Glj - Corridor Resources Inc.
Glj - Corridor Resources Inc.
Glj - Corridor Resources Inc.
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CORRIDOR RESOURCES INC.<br />
RESERVES ASSESSMENT AND<br />
CANADIAN OIL AND GAS PROPERTIES<br />
CORPORATE SUMMARY<br />
Effective December 31, 2011<br />
1121357<br />
GLJ<br />
Page: 1 of 102<br />
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CORPORATE SUMMARY<br />
TABLE OF CONTENTS<br />
GLJ<br />
Page: 2 of 102<br />
COVERING LETTER 3<br />
INDEPENDENT PETROLEUM CONSULTANTS' CONSENT 4<br />
INTRODUCTION 5<br />
SUMMARY 8<br />
RESERVES DEFINITIONS 45<br />
EVALUATION PROCEDURE 49<br />
PRODUCT PRICE AND MARKET FORECASTS 55<br />
SECURITIES REPORTING 59<br />
AFTER TAX ANALYSIS 77<br />
APPENDIX I<br />
Certificates of Qualification 98<br />
Page<br />
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Chairman of the Reserves Committee<br />
c/o Ms. Lisette Hachey<br />
<strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>.<br />
301, 5475 Spring Garden Road<br />
Halifax, Nova Scotia B3J 3T2<br />
Dear Madam:<br />
February 17, 2012<br />
Project 1121357<br />
Re: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>.<br />
Corporate Evaluation<br />
Effective December 31, 2011<br />
GLJ Petroleum Consultants (GLJ) has completed an independent reserves assessment and evaluation of the oil<br />
and gas properties of <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. (the “Company”). The effective date of this evaluation is<br />
December 31, 2011.<br />
This report has been prepared for the Company for the purpose of annual disclosure and other financial<br />
requirements. This evaluation has been prepared in accordance with reserves definitions, standards and<br />
procedures contained in the Canadian Oil and Gas Evaluation Handbook.<br />
It was GLJ’s primary mandate in this evaluation to provide an independent evaluation of the oil and gas reserves<br />
of the Company in aggregate. Accordingly it may not be appropriate to extract individual property or entity<br />
estimates for other purposes. Our engagement letter notes these limitations on the use of this report.<br />
It is trusted that this evaluation meets your current requirements. Should you have any questions regarding this<br />
analysis, please contact the undersigned.<br />
JLA/ljn<br />
Attachments<br />
GLJ Petroleum<br />
Consultants<br />
Yours very truly,<br />
GLJ PETROLEUM CONSULTANTS LTD.<br />
“ORIGINALLY SIGNED BY”<br />
Jodi L. Anhorn, M. Sc., P. Eng.<br />
Executive Vice President & COO<br />
Principal Officers:<br />
Keith M. Braaten, P. Eng.<br />
President & CEO<br />
Jodi L. Anhorn, M.Sc., P. Eng.<br />
Executive Vice President & COO<br />
Officers / Vice Presidents:<br />
Terry L. Aarsby, P. Eng.<br />
Caralyn P. Bennett, P. Eng.<br />
Leonard L. Herchen, P. Eng.<br />
Myron J. Hladyshevsky, P. Eng.<br />
Bryan M. Joa, P. Eng.<br />
Mark Jobin, P. Geol.<br />
John E. Keith, P. Eng.<br />
John H. Stilling, P. Eng.<br />
Douglas R. Sutton, P. Eng.<br />
James H. Willmon, P. Eng.<br />
4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada T2P 4H2 • (403) 266-9500 • Fax (403) 262-1855 • GLJPC.com
INDEPENDENT PETROLEUM CONSULTANTS’ CONSENT<br />
The undersigned firm of Independent Petroleum Consultants of Calgary, Alberta, Canada has<br />
prepared an independent evaluation of the <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. (the “Company”) Canadian oil<br />
and gas properties and hereby gives consent to the use of its name and to the said estimates. The<br />
effective date of the evaluation is December 31, 2011.<br />
In the course of the evaluation, the Company provided GLJ Petroleum Consultants Ltd. personnel<br />
with basic information which included land data, well information, geological information, reservoir<br />
studies, estimates of on-stream dates, contract information, current hydrocarbon product prices,<br />
operating cost data, capital budget forecasts, financial data and future operating plans. Other<br />
engineering, geological or economic data required to conduct the evaluation and upon which this<br />
report is based, were obtained from public records, other operators and from GLJ Petroleum<br />
Consultants Ltd. nonconfidential files. The Company has provided a representation letter<br />
confirming that all information provided to GLJ Petroleum Consultants Ltd. is correct and complete<br />
to the best of its knowledge. Procedures recommended in the Canadian Oil and Gas Evaluation<br />
(COGE) Handbook to verify certain interests and financial information were applied in this<br />
evaluation. In applying these procedures and tests, nothing came to GLJ Petroleum Consultants<br />
Ltd.’s attention that would suggest that information provided by the Company was not complete and<br />
accurate. GLJ Petroleum Consultants Ltd. reserves the right to review all calculations referred to or<br />
included in this report and to revise the estimates in light of erroneous data supplied or information<br />
existing but not made available which becomes known subsequent to the preparation of this report.<br />
The accuracy of any reserves and production estimate is a function of the quality and quantity of<br />
available data and of engineering interpretation and judgment. While reserves and production<br />
estimates presented herein are considered reasonable, the estimates should be accepted with the<br />
understanding that reservoir performance subsequent to the date of the estimate may justify<br />
revision, either upward or downward.<br />
Revenue projections presented in this report are based in part on forecasts of market prices, currency<br />
exchange rates, inflation, market demand and government policy which are subject to many<br />
uncertainties and may, in future, differ materially from the forecasts utilized herein. Present values<br />
of revenues documented in this report do not necessarily represent the fair market value of the<br />
reserves evaluated herein.<br />
PERMIT TO PRACTICE<br />
GLJ PETROLEUM CONSULTANTS LTD.<br />
ORIGINALLY SIGNED BY<br />
Signature: Carolyn P. Bennett<br />
Date: February 17, 2012<br />
PERMIT NUMBER: P 2066<br />
The Association of Professional Engineers,<br />
Geologists and Geophysicists of Alberta<br />
Page: 4 of 102<br />
ORIGINALLY SIGNED BY<br />
Keith M. Braaten<br />
GLJ Petroleum Consultants Ltd.<br />
GLJ<br />
Petroleum Consultants
INTRODUCTION<br />
GLJ Petroleum Consultants (GLJ) was commissioned by <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. (the<br />
“Company”) to prepare an independent evaluation of its oil and gas reserves effective December<br />
31, 2011. The locations of the most significant reserves properties are indicated on the attached<br />
index map.<br />
The evaluation was initiated in December 2011 and completed by February 2012. Estimates of<br />
reserves and projections of production were generally prepared using well information and<br />
production data available from public sources to approximately December 31, 2011. The<br />
Company provided land, accounting data and other technical information not available in the<br />
public domain to approximately December 31, 2011. In certain instances, the Company also<br />
provided recent engineering, geological and other information up to December 31, 2011. The<br />
Company has confirmed that, to the best of its knowledge, all information provided to GLJ is<br />
correct and complete as of the effective date.<br />
This evaluation has been prepared in accordance with procedures and standards contained in the<br />
Canadian Oil and Gas Evaluation (COGE) Handbook. The reserves definitions used in preparing<br />
this report (included herein under “Reserves Definitions”) are those contained in the COGE<br />
Handbook and the Canadian Securities Administrators National Instrument 51-101 (NI 51-101).<br />
The evaluation was conducted on the basis of the GLJ January 1, 2012 Price Forecast which is<br />
summarized in the Product Price and Market Forecasts section of this report.<br />
Tables summarizing production, royalties, costs, revenue projections, reserves and present value<br />
estimates for various reserves categories for individual properties and the Company total are<br />
provided in the tabbed sections of this Summary Report.<br />
The Evaluation Procedure section outlines general procedures used in preparing this evaluation. The<br />
individual property reports, provided under separate cover, provide additional evaluation details.<br />
The following summarizes evaluation matters that have been included/excluded in cash flow<br />
projections:<br />
• processing income has been included as “Other <strong>Inc</strong>ome”,<br />
• in accordance with NI 51-101, the effect on projected revenues of the Company’s<br />
financial hedging activity has not been included,<br />
GLJ<br />
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• provisions for the abandonment of all of the Company’s wells to which reserves have<br />
been attributed have been included; all other abandonment and reclamation costs have<br />
not been included,<br />
• general and administrative (G&A) costs and overhead recovery have not been included,<br />
• undeveloped land values have not been included.<br />
The “Securities Reporting” section of this report provides reserves data in a format that is consistent<br />
with the disclosure requirements set out in NI 51-101.<br />
Economic forecasts are provided on an after tax basis including tax pools provided by the Company<br />
in the “After Tax Analysis” section.<br />
GLJ<br />
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GLJ<br />
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SUMMARY<br />
TABLE OF CONTENTS<br />
GLJ<br />
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LIST OF TABLES<br />
Table 1 Summary of Reserves and Values 9<br />
Table 2 Company Production, Reserves and Present Value Summary 10<br />
LIST OF DRAWINGS<br />
Drawing 1 Historical and Forecast Company Interest Oil Equivalent Production 11<br />
Drawing 2 Historical and Forecast Company Interest Production Oil/Sales Gas/NGL 12<br />
PROVED RESERVES 13<br />
PROBABLE AND PROVED PLUS PROBABLE RESERVES 27<br />
POSSIBLE AND PROVED PLUS PROBABLE PLUS POSSIBLE RESERVES 36<br />
Page<br />
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Table 1<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Summary of Reserves and Values<br />
Proved Total<br />
Developed Proved<br />
Proved Non- Proved Total Total Plus Total<br />
Producing producing Undeveloped Proved Probable Probable PPP<br />
MARKETABLE RESERVES<br />
Light/Medium Oil (Mbbl)<br />
Total Company Interest 0 0 87 87 434 521 694<br />
Working Interest 0 0 87 87 434 521 694<br />
Net After Royalty 0 0 79 79 393 471 628<br />
Gas (MMcf)<br />
Total Company Interest 21,949 0 36,739 58,688 43,967 102,654 216,732<br />
Working Interest 21,949 0 36,739 58,688 43,967 102,654 216,732<br />
Net After Royalty 20,944 0 33,249 54,192 39,955 94,147 197,558<br />
Natural Gas Liquids (Mbbl)<br />
Total Company Interest 28 0 47 75 56 131 277<br />
Working Interest 28 0 47 75 56 131 277<br />
Net After Royalty 27 0 42 69 51 120 252<br />
Oil Equivalent (Mbbl)<br />
Total Company Interest 3,686 0 6,257 9,943 7,818 17,761 37,093<br />
Working Interest 3,686 0 6,257 9,943 7,818 17,761 37,093<br />
Net After Royalty 3,517 0 5,662 9,180 7,103 16,282 33,807<br />
BEFORE TAX PRESENT VALUE (M$)<br />
0% 68,004 0 151,236 219,240 244,854 464,094 1,217,007<br />
5% 55,395 0 83,361 138,756 127,138 265,894 593,714<br />
8% 49,612 0 60,516 110,128 91,823 201,951 426,512<br />
10% 46,325 0 49,417 95,742 75,405 171,147 351,488<br />
12% 43,416 0 40,621 84,037 62,717 146,754 294,512<br />
15% 39,645 0 30,547 70,192 48,508 118,701 231,566<br />
20% 34,602 0 19,232 53,834 32,905 86,738 163,152<br />
FIRST 6 YEARS BEFORE TAX CASH FLOW (M$)<br />
2012 9,619 0 102 9,721 385 10,106 10,663<br />
2013 8,778 0 -7,680 1,098 -229 869 3,575<br />
2014 8,087 0 -7,671 416 -5,717 -5,301 -801<br />
2015 7,400 0 -1,579 5,821 7,094 12,915 23,066<br />
2016 6,770 0 10,846 17,616 -798 16,818 25,314<br />
2017 6,181 0 18,063 24,244 18,905 43,149 62,194<br />
Run Date: February 16, 2012 11:30:22<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
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Table 2<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Company Production, Reserves and Present Value Summary<br />
2012 Company Interest Prod'n Company Interest Reserves Net After Royalty Reserves Reserve Before <strong>Inc</strong>ome Tax<br />
Life Discounted Present Value (M$)<br />
Gas Oil NGL Oil Eq. Gas Oil NGL Sulphur Oil Eq. Gas Oil NGL Sulphur Oil Eq. Index<br />
Entity Description Mcf/d bbl/d bbl/d boe/d MMcf Mbbl Mbbl Mlt Mboe MMcf Mbbl Mbbl Mlt Mboe yrs 0% 8% 10% 12%<br />
Proved Producing 9,348 0 12 1,570 21,949 0 28 0 3,686 20,944 0 27 0 3,517 6.4 68,004 49,612 46,325 43,416<br />
Proved Developed Nonproducing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0 0 0<br />
Proved Undeveloped 0 0 0 0 36,739 87 47 0 6,257 33,249 79 42 0 5,662 34.6 151,236 60,516 49,417 40,621<br />
Total Proved 9,348 0 12 1,570 58,688 87 75 0 9,943 54,192 79 69 0 9,180 17.4 219,240 110,128 95,742 84,037<br />
Probable Producing 204 0 0 34 5,951 0 8 0 999 5,551 0 7 0 932 79.8 26,644 13,737 11,892 10,381<br />
Probable Developed Nonproducing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0 0 0<br />
Probable Undeveloped 0 0 0 0 38,016 434 49 0 6,818 34,404 393 44 0 6,171 102.5 218,210 78,086 63,513 52,336<br />
Total Probable 204 0 0 34 43,967 434 56 0 7,818 39,955 393 51 0 7,103 624.3 244,854 91,823 75,405 62,717<br />
Proved Plus Probable Producing 9,553 0 12 1,604 27,899 0 36 0 4,686 26,494 0 34 0 4,450 8.0 94,648 63,349 58,217 53,797<br />
Proved Plus Probable Developed Nonproducing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0 0 0<br />
Proved Plus Probable Undeveloped 0 0 0 0 74,755 521 95 0 13,075 67,653 471 86 0 11,833 52.9 369,446 138,602 112,930 92,958<br />
Total Proved Plus Probable 9,553 0 12 1,604 102,654 521 131 0 17,761 94,147 471 120 0 16,282 30.3 464,094 201,951 171,147 146,754<br />
Total Possible 190 0 0 32 114,078 174 146 0 19,332 103,411 157 132 0 17,524 999.9 752,914 224,561 180,341 147,758<br />
Total PPP 9,743 0 12 1,636 216,732 694 277 0 37,093 197,558 628 252 0 33,807 62.1 1,217,007 426,512 351,488 294,512<br />
Natural Gas (97 %)<br />
Product Types<br />
L & M Oil (2 %)<br />
NGLs (
Historical and Forecast Production<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Pricing: GLJ (2012-01)<br />
Property: Corporate Effective Date: December 31, 2011<br />
