with basic information which included
land data, well information, geological information, reservoir studies, estimates of on-stream dates, contract
information, current hydrocarbon product prices, operating cost data, capital budget forecasts, financial data and
future operating plans. Other engineering, geological or economic data required to conduct the evaluation and
upon which this report is based, were obtained from public records, other operators and from GLJ nonconfidential files.
Estimates of resources and projections of production were generally prepared using well information and
production data available from public sources to approximately December 31, 2014. The Company provided
land, accounting data and other technical information not available in the public domain to approximately
December 31, 2014. In certain instances, the Company also provided recent engineering, geological and
other information up to December 31, 2014. The Company has confirmed that, to the best of its knowledge, all
information provided to GLJ is correct and complete as of the effective date.
The evaluation was conducted on the basis of the current GLI Price Forecast which is summarized in the
Product Price and Market Forecasts section of this report.
4100, 400- 3rd Avenue S.W, Calgary, Alberta, Canada T2P 4H2
(403) 266-9500
Fax (403) 262-1855
GLJPC.com
GLJ
Page 2
Petroleum Consultants
It is trusted that this evaluation meets your current requirements. Should you have any questions regarding this
analysis, please contact the undersigned.
Yours very truly,
GLJ PETROLEUM CONSULTANTS LTD.
Caralyn P. Bennett, P. Eng.
Vice President
CPB/jem
Attachments
Page. 5 of 29
INDEPENDENT PETROLEUM CONSULTANTS’ CONSENT
The undersigned firm of Independent Petroleum Consultants of Calgary, Alberta, Canada has
prepared an independent evaluation of the Laricina Energy Ltd. (the “Company”) Germain
Winterbum oil sands property and hereby gives consent to the use of its name and to the said
estimates. The effective date of the evaluation is December 31, 2014.
In the course of the evaluation, the Company provided GLJ Petroleum Consultants Ltd. personnel with basic
information which included land data, well information, geological information, reservoir studies, estimates of
on-stream dates, contract information, current hydrocarbon product prices, operating cost data, capital budget
forecasts, financial data and future operating plans. Other engineering, geological or economic data required to
conduct the evaluation and upon which this report is based, were obtained from public records, other operators
and from GLJ Petroleum Consultants Ltd. nonconfidential files. The Company has provided a representation
letter confirming that all information provided to GLJ Petroleum Consultants Ltd. is correct and complete to
the best of its knowledge. Procedures recommended in the Canadian Oil and Gas Evaluation (COGE)
Handbook to verify certain interests and financial information were applied in this evaluation. In applying
these procedures and tests, nothing came to GLJ Petroleum Consultants Ltd.’s attention that would suggest
that information provided by the Company was not complete and accurate. GLJ Petroleum Consultants Ltd.
reserves the right to review all calculations referred to or included in this report and to revise the estimates in
light of erroneous data supplied or information existing but not made available which becomes known
subsequent to the preparation of this report.
The accuracy of any resource and production estimate is a function of the quality and quantity of available
data and of engineering interpretation and judgment. While resources and production estimates presented
herein are considered reasonable, the estimates should be accepted with the understanding that reservoir
performance subsequent to the date of the estimate mayjustify revision, either upward or downward.
Revenue projections presented in this report are based in part on forecasts of market prices, currency exchange
rates, inflation, market demand and government policy which are subject to many uncertainties and may, in
future, differ materially from the forecasts utilized herein. Present values of revenues documented in this
report do not necessarily represent the fair market value of the resources evaluated herein.
PERMIT TO PRACTICE
GLJ PETROLEUM CONSULTANTS LTD.
r1i6fr
Signature:
Date:
Febwarv 13, 2015
PERMIT NUMBER: P 2066
The Association of Professional Engineers
and Geoscientists of Alberta
Ilil GLJ
Petroleum
Consultants
Page. 1 of II
LARICINA ENERGY LTD.
GERMMN WINTERBURN
Effective December 31, 2014
Prepared by
Ashley E. Remus, E.I.T.
William M. Spackman, P. Eng.
I[] GLJ
Petroleum
Consultants
Page. 2 of I
GERMAIN WINTERBURN
TABLE OF CONTENTS
Page
LAND
Summary of Well Interests and Burdens
3
MAPS
Map 1
Map 2
Map 3
Map 4
Map 5
Map 6
Land Map
Structure Map Blueridge Member
Net Bitumen Pay Map Blueridge Member (Best Estimate)
Net Bitumen Pay Map Blueridge Member (High Estimate)
Structure Map Winterburn Group
Net Bitumen Pay Map Upper Graminia Member
4
5
6
7
8
9
TABLES
Table 1
Table 1.1
Volumetric Parameters Summary Discovered Bitumen Initialty-In-Place
Volumetric Parameters Summary Contingent Resources
-
-
-
-
-
10
11
-
-
Fobrary 32015124103
LIii GLJ
Petroleum
Consultants
143197
100.000
APO
%
-
Working Interest
Best Estimate Contingent Resources, GLJ (2015-01), jut
Glnssary
AB: Alberta
APO=BPO interests unless otherwise specified
CR: Crown Royalty
HVY: Heavy
NCONV: Non-Conventional
CSS Forecast
BPO
%
Laricina Energy Ltd.
