Encana annual report summary - 2010

why invest in encana / because we use
THE GOLD STANDARD
/ reserves and resources reporting
“With 100 percent of our reserves and
contingent resources externally evaluated
by Independent Qualified Reserves
Evaluators, Encana is leading the way
in reserves and resources evaluation
practices with more consistent and
comprehensive disclosure.”
Bob Grant
Executive Vice-President,
Corporate Development, EH&S & Reserves
Encana has been busy over the past decade, building one of the
largest natural gas resource portfolios in North America. The effort
has caused Bob Grant to feel the company is sitting on a wealth
of opportunities. His view is bolstered by knowing that Encana
employs industry-leading reserves and resources evaluation
practices and standards of disclosure.
Every year, companies are required to report an estimate of their oil and
gas reserves. Typically, an external consulting firm is retained to provide
an assessment of a company’s reported numbers. These assessments
occur in a variety of forms, separated by the degree of rigour applied by
reservoir evaluation engineers. They are:
• Process Review – A consulting firm is retained to review the
procedure that an oil and gas firm uses to internally estimate
its reserves.
• Audit – A consulting firm is retained to evaluate a portion of the
company’s reserves for comparison against the internally generated
numbers. Typically, the internally generated numbers are reported.
• Evaluate – A consulting firm is retained to evaluate and estimate all of
the company’s reserves. The reported numbers are those determined
by the third-party firm.
At year-end 2010, Encana once again retained Independent Qualified
Reserves Evaluators (IQREs) to conduct a complete evaluation of not only
the company’s reserves, but also its economic contingent resources.
14 Encana Corporation / Annual Report 2010