ANNUAL REPORT 2011 - Connacher Oil and Gas

More documents

Recommendations

Info

AR 2011 PG 12 RESERVES Connacher’s estimated proved and probable bitumen and conventional crude oil and natural gas reserves total approximately 504 million barrels of oil equivalent. This estimate is based on a report by GLJ, independent qualified reserves evaluators, as of December 31, 2011. Despite a modest capital program during 2011, bitumen reserve volumes held virtually constant in all reserve categories compared with 2010, with the exception of proved producing bitumen, of which approximately 4.9 million barrels were produced during the year. The 10 percent pre-tax present value (“10% PV”) of 2P reserves decreased to $2.5 billion, due primarily to increased estimated future capital costs. Contingent Connacher has 500 million barrels of 2P bitumen reserves and prospective bitumen resources also declined, mainly as a result of the sale of the Company’s 50% interest in the Halfway Creek oil sands property. Detailed information included in the GLJ December 31, 2011 report (“Year-End 2011 Report”) regarding Connacher’s reserves and resources and associated present values is provided in the following tables, including a comparison of year-end 2011 results to year-end 2010 results. The Year-End 2011 Report was prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and in accordance with National Instrument 51-101 (“NI 51-101”). Comparisons with respect to Connacher’s conventional and bitumen reserves, bitumen resources and for 10% PV for December 31, 2011 are to estimates contained in the report, prepared by GLJ, with an effective date of December 31, 2010 (“Year-End 2010 Report”). Connacher owns a 100 percent working interest in approximately 87,000 net acres of oil sands leases, primarily located at its Great Divide project in northeastern Alberta, situated 80 kilometres southwest of Fort McMurray. Numerous oil accumulations in the McMurray formation have been identified for continuing and future development on Connacher’s properties. Since March of 2008, Connacher production from Great Divide has totaled approximately 12.6 million barrels of bitumen, of which 4.9 million barrels were produced in 2011. Such amounts have been deducted from earlier estimates of proved reserves prior to the calculation of reserves as at December 31, 2011. Connacher’s conventional reserve base declined, due primarily to the sale of several mature conventional properties, totaling approximately 8.2 million boe. The GLJ Year-End 2011 Report was prepared using the GLJ January 1, 2012 price forecast, effective December 31, 2011. Readers are referred to the notes to the Summary Tables for details regarding the price forecast used by GLJ. Earlier reports were prepared using the price forecasts then being applied by GLJ. WORKING INTEREST RESERVES (MMBBL) – BITUMEN 700 600 500 400 300 200 100 0 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2007 2008 2009 2010 2011 • PROVED • PROBABLE • POSSIBLE BEFORE TAX PV10 ($MILLION) – BITUMEN 2007 2008 2009 2010 2011 • PROVED • PROBABLE • POSSIBLE