Germain Winterburn
Entity Description
Germuin Winterhurn
Company:
Property:
(000’s)
Rem P0
-
Type
BPO
-
APO
%
Royalty Interest
-
Rem P0
(000’s)
-
Summary of Well Interests and Burdens
AB CR NCONV HVY
Lessor
Royalty
Resource Class:
Development Class:
Pricing:
Effective Date:
Type
BPO
Consultants
FebrUary 05, 2015 15:46:23
(000’s)
Rem P0
Ilil GLJ
-
APO
%
Other Royalty Burdens
Contingent Resources
Best Estimate
GLJ (2015-01)
December 31, 2014
Page 4 of 11
Map 1
Land Map
Company: Laricina Energy Ltd.
Effective Date: December 31, 2014
Property: Gennain Winterbum
Project: si 143197/gwim0l
R.23
R.22
R.21
-+j---
T. 86
r
+
L4
+
—1;
T.85
(
It
*al
—
—
—
—
1
-*
:
—r
i
—
—
—
—
—
—
*
-+-
JzJ
—
-
(++4
T. 84
—---—-------
ELZEEELZHZ
T.83
——----C
-
I.
•
:‘-
j___.
W4M
Kr,,
a
Me
5
1:180,000
0
Legend
E1
Interest Land
NAD 1983 UTM Zone 12N
‘roject(s11431 97draftingWxd\gwim01_s1143197 mxd
Wet Source: IHS (December 22, 2014)
Geologist.
Created by Ichudyk
i
Engineer
Created on January 12.2015
PetideUrn
Consultants
h
I
H
g
[I
H
Q
II
.fr
‘U
in
HI
II
-
29,443
40,394
-
17.30
4.96
11.98
f
39,575
Net Pay
Area
-
(acres)
Notes:
DBIIP is based upon best and high estimate mapping interpretations.
Best estimate is based upon Map 3 (Net Bitumen Pay Map Blueridge Member).
High estimate is based upon Map 4 (Net Bitumen Pay Map Blueridge Member).
Best estimate mapping is also utilized for the low estimate.
High Estimate
Blueridge(3% Porosity Cut Off)
Graminia (3% Porosity Cut Off)
Total (>Om pay)
Discovered Bitumen Initially-In-Place (DBIIP)
Discovered Bitumen Initially-In-Place (DBIIP)
Best Estimate
Blueridge(12 % Porosity Cut Off)
Total (>Om pay)
Entity Description
-
20.0%
19.0%
21.0%
Porosity
FVF
23.0% 1.005
30.0% 1.005
22.0% 1.005
Sw
BlIP
(MbbI)
2,725,138
491,610
3,216,748
1,966,113
1,966,113
Table I
Volumetric Parameters Summary Discovered Bitumen Initially-In-Place
Germain Winterburn CSS
Ij GLJ
Petrdeum
Consultants
32,888
High Estimate
Blueridge Formation
Notes:
22,001
20.05
1580
20.0%
21.0%
FVF
23.0% 1.005
22.0% 1.005
Sw
2,572,090
1,441,741
45.0%
30.0%
1,157,440
432,522
100.0%
100.0%
Ilil GLJ
1,157,440
432,522
Company
Gross Lease
Original
Original
Recoverable
Recoverable
Exploitable
Recovery Resources Working Resources
BlIP
Interest
Factor
MU
LMU
Jfl
A sustained wri price of approximately $1 05Thb1 US would be necessary for the best estimate contingent resources to be reclassified as economic.
Low estimate contingent resources are uneconomic and are therefore assessed to be zero.
The contingent resources above are detmined to be sub-economic.
These contingent resources have not been risked for the chance of development
Economic threshold for development is 300 MbbUwell CSS.
-
Area Net Pay
(acres)
ffi Porosity
Blueridge Formation
Best Estimate
Entity Description
-
Table 1.1
Volumetric Parameters Summary Contingent Resources
Germain Winterburn CSS
Consultants
Page: 17ot29
RESOURCE AND RESERVES DEFINITIONS
GLJ Petroleum Consultants (GLJ) has prepared estimates of resources and reserves in accordance
with the standards contained in the Canadian Oil and Gas Evaluation (COGE) Handbook. The
following are excerpts from the definitions of resources and reserves, contained in Section 5 of the
COGE Handbook, which is referenced by the Canadian Securities Administrators in “National
Instrument 5 1-101 Standards of Disclosure for Oil and Gas Activities”.
A. Fundamental Resource Definitions
Total Petroleum Initially-In-Place (PIIP) is that quantity of petroleum that is estimated to exist
originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated,
as of a given date, to be contained in known accumulations, prior to production, plus those estimated
quantities in accumulations yet to be discovered (equivalent to “total resources”).
Discovered Petroleum Initially-In-Place (equivalent to discovered resources) is that quantity of
petroleum that is estimated, as of a given date, to be contained in known accumulations prior to
production. The recoverable portion of discovered petroleum initially in place includes production,
reserves, and contingent resources; the remainder is unrecoverable.