Description: Summary<br />
(boe/d)<br />
(boe/d)<br />
0 1000 2000 3000 4000 5000 6000 7000 8000<br />
0 1000 2000 3000 4000 5000 6000 7000 8000<br />
Company Interest Oil Equivalent<br />
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031<br />
Year<br />
Company Interest Oil Equivalent - Total PPP<br />
Legend<br />
A Proved Producing<br />
C Total Proved<br />
I Total Proved Plus Probable<br />
R Total PPP<br />
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031<br />
Year<br />
A<br />
Legend<br />
Sales Gas<br />
Natural Gas Liquids<br />
Light Medium Oil<br />
*Note: Historical company interest production is based on current interests in the evaluated reserves entities applied to reported actual gross<br />
lease production. Consequently, company actuals may differ from the history shown due to changes in ownership.<br />
Company Interest Oil Equivalent<br />
1121357 / Feb 16, 2012<br />
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R<br />
I<br />
C<br />
Drawing 1<br />
Petroleum Consultants
Historical and Forecast Production<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Pricing: GLJ (2012-01)<br />
Property: Corporate Effective Date: December 31, 2011<br />
Description: Summary<br />
(bbl/d)<br />
(MMcf/d)<br />
(bbl/d)<br />
0 50 100 150 200 250 300 350 400 450 500<br />
0 5 10 15 20 25 30 35 40 45 50<br />
0 5 10 15 20 25 30 35 40 45 50 55 60<br />
Company Interest Oil<br />
R<br />
C I<br />
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031<br />
Year<br />
Company Interest Sales Gas<br />
Legend<br />
A Proved Producing<br />
C Total Proved<br />
I Total Proved Plus Probable<br />
R Total PPP<br />
A<br />
C<br />
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031<br />
Year<br />
Company Interest NGL<br />
Legend<br />
A Proved Producing<br />
C Total Proved<br />
I Total Proved Plus Probable<br />
R Total PPP<br />
A<br />
C<br />
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031<br />
Year<br />
Legend<br />
A Proved Producing<br />
C Total Proved<br />
I Total Proved Plus Probable<br />
R Total PPP<br />
*Note: Historical company interest production is based on current interests in the evaluated reserves entities applied to reported actual gross<br />
lease production. Consequently, company actuals may differ from the history shown due to changes in ownership.<br />
Company Interest Oil<br />
1121357 / Feb 16, 2012<br />
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Drawing 2<br />
Petroleum Consultants<br />
R<br />
I<br />
R<br />
I
PROVED RESERVES<br />
TABLE OF CONTENTS<br />
GLJ<br />
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SUMMARY OF RESERVES AND VALUES 14<br />
COMPANY PRODUCTION, RESERVES AND PRESENT VALUE SUMMARY 15<br />
ECONOMIC FORECASTS<br />
Proved Producing 16<br />
Proved Undeveloped 18<br />
Total Proved Nonproducing 21<br />
Total Proved 24<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Summary of Reserves and Values<br />
Proved Total<br />
Developed Proved<br />
Proved Non- Proved Non- Total<br />
Producing producing Undeveloped producing Proved<br />
MARKETABLE RESERVES<br />
Light/Medium Oil (Mbbl)<br />
Total Company Interest 0 0 87 87 87<br />
Working Interest 0 0 87 87 87<br />
Net After Royalty 0 0 79 79 79<br />
Gas (MMcf)<br />
Total Company Interest 21,949 0 36,739 36,739 58,688<br />
Working Interest 21,949 0 36,739 36,739 58,688<br />
Net After Royalty 20,944 0 33,249 33,249 54,192<br />
Natural Gas Liquids (Mbbl)<br />
Total Company Interest 28 0 47 47 75<br />
Working Interest 28 0 47 47 75<br />
Net After Royalty 27 0 42 42 69<br />
Oil Equivalent (Mbbl)<br />
Total Company Interest 3,686 0 6,257 6,257 9,943<br />
Working Interest 3,686 0 6,257 6,257 9,943<br />
Net After Royalty 3,517 0 5,662 5,662 9,180<br />
BEFORE TAX PRESENT VALUE (M$)<br />
0% 68,004 0 151,236 151,236 219,240<br />
5% 55,395 0 83,361 83,361 138,756<br />
8% 49,612 0 60,516 60,516 110,128<br />
10% 46,325 0 49,417 49,417 95,742<br />
12% 43,416 0 40,621 40,621 84,037<br />
15% 39,645 0 30,547 30,547 70,192<br />
20% 34,602 0 19,232 19,232 53,834<br />
FIRST 6 YEARS BEFORE TAX CASH FLOW (M$)<br />
2012 9,619 0 102 102 9,721<br />
2013 8,778 0 -7,680 -7,680 1,098<br />
2014 8,087 0 -7,671 -7,671 416<br />
2015 7,400 0 -1,579 -1,579 5,821<br />
2016 6,770 0 10,846 10,846 17,616<br />
2017 6,181 0 18,063 18,063 24,244<br />
Run Date: February 16, 2012 11:30:21<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Company Production, Reserves and Present Value Summary<br />
2012 Company Interest Prod'n Company Interest Reserves Net After Royalty Reserves Reserve Before <strong>Inc</strong>ome Tax<br />
Life Discounted Present Value (M$)<br />
Gas Oil NGL Oil Eq. Gas Oil NGL Sulphur Oil Eq. Gas Oil NGL Sulphur Oil Eq. Index<br />
Entity Description Mcf/d bbl/d bbl/d boe/d MMcf Mbbl Mbbl Mlt Mboe MMcf Mbbl Mbbl Mlt Mboe yrs 0% 8% 10% 12%<br />
Proved Producing<br />
McCully 9,348 0 12 1,570 21,949 0 28 0 3,686 20,944 0 27 0 3,517 6.4 68,004 49,612 46,325 43,416<br />
Total: Proved Producing 9,348 0 12 1,570 21,949 0 28 0 3,686 20,944 0 27 0 3,517 6.4 68,004 49,612 46,325 43,416<br />
Proved Undeveloped<br />
McCully 0 0 0 0 36,739 87 47 0 6,257 33,249 79 42 0 5,662 34.6 151,236 60,516 49,417 40,621<br />
Total: Proved Undeveloped 0 0 0 0 36,739 87 47 0 6,257 33,249 79 42 0 5,662 34.6 151,236 60,516 49,417 40,621<br />
Total Proved Nonproducing<br />
McCully 0 0 0 0 36,739 87 47 0 6,257 33,249 79 42 0 5,662 34.6 151,236 60,516 49,417 40,621<br />
Total: Total Proved Nonproducing 0 0 0 0 36,739 87 47 0 6,257 33,249 79 42 0 5,662 34.6 151,236 60,516 49,417 40,621<br />
Total Proved<br />
McCully 9,348 0 12 1,570 58,688 87 75 0 9,943 54,192 79 69 0 9,180 17.4 219,240 110,128 95,742 84,037<br />
Total: Total Proved 9,348 0 12 1,570 58,688 87 75 0 9,943 54,192 79 69 0 9,180 17.4 219,240 110,128 95,742 84,037<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
1121357 Class (A,B2,B,C), GLJ (2012-01), crv February 17, 2012 15:13:03<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved<br />
Property: Corporate Development Class: Producing<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Residue Gas Production Condensate Production Total Oil Equiv. Production<br />
Company Company Company Company Company Company Company<br />
Gas Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Wells Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl boe/d Mboe Mboe $/boe<br />
2012 22 9,348 3,412 3,224 3.50 12 4 4 86.50 1,570 573 542 21.50<br />
2013 22 7,733 2,823 2,690 4.17 10 4 3 86.50 1,299 474 452 25.48<br />
2014 19 6,409 2,339 2,243 4.70 8 3 3 83.44 1,076 393 377 28.65<br />
2015 17 5,131 1,873 1,805 5.24 7 2 2 81.40 862 315 303 31.82<br />
2016 17 4,358 1,591 1,545 5.77 6 2 2 81.40 732 267 259 35.00<br />
2017 17 3,837 1,400 1,368 6.31 5 2 2 81.40 644 235 230 38.19<br />
2018 17 3,409 1,244 1,195 6.59 4 2 2 82.78 573 209 201 39.84<br />
2019 17 3,064 1,118 1,050 6.73 4 1 1 84.85 515 188 176 40.69<br />
2020 16 2,768 1,010 955 6.88 4 1 1 86.96 465 170 160 41.60<br />
2021 16 2,490 909 864 7.03 3 1 1 89.11 418 153 145 42.51<br />
2022 16 2,240 818 784 7.17 3 1 1 91.31 376 137 132 43.36<br />
2023 15 1,998 729 706 7.31 3 1 1 93.55 336 122 119 44.23<br />
Sub. 19,267 18,430 5.33 25 24 85.12 3,236 3,095 32.41<br />
Rem. 2,682 2,514 7.73 3 3 100.10 450 422 46.78<br />
Tot. 21,949 20,944 5.63 28 27 86.95 3,686 3,517 34.17<br />
REVENUE AND EXPENSE FORECAST<br />
Page: 16 of 102<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 11,943 377 12,320 0 12,320 678 0 0 0 678 11,642 2,766 648 3,414<br />
2013 0 11,767 312 12,079 0 12,079 568 0 0 0 568 11,511 2,802 547 3,349<br />
2014 0 11,004 249 11,253 0 11,253 461 0 0 0 461 10,792 2,819 462 3,282<br />
2015 0 9,813 195 10,007 0 10,007 360 0 0 0 360 9,647 2,829 378 3,206<br />
2016 0 9,185 165 9,350 0 9,350 271 0 0 0 271 9,079 2,877 327 3,204<br />
2017 0 8,835 145 8,980 0 8,980 207 0 0 0 207 8,774 2,930 294 3,223<br />
2018 0 8,195 131 8,326 0 8,326 333 0 0 0 333 7,993 2,980 266 3,246<br />
2019 0 7,522 121 7,643 0 7,643 466 0 0 0 466 7,177 3,039 244 3,284<br />
2020 0 6,947 112 7,059 0 7,059 388 0 0 0 388 6,671 3,084 225 3,309<br />
2021 0 6,384 103 6,488 0 6,488 318 0 0 0 318 6,170 3,134 206 3,340<br />
2022 0 5,860 95 5,955 0 5,955 244 0 0 0 244 5,711 3,176 189 3,365<br />
2023 0 5,330 87 5,417 0 5,417 173 0 0 0 173 5,243 3,203 172 3,375<br />
Sub. 0 102,784 2,093 104,878 0 104,878 4,468 0 0 0 4,468 100,410 35,637 3,959 39,597<br />
Rem. 0 20,728 343 21,070 0 21,070 1,342 0 0 0 1,342 19,728 16,538 670 17,208<br />
Tot. 0 123,512 2,436 125,948 0 125,948 5,810 0 0 0 5,810 120,138 52,175 4,629 56,805<br />
Disc 0 71,531 1,533 73,064 0 73,064 3,235 0 0 0 3,235 69,828 25,070 2,860 27,930<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,228 1,391 0 9,619 0 0 0 0 9,619 9,619 9,171<br />
2013 0 0 0 8,163 1,125 510 8,778 0 0 0 0 8,778 18,397 16,780<br />
2014 0 0 0 7,510 967 390 8,087 0 0 0 0 8,087 26,484 23,152<br />
2015 0 0 0 6,441 960 0 7,400 0 0 0 0 7,400 33,884 28,453<br />
2016 0 0 0 5,875 895 0 6,770 0 0 0 0 6,770 40,654 32,862<br />
2017 0 0 0 5,550 769 138 6,181 0 0 0 0 6,181 46,835 36,522<br />
2018 0 0 0 4,747 677 0 5,424 0 0 0 0 5,424 52,259 39,441<br />
2019 0 0 0 3,893 601 144 4,350 0 0 0 0 4,350 56,609 41,569<br />
2020 0 0 0 3,362 540 146 3,755 0 0 0 0 3,755 60,364 43,239<br />
2021 0 0 0 2,830 471 0 3,301 0 0 0 0 3,301 63,666 44,574<br />
2022 0 0 0 2,346 426 305 2,467 0 0 0 0 2,467 66,133 45,481<br />
2023 0 0 0 1,869 388 311 1,946 0 0 0 0 1,946 68,079 46,132<br />
Sub. 0 0 0 60,813 9,209 1,944 68,079 0 0 0 0 68,079 68,079 46,132<br />
Rem. 0 0 0 2,520 1,960 4,554 -74 0 0 0 0 -74 68,004 46,325<br />
Tot. 0 0 0 63,334 11,169 6,498 68,004 0 0 0 0 68,004 68,004 46,325<br />
Disc 0 0 0 41,898 6,644 2,217 46,325 0 0 0 0 46,325 46,325 46,325<br />
1121357 Proved Producing, GLJ (2012-01), pri February 16, 2012 12:52:08<br />
GLJ<br />
Petroleum Consultants
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Residue Gas MMcf 21,949 0 21,949 20,944 6.000 3,658 99 17.0 6.4 4.3<br />
Gas Heat Content BBtu 23,266 0 23,266 22,200 0.000 0 0 17.0 6.4 4.3<br />
Condensate Mbbl 28 0 28 27 1.000 28 1 17.0 6.4 4.3<br />
Total: Oil Eq. Mboe 3,686 0 3,686 3,517 1.000 3,686 100 17.0 6.4 4.3<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 1.00 0.00 2.31 117,815 98 68,365 98<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 2,323 2 1,463 2<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.96 0.00 14.36 120,138 100 69,828 100<br />
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 4.6130 0.0 63,334 68,004 0.0 68,004 18.45<br />
Non-crown Royalty 0.0000 0.0000 5.0 50,639 55,395 0.0 55,395 15.03<br />
Mineral Tax 0.0000 0.0000 8.0 45,033 49,612 0.0 49,612 13.46<br />
10.0 41,898 46,325 0.0 46,325 12.57<br />
12.0 39,154 43,416 0.0 43,416 11.78<br />
15.0 35,634 39,645 0.0 39,645 10.76<br />
20.0 30,986 34,602 0.0 34,602 9.39<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:19<br />
1121357 Proved Producing, GLJ (2012-01), pri February 16, 2012 12:52:08<br />
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Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved<br />
Property: Corporate Development Class: Undeveloped<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 0 0 0 0 0.00 0 0 0 0.00 0 0 0 0.00<br />
2013 1 5 59 22 20 101.34 46 17 15 4.17 2,546 929 841 4.17<br />
2014 1 8 65 24 21 98.28 51 19 17 4.70 7,063 2,578 2,333 4.70<br />
2015 1 13 35 13 12 96.24 27 10 9 5.24 10,478 3,825 3,461 5.24<br />
2016 1 15 22 8 7 96.24 17 6 6 5.77 11,456 4,181 3,784 5.77<br />
2017 1 15 15 5 5 96.24 12 4 4 6.31 9,702 3,541 3,205 6.31<br />
2018 1 15 11 4 4 97.62 9 3 3 6.59 7,788 2,842 2,572 6.59<br />
2019 1 15 8 3 3 99.69 7 2 2 6.73 6,412 2,340 2,118 6.73<br />
2020 1 15 7 2 2 101.80 5 2 2 6.88 5,399 1,971 1,783 6.88<br />
2021 1 15 5 2 2 103.95 4 2 1 7.03 4,594 1,677 1,517 7.03<br />
2022 1 15 4 2 1 106.15 3 1 1 7.17 3,972 1,450 1,312 7.17<br />
2023 1 15 4 1 1 108.39 3 1 1 7.31 3,473 1,267 1,147 7.31<br />
Sub. 86 78 98.97 67 61 5.21 26,602 24,075 6.09<br />
Rem. 1 1 110.67 1 1 7.45 10,069 9,113 8.55<br />
Tot. 87 79 99.08 68 61 5.23 36,671 33,187 6.77<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 0 0 0 0.00 0 0 0 0.00 0 0 0 0.00<br />
2013 2,593 946 856 4.17 3 1 1 86.50 63 23 21 100.56<br />
2014 7,113 2,596 2,350 4.70 9 3 3 83.44 74 27 24 96.46<br />
2015 10,506 3,835 3,470 5.24 13 5 4 81.40 48 18 16 92.13<br />
2016 11,473 4,188 3,790 5.77 15 5 5 81.40 37 13 12 90.31<br />
2017 9,713 3,545 3,209 6.31 12 5 4 81.40 27 10 9 89.53<br />
2018 7,796 2,846 2,575 6.59 10 4 3 82.78 21 8 7 90.55<br />
2019 6,419 2,343 2,120 6.73 8 3 3 84.85 17 6 5 92.33<br />
2020 5,404 1,973 1,785 6.88 7 3 2 86.96 13 5 4 94.19<br />
2021 4,598 1,678 1,519 7.03 6 2 2 89.11 11 4 4 96.14<br />
2022 3,975 1,451 1,313 7.17 5 2 2 91.31 9 3 3 98.16<br />
2023 3,475 1,269 1,148 7.31 4 2 1 93.55 8 3 3 100.24<br />
Sub. 26,669 24,135 6.09 34 31 84.24 120 109 94.80<br />
Rem. 10,070 9,113 8.55 13 12 112.97 14 12 112.84<br />
Tot. 36,739 33,249 6.76 47 42 92.12 134 121 96.64<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 0 0 0 0.00<br />
2013 495 181 163 34.59<br />
2014 1,260 460 416 32.23<br />
2015 1,799 657 594 33.07<br />
2016 1,949 711 644 35.69<br />
2017 1,646 601 544 38.72<br />
2018 1,320 482 436 40.32<br />
2019 1,086 397 359 41.14<br />
2020 914 334 302 42.03<br />
2021 777 284 257 42.93<br />
2022 672 245 222 43.77<br />
2023 587 214 194 44.63<br />
Sub. 4,565 4,131 38.05<br />
Rem. 1,692 1,531 51.81<br />
Tot. 6,257 5,662 41.77<br />
Page: 18 of 102<br />
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Petroleum Consultants
REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
2013 2,197 3,945 104 6,246 0 6,246 593 0 0 0 593 5,653 64 288 352<br />
2014 2,329 12,214 277 14,819 0 14,819 1,408 0 0 0 1,408 13,411 178 630 809<br />
2015 1,232 20,091 398 21,722 0 21,722 2,064 0 0 0 2,064 19,658 303 838 1,140<br />
2016 773 24,178 435 25,387 0 25,387 2,412 0 0 0 2,412 22,975 390 903 1,292<br />
2017 528 22,368 368 23,265 0 23,265 2,210 0 0 0 2,210 21,054 424 773 1,196<br />
2018 390 18,741 301 19,431 0 19,431 1,846 0 0 0 1,846 17,585 432 630 1,063<br />
2019 303 15,757 254 16,314 0 16,314 1,550 0 0 0 1,550 14,764 441 528 969<br />
2020 244 13,561 219 14,024 0 14,024 1,332 0 0 0 1,332 12,692 450 452 902<br />
2021 200 11,791 191 12,182 0 12,182 1,157 0 0 0 1,157 11,025 459 392 851<br />
2022 168 10,398 169 10,735 0 10,735 1,020 0 0 0 1,020 9,715 468 345 813<br />
2023 144 9,271 151 9,567 0 9,567 909 0 0 0 909 8,658 477 308 785<br />
Sub. 8,507 162,316 2,868 173,691 0 173,691 16,501 0 0 0 16,501 157,190 4,086 6,087 10,173<br />
Rem. 89 86,120 1,452 87,661 0 87,661 8,328 0 0 0 8,328 79,333 9,250 2,788 12,039<br />
