Annual Report - 2001 - ARC Resources Ltd.

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PAGE 3 FEATURE: management expertise AN INNOVATIVE ACQUISITION – AND A NEW BUSINESS MODEL FOR THE INDUSTRY ANY ACQUISITION IS A COMPLEX PROCESS, BUT THE STARTECH ENERGY INC. (STARTECH) ACQUISITION COMPLETED IN JANUARY 2001 REQUIRED A UNIQUELY STRUCTURED SOLUTION THAT ACCESSED MANY ELEMENTS OF ARC’S EXPERTISE. AS A ROYALTY TRUST, WE DO NOT EXPLORE FOR OIL AND GAS; THE RISK IS TOO HIGH. OUR MANDATE IS TO GENERATE A SUPERIOR RETURN ON INVESTMENT SO OUR DEVELOPMENT PROGRAMS ARE LIMITED TO LOW RISK ACTIVITIES THAT HAVE A HIGHER PROBABILITY OF ADDING VALUE. AS AN EXPLORATION AND PRODUCTION COMPANY, STARTECH HAD SIGNIFICANT EXPLORATION PLAYS. THE CHALLENGE WAS HOW TO CREATE A WIN/WIN SCENARIO – FOR ARC AND OUR UNITHOLDERS AND STARTECH AND ITS SHAREHOLDERS.
PAGE 4 FEATURE: MANAGEMENT EXPERTISE A UNIQUE TRANSACTION IN 2000, WE IDENTIFIED STARTECH AS AN ATTRACTIVE ACQUISITION OPPORTUNITY. THE COMPANY HAD HIGH QUALITY PROPERTIES WITH WELL DEFINED SYNERGIES WITH OUR EXISTING LANDHOLDINGS. HOWEVER, WE WERE UNWILLING TO PURCHASE STARTECH’S HIGHER-RISK EXPLORATION PLAYS WHICH FELL OUTSIDE OF OUR INVESTMENT CRITERIA. WE APPROACHED STARTECH’S MANAGEMENT WITH A UNIQUE PROPOSITION. ARC WOULD ACQUIRE THE COMPANY, BUT THE ASSETS WOULD BE SPLIT. THE HIGHER- RISK EXPLORATION PLAYS WOULD GO TO A NEW COMPANY TO BE HELD BY STARTECH’S EXISTING SHAREHOLDERS. WE WOULD TAKE CONTROL OF STARTECH’S PRODUCING PROPERTIES, INCLUDING THE RESERVES AND ADJACENT UNDEVELOPED LANDS. THE OFFER WAS PARTICULARLY ATTRACTIVE AS IT CREATED A WIN/WIN SCENARIO FOR ALL PARTIES. STARTECH SHAREHOLDERS WOULD KEEP THE EXPLORATION UPSIDE, WHILE ARC WOULD ACQUIRE A LARGE BASE OF PRODUCTION, RESERVES AND UNDEVELOPED LANDS UNDER ATTRACTIVE TERMS FOR OUR UNITHOLDERS. Photo: Susan Healy, Doug Bonner, John Dielwart, David Carey, Steve Sinclair, Myron Stadnyk ARC ENERGY TRUST AR 2001
Page 1 and 2: AR 2001 ARC ENERGY TRUST ANNUAL REP
Page 3 and 4: Photo: Drilling in the Drayton Vall
Page 5 and 6: OPERATING HIGHLIGHTS Years ended De
Page 7: AT THE TIME OF OUR INITIAL PUBLIC O
Page 11 and 12: John P. Dielwart Director, Presiden
Page 13 and 14: PAGE 8 MESSAGE TO UNITHOLDERS We ha
Page 15 and 16: PAGE 10 MESSAGE TO UNITHOLDERS envi
Page 17 and 18: PAGE 12 MESSAGE TO UNITHOLDERS We r
Page 19 and 20: PAGE 14 FEATURE: QUALITY ASSETS A C
Page 21 and 22: Top: Deanna Kalenchuk, Wayne Lentz,
Page 23 and 24: PAGE 18 OPERATIONS REVIEW DEVELOPME
Page 25 and 26: PAGE 20 MAJOR PROPERTIES NORTHERN A
Page 27 and 28: PAGE 22 MAJOR PROPERTIES PEMBINA PE
Page 29 and 30: PAGE 24 MAJOR PROPERTIES CENTRAL AL
Page 31 and 32: PAGE 26 MAJOR PROPERTIES SOUTHEAST
Page 33 and 34: PAGE 28 MAJOR PROPERTIES SOUTHEAST
Page 35 and 36: PAGE 30 MAJOR PROPERTIES WEYBURN UN
Page 37 and 38: PAGE 32 ACQUISITIONS AND DIVESTMENT
Page 39 and 40: PAGE 34 RESERVES RESERVES Based on
Page 41 and 42: PAGE 36 RESERVES Reserves Reconcili
Page 43 and 44: PAGE 38 ENVIRONMENT, HEALTH AND SAF
Page 45 and 46: PAGE 40 ENVIRONMENT, HEALTH AND SAF
Page 47 and 48: PAGE 42 FEATURE: COMMITMENT DEFININ
Page 49 and 50: MANAGEMENT’S DISCUSSION AND ANALY
Page 51 and 52: PAGE 46 MANAGEMENT’S DISCUSSION A
Page 59 and 60:
PAGE 54 MANAGEMENT’S DISCUSSION A
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
PAGE 60 MANAGEMENT’S RESPONSIBILI
Page 67 and 68:
PAGE 62 CONSOLIDATED FINANCIAL STAT
Page 69 and 70:
PAGE 64 CONSOLIDATED FINANCIAL STAT
Page 71 and 72:
PAGE 66 NOTES TO CONSOLIDATED FINAN
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PAGE 78 QUARTERLY REVIEW QUARTERLY
Page 85 and 86:
PAGE 80 DIRECTORS AND OFFICERS John
Page 87 and 88:
PAGE 82 CORPORATE GOVERNANCE CORPOR
Page 89 and 90:
PAGE 84 CORPORATE AND UNITHOLDER IN
Page 91:
ANNUAL REPORT 2001 AR 2001 ARC ENER
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Annual Report - 2001 - ARC Resources Ltd.

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