Reserves are estimated remaining quantities of oil and natural gas and related
substances anticipated to be recoverable from known accumulations, as of a given date,
based on the analysis of drilling, geological, geophysical, and engineering data; the use of
established technology; and specified economic conditions, which are generally accepted
as being reasonable. Reserves are further classified according to the level of certainty
associated with the estimates and may be subclassified based on development and
production status. [Resenies are further defined below].
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. Contingencies may include factors such as
economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is
also appropriate to classify as contingent resources the estimated discovered recoverable
quantities associated with a project in the early evaluation stage. Contingent Resources
are further classified in accordance with the level of certainty associated with the
estimates and may be subclassified based on project maturity and/or characterized by
their economic status.
Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that
quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be
discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as
“prospective resources,” the remainder as “unrecoverable.”
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. Prospective resources have both an associated chance of
discovery and a chance of development. Prospective Resources are further subdivided in
accordance with the level of certainty associated with recoverable estimates assuming
their discovery and development and may be subclassified based on project maturity.
IL1 GLJ
Petroleum
Consultants
Page. Iot29
B. Uncertainty Categories for Resource Estimates
The range of uncertainty of estimated recoverable volumes may be represented by either
deterministic scenarios or by a probability distribution. Resources should be provided as low, best,
and high estimates as follows:
Low Estimate: This is considered to be a conservative estimate of the quantity that will
actually be recovered. It is likely that the actual remaining quantities recovered will exceed
the low estimate. If probabilistic methods are used, there should be at least a 90 percent
probability (P90) that the quantities actually recovered will equal or exceed the low
estimate.
Best Estimate: This is considered to be the best estimate of the quantity that will actually
be recovered. It is equally likely that the actual remaining quantities recovered will be
greater or less than the best estimate. If probabilistic methods are used, there should be
at least a 50 percent probability (P50) that the quantities actually recovered will equal or
exceed the best estimate.
High Estimate: This is considered to be an optimistic estimate of the quantity that will
actually be recovered. It is unlikely that the actual remaining quantities recovered will
exceed the high estimate. If probabilistic methods are used, there should be at least a 10
percent probability (PlO) that the quantities actually recovered will equal or exceed the
high estimate.
This approach to describing uncertainty may be applied to reserves, contingent resources, and
prospective resources. There may be significant risk that sub-commercial and undiscovered
accumulations will not achieve commercial production. However, it is useful to consider and
identify the range of potentially recoverable quantities independently of such risk.
C. Reserves Categories
Reserves are estimated remaining quantities of oil and natural gas and related substances
anticipated to be recoverable from known accumulations, as of a given date, based on:
•
analysis of drilling, geological, geophysical, and engineering data;
•
the use of established technology;
•
specified economic conditions1, which are generally accepted as being reasonable, and
shall be disclosed.
Reserves are classified according to the degree of certainty associated with the estimates.
Proved Reserves
Proved reserves are those reserves that can be estimated with a high degree of certainty
to be recoverable. It is likely that the actual remaining quantities recovered will exceed the
estimated proved reserves.
For securities reporting, the key economic assumptions will be the prices and costs used in the
estimate. The required assumptions may vary by jurisdiction, for example:
(a) forecast prices and costs, in Canada under NI 51-101
(b) constant prices and costs, based on the average of the first day posted prices in each of the 12
months of the reporting issuer’s financial year, under US SEC rules (this is optional disclosure under
NI 51-707).
LIj GLJ
petroleum
Consultants
Page 19ot29
Probable Reserves
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.
Possible Reserves
Possible reserves are those additional reserves that are less certain to be recovered than
probable reserves. It is unlikely that the actual remaining quantities recovered will exceed
the sum of the estimated proved plus probable plus possible reserves.
Other criteria that must also be met for the classification of reserves are provided in [Section 5.5 of
the COGE Handbook].
Development and Production Status
Each of the reserves categories (proved, probable, and possible) may be divided into developed
and undeveloped categories.
Developed Reserves
Developed reserves are those reserves that are expected to be recovered from existing
wells and installed facilities or, if facilities have not been installed, that would involve a low
expenditure (e.g., when compared to the cost of drilling a well) to put the reserves on
production. The developed category may be subdivided into producing and non-producing.
Developed Producing Reserves
Developed producing reserves are those reserves that are expected to be recovered from
completion intervals open at the time of the estimate. These reserves may be currently
producing or, if shut in, they must have previously been on production, and the date of
resumption of production must be known with reasonable certainty.
Developed Non-Producing Reserves
Developed non-producing reserves are those reserves that either have not been on
production, or have previously been on production, but are shut in, and the date of
resumption of production is unknown.
Undeveloped Reserves
Undeveloped reserves are those reserves expected to be recovered from known
accumulations where a significant expenditure (for example, when compared to the cost of
drilling a well) is required to render them capable of production. They must fully meet the
requirements of the reserves category (proved, probable, possible) to which they are
assigned.