Tot. 8,596 248,436 4,320 261,352 0 261,352 24,828 0 0 0 24,828 236,523 13,337 8,875 22,212<br />
Disc 6,122 106,937 1,919 114,978 0 114,978 10,923 0 0 0 10,923 104,055 3,412 4,065 7,476<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 0 102 0 102 0 0 0 0 102 102 97<br />
2013 0 0 0 5,301 325 0 5,626 13,306 0 0 13,306 -7,680 -7,578 -6,560<br />
2014 0 0 0 12,603 919 0 13,522 21,193 0 0 21,193 -7,671 -15,250 -12,605<br />
2015 0 0 0 18,518 1,785 0 20,303 21,882 0 0 21,882 -1,579 -16,829 -13,736<br />
2016 0 0 0 21,682 1,763 0 23,446 12,600 0 0 12,600 10,846 -5,983 -6,673<br />
2017 0 0 0 19,858 1,418 0 21,276 3,213 0 0 3,213 18,063 12,080 4,021<br />
2018 0 0 0 16,522 1,170 0 17,692 0 0 0 0 17,692 29,772 13,543<br />
2019 0 0 0 13,795 983 0 14,778 0 0 0 0 14,778 44,550 20,773<br />
2020 0 0 0 11,789 840 0 12,629 0 0 0 0 12,629 57,179 26,391<br />
2021 0 0 0 10,174 723 0 10,897 0 0 0 0 10,897 68,076 30,797<br />
2022 0 0 0 8,902 631 0 9,533 0 0 0 0 9,533 77,609 34,301<br />
2023 0 0 0 7,873 556 0 8,429 0 0 0 0 8,429 86,038 37,118<br />
Sub. 0 0 0 147,017 11,214 0 158,231 72,193 0 0 72,193 86,038 86,038 37,118<br />
Rem. 0 0 0 67,295 4,822 6,919 65,198 0 0 0 0 65,198 151,236 49,417<br />
Tot. 0 0 0 214,312 16,036 6,919 223,429 72,193 0 0 72,193 151,236 151,236 49,417<br />
Disc 0 0 0 96,578 7,412 558 103,433 54,016 0 0 54,016 49,417 49,417 49,417<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 87 0 87 79 1.000 87 1 13.0 4.0 2.9<br />
Solution Gas MMcf 68 0 68 61 6.000 11 0 13.0 4.0 2.9<br />
Residue Gas MMcf 36,671 0 36,671 33,187 6.000 6,112 98 39.0 39.5 7.2<br />
Total: Gas MMcf 36,739 0 36,739 33,249 6.000 6,123 98 39.0 38.8 7.2<br />
Gas Heat Content BBtu 38,943 0 38,943 35,244 0.000 0 0 39.0 38.8 7.2<br />
Condensate Mbbl 47 0 47 42 1.000 47 1 39.0 38.8 7.2<br />
Total: Oil+NGL Mbbl 134 0 134 121 1.000 134 2 39.0 5.8 4.0<br />
Total: Oil Eq. Mboe 6,257 0 6,257 5,662 1.000 6,257 100 39.0 34.6 7.1<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,779 3 5,540 5<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 321 0 220 0<br />
Residue Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 224,514 95 96,558 93<br />
Total: Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 224,835 95 96,778 93<br />
Condensate $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,909 2 1,737 2<br />
Total: Oil+NGL $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,688 5 7,277 7<br />
Total: Oil Eq. $/boe 0.00 0.00 0.00 0.00 0.00 0.00 0.00 236,523 100 104,055 100<br />
1121357 Proved Undeveloped, GLJ (2012-01), pri February 16, 2012 12:52:15<br />
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Page: 19 of 102<br />
Page 2<br />
Petroleum Consultants
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 0.0000 9.5000 0.0 214,312 223,429 72,193 151,236 24.17<br />
Non-crown Royalty 0.0000 0.0000 5.0 136,932 145,507 62,146 83,361 13.32<br />
Mineral Tax 0.0000 0.0000 8.0 110,054 117,585 57,069 60,516 9.67<br />
10.0 96,578 103,433 54,016 49,417 7.90<br />
12.0 85,584 91,817 51,196 40,621 6.49<br />
15.0 72,482 77,904 47,357 30,547 4.88<br />
20.0 56,715 61,074 41,843 19,232 3.07<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:21<br />
1121357 Proved Undeveloped, GLJ (2012-01), pri February 16, 2012 12:52:15<br />
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Page: 20 of 102<br />
Page 3<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved<br />
Property: Corporate Development Class: Total Nonproducing<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 0 0 0 0 0.00 0 0 0 0.00 0 0 0 0.00<br />
2013 1 5 59 22 20 101.34 46 17 15 4.17 2,546 929 841 4.17<br />
2014 1 8 65 24 21 98.28 51 19 17 4.70 7,063 2,578 2,333 4.70<br />
2015 1 13 35 13 12 96.24 27 10 9 5.24 10,478 3,825 3,461 5.24<br />
2016 1 15 22 8 7 96.24 17 6 6 5.77 11,456 4,181 3,784 5.77<br />
2017 1 15 15 5 5 96.24 12 4 4 6.31 9,702 3,541 3,205 6.31<br />
2018 1 15 11 4 4 97.62 9 3 3 6.59 7,788 2,842 2,572 6.59<br />
2019 1 15 8 3 3 99.69 7 2 2 6.73 6,412 2,340 2,118 6.73<br />
2020 1 15 7 2 2 101.80 5 2 2 6.88 5,399 1,971 1,783 6.88<br />
2021 1 15 5 2 2 103.95 4 2 1 7.03 4,594 1,677 1,517 7.03<br />
2022 1 15 4 2 1 106.15 3 1 1 7.17 3,972 1,450 1,312 7.17<br />
2023 1 15 4 1 1 108.39 3 1 1 7.31 3,473 1,267 1,147 7.31<br />
Sub. 86 78 98.97 67 61 5.21 26,602 24,075 6.09<br />
Rem. 1 1 110.67 1 1 7.45 10,069 9,113 8.55<br />
Tot. 87 79 99.08 68 61 5.23 36,671 33,187 6.77<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 0 0 0 0.00 0 0 0 0.00 0 0 0 0.00<br />
2013 2,593 946 856 4.17 3 1 1 86.50 63 23 21 100.56<br />
2014 7,113 2,596 2,350 4.70 9 3 3 83.44 74 27 24 96.46<br />
2015 10,506 3,835 3,470 5.24 13 5 4 81.40 48 18 16 92.13<br />
2016 11,473 4,188 3,790 5.77 15 5 5 81.40 37 13 12 90.31<br />
2017 9,713 3,545 3,209 6.31 12 5 4 81.40 27 10 9 89.53<br />
2018 7,796 2,846 2,575 6.59 10 4 3 82.78 21 8 7 90.55<br />
2019 6,419 2,343 2,120 6.73 8 3 3 84.85 17 6 5 92.33<br />
2020 5,404 1,973 1,785 6.88 7 3 2 86.96 13 5 4 94.19<br />
2021 4,598 1,678 1,519 7.03 6 2 2 89.11 11 4 4 96.14<br />
2022 3,975 1,451 1,313 7.17 5 2 2 91.31 9 3 3 98.16<br />
2023 3,475 1,269 1,148 7.31 4 2 1 93.55 8 3 3 100.24<br />
Sub. 26,669 24,135 6.09 34 31 84.24 120 109 94.80<br />
Rem. 10,070 9,113 8.55 13 12 112.97 14 12 112.84<br />
Tot. 36,739 33,249 6.76 47 42 92.12 134 121 96.64<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 0 0 0 0.00<br />
2013 495 181 163 34.59<br />
2014 1,260 460 416 32.23<br />
2015 1,799 657 594 33.07<br />
2016 1,949 711 644 35.69<br />
2017 1,646 601 544 38.72<br />
2018 1,320 482 436 40.32<br />
2019 1,086 397 359 41.14<br />
2020 914 334 302 42.03<br />
2021 777 284 257 42.93<br />
2022 672 245 222 43.77<br />
2023 587 214 194 44.63<br />
Sub. 4,565 4,131 38.05<br />
Rem. 1,692 1,531 51.81<br />
Tot. 6,257 5,662 41.77<br />
Page: 21 of 102<br />
1121357 Total Proved Nonproducing, GLJ (2012-01), pri February 16, 2012 12:52:20<br />
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Petroleum Consultants
REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
2013 2,197 3,945 104 6,246 0 6,246 593 0 0 0 593 5,653 64 288 352<br />
2014 2,329 12,214 277 14,819 0 14,819 1,408 0 0 0 1,408 13,411 178 630 809<br />
2015 1,232 20,091 398 21,722 0 21,722 2,064 0 0 0 2,064 19,658 303 838 1,140<br />
2016 773 24,178 435 25,387 0 25,387 2,412 0 0 0 2,412 22,975 390 903 1,292<br />
2017 528 22,368 368 23,265 0 23,265 2,210 0 0 0 2,210 21,054 424 773 1,196<br />
2018 390 18,741 301 19,431 0 19,431 1,846 0 0 0 1,846 17,585 432 630 1,063<br />
2019 303 15,757 254 16,314 0 16,314 1,550 0 0 0 1,550 14,764 441 528 969<br />
2020 244 13,561 219 14,024 0 14,024 1,332 0 0 0 1,332 12,692 450 452 902<br />
2021 200 11,791 191 12,182 0 12,182 1,157 0 0 0 1,157 11,025 459 392 851<br />
2022 168 10,398 169 10,735 0 10,735 1,020 0 0 0 1,020 9,715 468 345 813<br />
2023 144 9,271 151 9,567 0 9,567 909 0 0 0 909 8,658 477 308 785<br />
Sub. 8,507 162,316 2,868 173,691 0 173,691 16,501 0 0 0 16,501 157,190 4,086 6,087 10,173<br />
Rem. 89 86,120 1,452 87,661 0 87,661 8,328 0 0 0 8,328 79,333 9,250 2,788 12,039<br />
Tot. 8,596 248,436 4,320 261,352 0 261,352 24,828 0 0 0 24,828 236,523 13,337 8,875 22,212<br />
Disc 6,122 106,937 1,919 114,978 0 114,978 10,923 0 0 0 10,923 104,055 3,412 4,065 7,476<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 0 102 0 102 0 0 0 0 102 102 97<br />
2013 0 0 0 5,301 325 0 5,626 13,306 0 0 13,306 -7,680 -7,578 -6,560<br />
2014 0 0 0 12,603 919 0 13,522 21,193 0 0 21,193 -7,671 -15,250 -12,605<br />
2015 0 0 0 18,518 1,785 0 20,303 21,882 0 0 21,882 -1,579 -16,829 -13,736<br />
2016 0 0 0 21,682 1,763 0 23,446 12,600 0 0 12,600 10,846 -5,983 -6,673<br />
2017 0 0 0 19,858 1,418 0 21,276 3,213 0 0 3,213 18,063 12,080 4,021<br />
2018 0 0 0 16,522 1,170 0 17,692 0 0 0 0 17,692 29,772 13,543<br />
2019 0 0 0 13,795 983 0 14,778 0 0 0 0 14,778 44,550 20,773<br />
2020 0 0 0 11,789 840 0 12,629 0 0 0 0 12,629 57,179 26,391<br />
2021 0 0 0 10,174 723 0 10,897 0 0 0 0 10,897 68,076 30,797<br />
2022 0 0 0 8,902 631 0 9,533 0 0 0 0 9,533 77,609 34,301<br />
2023 0 0 0 7,873 556 0 8,429 0 0 0 0 8,429 86,038 37,118<br />
Sub. 0 0 0 147,017 11,214 0 158,231 72,193 0 0 72,193 86,038 86,038 37,118<br />
Rem. 0 0 0 67,295 4,822 6,919 65,198 0 0 0 0 65,198 151,236 49,417<br />
Tot. 0 0 0 214,312 16,036 6,919 223,429 72,193 0 0 72,193 151,236 151,236 49,417<br />
Disc 0 0 0 96,578 7,412 558 103,433 54,016 0 0 54,016 49,417 49,417 49,417<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 87 0 87 79 1.000 87 1 13.0 4.0 2.9<br />
Solution Gas MMcf 68 0 68 61 6.000 11 0 13.0 4.0 2.9<br />
Residue Gas MMcf 36,671 0 36,671 33,187 6.000 6,112 98 39.0 39.5 7.2<br />
Total: Gas MMcf 36,739 0 36,739 33,249 6.000 6,123 98 39.0 38.8 7.2<br />
Gas Heat Content BBtu 38,943 0 38,943 35,244 0.000 0 0 39.0 38.8 7.2<br />
Condensate Mbbl 47 0 47 42 1.000 47 1 39.0 38.8 7.2<br />
Total: Oil+NGL Mbbl 134 0 134 121 1.000 134 2 39.0 5.8 4.0<br />
Total: Oil Eq. Mboe 6,257 0 6,257 5,662 1.000 6,257 100 39.0 34.6 7.1<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,779 3 5,540 5<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 321 0 220 0<br />
Residue Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 224,514 95 96,558 93<br />
Total: Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 224,835 95 96,778 93<br />
Condensate $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,909 2 1,737 2<br />
Total: Oil+NGL $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,688 5 7,277 7<br />
Total: Oil Eq. $/boe 0.00 0.00 0.00 0.00 0.00 0.00 0.00 236,523 100 104,055 100<br />
1121357 Total Proved Nonproducing, GLJ (2012-01), pri February 16, 2012 12:52:20<br />
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REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 0.0000 9.5000 0.0 214,312 223,429 72,193 151,236 24.17<br />
Non-crown Royalty 0.0000 0.0000 5.0 136,932 145,507 62,146 83,361 13.32<br />
Mineral Tax 0.0000 0.0000 8.0 110,054 117,585 57,069 60,516 9.67<br />
10.0 96,578 103,433 54,016 49,417 7.90<br />
12.0 85,584 91,817 51,196 40,621 6.49<br />
15.0 72,482 77,904 47,357 30,547 4.88<br />
20.0 56,715 61,074 41,843 19,232 3.07<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:20<br />
1121357 Total Proved Nonproducing, GLJ (2012-01), pri February 16, 2012 12:52:20<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved<br />
Property: Corporate Development Class: Total<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 22 0 0 0 0.00 0 0 0 0.00 9,348 3,412 3,224 3.50<br />
2013 1 26 59 22 20 101.34 46 17 15 4.17 10,279 3,752 3,531 4.17<br />
2014 1 27 65 24 21 98.28 51 19 17 4.70 13,471 4,917 4,576 4.70<br />
2015 1 30 35 13 12 96.24 27 10 9 5.24 15,609 5,697 5,267 5.24<br />
2016 1 32 22 8 7 96.24 17 6 6 5.77 15,814 5,772 5,329 5.77<br />
2017 1 32 15 5 5 96.24 12 4 4 6.31 13,538 4,941 4,573 6.31<br />
2018 1 32 11 4 4 97.62 9 3 3 6.59 11,197 4,087 3,767 6.59<br />
2019 1 32 8 3 3 99.69 7 2 2 6.73 9,476 3,459 3,168 6.73<br />
2020 1 31 7 2 2 101.80 5 2 2 6.88 8,167 2,981 2,738 6.88<br />
2021 1 31 5 2 2 103.95 4 2 1 7.03 7,083 2,585 2,382 7.03<br />
2022 1 31 4 2 1 106.15 3 1 1 7.17 6,212 2,268 2,096 7.17<br />
2023 1 30 4 1 1 108.39 3 1 1 7.31 5,470 1,997 1,853 7.31<br />
Sub. 86 78 98.97 67 61 5.21 45,868 42,504 5.77<br />
Rem. 1 1 110.67 1 1 7.45 12,752 11,627 8.38<br />
Tot. 87 79 99.08 68 61 5.23 58,620 54,131 6.34<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 9,348 3,412 3,224 3.50 12 4 4 86.50 12 4 4 86.50<br />
2013 10,326 3,769 3,546 4.17 13 5 5 86.50 73 26 24 98.65<br />
2014 13,522 4,936 4,593 4.70 17 6 6 83.44 82 30 27 95.16<br />
2015 15,637 5,707 5,276 5.24 20 7 7 81.40 55 20 18 90.86<br />
2016 15,831 5,778 5,334 5.77 20 7 7 81.40 42 15 14 89.14<br />
2017 13,550 4,946 4,577 6.31 17 6 6 81.40 32 12 11 88.30<br />
2018 11,205 4,090 3,770 6.59 14 5 5 82.78 25 9 8 89.21<br />
2019 9,483 3,461 3,170 6.73 12 4 4 84.85 20 7 7 90.89<br />
2020 8,172 2,983 2,740 6.88 10 4 3 86.96 17 6 6 92.69<br />
2021 7,088 2,587 2,383 7.03 9 3 3 89.11 14 5 5 94.58<br />
2022 6,216 2,269 2,097 7.17 8 3 3 91.31 12 4 4 96.56<br />
2023 5,473 1,998 1,854 7.31 7 3 2 93.55 11 4 4 98.64<br />
Sub. 45,936 42,565 5.77 59 54 84.61 145 132 93.15<br />
Rem. 12,752 11,627 8.38 16 15 110.27 17 16 110.28<br />
Tot. 58,688 54,192 6.34 75 69 90.19 162 148 94.96<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 1,570 573 542 21.50<br />
2013 1,794 655 615 27.99<br />
2014 2,336 853 793 30.58<br />
2015 2,661 971 898 32.67<br />
2016 2,681 978 903 35.50<br />
2017 2,291 836 774 38.57<br />
2018 1,893 691 637 40.18<br />
2019 1,601 584 535 41.00<br />
2020 1,379 503 462 41.88<br />
2021 1,196 436 402 42.78<br />
2022 1,048 383 354 43.62<br />
2023 923 337 313 44.48<br />
Sub. 7,801 7,226 35.71<br />
Rem. 2,142 1,953 50.75<br />
Tot. 9,943 9,180 38.95<br />
Page: 24 of 102<br />
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REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 11,943 377 12,320 0 12,320 678 0 0 0 678 11,642 2,766 648 3,414<br />
2013 2,197 15,712 416 18,326 0 18,326 1,161 0 0 0 1,161 17,164 2,865 835 3,701<br />
2014 2,329 23,218 526 26,073 0 26,073 1,869 0 0 0 1,869 24,203 2,997 1,093 4,090<br />
2015 1,232 29,904 593 31,729 0 31,729 2,424 0 0 0 2,424 29,305 3,131 1,215 4,347<br />
2016 773 33,364 600 34,737 0 34,737 2,683 0 0 0 2,683 32,054 3,267 1,230 4,497<br />
2017 528 31,203 514 32,245 0 32,245 2,417 0 0 0 2,417 29,828 3,354 1,066 4,420<br />
2018 390 26,935 432 27,757 0 27,757 2,179 0 0 0 2,179 25,578 3,412 896 4,309<br />
2019 303 23,279 375 23,957 0 23,957 2,016 0 0 0 2,016 21,941 3,481 772 4,252<br />
2020 244 20,508 331 21,083 0 21,083 1,721 0 0 0 1,721 19,362 3,534 677 4,211<br />
2021 200 18,175 294 18,669 0 18,669 1,475 0 0 0 1,475 17,194 3,592 598 4,191<br />
2022 168 16,257 264 16,690 0 16,690 1,264 0 0 0 1,264 15,426 3,644 535 4,178<br />
2023 144 14,601 239 14,984 0 14,984 1,082 0 0 0 1,082 13,901 3,680 480 4,160<br />
Sub. 8,507 265,101 4,961 278,568 0 278,568 20,968 0 0 0 20,968 257,600 39,723 10,046 49,770<br />
Rem. 89 106,848 1,795 108,731 0 108,731 9,670 0 0 0 9,670 99,061 25,788 3,458 29,246<br />
Tot. 8,596 371,948 6,756 387,300 0 387,300 30,638 0 0 0 30,638 356,661 65,512 13,504 79,016<br />
Disc 6,122 178,468 3,452 188,041 0 188,041 14,158 0 0 0 14,158 173,883 28,481 6,925 35,406<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,228 1,493 0 9,721 0 0 0 0 9,721 9,721 9,268<br />
2013 0 0 0 13,464 1,450 510 14,404 13,306 0 0 13,306 1,098 10,818 10,220<br />
2014 0 0 0 20,113 1,886 390 21,609 21,193 0 0 21,193 416 11,234 10,547<br />
2015 0 0 0 24,958 2,745 0 27,703 21,882 0 0 21,882 5,821 17,055 14,717<br />
2016 0 0 0 27,557 2,658 0 30,216 12,600 0 0 12,600 17,616 34,671 26,189<br />