AR 2011 PG 13 reservoir description and modeling Rapid Evolution of Connacher’s Oil Sands Understanding 2005 CURRENT RG13 RG12 RG11W4 RG13 RG12 R T 83 • 3-D Imaging T 83 • Exploration Core Holes • Data Integration and Modeling T 82 T 81 • Exploitable Resource Characterization T 82 T 81 Best Estimate Contingent Resources (2C) : 127 MMbbl Highway 63 EIA Well Pairs Existing Well Pairs Net SAGD Pay 2P Reserves : 500 MMbbl EIA Well Pairs Existing Well Pairs The recognized exploitable Great Divide bitumen resource in the McMurray formation has increased as a result of Connacher’s ongoing drilling, reservoir characterization, seismic delineation and commercialization. WORking Interest VOLumes Connacher Oil and Gas Limited Bitumen Reserves and Resources 31 - DEC - 10 (mbbl) 31 - DEC - 11 (mbbl) Proved Reserves (1P) (1) 180,166 175,185 -3% Proved and Probable Reserves (2P) (1)(2) 499,657 500,825 0% Proved, Probable and Possible Reserves (3P) (1)(2)(3) 603,709 605,687 0% Low Estimate Contingent Resources (4)(6) 223,443 173,487 -22% Best Estimate Contingent Resources (4)(7) 220,572 174,692 -21% High Estimate Contingent Resources (4)(8) 408,908 243,239 -41% Best Estimate Prospective Resources (5)(7) 80,240 53,589 -33% High Estimate Prospective Resources (5)(8) 287,337 148,349 -48% 12 MO % ∆
Page 1 and 2: ANNUAL REPORT 2011 WELL POSITIONED
Page 3 and 4: AR 2011 PG 1 02 HIGHLIGHTS 05 LETTE
Page 5 and 6: AR 2011 PG 3 Years ended December 3
Page 7 and 8: AR 2011 PG 5 Volatility in the oil
Page 9 and 10: AR 2011 PG 7 “Thanks to our liqui
Page 11 and 12: AR 2011 PG 9 Review of Operations I
Page 13: AR 2011 PG 11 proposals helped to p
Page 17 and 18: AR 2011 PG 15 Connacher Oil and Gas
Page 19 and 20: AR 2011 PG 17 the movement of wildl
Page 21 and 22: AR 2011 PG 19 MANAGEMENT’S DISCUS
Page 23 and 24: AR 2011 PG 21 reduced interest rate
Page 25 and 26: AR 2011 PG 23 Connacher’s bitumen
Page 27 and 28: AR 2011 PG 25 OPERATING COSTS (1) T
Page 29 and 30: AR 2011 PG 27 SALES PRODUCT MIX (%)
Page 31 and 32: AR 2011 PG 29 Depletion expense is
Page 33 and 34: AR 2011 PG 31 NEW NOTES We issued U
Page 35 and 36: AR 2011 PG 33 Compensation of key m
Page 37 and 38: AR 2011 PG 35 ACCOUNTING POLICIES A
Page 39 and 40: AR 2011 PG 37 The company classifie
Page 41 and 42: AR 2011 PG 39 Management is respons
Page 43 and 44: AR 2011 PG 41 The production outloo
Page 45 and 46: AR 2011 PG 43 QUARTERLY HIGHLIGHTS
Page 47 and 48: AR 2011 PG 45 Independent Auditor
Page 49 and 50: AR 2011 PG 47 Consolidated Statemen
Page 51 and 52: AR 2011 PG 49 Consolidated Statemen
Page 53 and 54: AR 2011 PG 51 Impairment of assets
Page 55 and 56: AR 2011 PG 53 Goodwill is allocated
Page 57 and 58: AR 2011 PG 55 3.11 Leases Agreement
Page 59 and 60: AR 2011 PG 57 IAS 1 Presentation of
Page 61 and 62: AR 2011 PG 59 Reconciliation of seg
Page 63 and 64: AR 2011 PG 61 8.1 Petroleum and nat
Page 65 and 66:
AR 2011 PG 63 10. PROPERTY, Plant a
Page 67 and 68:
AR 2011 PG 65 Accounts receivable a
Page 69 and 70:
AR 2011 PG 67 December 31, 2010 - C
Page 71 and 72:
AR 2011 PG 69 13.3 Refinancing of l
Page 73 and 74:
AR 2011 PG 71 Changes in present va
Page 75 and 76:
AR 2011 PG 73 The provision for inc
Page 77 and 78:
AR 2011 PG 75 The following table s
Page 79 and 80:
AR 2011 PG 77 19. FINANCE Charges F
Page 81 and 82:
AR 2011 PG 79 Compensation of key m
Page 83 and 84:
AR 2011 PG 81 Estimates Hindsight w
Page 85 and 86:
AR 2011 PG 83 Reconciliation of Con
Page 87 and 88:
AR 2011 PG 85 27.3 Asset and Liabil
Page 89 and 90:
AR 2011 PG 87 The following table s
Page 91 and 92:
CORPORATE INFORMATION Board of Dire
show all

ANNUAL REPORT 2011 - Connacher Oil and Gas

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?