In multi-well pools, it may be appropriate to allocate total pool reserves between the developed and
undeveloped categories or to subdivide the developed reserves for the pool between developed
producing and developed non-producing. This allocation should be based on the estimator’s
assessment as to the reserves that will be recovered from specific wells, facilities, and completion
intervals in the pool and their respective development and production status.
P. Levels of Certainty for Reported Reserves
The qualitative certainty levels referred to in the definitions above are applicable to individual
reserves entities (which refers to the lowest level at which reserves calculations are performed) and
to Reported Reserves (which refers to the highest level sum of individual entity estimates for which
reserves estimates are presented). Reported Reserves should target the following levels of
certainty under a specific set of economic conditions:
CIii GLJ
Petroleum
Consultants
Pane: 20 of 29
•
at least a 90 percent probability that the quantities actually recovered will equal or exceed
the estimated proved reserves;
•
at least a 50 percent probability that the quantities actually recovered will equal or exceed
the sum of the estimated proved plus probable reserves;
•
at least a 10 percent probability that the quantities actually recovered will equal or exceed
the sum of the estimated proved plus probable plus possible reserves.
A quantitative measure of the certainty levels pertaining to estimates prepared for the various
reserves categories is desirable to provide a clearer understanding of the associated risks and
uncertainties. However, the majority of reserves estimates are prepared using deterministic
methods that do not provide a mathematically derived quantitative measure of probability. In
principle, there should be no difference between estimates prepared using probabilistic or
deterministic methods.
Additional clarification of certainty levels associated with reserves estimates and the effect of
aggregation is provided in Section 5.5.3 [of the COGE Handbook].
E. Discovered and Commercial Status and Risks Associated with Resource Estimates
Discovery Status
Total petroleum initially in place is first subdivided based on the discovery status of a petroleum
accumulation. Discovered PuP, production, reserves, and contingent resources are associated with
known accumulations. Recognition as a known accumulation requires that the accumulation be
penetrated by a well and have evidence of the existence of petroleum. COGEH Volume 2, Sections
5.3 and 5.4, provides additional clarification regarding drilling and testing requirements relating to
recognition of known accumulations.
Commercial Status
Commercial status differentiates reserves from contingent resources. The following outlines the
criteria that should be considered in determining commerciality:
•
economic viability of the related development project;
•
a reasonable expectation that there will be a market for the expected sales quantities of
production required to justify development;
•
evidence that the necessary production and transportation facilities are available or can be
made available;
•
evidence that legal, contractual, environmental, governmental, and other social and
economic concerns will allow for the actual implementation of the recovery project being
evaluated;
•
a reasonable expectation that all required internal and external approvals will be
forthcoming. Evidence of this may include items such as signed contracts, budget
approvals, and approvals for expenditures, etc.;
•
evidence to support a reasonable timetable for development. A reasonable time frame for
the initiation of development depends on the specific circumstances and varies according
to the scope of the project. While five years is recommended as a maximum time frame for
classification of a project as commercial, a longer time frame could be applied where, for
example, development of economic projects are deferred at the option of the producer for,
among other things, market-related reasons or to meet contractual or strategic objectives.
GLJ Petroleum
Consultants
Page: 21 of 29
Commercial Risk Applicable to Resource Estimates
Estimates of recoverable quantities are stated in terms of the sales products derived from a
development program, assuming commercial development. It must be recognized that reserves,
contingent resources, and prospective resources involve different risks associated with achieving
commerciality. The likelihood that a project will achieve commerciality is referred to as the “chance
of commerciality.” The chance of commerciality varies in different categories of recoverable
resources as follows:
Reserves: To be classified as reserves, estimated recoverable quantities must be
associated with a project(s) that has demonstrated commercial viability. Under the fiscal
conditions applied in the estimation of reserves, the chance of commerciality is effectively
100 percent.
Contingent Resources: Not all technically feasible development plans will be commercial.
The commercial viability of a development project is dependent on the forecast of fiscal
conditions over the life of the project. For contingent resources the risk component relating
to the likelihood that an accumulation will be commercially developed is referred to as the
“chance of development.” For contingent resources the chance of commerciality is equal to
the chance of development.
Prospective Resources: Not all exploration projects will result in discoveries. The chance
that an exploration project will result in the discovery of petroleum is referred to as the
chance of discovery.” Thus, for an undiscovered accumulation the chance of
commerciality is the product of two risk components
the chance of discovery and the
chance of development.
—
F. Economic Status of Resource Estimates
By definition, reserves are commercially (and hence economically) recoverable. A portion of
contingent resources may also be associated with projects that are economically viable but have
not yet satisfied all requirements of commerciality. Accordingly, it may be a desirable option to subclassify contingent resources by economic status:
Economic Contingent Resources are those contingent resources that are currently
economically recoverable.
Sub-Economic Contingent Resources are those contingent resources that are not
currently economically recoverable.
Where evaluations are incomplete such that it is premature to identify the economic viability of a
project, it is acceptable to note that project economic status is “undetermined” (i.e., “contingent
resources economic status undetermined”).
—
In examining economic viability, the same fiscal conditions should be applied as in the estimation of
reserves, i.e., specified economic conditions, which are generally accepted as being reasonable
(refer to COGEH Volume 2, Section 5.8).