2017 0 0 0 25,408 2,187 138 27,457 3,213 0 0 3,213 24,244 58,915 40,542<br />
2018 0 0 0 21,269 1,846 0 23,116 0 0 0 0 23,116 82,031 52,983<br />
2019 0 0 0 17,688 1,584 144 19,128 0 0 0 0 19,128 101,159 62,342<br />
2020 0 0 0 15,151 1,380 146 16,385 0 0 0 0 16,385 117,543 69,630<br />
2021 0 0 0 13,004 1,195 0 14,198 0 0 0 0 14,198 131,742 75,371<br />
2022 0 0 0 11,248 1,058 305 12,000 0 0 0 0 12,000 143,742 79,783<br />
2023 0 0 0 9,742 944 311 10,374 0 0 0 0 10,374 154,116 83,250<br />
Sub. 0 0 0 207,831 20,423 1,944 226,310 72,193 0 0 72,193 154,116 154,116 83,250<br />
Rem. 0 0 0 69,815 6,782 11,473 65,124 0 0 0 0 65,124 219,240 95,742<br />
Tot. 0 0 0 277,645 27,205 13,417 291,433 72,193 0 0 72,193 219,240 219,240 95,742<br />
Disc 0 0 0 138,477 14,056 2,775 149,758 54,016 0 0 54,016 95,742 95,742 95,742<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 87 0 87 79 1.000 87 1 13.0 4.0 2.9<br />
Solution Gas MMcf 68 0 68 61 6.000 11 0 13.0 4.0 2.9<br />
Residue Gas MMcf 58,620 0 58,620 54,131 6.000 9,770 98 39.0 17.2 6.2<br />
Total: Gas MMcf 58,688 0 58,688 54,192 6.000 9,781 98 39.0 17.2 6.2<br />
Gas Heat Content BBtu 62,209 0 62,209 57,444 0.000 0 0 39.0 17.2 6.2<br />
Condensate Mbbl 75 0 75 69 1.000 75 1 39.0 17.2 6.2<br />
Total: Oil+NGL Mbbl 162 0 162 148 1.000 162 2 39.0 37.1 4.0<br />
Total: Oil Eq. Mboe 9,943 0 9,943 9,180 1.000 9,943 100 39.0 17.4 6.2<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,779 2 5,540 3<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 321 0 220 0<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 1.00 0.00 2.31 342,329 96 164,923 95<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 1.00 0.00 2.31 342,650 96 165,143 95<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 6,232 2 3,200 2<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 14,011 4 8,740 5<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.96 0.00 14.36 356,661 100 173,883 100<br />
1121357 Total Proved, GLJ (2012-01), pri February 16, 2012 12:52:25<br />
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REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 7.9108 0.0 277,645 291,433 72,193 219,240 22.05<br />
Non-crown Royalty 0.0000 0.0000 5.0 187,571 200,901 62,146 138,756 13.96<br />
Mineral Tax 0.0000 0.0000 8.0 155,087 167,198 57,069 110,128 11.08<br />
10.0 138,477 149,758 54,016 95,742 9.63<br />
12.0 124,738 135,233 51,196 84,037 8.45<br />
15.0 108,116 117,549 47,357 70,192 7.06<br />
20.0 87,701 95,676 41,843 53,834 5.41<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:20<br />
1121357 Total Proved, GLJ (2012-01), pri February 16, 2012 12:52:25<br />
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PROBABLE AND PROVED PLUS PROBABLE RESERVES<br />
TABLE OF CONTENTS<br />
GLJ<br />
Page: 27 of 102<br />
SUMMARY OF RESERVES AND VALUES 28<br />
COMPANY PRODUCTION, RESERVES AND PRESENT VALUE SUMMARY 29<br />
ECONOMIC FORECASTS<br />
Total Probable 30<br />
Total Proved Plus Probable 33<br />
Page<br />
March 13, 2012 15:51:06<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Summary of Reserves and Values<br />
Total<br />
Proved<br />
Total Plus<br />
Probable Probable<br />
MARKETABLE RESERVES<br />
Light/Medium Oil (Mbbl)<br />
Total Company Interest 434 521<br />
Working Interest 434 521<br />
Net After Royalty 393 471<br />
Gas (MMcf)<br />
Total Company Interest 43,967 102,654<br />
Working Interest 43,967 102,654<br />
Net After Royalty 39,955 94,147<br />
Natural Gas Liquids (Mbbl)<br />
Total Company Interest 56 131<br />
Working Interest 56 131<br />
Net After Royalty 51 120<br />
Oil Equivalent (Mbbl)<br />
Total Company Interest 7,818 17,761<br />
Working Interest 7,818 17,761<br />
Net After Royalty 7,103 16,282<br />
BEFORE TAX PRESENT VALUE (M$)<br />
0% 244,854 464,094<br />
5% 127,138 265,894<br />
8% 91,823 201,951<br />
10% 75,405 171,147<br />
12% 62,717 146,754<br />
15% 48,508 118,701<br />
20% 32,905 86,738<br />
FIRST 6 YEARS BEFORE TAX CASH FLOW (M$)<br />
2012 385 10,106<br />
2013 -229 869<br />
2014 -5,717 -5,301<br />
2015 7,094 12,915<br />
2016 -798 16,818<br />
2017 18,905 43,149<br />
Run Date: February 16, 2012 11:30:20<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
Page: 28 of 102<br />
1121357 Class (F,I), GLJ (2012-01), psum February 16, 2012 12:52:27<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Company Production, Reserves and Present Value Summary<br />
2012 Company Interest Prod'n Company Interest Reserves Net After Royalty Reserves Reserve Before <strong>Inc</strong>ome Tax<br />
Life Discounted Present Value (M$)<br />
Gas Oil NGL Oil Eq. Gas Oil NGL Sulphur Oil Eq. Gas Oil NGL Sulphur Oil Eq. Index<br />
Entity Description Mcf/d bbl/d bbl/d boe/d MMcf Mbbl Mbbl Mlt Mboe MMcf Mbbl Mbbl Mlt Mboe yrs 0% 8% 10% 12%<br />
Total Probable<br />
McCully 204 0 0 34 43,967 434 56 0 7,818 39,955 393 51 0 7,103 624.3 244,854 91,823 75,405 62,717<br />
Total: Total Probable 204 0 0 34 43,967 434 56 0 7,818 39,955 393 51 0 7,103 624.3 244,854 91,823 75,405 62,717<br />
Total Proved Plus Probable<br />
McCully 9,553 0 12 1,604 102,654 521 131 0 17,761 94,147 471 120 0 16,282 30.3 464,094 201,951 171,147 146,754<br />
Total: Total Proved Plus Probable 9,553 0 12 1,604 102,654 521 131 0 17,761 94,147 471 120 0 16,282 30.3 464,094 201,951 171,147 146,754<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
1121357 Class (F,I), GLJ (2012-01), crv February 16, 2012 12:52:28<br />
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Page: 29 of 102
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Probable<br />
Property: Corporate Development Class: Total<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 0 0 0 0 0.00 0 0 0 0.00 204 75 70 3.50<br />
2013 0 0 114 41 38 101.34 89 32 29 4.17 837 306 286 4.17<br />
2014 2 3 273 100 90 98.28 213 78 70 4.70 2,171 792 728 4.70<br />
2015 2 4 265 97 88 96.24 208 76 69 5.24 4,618 1,686 1,539 5.24<br />
2016 2 7 156 57 52 96.24 122 45 40 5.77 10,111 3,691 3,356 5.77<br />
2017 2 8 97 35 32 96.24 76 28 25 6.31 10,546 3,849 3,501 6.31<br />
2018 2 8 67 24 22 97.62 52 19 17 6.59 8,925 3,258 2,962 6.59<br />
2019 2 8 49 18 16 99.69 38 14 13 6.73 7,642 2,789 2,532 6.73<br />
2020 2 8 37 14 12 101.80 29 11 10 6.88 6,670 2,435 2,213 6.88<br />
2021 2 9 29 11 10 103.96 23 8 8 7.03 5,868 2,142 1,949 7.03<br />
2022 2 8 24 9 8 106.15 18 7 6 7.17 5,238 1,912 1,743 7.17<br />
2023 2 9 20 7 6 108.39 15 6 5 7.31 4,727 1,725 1,577 7.31<br />
Sub. 412 373 98.27 323 292 5.49 24,659 22,457 6.41<br />
Rem. 21 19 113.83 17 15 7.66 18,969 17,191 8.96<br />
Tot. 434 393 99.04 339 307 5.59 43,627 39,648 7.52<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 204 75 70 3.50 0 0 0 86.50 0 0 0 86.50<br />
2013 926 338 315 4.17 1 0 0 86.50 115 42 38 101.19<br />
2014 2,384 870 799 4.70 3 1 1 83.44 276 101 91 98.12<br />
2015 4,826 1,762 1,608 5.24 6 2 2 81.40 272 99 90 95.90<br />
2016 10,233 3,735 3,396 5.77 13 5 4 81.40 169 62 56 95.10<br />
2017 10,622 3,877 3,526 6.31 14 5 5 81.40 111 40 37 94.42<br />
2018 8,977 3,277 2,979 6.59 11 4 4 82.78 78 28 26 95.44<br />
2019 7,680 2,803 2,545 6.73 10 4 3 84.85 58 21 19 97.20<br />
2020 6,699 2,445 2,222 6.88 9 3 3 86.96 46 17 15 99.03<br />
2021 5,891 2,150 1,957 7.03 8 3 2 89.12 37 13 12 100.92<br />
2022 5,256 1,919 1,749 7.17 7 2 2 91.31 30 11 10 102.87<br />
2023 4,742 1,731 1,582 7.31 6 2 2 93.55 26 9 8 104.88<br />
Sub. 24,981 22,749 6.40 32 29 84.93 444 402 97.32<br />
Rem. 18,985 17,206 8.96 24 22 119.29 46 41 116.73<br />
Tot. 43,967 39,955 7.50 56 51 99.77 490 444 99.12<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 34 13 12 21.50<br />
2013 269 98 90 57.51<br />
2014 673 246 224 56.86<br />
2015 1,076 393 358 47.71<br />
2016 1,875 684 622 40.10<br />
2017 1,881 687 624 41.18<br />
2018 1,574 575 522 42.29<br />
2019 1,338 488 443 42.83<br />
2020 1,162 424 386 43.52<br />
2021 1,019 372 338 44.27<br />
2022 906 331 302 45.00<br />
2023 816 298 272 45.76<br />
Sub. 4,608 4,194 44.06<br />
Rem. 3,210 2,909 54.63<br />
Tot. 7,818 7,103 48.40<br />
Page: 30 of 102<br />
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REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 261 8 269 0 269 15 0 0 0 15 254 0 14 14<br />
2013 4,204 1,409 37 5,650 0 5,650 498 0 0 0 498 5,152 20 267 286<br />
2014 9,786 4,094 93 13,972 0 13,972 1,273 0 0 0 1,273 12,700 47 664 711<br />
2015 9,324 9,230 183 18,737 0 18,737 1,708 0 0 0 1,708 17,029 119 844 963<br />
2016 5,491 21,566 388 27,445 0 27,445 2,515 0 0 0 2,515 24,930 195 1,062 1,257<br />
2017 3,410 24,460 403 28,272 0 28,272 2,572 0 0 0 2,572 25,700 257 999 1,256<br />
2018 2,372 21,580 346 24,298 0 24,298 2,216 0 0 0 2,216 22,082 270 831 1,101<br />
2019 1,768 18,853 304 20,924 0 20,924 1,932 0 0 0 1,932 18,992 264 709 972<br />
2020 1,381 16,811 271 18,463 0 18,463 1,688 0 0 0 1,688 16,775 283 620 903<br />
2021 1,108 15,107 245 16,460 0 16,460 1,486 0 0 0 1,486 14,975 301 549 850<br />
2022 916 13,747 224 14,886 0 14,886 1,319 0 0 0 1,319 13,567 313 494 807<br />
2023 772 12,651 207 13,630 0 13,630 1,179 0 0 0 1,179 12,450 345 451 796<br />
Sub. 40,531 159,768 2,708 203,008 0 203,008 18,401 0 0 0 18,401 184,607 2,414 7,502 9,917<br />
Rem. 2,429 170,045 2,891 175,365 0 175,365 16,487 0 0 0 16,487 158,878 26,981 5,628 32,609<br />
Tot. 42,960 329,813 5,599 378,373 0 378,373 34,888 0 0 0 34,888 343,485 29,395 13,130 42,526<br />
Disc 28,079 108,969 1,867 138,916 0 138,916 12,657 0 0 0 12,657 126,259 4,790 5,136 9,927<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 240 145 0 385 0 0 0 0 385 385 367<br />
2013 0 0 0 4,866 331 -510 5,707 5,936 0 0 5,936 -229 156 168<br />
2014 0 0 0 11,989 590 130 12,448 18,165 0 0 18,165 -5,717 -5,561 -4,337<br />
2015 0 0 0 16,066 690 398 16,358 9,264 0 0 9,264 7,094 1,533 745<br />
2016 0 0 0 23,674 727 0 24,401 25,199 0 0 25,199 -798 734 225<br />
2017 0 0 0 24,444 749 -138 25,331 6,426 0 0 6,426 18,905 19,639 11,417<br />
2018 0 0 0 20,980 726 0 21,706 0 0 0 0 21,706 41,346 23,100<br />
2019 0 0 0 18,020 692 0 18,712 0 0 0 0 18,712 60,058 32,255<br />
2020 0 0 0 15,872 657 -146 16,675 0 0 0 0 16,675 76,733 39,672<br />
2021 0 0 0 14,125 630 149 14,606 0 0 0 0 14,606 91,338 45,578<br />
2022 0 0 0 12,760 595 -305 13,659 0 0 0 0 13,659 104,997 50,599<br />
2023 0 0 0 11,655 545 -155 12,355 0 0 0 0 12,355 117,352 54,728<br />
Sub. 0 0 0 174,691 7,076 -577 182,343 64,991 0 0 64,991 117,352 117,352 54,728<br />
Rem. 0 0 0 126,268 7,759 6,526 127,501 0 0 0 0 127,501 244,854 75,405<br />
Tot. 0 0 0 300,959 14,835 5,949 309,845 64,991 0 0 64,991 244,854 244,854 75,405<br />
Disc 0 0 0 116,333 5,047 -336 121,716 46,311 0 0 46,311 75,405 75,405 75,405<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 434 0 434 393 1.000 434 6 17.0 10.5 3.8<br />
Solution Gas MMcf 339 0 339 307 6.000 57 1 17.0 10.5 3.8<br />
Residue Gas MMcf 43,627 0 43,627 39,648 6.000 7,271 93 43.0 585.1 10.4<br />
Total: Gas MMcf 43,967 0 43,967 39,955 6.000 7,328 94 43.0 589.6 10.3<br />
Gas Heat Content BBtu 46,605 0 46,605 42,352 0.000 0 0 43.0 589.6 10.3<br />
Condensate Mbbl 56 0 56 51 1.000 56 1 43.0 589.6 10.3<br />
Total: Oil+NGL Mbbl 490 0 490 444 1.000 490 6 43.0 999.9 4.1<br />
Total: Oil Eq. Mboe 7,818 0 7,818 7,103 1.000 7,818 100 43.0 624.3 9.8<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38,879 11 25,412 20<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,718 1 1,083 1<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 0.19 0.00 3.12 297,803 87 98,065 78<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 0.19 0.00 3.12 299,520 87 99,148 79<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 5,085 1 1,700 1<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 43,964 13 27,112 21<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 1.13 0.00 19.18 343,485 100 126,259 100<br />
1121357 Total Probable, GLJ (2012-01), pri February 16, 2012 12:52:34<br />
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REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 9.2205 0.0 300,959 309,845 64,991 244,854 31.32<br />
Non-crown Royalty 0.0000 0.0000 5.0 174,186 181,690 54,552 127,138 16.26<br />
Mineral Tax 0.0000 0.0000 8.0 135,059 141,205 49,383 91,823 11.75<br />
10.0 116,333 121,716 46,311 75,405 9.65<br />
12.0 101,477 106,218 43,500 62,717 8.02<br />
15.0 84,255 88,225 39,717 48,508 6.21<br />
20.0 64,220 67,281 34,377 32,905 4.21<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:20<br />
1121357 Total Probable, GLJ (2012-01), pri February 16, 2012 12:52:34<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved Plus Probable<br />
Property: Corporate Development Class: Total<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 22 0 0 0 0.00 0 0 0 0.00 9,553 3,487 3,295 3.50<br />
2013 1 26 173 63 57 101.34 135 49 45 4.17 11,117 4,058 3,817 4.17<br />
2014 3 31 338 123 112 98.28 264 96 87 4.70 15,642 5,709 5,305 4.70<br />
2015 3 34 301 110 99 96.24 235 86 78 5.24 20,228 7,383 6,806 5.24<br />
2016 3 38 178 65 59 96.24 139 51 46 5.77 25,925 9,463 8,684 5.77<br />
2017 3 40 112 41 37 96.24 88 32 29 6.31 24,084 8,791 8,074 6.31<br />
2018 3 40 78 28 26 97.62 61 22 20 6.59 20,122 7,345 6,729 6.59<br />
2019 3 40 57 21 19 99.69 45 16 15 6.73 17,118 6,248 5,701 6.73<br />
2020 3 39 44 16 14 101.80 34 12 11 6.88 14,837 5,416 4,951 6.88<br />
2021 3 39 34 13 11 103.95 27 10 9 7.03 12,952 4,727 4,331 7.03<br />
2022 3 39 28 10 9 106.15 22 8 7 7.17 11,450 4,179 3,839 7.17<br />
2023 3 39 23 8 8 108.39 18 7 6 7.31 10,198 3,722 3,430 7.31<br />
Sub. 498 451 98.40 390 353 5.44 70,527 64,962 5.99<br />
Rem. 22 20 113.71 17 16 7.65 31,720 28,817 8.73<br />
Tot. 521 471 99.05 407 368 5.53 102,247 93,779 6.84<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 9,553 3,487 3,295 3.50 12 4 4 86.50 12 4 4 86.50<br />
2013 11,252 4,107 3,861 4.17 14 5 5 86.50 187 68 62 100.20<br />
2014 15,906 5,806 5,392 4.70 20 7 7 83.44 358 131 118 97.44<br />
2015 20,463 7,469 6,883 5.24 26 10 9 81.40 327 119 108 95.05<br />
2016 26,065 9,514 8,730 5.77 33 12 11 81.40 212 77 70 93.91<br />
2017 24,172 8,823 8,103 6.31 31 11 10 81.40 143 52 47 93.04<br />
2018 20,183 7,367 6,749 6.59 26 9 9 82.78 103 38 34 93.92<br />
2019 17,162 6,264 5,715 6.73 22 8 7 84.85 79 29 26 95.56<br />
2020 14,871 5,428 4,962 6.88 19 7 6 86.96 63 23 21 97.31<br />
2021 12,979 4,737 4,340 7.03 17 6 6 89.12 51 19 17 99.14<br />
2022 11,472 4,187 3,847 7.17 15 5 5 91.31 43 16 14 101.05<br />
2023 10,216 3,729 3,436 7.31 13 5 4 93.55 36 13 12 103.04<br />
Sub. 70,917 65,314 5.99 91 83 84.73 589 534 96.29<br />
Rem. 31,738 28,833 8.72 41 37 115.67 63 57 114.98<br />
Tot. 102,654 94,147 6.84 131 120 94.29 652 591 98.09<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 1,604 586 553 21.50<br />
2013 2,063 753 706 31.85<br />
2014 3,009 1,098 1,017 36.46<br />
2015 3,737 1,364 1,255 37.00<br />
2016 4,556 1,663 1,525 37.40<br />
2017 4,172 1,523 1,398 39.75<br />
2018 3,467 1,265 1,159 41.14<br />
2019 2,939 1,073 979 41.83<br />
2020 2,541 928 848 42.63<br />
2021 2,214 808 740 43.47<br />
2022 1,955 713 655 44.26<br />
2023 1,739 635 585 45.08<br />
Sub. 12,408 11,420 38.81<br />
Rem. 5,352 4,862 53.08<br />
Tot. 17,761 16,282 43.11<br />
Page: 33 of 102<br />
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REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 12,204 385 12,589 0 12,589 692 0 0 0 692 11,897 2,766 662 3,428<br />
2013 6,401 17,122 453 23,976 0 23,976 1,659 0 0 0 1,659 22,317 2,885 1,102 3,987<br />
2014 12,115 27,312 618 40,045 0 40,045 3,142 0 0 0 3,142 36,903 3,044 1,757 4,801<br />
2015 10,556 39,134 776 50,466 0 50,466 4,132 0 0 0 4,132 46,334 3,251 2,059 5,310<br />
2016 6,264 54,930 988 62,182 0 62,182 5,198 0 0 0 5,198 56,984 3,462 2,291 5,753<br />
2017 3,937 55,663 917 60,517 0 60,517 4,989 0 0 0 4,989 55,528 3,610 2,065 5,676<br />
2018 2,762 48,515 778 52,055 0 52,055 4,395 0 0 0 4,395 47,660 3,683 1,728 5,410<br />
2019 2,071 42,132 678 44,881 0 44,881 3,948 0 0 0 3,948 40,933 3,744 1,481 5,225<br />
2020 1,624 37,319 602 39,546 0 39,546 3,408 0 0 0 3,408 36,137 3,817 1,297 5,114<br />
2021 1,308 33,282 539 35,130 0 35,130 2,961 0 0 0 2,961 32,169 3,894 1,147 5,041<br />
2022 1,084 30,005 488 31,577 0 31,577 2,583 0 0 0 2,583 28,993 3,957 1,029 4,986<br />
2023 916 27,252 445 28,613 0 28,613 2,262 0 0 0 2,262 26,352 4,025 931 4,956<br />
Sub. 49,038 424,869 7,669 481,576 0 481,576 39,369 0 0 0 39,369 442,207 42,137 17,549 59,686<br />
Rem. 2,518 276,893 4,686 284,096 0 284,096 26,157 0 0 0 26,157 257,939 52,770 9,086 61,856<br />
Tot. 51,556 701,762 12,355 765,672 0 765,672 65,526 0 0 0 65,526 700,146 94,907 26,635 121,542<br />
Disc 34,201 287,437 5,319 326,957 0 326,957 26,815 0 0 0 26,815 300,142 33,272 12,061 45,333<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,468 1,638 0 10,106 0 0 0 0 10,106 10,106 9,635<br />
2013 0 0 0 18,330 1,781 0 20,111 19,242 0 0 19,242 869 10,974 10,388<br />
2014 0 0 0 32,102 2,475 520 34,057 39,358 0 0 39,358 -5,301 5,673 6,211<br />
2015 0 0 0 41,025 3,435 398 44,061 31,146 0 0 31,146 12,915 18,588 15,462<br />
2016 0 0 0 51,231 3,385 0 54,616 37,799 0 0 37,799 16,818 35,405 26,414<br />
2017 0 0 0 49,852 2,935 0 52,788 9,639 0 0 9,639 43,149 78,554 51,960<br />
2018 0 0 0 42,250 2,572 0 44,822 0 0 0 0 44,822 123,376 76,083<br />
2019 0 0 0 35,708 2,276 144 37,840 0 0 0 0 37,840 161,216 94,597<br />
2020 0 0 0 31,023 2,037 0 33,060 0 0 0 0 33,060 194,276 109,302<br />
2021 0 0 0 27,128 1,825 149 28,804 0 0 0 0 28,804 223,080 120,950<br />
2022 0 0 0 24,007 1,652 0 25,659 0 0 0 0 25,659 248,739 130,382<br />
2023 0 0 0 21,396 1,489 155 22,729 0 0 0 0 22,729 271,469 137,978<br />
Sub. 0 0 0 382,521 27,498 1,367 408,653 137,184 0 0 137,184 271,469 271,469 137,978<br />
Rem. 0 0 0 196,083 14,541 17,999 192,625 0 0 0 0 192,625 464,094 171,147<br />
Tot. 0 0 0 578,604 42,039 19,366 601,278 137,184 0 0 137,184 464,094 464,094 171,147<br />
Disc 0 0 0 254,810 19,103 2,439 271,474 100,326 0 0 100,326 171,147 171,147 171,147<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 521 0 521 471 1.000 521 3 17.0 8.2 3.7<br />
Solution Gas MMcf 407 0 407 368 6.000 68 0 17.0 8.2 3.7<br />
Residue Gas MMcf 102,247 0 102,247 93,779 6.000 17,041 96 43.0 29.3 7.8<br />
Total: Gas MMcf 102,654 0 102,654 94,147 6.000 17,109 96 43.0 29.4 7.8<br />
Gas Heat Content BBtu 108,814 0 108,814 99,796 0.000 0 0 43.0 29.4 7.8<br />
Condensate Mbbl 131 0 131 120 1.000 131 1 43.0 29.4 7.8<br />
Total: Oil+NGL Mbbl 652 0 652 591 1.000 652 4 43.0 146.4 4.0<br />
Total: Oil Eq. Mboe 17,761 0 17,761 16,282 1.000 17,761 100 43.0 30.3 7.6<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 46,658 7 30,952 10<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,039 0 1,303 0<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 0.98 0.00 2.32 640,132 91 262,988 88<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 0.98 0.00 2.32 642,170 92 264,290 88<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 11,317 2 4,900 2<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 57,976 8 35,852 12<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.85 0.00 14.46 700,146 100 300,142 100<br />
1121357 Total Proved Plus Probable, GLJ (2012-01), pri February 16, 2012 12:52:40<br />
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REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 8.5580 0.0 578,604 601,278 137,184 464,094 26.13<br />
Non-crown Royalty 0.0000 0.0000 5.0 361,757 382,591 116,698 265,894 14.97<br />
Mineral Tax 0.0000 0.0000 8.0 290,146 308,403 106,452 201,951 11.37<br />
10.0 254,810 271,474 100,326 171,147 9.64<br />
12.0 226,215 241,451 94,696 146,754 8.26<br />
15.0 192,371 205,774 87,073 118,701 6.68<br />
20.0 151,920 162,958 76,219 86,738 4.88<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:20<br />
1121357 Total Proved Plus Probable, GLJ (2012-01), pri February 16, 2012 12:52:40<br />
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POSSIBLE AND PROVED PLUS PROBABLE PLUS POSSIBLE RESERVES<br />
TABLE OF CONTENTS<br />
GLJ<br />
Page: 36 of 102<br />
SUMMARY OF RESERVES AND VALUES 37<br />
COMPANY PRODUCTION, RESERVES AND PRESENT VALUE SUMMARY 38<br />
ECONOMIC FORECASTS<br />
Total Possible 39<br />
Total PPP 42<br />
Page<br />
March 13, 2012 15:51:06<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Summary of Reserves and Values<br />
Total Total<br />
Possible PPP<br />
MARKETABLE RESERVES<br />
Light/Medium Oil (Mbbl)<br />
Total Company Interest 174 694<br />
Working Interest 174 694<br />
Net After Royalty 157 628<br />
Gas (MMcf)<br />
Total Company Interest 114,078 216,732<br />
Working Interest 114,078 216,732<br />
Net After Royalty 103,411 197,558<br />
Natural Gas Liquids (Mbbl)<br />
Total Company Interest 146 277<br />
Working Interest 146 277<br />
Net After Royalty 132 252<br />
Oil Equivalent (Mbbl)<br />
Total Company Interest 19,332 37,093<br />
Working Interest 19,332 37,093<br />
Net After Royalty 17,524 33,807<br />
BEFORE TAX PRESENT VALUE (M$)<br />
0% 752,914 1,217,007<br />
5% 327,821 593,714<br />
8% 224,561 426,512<br />
10% 180,341 351,488<br />
12% 147,758 294,512<br />
15% 112,865 231,566<br />
20% 76,414 163,152<br />
FIRST 6 YEARS BEFORE TAX CASH FLOW (M$)<br />
2012 557 10,663<br />
2013 2,706 3,575<br />
2014 4,500 -801<br />
2015 10,151 23,066<br />
2016 8,496 25,314<br />
2017 19,045 62,194<br />
Run Date: February 16, 2012 11:30:22<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
Page: 37 of 102<br />
1121357 Class (O,R), GLJ (2012-01), psum February 16, 2012 12:52:42<br />
GLJ<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Company Production, Reserves and Present Value Summary<br />
2012 Company Interest Prod'n Company Interest Reserves Net After Royalty Reserves Reserve Before <strong>Inc</strong>ome Tax<br />
Life Discounted Present Value (M$)<br />
Gas Oil NGL Oil Eq. Gas Oil NGL Sulphur Oil Eq. Gas Oil NGL Sulphur Oil Eq. Index<br />
Entity Description Mcf/d bbl/d bbl/d boe/d MMcf Mbbl Mbbl Mlt Mboe MMcf Mbbl Mbbl Mlt Mboe yrs 0% 8% 10% 12%<br />
Total Possible<br />
McCully 190 0 0 32 114,078 174 146 0 19,332 103,411 157 132 0 17,524 999.9 752,914 224,561 180,341 147,758<br />
Total: Total Possible 190 0 0 32 114,078 174 146 0 19,332 103,411 157 132 0 17,524 999.9 752,914 224,561 180,341 147,758<br />
Total PPP<br />
McCully 9,743 0 12 1,636 216,732 694 277 0 37,093 197,558 628 252 0 33,807 62.1 1,217,007 426,512 351,488 294,512<br />
Total: Total PPP 9,743 0 12 1,636 216,732 694 277 0 37,093 197,558 628 252 0 33,807 62.1 1,217,007 426,512 351,488 294,512<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
1121357 Class (O,R), GLJ (2012-01), crv February 16, 2012 12:52:44<br />
GLJ<br />
Petroleum Consultants<br />
Page: 38 of 102
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Possible<br />
Property: Corporate Development Class: Total<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 0 0 0 0 0.00 0 0 0 0.00 190 69 66 3.50<br />
2013 1 1 11 4 4 101.34 8 3 3 4.17 1,709 624 573 4.17<br />
2014 1 1 47 17 15 98.28 37 13 12 4.70 5,357 1,955 1,782 4.70<br />
2015 1 4 65 24 21 96.24 51 19 17 5.24 8,176 2,984 2,715 5.24<br />
2016 1 5 59 22 20 96.24 46 17 15 5.77 10,578 3,861 3,513 5.77<br />
2017 1 8 46 17 15 96.24 36 13 12 6.31 15,331 5,596 5,084 6.31<br />
2018 1 10 36 13 12 97.62 28 10 9 6.59 19,748 7,208 6,539 6.59<br />
2019 1 11 29 11 10 99.69 23 8 7 6.73 19,647 7,171 6,500 6.73<br />
2020 1 12 24 9 8 101.80 18 7 6 6.88 17,192 6,275 5,690 6.88<br />
2021 1 12 19 7 6 103.96 15 6 5 7.03 15,113 5,516 5,005 7.03<br />
2022 1 12 16 6 5 106.15 13 5 4 7.17 13,523 4,936 4,482 7.17<br />
2023 1 12 14 5 5 108.39 11 4 4 7.31 12,239 4,467 4,061 7.31<br />
Sub. 134 121 98.73 105 95 5.98 50,664 46,010 6.53<br />
Rem. 40 36 120.28 31 28 8.07 63,279 57,278 9.75<br />
Tot. 174 157 103.65 136 123 6.46 113,942 103,288 8.32<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 190 69 66 3.50 0 0 0 86.50 0 0 0 86.50<br />
2013 1,718 627 576 4.17 2 1 1 86.50 13 5 4 98.82<br />
2014 5,394 1,969 1,794 4.70 7 3 2 83.44 54 20 18 96.38<br />
2015 8,227 3,003 2,732 5.24 11 4 3 81.40 75 28 25 94.17<br />
2016 10,624 3,878 3,528 5.77 14 5 5 81.40 73 27 24 93.47<br />
2017 15,368 5,609 5,096 6.31 20 7 7 81.40 66 24 22 91.83<br />
2018 19,777 7,219 6,548 6.59 25 9 8 82.78 62 22 20 91.54<br />
2019 19,670 7,179 6,507 6.73 25 9 8 84.85 54 20 18 92.81<br />
2020 17,210 6,282 5,697 6.88 22 8 7 86.96 46 17 15 94.65<br />
2021 15,128 5,522 5,010 7.03 19 7 6 89.11 39 14 13 96.57<br />
2022 13,536 4,941 4,487 7.17 17 6 6 91.31 34 12 11 98.53<br />
2023 12,250 4,471 4,064 7.31 16 6 5 93.55 30 11 10 100.54<br />
Sub. 50,768 46,104 6.53 65 59 85.79 199 180 94.51<br />
Rem. 63,310 57,307 9.74 81 73 131.60 120 109 127.88<br />
Tot. 114,078 103,411 8.31 146 132 111.21 319 289 107.10<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 32 12 11 21.50<br />
2013 299 109 100 28.19<br />
2014 953 348 317 32.07<br />
2015 1,446 528 480 34.71<br />
2016 1,843 673 612 36.96<br />
2017 2,627 959 871 39.21<br />
2018 3,358 1,226 1,112 40.47<br />
2019 3,332 1,216 1,102 41.21<br />
2020 2,914 1,064 964 42.09<br />
2021 2,560 934 848 42.98<br />
2022 2,290 836 759 43.81<br />
2023 2,071 756 687 44.66<br />
Sub. 8,660 7,864 40.45<br />
Rem. 10,672 9,660 59.25<br />
Tot. 19,332 17,524 50.83<br />
Page: 39 of 102<br />
1121357 Total Possible, GLJ (2012-01), pri February 16, 2012 12:52:50<br />
GLJ<br />
Petroleum Consultants
REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 243 8 251 0 251 14 0 0 0 14 237 0 13 13<br />
2013 396 2,614 69 3,079 0 3,079 257 0 0 0 257 2,822 25 140 165<br />
2014 1,682 9,261 210 11,153 0 11,153 999 0 0 0 999 10,154 99 474 572<br />
2015 2,278 15,733 312 18,323 0 18,323 1,666 0 0 0 1,666 16,657 116 725 840<br />
2016 2,077 22,389 403 24,869 0 24,869 2,252 0 0 0 2,252 22,618 136 908 1,045<br />
2017 1,631 35,389 583 37,602 0 37,602 3,444 0 0 0 3,444 34,159 192 1,266 1,457<br />
2018 1,297 47,540 763 49,599 0 49,599 4,610 0 0 0 4,610 44,989 260 1,616 1,876<br />
2019 1,056 48,286 778 50,120 0 50,120 4,695 0 0 0 4,695 45,425 339 1,625 1,964<br />
2020 878 43,188 697 44,764 0 44,764 4,172 0 0 0 4,172 40,591 351 1,446 1,798<br />
2021 739 38,795 628 40,162 0 40,162 3,722 0 0 0 3,722 36,440 359 1,294 1,653<br />
2022 634 35,403 576 36,613 0 36,613 3,368 0 0 0 3,368 33,245 380 1,179 1,559<br />
2023 550 32,680 534 33,764 0 33,764 3,075 0 0 0 3,075 30,689 399 1,086 1,485<br />
Sub. 13,218 331,521 5,559 350,299 0 350,299 32,274 0 0 0 32,274 318,026 2,656 11,772 14,429<br />
Rem. 4,766 616,909 10,634 632,309 0 632,309 60,027 0 0 0 60,027 572,282 58,045 20,199 78,244<br />
Tot. 17,984 948,430 16,194 982,608 0 982,608 92,301 0 0 0 92,301 890,308 60,701 31,971 92,672<br />
Disc 8,948 235,548 4,002 248,499 0 248,499 23,016 0 0 0 23,016 225,483 5,825 8,342 14,167<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 224 334 0 557 0 0 0 0 557 557 531<br />
2013 0 0 0 2,657 356 0 3,012 306 0 0 306 2,706 3,264 2,877<br />
2014 0 0 0 9,581 454 -520 10,555 6,055 0 0 6,055 4,500 7,764 6,423<br />
2015 0 0 0 15,817 643 133 16,327 6,176 0 0 6,176 10,151 17,915 13,695<br />
2016 0 0 0 21,573 1,882 0 23,455 14,959 0 0 14,959 8,496 26,411 19,228<br />
2017 0 0 0 32,701 2,822 414 35,109 16,064 0 0 16,064 19,045 45,456 30,503<br />
2018 0 0 0 43,113 3,010 0 46,124 19,663 0 0 19,663 26,461 71,916 44,744<br />
2019 0 0 0 43,461 2,516 -144 46,120 10,028 0 0 10,028 36,092 108,009 62,403<br />
2020 0 0 0 38,794 2,125 0 40,919 0 0 0 0 40,919 148,928 80,604<br />
2021 0 0 0 34,787 1,825 -149 36,762 0 0 0 0 36,762 185,689 95,469<br />
2022 0 0 0 31,686 1,609 0 33,295 0 0 0 0 33,295 218,984 107,708<br />
2023 0 0 0 29,203 1,453 -155 30,812 0 0 0 0 30,812 249,796 118,005<br />
Sub. 0 0 0 303,597 19,028 -422 323,047 73,251 0 0 73,251 249,796 249,796 118,005<br />
Rem. 0 0 0 494,038 19,909 10,829 503,118 0 0 0 0 503,118 752,914 180,341<br />
Tot. 0 0 0 797,635 38,936 10,407 826,165 73,251 0 0 73,251 752,914 752,914 180,341<br />
Disc 0 0 0 211,316 12,681 -545 224,543 44,202 0 0 44,202 180,341 180,341 180,341<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 174 0 174 157 1.000 174 1 22.0 44.4 6.3<br />
Solution Gas MMcf 136 0 136 123 6.000 23 0 22.0 44.4 6.3<br />
Residue Gas MMcf 113,942 0 113,942 103,288 6.000 18,990 98 50.0 999.9 13.6<br />
Total: Gas MMcf 114,078 0 114,078 103,411 6.000 19,013 98 50.0 999.9 13.6<br />
Gas Heat Content BBtu 120,922 0 120,922 109,615 0.000 0 0 50.0 999.9 13.6<br />
Condensate Mbbl 146 0 146 132 1.000 146 1 50.0 999.9 13.6<br />
Total: Oil+NGL Mbbl 319 0 319 289 1.000 319 2 50.0 999.9 8.9<br />
Total: Oil Eq. Mboe 19,332 0 19,332 17,524 1.000 19,332 100 50.0 999.9 13.5<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16,276 2 8,098 4<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 793 0 379 0<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 0.19 0.00 3.12 858,566 96 213,374 95<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 0.19 0.00 3.12 859,359 97 213,752 95<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 14,673 2 3,632 2<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 30,949 3 11,730 5<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 1.13 0.00 19.18 890,308 100 225,483 100<br />
1121357 Total Possible, GLJ (2012-01), pri February 16, 2012 12:52:50<br />
GLJ<br />
Page: 40 of 102<br />
Page 2<br />
Petroleum Consultants
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 9.3934 0.0 797,635 826,165 73,251 752,914 38.95<br />
Non-crown Royalty 0.0000 0.0000 5.0 363,900 384,239 56,418 327,821 16.96<br />