Petroleum
GLJ Consultants
Pager 22 of 29
PRODUCT PRICE AND MARKET FORECASTS
January 1, 2015
GLJ Petroleum Consultants has prepared its January 1, 2015 price and market forecasts as
summarized in the attached Tables 1, 2 and 3 after a comprehensive review of information.
Information sources include numerous government agencies, industry publications, Canadian oil
refiners and natural gas marketers. The forecasts presented herein are based on an informed
interpretation of currently available data. While these forecasts are considered reasonable at this
time, users of these forecasts should understand the inherent high uncertainty in forecasting any
commodity or market. These forecasts will be revised periodically as market, economic and
political conditions change. These future revisions may be significant.
Petroleum
GLJ Consultants
5500
60.00
65.00
70.00
62.50
0.850
0.850
0.850
0.850
0.850
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2,0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
201501
201502
201503
2015Q4
2015 Full Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025+
55.14
67.50
82.50
87.50
90.00
95.00
100.00
101.35
103.38
105.45
107.56
+2.0%/yr
75.00
80.00
85.00
90.00
95.00
98.54
100.51
102.52
104.57
+2.0%/yr
60.00
65.00
70.00
75,00
66.16
72.71
98.30
62.50
80.25
110.86
111.71
108.77
99.89
62.50
55.00
60.00
65.00
70.00
66.22
72.39
99.64
61.78
79.52
95.12
94.21
97.96
93.06
USOThbI
56.56
ICE Brent Near
Month Futures
Contract
Crude Oil
FOB North Sea
Then
Current
USDIbbI
55.00
68.00
72.86
77.71
82.57
87.43
90.26
92.06
93.90
95.77
+2.0%/yr
80.00
85.71
91.43
97.14
102.86
106.18
108.31
110.47
112,67
+2.0%/yr
Revised
2014-12-31
67.20
72.00
76.80
81.60
86.40
89.19
90.98
92.79
94.65
+2.0%/yr
60.68
65.09
69.49
73.90
78.30
80.87
82.51
84.17
85.87
+2.0%/yr
48.89
42.09
46.62
51.16
55.69
46.94
51.88
56.82
61.76
54.35
34.07
41.84
43.42
74.94
54.46
60.76
67.64
63.64
65.11
74.23
43.74
50.66
52.38
82.95
68.66
67.27
77.14
73.13
75.01
81.62
44.73
51.82
53.64
84.31
60.18
66.45
78.58
74.42
76.33
82.08
47.50
52.50
57.50
62,50
C,ADThbI
CADThbI
CADflbl
Heavy Crude
Oil
Proxy (12 APIl
at Hardisty
Then
Current
WCS
Stream Quality
at Hsrdisty
Then
Current
Bow River Crude
Oil
Stream Quality
at Hardisty
Then
Current
64.71
55.88
61.76
67.65
73.53
73.21
77.06
102.89
66.32
77.87
95.53
86.60
93.47
94.77
CADThbI
69.02
Light Sweet
Crude Oil
(40 API, 0.3%S)
at Edmonton
Then
Current
Historical futures contract price is an average of the daily settlement price of the near month contract over the calendar month.
73.53
76.89
80.10
83.15
86.04
87.50
87.50
87.50
87.50
87.50
77.64
83.22
112.14
67.86
87.01
102.28
98.42
100.82
94.87
0.882
0.935
0.943
0.880
0.971
1.012
1.001
0.971
0.905
0 875
0.875
0.875
0.875
0.875
0.875
0.875
0,875
0.875
0.875
USflThbl
67.83
USDICAD
0.826
2.0
2.2
2.4
0,4
1.8
2.9
1.5
0.9
2.0
Year
¾
2.2
Inflation
NYMEX WTI Near
Month Futures
Contract
Crude Oil at
Cushing Oklahoma
Constant
Then
Current
2015$
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014(e)
Bank of Canada
Average
Noon
Exchange
Rate
Table I
GLJ Petroleum Consultants Ltd.