Mineral Tax 0.0000 0.0000 8.0 257,590 273,201 48,640 224,561 11.62<br />
10.0 211,316 224,543 44,202 180,341 9.33<br />
12.0 176,697 188,027 40,269 147,758 7.64<br />
15.0 138,874 148,035 35,170 112,865 5.84<br />
20.0 98,071 104,792 28,379 76,414 3.95<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:22<br />
1121357 Total Possible, GLJ (2012-01), pri February 16, 2012 12:52:50<br />
GLJ<br />
Page: 41 of 102<br />
Page 3<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: PPP<br />
Property: Corporate Development Class: Total<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 22 0 0 0 0.00 0 0 0 0.00 9,743 3,556 3,361 3.50<br />
2013 2 27 184 67 61 101.34 144 52 47 4.17 12,826 4,682 4,390 4.17<br />
2014 4 32 385 140 127 98.28 301 110 99 4.70 20,999 7,665 7,087 4.70<br />
2015 4 38 365 133 121 96.24 286 104 94 5.24 28,404 10,367 9,520 5.24<br />
2016 4 43 237 87 78 96.24 186 68 61 5.77 36,503 13,323 12,197 5.77<br />
2017 4 47 159 58 52 96.24 124 45 41 6.31 39,415 14,387 13,158 6.31<br />
2018 4 49 114 42 38 97.62 89 33 29 6.59 39,870 14,553 13,268 6.59<br />
2019 4 51 86 31 28 99.69 67 25 22 6.73 36,765 13,419 12,200 6.73<br />
2020 4 51 67 25 22 101.80 53 19 17 6.88 32,029 11,691 10,641 6.88<br />
2021 4 51 54 20 18 103.96 42 15 14 7.03 28,065 10,244 9,336 7.03<br />
2022 4 51 44 16 15 106.15 35 13 11 7.17 24,974 9,115 8,322 7.17<br />
2023 4 51 37 14 12 108.39 29 11 10 7.31 22,437 8,190 7,491 7.31<br />
Sub. 632 572 98.47 494 447 5.55 121,191 110,971 6.22<br />
Rem. 62 56 117.93 48 44 7.92 94,999 86,096 9.40<br />
Tot. 694 628 100.20 543 491 5.76 216,189 197,067 7.62<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 9,743 3,556 3,361 3.50 12 5 4 86.50 12 5 4 86.50<br />
2013 12,970 4,734 4,437 4.17 17 6 6 86.50 200 73 66 100.12<br />
2014 21,300 7,774 7,186 4.70 27 10 9 83.44 412 150 136 97.30<br />
2015 28,689 10,472 9,615 5.24 37 13 12 81.40 402 147 133 94.89<br />
2016 36,688 13,391 12,259 5.77 47 17 16 81.40 284 104 94 93.80<br />
2017 39,539 14,432 13,199 6.31 50 18 17 81.40 209 76 69 92.66<br />
2018 39,959 14,585 13,297 6.59 51 19 17 82.78 165 60 55 93.03<br />
2019 36,832 13,444 12,222 6.73 47 17 16 84.85 133 49 44 94.44<br />
2020 32,082 11,710 10,659 6.88 41 15 14 86.96 108 40 36 96.19<br />
2021 28,107 10,259 9,350 7.03 36 13 12 89.11 90 33 30 98.03<br />
2022 25,008 9,128 8,333 7.17 32 12 11 91.31 76 28 25 99.94<br />
2023 22,466 8,200 7,500 7.31 29 10 10 93.55 66 24 22 101.92<br />
Sub. 121,685 111,419 6.22 155 142 85.17 788 714 95.84<br />
Rem. 95,047 86,140 9.40 121 110 126.28 183 166 123.46<br />
Tot. 216,732 197,558 7.61 277 252 103.20 971 880 101.05<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 1,636 597 564 21.50<br />
2013 2,362 862 806 31.38<br />
2014 3,962 1,446 1,334 35.41<br />
2015 5,184 1,892 1,735 36.36<br />
2016 6,399 2,336 2,137 37.27<br />
2017 6,799 2,482 2,269 39.54<br />
2018 6,825 2,491 2,271 40.81<br />
2019 6,272 2,289 2,081 41.50<br />
2020 5,455 1,991 1,812 42.34<br />
2021 4,774 1,743 1,588 43.21<br />
2022 4,244 1,549 1,414 44.02<br />
2023 3,810 1,391 1,272 44.85<br />
Sub. 21,068 19,284 39.48<br />
Rem. 16,024 14,522 57.19<br />
Tot. 37,093 33,807 47.13<br />
Page: 42 of 102<br />
1121357 Total PPP, GLJ (2012-01), pri February 16, 2012 12:52:55<br />
GLJ<br />
Petroleum Consultants
REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 12,447 393 12,839 0 12,839 706 0 0 0 706 12,133 2,766 676 3,442<br />
2013 6,797 19,736 523 27,055 0 27,055 1,916 0 0 0 1,916 25,139 2,909 1,242 4,152<br />
2014 13,797 36,573 828 51,198 0 51,198 4,141 0 0 0 4,141 47,057 3,143 2,231 5,373<br />
2015 12,834 54,867 1,088 68,789 0 68,789 5,797 0 0 0 5,797 62,992 3,366 2,784 6,150<br />
2016 8,342 77,319 1,391 87,052 0 87,052 7,449 0 0 0 7,449 79,602 3,598 3,200 6,798<br />
2017 5,568 91,052 1,499 98,120 0 98,120 8,433 0 0 0 8,433 89,687 3,802 3,331 7,133<br />
2018 4,059 96,055 1,541 101,654 0 101,654 9,005 0 0 0 9,005 92,649 3,943 3,343 7,286<br />
2019 3,127 90,418 1,456 95,001 0 95,001 8,643 0 0 0 8,643 86,358 4,084 3,105 7,189<br />
2020 2,502 80,507 1,300 84,309 0 84,309 7,580 0 0 0 7,580 76,729 4,169 2,744 6,912<br />
2021 2,047 72,077 1,167 75,292 0 75,292 6,683 0 0 0 6,683 68,609 4,252 2,441 6,693<br />
2022 1,717 65,408 1,064 68,189 0 68,189 5,951 0 0 0 5,951 62,238 4,337 2,208 6,545<br />
2023 1,467 59,932 979 62,378 0 62,378 5,337 0 0 0 5,337 57,041 4,424 2,017 6,441<br />
Sub. 62,257 756,390 13,229 831,875 0 831,875 71,643 0 0 0 71,643 760,233 44,794 29,321 74,115<br />
Rem. 7,284 893,802 15,320 916,405 0 916,405 86,184 0 0 0 86,184 830,221 110,815 29,285 140,100<br />
Tot. 69,541 1,650,192 28,548 1,748,281 0 1,748,281 157,827 0 0 0 157,827 1,590,454 155,608 58,606 214,214<br />
Disc 43,149 522,986 9,321 575,456 0 575,456 49,831 0 0 0 49,831 525,625 39,096 20,403 59,499<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,692 1,971 0 10,663 0 0 0 0 10,663 10,663 10,167<br />
2013 0 0 0 20,987 2,136 0 23,123 19,548 0 0 19,548 3,575 14,238 13,265<br />
2014 0 0 0 41,683 2,929 0 44,612 45,413 0 0 45,413 -801 13,437 12,634<br />
2015 0 0 0 56,842 4,078 531 60,389 37,323 0 0 37,323 23,066 36,503 29,158<br />
2016 0 0 0 72,804 5,267 0 78,071 52,757 0 0 52,757 25,314 61,816 45,642<br />
2017 0 0 0 82,554 5,757 414 87,897 25,703 0 0 25,703 62,194 124,010 82,463<br />
2018 0 0 0 85,363 5,583 0 90,946 19,663 0 0 19,663 71,283 195,293 120,827<br />
2019 0 0 0 79,169 4,792 0 83,960 10,028 0 0 10,028 73,932 269,225 157,001<br />
2020 0 0 0 69,817 4,162 0 73,979 0 0 0 0 73,979 343,204 189,906<br />
2021 0 0 0 61,915 3,650 0 65,565 0 0 0 0 65,565 408,769 216,418<br />
2022 0 0 0 55,693 3,261 0 58,954 0 0 0 0 58,954 467,723 238,090<br />
2023 0 0 0 50,600 2,942 0 53,541 0 0 0 0 53,541 521,265 255,983<br />
Sub. 0 0 0 686,118 46,526 945 731,700 210,435 0 0 210,435 521,265 521,265 255,983<br />
Rem. 0 0 0 690,121 34,449 28,828 695,743 0 0 0 0 695,743 1,217,007 351,488<br />
Tot. 0 0 0 1,376,240 80,976 29,773 1,427,443 210,435 0 0 210,435 1,217,007 1,217,007 351,488<br />
Disc 0 0 0 466,126 31,785 1,894 496,016 144,528 0 0 144,528 351,488 351,488 351,488<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 694 0 694 628 1.000 694 2 22.0 10.3 4.1<br />
Solution Gas MMcf 543 0 543 491 6.000 90 0 22.0 10.3 4.1<br />
Residue Gas MMcf 216,189 0 216,189 197,067 6.000 36,032 97 50.0 60.8 10.5<br />
Total: Gas MMcf 216,732 0 216,732 197,558 6.000 36,122 97 50.0 60.9 10.4<br />
Gas Heat Content BBtu 229,736 0 229,736 209,412 0.000 0 0 50.0 60.9 10.4<br />
Condensate Mbbl 277 0 277 252 1.000 277 1 50.0 60.9 10.4<br />
Total: Oil+NGL Mbbl 971 0 971 880 1.000 971 3 50.0 213.9 5.1<br />
Total: Oil Eq. Mboe 37,093 0 37,093 33,807 1.000 37,093 100 50.0 62.1 10.3<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 62,934 4 39,050 7<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,831 0 1,682 0<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 0.97 0.00 2.34 1,498,698 94 476,361 91<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 0.97 0.00 2.34 1,501,529 94 478,043 91<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 25,991 2 8,532 2<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 88,925 6 47,582 9<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.76 0.00 14.55 1,590,454 100 525,625 100<br />
1121357 Total PPP, GLJ (2012-01), pri February 16, 2012 12:52:55<br />
GLJ<br />
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REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 9.0276 0.0 1,376,240 1,427,443 210,435 1,217,007 32.81<br />
Non-crown Royalty 0.0000 0.0000 5.0 725,658 766,830 173,116 593,714 16.01<br />
Mineral Tax 0.0000 0.0000 8.0 547,735 581,604 155,092 426,512 11.50<br />
10.0 466,126 496,016 144,528 351,488 9.48<br />
12.0 402,912 429,477 134,965 294,512 7.94<br />
15.0 331,245 353,809 122,243 231,566 6.24<br />
20.0 249,991 267,750 104,598 163,152 4.40<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:22<br />
1121357 Total PPP, GLJ (2012-01), pri February 16, 2012 12:52:55<br />
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RESERVES DEFINITIONS<br />
Reserves estimates have been prepared by GLJ Petroleum Consultants (GLJ) in accordance with<br />
standards contained in the Canadian Oil and Gas Evaluation (COGE) Handbook. The following<br />
reserves definitions are set out by the Canadian Securities Administrators in National Instrument<br />
51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101; in Part 2 of the Glossary to<br />
NI 51-101) with reference to the COGE Handbook.<br />
Reserves Categories<br />
Reserves are estimated remaining quantities of oil and natural gas and related<br />
substances anticipated to be recoverable from known accumulations, as of a given date,<br />
based on:<br />
• analysis of drilling, geological, geophysical, and engineering data;<br />
• the use of established technology;<br />
• specified economic conditions 1 , which are generally accepted as being<br />
reasonable, and shall be disclosed.<br />
Reserves are classified according to the degree of certainty associated with the<br />
estimates.<br />
Proved Reserves<br />
Proved reserves are those reserves that can be estimated with a high degree of certainty<br />
to be recoverable. It is likely that the actual remaining quantities recovered will exceed<br />
the estimated proved reserves.<br />
Probable Reserves<br />
Probable reserves are those additional reserves that are less certain to be recovered<br />
than proved reserves. It is equally likely that the actual remaining quantities recovered<br />
will be greater or less than the sum of the estimated proved plus probable reserves.<br />
Possible Reserves<br />
Possible reserves are those additional reserves that are less certain to be recovered than<br />
probable reserves. It is unlikely that the actual remaining quantities recovered will exceed<br />
the sum of the estimated proved plus probable plus possible reserves.<br />
Other criteria that must also be met for the classification of reserves are provided in<br />
[Section 5.5 of the COGE Handbook].<br />
Development and Production Status<br />
Each of the reserves categories (proved, probable, and possible) may be divided into<br />
developed and undeveloped categories.<br />
Page: 45 of 102<br />
1 For securities reporting, the key economic assumptions will be the prices and costs used in the<br />
estimate. The required assumptions may vary by jurisdiction, for example:<br />
(a) forecast prices and costs, in Canada under NI 51-101<br />
(b) constant prices and costs, based on the average of the first day posted prices in each of the 12<br />
months of the reporting issuer’s financial year, under US SEC rules (this is optional disclosure<br />
under NI 51-101).<br />
GLJ<br />
Petroleum Consultants
Developed Reserves<br />
Developed reserves are those reserves that are expected to be recovered from existing<br />
wells and installed facilities or, if facilities have not been installed, that would involve a<br />
low expenditure (e.g., when compared to the cost of drilling a well) to put the reserves on<br />
production. The developed category may be subdivided into producing and nonproducing.<br />
Developed Producing Reserves<br />
Developed producing reserves are those reserves that are expected to be recovered<br />
from completion intervals open at the time of the estimate. These reserves may be<br />
currently producing or, if shut in, they must have previously been on production, and the<br />
date of resumption of production must be known with reasonable certainty.<br />
Developed Non-producing Reserves<br />
Developed non-producing reserves are those reserves that either have not been on<br />
production, or have previously been on production, but are shut in, and the date of<br />
resumption of production is unknown.<br />
Undeveloped Reserves<br />
Undeveloped reserves are those reserves expected to be recovered from known<br />
accumulations where a significant expenditure (for example, when compared to the cost<br />
of drilling a well) is required to render them capable of production. They must fully meet<br />
the requirements of the reserves category (proved, probable, possible) to which they are<br />
assigned.<br />
In multi-well pools, it may be appropriate to allocate total pool reserves between the<br />
developed and undeveloped categories or to subdivide the developed reserves for the<br />
pool between developed producing and developed non-producing. This allocation should<br />
be based on the estimator’s assessment as to the reserves that will be recovered from<br />
specific wells, facilities, and completion intervals in the pool and their respective<br />
development and production status.<br />
Levels of Certainty for Reported Reserves<br />
The qualitative certainty levels referred to in the definitions above are applicable to<br />
individual reserves entities (which refers to the lowest level at which reserves calculations<br />
are performed) and to Reported Reserves (which refers to the highest level sum of<br />
individual entity estimates for which reserves estimates are presented). Reported<br />
Reserves should target the following levels of certainty under a specific set of economic<br />
conditions:<br />
• at least a 90 percent probability that the quantities actually recovered will equal<br />
or exceed the estimated proved reserves;<br />
• at least a 50 percent probability that the quantities actually recovered will equal<br />
or exceed the sum of the estimated proved plus probable reserves;<br />
• at least a 10 percent probability that the quantities actually recovered will equal<br />
or exceed the sum of the estimated proved plus probable plus possible reserves.<br />
A quantitative measure of the certainty levels pertaining to estimates prepared for the<br />
various reserves categories is desirable to provide a clearer understanding of the<br />
associated risks and uncertainties. However, the majority of reserves estimates are<br />
prepared using deterministic methods that do not provide a mathematically derived<br />
quantitative measure of probability. In principle, there should be no difference between<br />
estimates prepared using probabilistic or deterministic methods.<br />
Additional clarification of certainty levels associated with reserves estimates and the<br />
effect of aggregation is provided in Section 5.5.3 [of the COGE Handbook].<br />
GLJ<br />
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DOCUMENTED RESERVES CATEGORIES<br />
Production and revenue projections are prepared for each of the following main reserves<br />
categories:<br />
Reserves Category<br />
Proved<br />
Proved Plus Probable<br />
Proved Plus Probable Plus Possible<br />
Production and Development Status<br />
Developed Producing*<br />
Developed Non-producing<br />
Undeveloped<br />
Total (sum of developed producing, developed non-producing and undeveloped)<br />
* as producing reserves are inherently developed, GLJ simply refers to “developed producing”<br />
reserves as “producing”<br />
Reserves and revenue projections are available in GLJ’s evaluation database for any reserves and<br />
development subcategory including those determined by difference (e.g., probable producing).<br />
The following reserves categories are documented in this Corporate Summary volume:<br />
Proved Producing<br />
Proved Developed Non-producing<br />
Proved Undeveloped<br />
Total Proved<br />
Total Probable<br />
Total Proved Plus Probable<br />
Total Possible<br />
Total Proved Plus Probable Plus Possible<br />
Documentation for the following additional reserves categories is provided in the “Expanded<br />
Corporate Summary Information”, which has been provided to the Company in electronic format<br />
only.<br />
Proved<br />
Developed Producing<br />
Developed Non-producing<br />
Undeveloped<br />
Total<br />
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Probable<br />
Developed Producing<br />
Developed Non-producing<br />
Undeveloped<br />
Total<br />
Proved Plus Probable<br />
Developed Producing<br />
Developed Non-producing<br />
Undeveloped<br />
Total<br />
Proved Plus Probable Plus Possible<br />
Developed Producing<br />
Developed Non-producing<br />
Undeveloped<br />
Total<br />
Individual property evaluation reports contain detailed documentation of reserves estimation<br />
methodology and evaluation procedures.<br />
When evaluating reserves, GLJ evaluators generally first identify the producing situation and<br />
assign proved, proved plus probable and proved plus probable plus possible reserves in<br />
recognition of the existing level of development and the existing depletion strategy. <strong>Inc</strong>remental<br />
non-producing (developed non-producing or undeveloped) reserves are subsequently assigned<br />
recognizing future development opportunities and enhancements to the depletion mechanism. It<br />
should be recognized that future developments may result in accelerated recovery of producing<br />
reserves.<br />
GLJ<br />
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INTEREST DESCRIPTIONS<br />
WELL DATA<br />
ACCOUNTING SUMMARY<br />
PRODUCTION FORECASTS<br />
OTHER INCOME<br />
ECONOMIC PARAMETERS<br />
EVALUATION PROCEDURE<br />
TABLE OF CONTENTS<br />
OIL EQUIVALENT OR GAS EQUIVALENT<br />
LIST OF ABBREVIATIONS<br />
List of Tables<br />
Table EP-1 Summary of Company Annual Other <strong>Inc</strong>ome<br />
GLJ<br />
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EVALUATION PROCEDURE<br />
The following outlines the methodology employed by GLJ Petroleum Consultants (GLJ) in<br />
conducting the evaluation of the Company’s oil and gas properties. GLJ evaluation procedures are<br />
in compliance with standards contained in the Canadian Oil and Gas Evaluation (COGE)<br />
Handbook.<br />
INTEREST DESCRIPTIONS<br />
The Company provided GLJ with current land interest information. The Company provided a<br />
representation letter confirming accuracy of land information. Certain cross-checks of land and<br />
accounting information were undertaken by GLJ as recommended in the COGE Handbook. In this<br />
process, nothing came to GLJ’s attention that indicated that information provided by the Company<br />
was incomplete or unreliable.<br />
In GLJ’s reports, “Company Interest” reserves and values refer to the sum of royalty interest * and<br />
working interest reserves before deduction of royalty burdens payable. “Working Interest” reserves<br />
equate to those reserves that are referred to as “Company Gross” reserves by the Canadian<br />
Securities Administrators (CSA) in NI 51-101.<br />
In the Securities Reporting section, working interest (or Company Gross) volumes are presented in<br />
tables to correspond to NI 51-101 disclosure requirements.<br />
* Royalty interest reserves include royalty volumes derived only from other working interest owners.<br />
WELL DATA<br />
Pertinent interest and offset well data such as drill stem tests, workovers, pressure surveys,<br />
production tests, etc., were provided by the Company or were obtained from other operators, public<br />
records or GLJ nonconfidential files.<br />
ACCOUNTING SUMMARY<br />
Page: 50 of 102<br />
The Company provided GLJ with available accounting data on a property basis and for the<br />
corporate total for the period January 1, 2011 to December 31, 2011. In some circumstances this<br />
information was also provided on a cost centre basis to address major reserves entities that are a<br />
subset of a Company property.<br />
GLJ<br />
Petroleum Consultants
PRODUCTION FORECASTS<br />
In establishing all production forecasts, consideration was given to existing gas contracts and the<br />
possibility of contract revisions, to the operator's plans for development drilling and to reserves<br />
and well capability. Generally, development drilling in an area was not considered unless there<br />
was some indication from the operator that drilling could be expected.<br />
The on-stream date for currently shut-in reserves was estimated with consideration given to the<br />
following:<br />
• proximity to existing facilities<br />
• plans of the operator<br />
• economics<br />
OTHER INCOME<br />
The following streams are included as “Other <strong>Inc</strong>ome” in the Company’s corporate total economic<br />
forecasts:<br />
• Processing <strong>Inc</strong>ome – The Company receives revenue from processing partner and thirdparty<br />
oil, gas and/or water volumes in certain properties as summarized (for the total proved<br />
plus probable reserves category) in Table EP-1.<br />
ECONOMIC PARAMETERS<br />
Pertinent economic parameters are listed as follows:<br />
a) The effective date is December 31, 2011.<br />
b) Operating and capital costs were estimated in 2012 dollars and then escalated as summarized in<br />
the Product Price and Market Forecasts section of this report.<br />
Page: 51 of 102<br />
c) Economic forecasts were prepared for each property on a before income tax basis. Detailed<br />
discounting of future cash flow was performed using a discount factor of 10.0 percent with all<br />
values discounted annually to December 31, 2011, on a mid-calendar-year basis.<br />
GLJ<br />
Petroleum Consultants
d) Alberta crown royalties have been determined in accordance with the Alberta New Royalty<br />
Framework (NRF) which passed provincial legislation in December 2008, including March 11<br />
and May 27, 2010 announcements.<br />
e) Royalty holidays applicable to existing wells or forecast drilling are included in individual<br />
well economics. These credits are itemized within the property reports.<br />
f) Gas processing allowances relating to remaining undepreciated capital bases, were included in<br />
individual property economic evaluations. Alberta gas cost allowance calculations have<br />
incorporated changes associated with the Alberta NRF.<br />
g) Mineral taxes on freehold interests were included.<br />
h) Field level overhead charges have been included; recovery of overhead expenses has not been<br />
included.<br />
i) The Company’s office G&A costs have not been included.<br />
j) Well abandonment costs for all wells with reserves have been included at the property level.<br />
Additional abandonment costs associated with non-reserves wells, lease reclamation costs and<br />
facility abandonment and reclamation expenses have not been included in this analysis.<br />
OIL EQUIVALENT OR GAS EQUIVALENT<br />
In this report, quantities of hydrocarbons have been converted to barrels of oil equivalent (boe);<br />
or to sales gas equivalent (sge) using factors of 6 Mcf/boe for gas, 1 bbl/boe for all liquids, and 0<br />
boe for sulphur. Users of oil equivalent values are cautioned that while boe based metrics are<br />
useful for comparative purposes, they may be misleading when used in isolation.<br />
LIST OF ABBREVIATIONS<br />
AOF absolute open flow<br />
bbl barrels<br />
Bcf billion cubic feet of gas at standard conditions<br />
boe barrel of oil equivalent, in this evaluation determined using 6 Mcf/boe<br />
for gas, 1 bbl/boe for all liquids, and 0 boe for sulphur<br />
bopd barrels of oil per day<br />
Btu British thermal units<br />
bwpd barrels of water per day<br />
DSU drilling spacing unit<br />
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GCA gas cost allowance<br />
GOC gas-oil contact<br />
GOR gas-oil ratio<br />
GORR gross overriding royalty<br />
GWC gas-water contact<br />
Mbbl thousand barrels<br />
Mboe thousand boe<br />
Mcf thousand cubic feet of gas at standard conditions<br />
Mcfe thousand cubic feet of gas equivalent<br />
Mlt thousand long tons<br />
M$ thousand Canadian dollars<br />
MM$ million Canadian dollars<br />
MMbbl million barrels<br />
MMboe million boe<br />
MMBtu million British thermal units<br />
MMcf million cubic feet of gas at standard conditions<br />
MRL maximum rate limitation<br />
Mstb thousand stock tank barrels<br />
MMstb million stock tank barrels<br />
NGL natural gas liquids (ethane, propane, butane and condensate)<br />
NPI net profits interest<br />
OGIP original gas-in-place<br />
OOIP original oil-in-place<br />
ORRI overriding royalty interest<br />
OWC oil-water contact<br />
P&NG petroleum and natural gas<br />
psia pounds per square inch absolute<br />
psig pounds per square inch gauge<br />
PVT pressure-volume-temperature<br />
RLI reserves life index, calculated by dividing reserves by the forecast of<br />
first year production<br />
scf standard cubic feet<br />
sge sales gas equivalent – if presented in this evaluation, determined using 1<br />
barrel of oil or natural gas liquid = 6 Mcfe; 0 for sulphur<br />
stb stock tank barrel<br />
WI working interest<br />
WTI West Texas Intermediate<br />
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Table EP-1<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved Plus Probable<br />
Property: Corporate Development Class: Total<br />
Description: Summary Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Company Annual Other <strong>Inc</strong>ome (M$)<br />
Year Totals<br />
Entity Description 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Subtotal Remainder Total<br />
Summary<br />
McCully 1,638 1,781 2,475 3,435 3,385 2,935 2,572 2,276 2,037 1,825 1,652 1,489 27,498 14,541 42,039<br />
Total: Summary 1,638 1,781 2,475 3,435 3,385 2,935 2,572 2,276 2,037 1,825 1,652 1,489 27,498 14,541 42,039<br />
1121357 Total Proved Plus Probable, GLJ (2012-01), oth February 16, 2012 12:52:57<br />
GLJ<br />
Petroleum Consultants<br />
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PRODUCT PRICE AND MARKET FORECASTS<br />
January 1, 2012<br />
GLJ Petroleum Consultants has prepared its January 1, 2012 price and market forecasts as<br />
summarized in the attached Tables 1 to 3 after a comprehensive review of information.<br />
Information sources include numerous government agencies, industry publications, Canadian oil<br />
refiners and natural gas marketers. The forecasts presented herein are based on an informed<br />
interpretation of currently available data. While these forecasts are considered reasonable at this<br />
time, users of these forecasts should understand the inherent high uncertainty in forecasting any<br />
commodity or market. These forecasts will be revised periodically as market, economic and<br />
political conditions change. These future revisions may be significant.<br />
GLJ<br />
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Table 1<br />
GLJ Petroleum Consultants Ltd.<br />
Crude Oil and Natural Gas Liquids<br />
Price Forecast<br />
Effective January 1, 2012<br />
Bank of Nymex Wti Near Month<br />
ICE Brent Near<br />
Month Futures Light Sweet Bow River Lloyd Blend<br />
Canada Futures Contract Contract Crude Oil Crude Oil Crude Oil WCS Heavy Crude Oil Light Crude Oil Medium Crude Oil Alberta Natural Gas Liquids<br />
Average Crude Oil at Crude Oil (40 API, 0.3%S) Stream Quality Stream Quality Stream Quality Proxy (12 API) (35 API, 1.2%S) (29 API, 2.0%S) (Then Current Dollars)<br />
Noon Cushing Oklahoma FOB North Sea at Edmonton at Hardisty at Hardisty at Hardisty at Hardisty at Cromer at Cromer Edmonton<br />
Exchange Constant Then Then Then Then Then Then Then Then Then Spec Edmonton Edmonton Pentanes<br />
Inflation Rate 2012 $ Current Current Current Current Current Current Current Current Current Ethane Propane Butane Plus<br />
Year % $US/$Cdn $US/bbl $US/bbl $US/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl<br />
1996 1.6 0.733 30.16 21.98 20.31 29.38 25.12 21.55 N/A 20.06 28.41 26.08 N/A 23.13 17.83 30.05<br />
1997 1.6 0.722 27.84 20.62 19.32 27.85 21.18 20.55 N/A 14.41 26.52 23.72 N/A 19.41 19.76 30.91<br />
1998 1.0 0.675 19.18 14.44 13.34 20.36 14.63 15.38 N/A 9.45 19.31 16.96 N/A 11.74 12.69 21.87<br />
1999 1.7 0.673 25.38 19.25 17.99 27.63 23.78 22.14 N/A 19.49 26.97 25.37 N/A 15.86 18.65 27.64<br />
2000 2.7 0.673 39.12 30.23 28.41 44.57 35.28 32.61 N/A 27.49 43.28 39.92 N/A 32.15 35.59 46.31<br />
2001 2.5 0.646 32.75 26.00 24.87 39.44 27.69 23.47 N/A 16.77 35.22 31.58 N/A 31.92 31.25 42.48<br />
2002 2.3 0.637 32.05 26.08 25.02 40.33 31.83 30.60 N/A 26.57 37.43 35.48 N/A 21.39 27.08 40.73<br />
2003 2.8 0.716 37.32 31.07 28.47 43.66 32.11 31.18 N/A 26.26 40.09 37.55 N/A 32.14 34.36 44.23<br />
2004 1.8 0.770 48.41 41.38 38.02 52.96 37.43 36.31 N/A 29.11 49.14 45.64 N/A 34.70 39.97 53.94<br />
2005 2.2 0.826 64.96 56.58 55.14 69.02 44.73 43.03 43.74 34.07 62.18 56.77 N/A 43.04 51.80 69.57<br />
2006 2.0 0.882 74.35 66.22 66.16 73.21 51.82 50.36 50.66 41.84 66.38 62.26 N/A 43.85 60.17 75.41<br />
2007 2.2 0.935 79.74 72.39 72.71 77.06 53.64 52.03 52.38 43.42 71.13 65.71 N/A 49.56 61.78 77.38<br />
2008 2.4 0.943 107.29 99.64 98.30 102.89 84.31 82.60 82.95 74.94 96.08 93.10 N/A 58.38 75.33 104.78<br />
2009 0.4 0.880 65.02 61.78 62.50 66.32 60.18 58.40 58.66 54.46 63.84 62.96 N/A 38.03 48.17 68.17<br />
2010 1.8 0.971 83.35 79.52 80.25 77.87 68.45 66.95 67.27 60.76 76.58 73.76 N/A 46.84 65.91 84.27<br />
2011 (e) 3.0 1.012 97.65 94.83 110.63 95.15 78.12 76.37 76.68 67.03 91.61 87.57 N/A 53.47 74.24 103.75<br />
2012 Q1 2.0 0.980 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 10.50 58.78 76.41 107.76<br />
2012 Q2 2.0 0.980 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 10.98 58.78 76.41 107.76<br />
2012 Q3 2.0 0.980 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 11.61 58.78 76.41 107.76<br />