Crude Oil and Natural Gas Liquids
Price Forecast
Effective January 1, 2015
78.40
84.00
89.60
95.20
100.80
104.06
106.14
10826
110.42
+2,0%/yr
63.41
54.76
60.53
66.29
72.06
Light Crude Oil
(35 API, 1.2%S)
at Cromer
Then
Current
CADIbSI
62.18
66.38
71.13
96.08
63.84
76.58
92.35
84.51
92.30
92.87
12.30
13.16
14.03
14.90
15.76
16.63
17.49
18.36
18.98
+2.0%/yr
10.72
61.47
76.00
81.43
86.86
92.29
97.71
100.87
102.89
104.95
107.04
+2.0%/yr
10.50
10.50
10.50
11.36
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Consultants
85,60
91,71
97.83
103.94
110.06
113.62
115.89
118.20
120,56
+2.0%/yr
69.24
59.79
66.09
72.38
78.68
69.57
75.41
77,38
104.78
68.17
84.27
104.17
100.84
104.70
102.92
Pentanes
Plus
c.Afl/hhl
Edmonton
Ilil GLJ
60.80
65.14
69.49
73.83
78.17
80.70
82.31
83.96
85.63
+2.0%/yr
52.91
19.63
32.00
38.57
41.14
43.71
46.29
47,78
48.74
49.71
50.70
+2.0%/yr
4750
51.26
54.79
58.09
51.80
60.17
61.78
75.33
48.17
65.91
74.42
66.70
6881
69.29
13.97
18.53
20.29
25.74
43.04
43.85
49.56
58.38
38.03
46.84
53.66
29.04
38.88
45.57
Edmonton Edmonton
Propane
Butane
CADThN
CADThbI
Alberta Natural Gas Liquids
(Then Current Dollars)
Ethane
CADIb6I
Spec
53.09
58.68
64.26
69.85
56.77
6226
65.71
93.10
62.96
73.76
88.33
81.38
88.13
89.86
CADIbN
Medium Crude
Oil
(29 API. 2.0%S)
at Cromer
Then
Current
NYMEX Henry Hub
4.16
4.30
4.44
4.57
4.69
4.75
4.75
2018
2019
2020
2021
2022
2023
2024
2025+
2.61
2.43
2.43
2.77
2.56
3.02
3.02
3.02
3.26
3.08
3.02
3.02
3.02
3.26
3.08
+2.0%/yr
3.69
3.94
4.19
4.45
4.70
4.95
5.20
5.45
5.63
3.23
+2.0%/yr
+2.0%/yr
+2.0%/yr
2014-12-31
+2.0%/yr
+2.0%/yr
4.56
3.63
3.88
4.13
4.38
4.63
4.88
5.13
5.38
5.56
3.18
3.17
3.17
3.17
3.42
+2.0%/yr
3.70
3.95
4.20
4.45
4.70
4.95
5.20
5.45
5.63
3.26
3.50
3.00
3.00
3.55
7.45
6.04
6.52
6.47
3.80
4.13
3.90
2.70
3.71
4.39
USD/!Mtu
cAo/Muetu
8.64
6.42
6.35
8.04
3.83
3.85
3.58
2.26
3.10
4.44
Sumas Spot
Spot
Unless otherwise stated, the gas price reference point is the receipt point on the applIcable provincial gas transmission system known as the plant gate.
The plant gate price represents the price before raw gas gathering and processing charges are deducted.
Revised
AECO/NIT Spot refers to the same-day spot price averaged over the period.
3.53
3.78
4.03
4.28
4.53
4.78
5.03
5.28
5.46
3.53
3.78
4.03
4.28
4.53
4.78
5.03
5.28
5.46
3.46
3.64
3.80
3.95
4.10
4.24
4.38
4.50
4.56
3.08
3.12
3.12
3.12
3.37
8.36
6.67
6.18
8.07
3.87
3.96
3.57
2.31
3.09
4.38
cAoiMUatu
SaskEnergy
Saskatchewan Plant Gate
+2.0%/yr
5.71
6.37
5.87
7.83
3.24
3.31
2.84
1.65
2.60
4.51
6.57
6.20
7.88
3.85
3.77
3.46
2.25
2.98
4.17
6.29
6.23
7.94
3.79
3.78
3.42
2.21
2.96
4.28
7.38
7.16
8.93
4.17
4.14
3.68
2.31
3.04
4.36
2.96
3.23
3.51
3.78
4.05
4.33
4.60
4.87
5.07
8.28
8.30
3.02
3.02
3.02
3.26
cADIMMetu
CAD)MMBtu
8.48
Alliance
CADIMMBtU
ARP
10.16
Then
Current
Alberta Plant Gate
cAoft.e.letu
Constant
2015$
Spot
+2.0%/yr
5.53
5.78
4.53
4.78
5.03
5.28
4.27
4.02
3.77
3.31
3.25
3.25
3.25
3.50
5.60
4.85
5.10
5.35
4.35
4.60
4.00
4.25
3.84
4.00
4.50
4.75
6.00
5.25
5.50
5.68
3.85
4.10
3.75
3.68
2016
2017
3.41
3.31
3.31
3.25
3.25
3.25
3.50
3.25
3.25
3.25
3.50
2015 Full Year
5.36
3.45
3.30
3.30
3.60
4.29
4.38
4.52
6.62
6.45
8.16
3.99
4.01
3.62
2.40
3.18
6.93
6.83
8.91
4.05
4.53
4.21
2.92
3.81
2014(e)
8.73
8.24
201601
201502
201503
201504
cADftl8tu
UsD/MMetu
10.78
8.19
8.18
10.01
4.58
4.81
4.33
2.95
3.83
Midwest
Price @ Chicago AECOINIT Spot
Then
Then
Current
Current
9.00
6.99
7.12
8.90
4.16
4.40
4.03
2.83
3.72
usDIMMetu
USDIMMBtU
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
Near Month Contract
Constant
Then
2015$
Current
Effective January 1 2015
Natural Gas and Sulphur
Price Forecast
Table 2
GLJ Petroleum Consultants Ltd.
+2.0%/yr
3.62
3.87
4.12
4.38
4.63
4.88
5.13
5.38
5.56
3.16
3.20
3.05
3.00
3.40
8.22
6.58
6.40
8.21
3.90
3.78
3.33
2.30
3.14
4.31
cAoft4Metu
Westcoast
Station 2
+2.0%/yr
3.43
3.68
3.93
4.18
4.42
4.67
4.92
5.17
5.35
2.97
3.21
3.01
2.86
2.81
8.04
6.40
6.16
7.99
3.70
3.63
3.18
2.12
2.94
4.07
cADIMMBtu
Spot
Plant Gate
British Columbia
Petroleum
Consultanis
+2.0%/yr
92.86
92.86
95.71
98.63
101.60
104.63
107.73
110.88
114.10
126.47
126.47
126.47
126.47
126.47
Alberta
Sulphur
at Plant
Gate
CAD/It
33.77
19.27
42.03
488.64
24.57
48.26
171.93
157.91
74.02
110.43
II GU
+2.0%/yr
125.00
125.00
127.50
130.05
132.65
135.30
138.01
140.77
143.59
150.00
150.00
150.00
150.00
150.00
Sulphur
FOB
Vancouver
USO/It
63.50
55.07
81.66
497.39
57.06
88.94
217.16
201.03
105.74
145.41
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014(e)
201501
201502
201503
201504
2015 FullYear
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025+
0.875
0.875
0.875
0.875
0.875
0.875
0.875
0,875
0.875
0.875
0.850
0.850
0.850
0.850
0.850
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.800
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
1.450
USO/CAD CAD/GBP CAD/EUR
0.826
2.206
1.452
0.882
2.090
1.369
0.935
2.148
1.436
0.943
1.961
1.548
0.880
1.780
1.585
0.971
1.593
1.367
1.012
1586
1376
1.001
1.584
1.285
0.971
1.612
1.369
0.905
1.819
1.467
75.00
80.00
85.00
90.00
95.00
98.54
100.51
102.52
104.57
+2.0%/yr
62.50
55.00
60.00
65.00
70.00
85.71
91.43
97.14
102.86
108.57
112.62
114.87
117.17
119.51
+2.0%/yr
73.53
64.71
70.59
76.47
82.35
NYMEX WTI Near
Crude Oil at
Cushing Oklahoma
Then
Then
Current
Current
USDIbbl CADThbI
56.58
68.42
66.22
75.08
72.39
76.89
99.64
104.27
61.78
69.57
79.52
81.85
9512
9402
94.21
94.11
97.96
100.95
93.06
102.58
80.02
84.88
88.20
93.10
98.00
99.32
101.31
103.34
105.41
+2.0%/yr
65,48
58.20
63.05
67.90
72.75
Then
Current
USDIbbl
52.81
63.89
75.36
102.31
64.31
82.78
112.33
111.77
106.19
94.75
91.46
97.00
100.80
106.40
112.00
113,51
115.79
118.10
120.47
+2.0%/yr
77.03
68.47
74.18
79.88
85.59
Then
Current
CAD/bbl
63.85
72.41
80.13
107.04
72.52
85.20
111.03
111.62
109.32
104.47
Light Louisiana Sweet
Crude Oil
73.43
77.88
80.10
84.55
89.00
90.20
92.01
93.85
95.73
+2.0%/yr
60.08
53.40
57.85
62.30
66.75
Then
Current
USD/bbl
41.66
52.16
59.69
83.90
56.46
70.29
98.60
99.60
97.26
86.16
83.91
89.00
91.54
96.63
101.71
103.09
105.15
107.26
109.40
+2.0%/yr
70.68
62.82
68.06
73.29
78.53
Then
Current
CAD/bbl
50.36
59.13
63.30
87.62
63.55
72.35
97.52
99.50
100.13
94.97
Mexican Mayan
Cmde Oil
Revised
2014-12-31
Historical futures contract price Is an average of the daily settlement price of the near month contract over the calendar month.
Inflation
%
2.2
2.0
2.2
2.4
0.4
1.8
2.9
1.5
0.9
2.0
Bank of Canada Average
Noon Exchange Rates
82.50
87.50
90.00
95.00
100.00
101.35
103.38
105.45
107.56
+2.0%/yr
67.50
60.00
65.00
70.00
75.00
94.29
100.00
102.86
108,57
114.29
115.83
118.15
120.51
122.93
+2.0%/yr
79.41
70.59
76.47
82.35
88.24
Brent Blend
Crude Oil
FOB North Sea
Then
Then
Current
Current
USDIbbI CADThbI
55.14
66.69
66.16
75.01
72.71
77.33
98.30
102.81
62.50
70.47
80.25
82.58
110.86
109.57
111.57
111.71
108.77
112.04
99.89
110.11
Table 3
GLJ Petroleum Consultants Ltd.
International and Frontier
Price Forecast
Effective January 1, 2015
3.75
4.00
4.25
4.50
4.75
5.00
5.25
5.50
5.68
+2.0%/yr
3.31
3.25
3.25
3.25
3.50
4.29
4.57
4.86
5.14
5.43
5.71
6.00
6.29
6.49
+2.0%/yr
3.90
3.82
3.82
3.82
4.12
5.52
5.27
4.28
4.53
4.78
5.02
5.27
5.52
5.69
+2.0%/yr
5.58
11.92
2.56
2.56
5.27
5.18
5.46
5.74
6.02
6.30
6.51
+2.0%/yr
4.90
6.30
6.02
6.56
14.02
3.01
3.01
6.20
Nova Scotia
Goldboro
Consultants
9.43
10.00
10.29
10.86
11.43
11.58
11.81
12.05
12.29
+2.0%/yr
8.82
8.82
8.50
8.67
9.29
IL1 GLJ
8.25
8.75
9.00
9.50
10.00
10.14
10.34
10.54
10.76
+2.0%/yr
7.50
7.50
7.22
7.37
7.89
National
Balancing
Point
Then
Then
(UK)
Current
Current
Then Current Then Current Then Current Then Current
USD/MMBtu CAD/MMBtu USD/MMBtu CAD/MMBtu USD/MMBtu CADIMMBtu
9.00
10.83
8.19
9.87
7.51
9.02
7.94
6.20
8.34
9.48
6.99
7.04
7.12
7.65
6.33
6.84
6.14
6.44
8.90
9.36
8.32
8.77
11.41
12.12
4.16
4.75
3.35
3.87
4.95
5,68
4.40
4.53
3.83
3.96
6.39
6.58
4.03
3.98
3.62
3.58
9.35
9.25
2.83
2.82
2.72
2.72
9.38
9.37
3.72
3.84
5.78
5.94
10.50
10.82
7.07
8.26
4.29
4.74
7.81
9.14
Henry Hub
Spot
to
Page 26 of 29
APPENDIX I
CERTIFICATES OF QUALIFICATION
Caralyn P. Bennett
William M. Spackman
Ashley E. Remus
Petroleum
GLJ Consultants
Page: 27 ot29
CERTIFICATION OF QUALIFICATION
I, Caralyn P. Bennett, Professional Engineer, 4100, 400
—
3td
Avenue S.W., Calgary, Alberta,
Canada hereby certify:
1.
That I am an employee of GLJ Petroleum Consultants Ltd., which company did prepare a
detailed analysis of the Germain Winterbum oil sands property of Laricina Energy Ltd. (the
“Company”). The effective date of this evaluation is December 31, 2014.
2.
That I do not have, nor do I expect to receive any direct or indirect interest in the securities of
the Company or its affiliated companies.
3.
That I attended the University of Waterloo where I graduated with an Honours Bachelor of
Science Degree in Geological Engineering in 1987; that I am a Registered Professional
Engineer in the Province of Alberta; and, that I have in excess of twenty-nine years
experience in engineering studies relating to oil and gas fields.
4.
That a personal field inspection of the properties was not made; however, such an inspection
was not considered necessary in view of the information available from public information
and records, the files of the Company, and the appropriate provincial regulatory authorities.
I1 GLJ
Petroleum
Consultants
Paoe 28 of 29
CERTIFICATION OF QUALIFICATION
I, William M. Spackman, Professional Engineer, 4100, 400
-
3rd Avenue S.W., Calgary, Alberta,
Canada hereby certify:
1.
That I am an employee of GLJ Petroleum Consultants Ltd., which company did prepare a
detailed analysis of the Germain Winterbum oil sands property of Laricina Energy Ltd. (the
“Company”). The effective date of this evaluation is December 31, 2014.
2.
That I do not have, nor do I expect to receive any direct or indirect interest in the securities of
the Company or its affiliated companies.
3.
That I attended the University of Calgary where I graduated with a Bachelor of Science
Degree in Chemical Engineering in 2006; that I am a Registered Professional Engineer in the
Province of Alberta; and, that I have in excess of eight years of experience in engineering
studies relating to oil and gas fields.
4.
That a personal field inspection of the properties was not made; however, such an inspection
was not considered necessary in view of the information available from public information
and records, the files of the Company, and the appropriate provincial regulatory authorities.
Iii GLJ
Petroleum
Consultants
Page. 29 of 29
CERTIFICATION OF QUALIFICATION
I, Ashley E. Remus, Engineer In Training, 4100, 400
-
3rd Avenue S.W., Calgary, Alberta, Canada
hereby certify:
1.
That I am an employee of GLJ Petroleum Consultants Ltd., which company did prepare a
detailed analysis of the Germain Winterburn oil sands property of Laricina Energy Ltd. (the
“Company”). The effective date ofthis evaluation is December 31, 2014.
2.
That I do not have, nor do I expect to receive any direct or indirect interest in the securities of
the Company or its affiliated companies.
3.
That I attended the University of Alberta where I. graduated with a Bachelors of Science
Degree in Civil Engineering with Environmental Option in 2012; and, that I am an Engineer
In Training; and, that I have in excess of three years of experience in engineering studies
relating to oil and gas fields.
4.
That a personal field inspection of the properties was not made; however, such an inspection
was not considered necessary in view of the information available from public information
and records, the files of the Company, and the appropriate provincial regulatory authorities.
Ashley E. Remus, E.I.T.
GLJ Consultants