2012 Q4 2.0 0.980 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 12.72 58.78 76.41 107.76<br />
2012 Full Year 2.0 0.980 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 11.46 58.78 76.41 107.76<br />
2013 2.0 0.980 98.04 100.00 105.00 101.02 84.35 82.33 82.63 73.60 94.96 92.94 13.67 60.61 78.80 108.09<br />
2014 2.0 0.980 96.12 100.00 102.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 15.26 60.61 78.80 105.06<br />
2015 2.0 0.980 94.23 100.00 100.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 16.85 60.61 78.80 105.06<br />
2016 2.0 0.980 92.38 100.00 100.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 18.43 60.61 78.80 105.06<br />
2017 2.0 0.980 90.57 100.00 100.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 20.02 60.61 78.80 105.06<br />
2018 2.0 0.980 90.00 101.35 101.35 102.40 85.50 83.45 83.75 75.54 95.23 93.18 20.84 61.44 79.87 106.49<br />
2019 2.0 0.980 90.00 103.38 103.38 104.47 87.23 85.14 85.44 77.09 97.16 95.07 21.25 62.68 81.49 108.65<br />
2020 2.0 0.980 90.00 105.45 105.45 106.58 89.00 86.86 87.16 78.67 99.12 96.99 21.70 63.95 83.13 110.84<br />
2021 2.0 0.980 90.00 107.56 107.56 108.73 90.79 88.62 88.92 80.28 101.12 98.95 22.14 65.24 84.81 113.08<br />
2022+ 2.0 0.980 90.00 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr<br />
Historical futures contract price is an average of the daily settlement price of the near month contract over the calendar month.<br />
Revised 2011-12-31<br />
GLJ<br />
Petroleum Consultants<br />
Page: 56 of 102
Table 2<br />
GLJ Petroleum Consultants Ltd.<br />
Natural Gas and Sulphur<br />
Price Forecast<br />
Effective January 1, 2012<br />
Henry Hub Nymex Midwest Alberta Plant Gate Saskatchewan Plant Gate British Columbia Alberta<br />
Near Month Contract Price @ Chicago AECO/NIT Spot Spot Sulphur Sulphur<br />
Constant Then Then Then Constant Then Westcoast Spot FOB at Plant<br />
2012 $ Current Current Current 2012 $ Current ARP Aggregator Alliance SaskEnergy Spot Sumas Spot Station 2 Plant Gate Vancouver Gate<br />
Year $US/mmbtu $US/mmbtu $US/mmbtu $Cdn/mmbtu $/mmbtu $/mmbtu $/mmbtu $/mmbtu $/mmbtu $/mmbtu $/mmbtu $US/mmbtu $/mmbtu $/mmbtu $US/LT $Cdn/LT<br />
1996 3.44 2.51 2.73 1.39 1.72 1.26 1.63 1.49 N/A 1.52 1.31 1.32 1.49 1.47 36.28 6.48<br />
1997 3.34 2.47 2.75 1.85 2.29 1.70 1.97 1.69 N/A 1.85 1.77 1.71 1.90 1.98 34.75 5.12<br />
1998 2.87 2.16 2.20 2.03 2.49 1.87 1.94 1.78 N/A 2.05 1.94 1.60 2.15 2.00 24.59 -6.51<br />
1999 3.05 2.31 2.33 2.92 3.63 2.75 2.48 2.17 N/A 2.82 2.84 2.15 2.93 2.78 33.74 6.93<br />
2000 5.58 4.32 3.96 5.08 6.37 4.93 4.50 4.44 N/A 4.79 4.99 4.15 5.06 4.88 38.14 13.59<br />
2001 5.08 4.03 4.45 6.23 7.65 6.07 5.41 4.97 5.29 5.72 6.15 4.57 6.32 6.29 18.29 -14.67<br />
2002 4.13 3.36 3.25 4.04 4.77 3.88 3.88 3.64 3.66 4.04 3.96 2.68 4.18 3.93 29.38 3.04<br />
2003 6.57 5.47 5.46 6.66 7.80 6.49 6.13 5.87 6.15 6.41 6.57 4.66 6.45 6.32 59.81 39.83<br />
2004 7.23 6.18 6.13 6.88 7.83 6.70 6.31 6.16 6.39 6.48 6.78 5.26 6.56 6.45 62.99 38.61<br />
2005 10.34 9.00 8.24 8.58 9.66 8.42 8.30 8.27 8.29 8.36 8.48 7.13 8.22 8.12 63.50 33.77<br />
2006 7.85 6.99 6.93 7.16 7.81 6.96 6.57 6.36 6.34 6.67 7.06 6.27 6.58 6.45 55.07 19.27<br />
2007 7.83 7.12 6.83 6.65 7.08 6.43 6.20 6.13 5.86 6.18 6.55 6.52 6.40 6.25 81.66 42.03<br />
2008 9.58 8.90 8.91 8.16 8.53 7.92 7.88 7.85 7.84 8.07 8.04 8.33 8.21 8.09 497.39 488.64<br />
2009 4.38 4.16 4.05 4.19 4.19 3.98 3.85 3.69 3.23 3.87 4.04 3.91 4.17 4.04 57.06 24.57<br />
2010 4.60 4.40 4.53 4.17 4.11 3.93 3.77 3.63 3.31 3.96 4.00 4.31 4.01 3.91 88.94 48.26<br />
2011 (e) 4.15 4.03 4.26 3.68 3.58 3.47 3.57 3.40 2.89 3.67 3.72 3.88 3.37 3.28 217.14 172.03<br />
2012 Q1 3.50 3.50 3.60 3.21 3.02 3.02 2.96 2.89 2.36 3.06 3.15 3.20 3.01 2.86 200.00 161.08<br />
2012 Q2 3.65 3.65 3.75 3.35 3.16 3.16 3.09 3.02 2.50 3.19 3.29 3.35 3.15 3.00 200.00 161.08<br />
2012 Q3 3.85 3.85 3.95 3.54 3.34 3.34 3.27 3.20 2.70 3.37 3.48 3.55 3.34 3.18 200.00 161.08<br />
2012 Q4 4.20 4.20 4.30 3.86 3.66 3.66 3.58 3.50 3.04 3.68 3.80 3.90 3.66 3.50 200.00 161.08<br />
2012 Full Year 3.80 3.80 3.90 3.49 3.29 3.29 3.23 3.15 2.65 3.33 3.43 3.50 3.29 3.14 200.00 161.08<br />
2013 4.41 4.50 4.60 4.13 3.85 3.93 3.85 3.76 3.33 3.95 4.07 4.20 3.93 3.78 175.00 135.57<br />
2014 4.81 5.00 5.10 4.59 4.21 4.39 4.30 4.20 3.82 4.40 4.53 4.70 4.39 4.23 150.00 110.06<br />
2015 5.18 5.50 5.60 5.05 4.56 4.84 4.74 4.64 4.31 4.84 4.99 5.20 4.85 4.69 125.00 84.55<br />
2016 5.54 6.00 6.10 5.51 4.89 5.30 5.19 5.08 4.80 5.29 5.45 5.70 5.31 5.14 125.00 84.55<br />
2017 5.89 6.50 6.60 5.97 5.21 5.75 5.64 5.51 5.29 5.74 5.91 6.20 5.77 5.60 127.50 87.10<br />
2018 6.00 6.76 6.86 6.21 5.32 5.99 5.87 5.74 5.55 5.97 6.15 6.46 6.01 5.84 130.05 89.70<br />
2019 6.00 6.89 6.99 6.33 5.32 6.11 5.98 5.85 5.67 6.08 6.27 6.59 6.13 5.95 132.65 92.36<br />
2020 6.00 7.03 7.13 6.46 5.32 6.23 6.11 5.98 5.81 6.21 6.40 6.73 6.26 6.08 135.30 95.06<br />
2021 6.00 7.17 7.27 6.58 5.32 6.36 6.23 6.10 5.95 6.33 6.52 6.87 6.38 6.21 138.01 97.83<br />
2022+ 6.00 +2.0%/yr +2.0%/yr +2.0%/yr 5.32 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr<br />
Unless otherwise stated, the gas price reference point is the receipt point on the applicable provincial gas transmission system known as the plant gate.<br />
The plant gate price represents the price before raw gas gathering and processing charges are deducted.<br />
AECO-C Spot refers to the one month price averaged for the year.<br />
Revised 2011-12-31<br />
GLJ<br />
Petroleum Consultants<br />
Page: 57 of 102
Table 3<br />
GLJ Petroleum Consultants Ltd.<br />
Crude and Natural Gas<br />
GLJ (2012-01)<br />
Effective January 01, 2012<br />
NYMEX WTI Near National<br />
Month Futures Contract Brent Blend Balancing<br />
Bank of Crude Oil at Crude Oil Henry Hub Nova Scotia Point<br />
Canada Cushing Oklahoma FOB North Sea Spot Goldboro (UK)<br />
Average Noon Can. - UK Can. - EURO<br />
Exchange Exchange Exchange Then Then Then Then Then Then Then Then Then Then<br />
Inflation Rate Rate Rate Current Current Current Current Current Current Current Current Current Current<br />
Year % $US/$C $C/GBP $C/EURO $US/bbl $C/bbl $US/bbl $C/bbl $US/MMbtu $C/MMbtu $US/MMbtu $C/MMbtu $US/MMbtu C$/MMbtu<br />
2002 2.3 0.637 2.3587 1.4266 26.08 40.93 25.02 39.27 3.36 5.27 2.70 4.23 2.58 4.05<br />
2003 2.8 0.716 2.2877 1.5229 31.07 43.60 28.47 39.93 5.47 7.67 5.16 7.31 3.38 4.69<br />
2004 1.8 0.770 2.3837 1.5559 41.38 53.65 38.02 49.29 6.18 8.02 5.62 7.32 4.76 6.13<br />
2005 2.2 0.826 2.2057 1.4523 56.58 68.42 55.14 66.69 9.00 10.83 8.19 9.87 7.51 9.02<br />
2006 2.0 0.882 2.0898 1.3686 66.22 75.08 66.16 75.01 6.99 7.94 6.20 7.04 8.34 9.48<br />
2007 2.2 0.935 2.1475 1.4361 72.39 76.89 72.71 77.33 7.12 7.65 6.33 6.84 6.14 6.44<br />
2008 2.4 0.943 1.9605 1.5480 99.64 104.27 98.30 102.81 8.90 9.36 8.32 8.77 11.41 12.12<br />
2009 0.4 0.880 1.7799 1.5850 61.78 69.57 62.50 70.47 4.16 4.75 3.35 3.87 4.95 5.68<br />
2010 1.8 0.971 1.5928 1.3671 79.52 81.85 80.25 82.58 4.40 4.53 3.83 3.96 6.39 6.58<br />
2011 3.0 1.012 1.5863 1.3764 94.83 93.68 110.63 109.32 4.03 3.98 3.41 3.65 9.38 8.49<br />
2012 Q1 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.50 3.57 3.95 4.03 9.13 9.32<br />
2012 Q2 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.65 3.72 2.42 2.47 9.13 9.32<br />
2012 Q3 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.85 3.93 3.11 3.18 9.13 9.32<br />
2012 Q4 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 4.20 4.29 3.46 3.53 9.13 9.32<br />
2012 Full Year 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.80 3.88 3.24 3.30 9.13 9.32<br />
2013 2.0 0.980 1.6000 1.3500 100.00 102.04 105.00 107.14 4.50 4.59 3.85 3.93 9.55 9.74<br />
2014 2.0 0.980 1.6000 1.3500 100.00 102.04 102.00 104.08 5.00 5.10 4.35 4.44 9.71 9.91<br />
2015 2.0 0.980 1.6000 1.3500 100.00 102.04 100.00 102.04 5.50 5.61 4.84 4.94 10.00 10.20<br />
2016 2.0 0.980 1.6000 1.3500 100.00 102.04 100.00 102.04 6.00 6.12 5.34 5.45 10.00 10.20<br />
2017 2.0 0.980 1.6000 1.3500 100.00 102.04 100.00 102.04 6.50 6.63 5.83 5.95 10.00 10.20<br />
2018 2.0 0.980 1.6000 1.3500 101.35 103.42 101.35 103.42 6.76 6.90 6.09 6.21 10.14 10.34<br />
2019 2.0 0.980 1.6000 1.3500 103.38 105.49 103.38 105.49 6.89 7.03 6.22 6.34 10.34 10.55<br />
2020 2.0 0.980 1.6000 1.3500 105.45 107.60 105.45 107.60 7.03 7.17 6.36 6.49 10.55 10.76<br />
2021 2.0 0.980 1.6000 1.3500 107.56 109.76 107.56 109.76 7.17 7.32 6.49 6.63 10.76 10.98<br />
2022+ 2.0 0.980 1.6000 1.3500 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr<br />
Historical futures contract price is an average of the daily settlement price of the near month contract over the calendar month.<br />
GLJ<br />
Petroleum Consultants<br />
Page: 58 of 102
SECURITIES REPORTING<br />
TABLE OF CONTENTS<br />
GLJ<br />
Page: 59 of 102<br />
SECURITIES OUTLINE 60<br />
SECURITIES DISCUSSION 61<br />
AFTER TAX FORECAST PRICING RESERVES DATA<br />
Table FP-1 Reserves And NPV Summary 65<br />
Table FP-2 Total Future Net Revenue (Undiscounted) 66<br />
Table FP-3 Future Net Revenue by Production Group 67<br />
Table FP-4 Forecast Prices Used 68<br />
Table FP-5A Current Reserves Reconciliation 71<br />
Table FP-5B Prior Reserves Reconciliation 72<br />
Table FP-6 Undeveloped Reserves Attributed In Current Year 73<br />
Table FP-7 Company Annual Capital Expenditures 74<br />
Table FP-8 Company Annual Abandonment Costs 75<br />
Table FP-9 Summary of First Year Production and Oil and Gas Reserves 76<br />
Page<br />
March 13, 2012 15:51:06<br />
Petroleum Consultants
PART 1 DATE OF STATEMENT<br />
1.1 Relevant Dates<br />
1. Effective Date<br />
2. Data Date<br />
3. Preparation Date<br />
SECURITIES REPORTING OUTLINE<br />
PART 2 DISCLOSURE OF RESERVES DATA<br />
2.1 Reserves Data (Forecast Prices and Costs)<br />
1. Breakdown of Proved Reserves<br />
2. Net Present Value of Future Net Revenue<br />
3. Additional Information Concerning Future Net Revenue<br />
PART 3 PRICING ASSUMPTIONS<br />
3.2 Forecast Prices Used in Estimates<br />
PART 4 RECONCILIATION OF CHANGES IN RESERVES<br />
4.1 Reserves Reconciliation<br />
PART 5 ADDITIONAL INFORMATION RELATING TO RESERVES DATA<br />
5.1 Undeveloped Reserves<br />
5.2 Significant Factors or Uncertainties<br />
5.3 Future Development Costs<br />
PART 6 OTHER OIL AND GAS INFORMATION<br />
6.3 Forward Contracts<br />
6.4 Additional Information Concerning Abandonment and Reclamation Costs<br />
6.5 Tax Horizon<br />
6.8 Production Estimates<br />
GLJ<br />
Page: 60 of 102<br />
Petroleum Consultants
SECURITIES REPORTING DISCUSSION<br />
The Canadian Securities Administrators (CSA) have set out disclosure standards for Canadian<br />
publicly traded oil and gas companies in National Instrument 51-101 (NI 51-101).<br />
This section presents reserves data following the item numbering and formatting in CSA Form<br />
51-101F1 and the sample tables contained in Appendix 1 to the NI 51-101 Companion Policy<br />
(51-101CP).<br />
The Report on Reserves Data, Form 51-101F2, is provided separately.<br />
Note Regarding Nomenclature:<br />
Throughout this report, “Company Interest” reserves refers to the sum of royalty<br />
interest * and working interest reserves before deduction of royalty burdens payable.<br />
“Working Interest” reserves equate to those reserves that are referred to as<br />
“Company Gross” reserves by the Canadian Securities Administrators (CSA) in<br />
NI 51-101.<br />
In this Securities Reporting section, Company Gross (or working interest) volumes<br />
are presented in tables to correspond to NI 51-101 disclosure requirements.<br />
* Royalty interest reserves include royalty volumes derived only from other working interest owners.<br />
PART 1 DATE OF STATEMENT<br />
Item 1.1 Relevant Dates<br />
Page: 61 of 102<br />
1. Effective Date:<br />
The effective date of the reserves estimates and revenue projections in this report<br />
is December 31, 2011.<br />
2. Data Date:<br />
Estimates of reserves and projections of production were generally prepared using<br />
general well information and production data available in the public domain to<br />
approximately December 31, 2011. The Company has provided GLJ with a<br />
representation letter confirming that complete and correct information has been<br />
provided to GLJ.<br />
3. Preparation Date:<br />
The preparation date (the latest date of receipt of information relevant to this<br />
evaluation) of this report is February 15, 2012.<br />
GLJ<br />
Petroleum Consultants
PART 2 DISCLOSURE OF RESERVES DATA<br />
Item 2.1 Reserves Data (Forecast Prices and Costs)<br />
1. Breakdown of Reserves (Forecast Case)<br />
Refer to Table FP-1<br />
2. Net Present Value of Future Net Revenue (Forecast Case)<br />
Refer to Table FP-1<br />
3. Additional Information Concerning Future Net Revenue (Forecast Case)<br />
(a) and (b) Undiscounted Revenue and Costs<br />
Refer to Table FP-2<br />
PART 3 PRICING ASSUMPTIONS<br />
(c) Discounted Future Net Revenue by Production Group<br />
Refer to Table FP-3<br />
Item 3.2 Forecast Prices Used in Estimates<br />
1. (a) The forecast reference prices used in preparing the Company’s reserves<br />
data are provided in Table FP-4.<br />
This price forecast is GLJ’s standard price forecast effective January 1, 2012.<br />
PART 4 RECONCILIATION OF CHANGES IN RESERVES<br />
Item 4.1 Reserves Reconciliation<br />
Tables FP-5A and FP-5B provide reconciliations of Company Gross reserves<br />
based on forecast prices and costs for the current and prior year-end evaluations,<br />
respectively.<br />
PART 5 ADDITIONAL INFORMATION RELATING TO RESERVES DATA<br />
Item 5.1 Undeveloped Reserves<br />
1.(a) and 2.(a) Year First Attributed<br />
Page: 62 of 102<br />
Table FP-6 provides a summary of the undeveloped reserves first attributed<br />
during the current fiscal year and the Company total at the current year-end<br />
effective date.<br />
GLJ<br />
Petroleum Consultants
The following table sets out total Company undeveloped reserves evaluated by<br />
GLJ utilizing the format preferred by the CSA.<br />
Proved Undeveloped Reserves<br />
* First Total at First Total at First Total at First Total at First Total at<br />
Attributed Year-end Attributed Year-end Attributed Year-end Attributed Year-end Attributed Year-end<br />
Prior 87<br />
2009 -<br />
2010 -<br />
2011 -<br />
87<br />
87<br />
87<br />
87<br />
Probable Undeveloped Reserves<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
21,790<br />
7,836<br />
1,513<br />
-<br />
45,987<br />
45,239<br />
35,772<br />
36,739<br />
28<br />
10<br />
2<br />
59<br />
58<br />
46<br />
3,747<br />
1,316<br />
* First Total at First Total at First Total at First Total at First Total at<br />
-<br />
47<br />
254<br />
-<br />
7,810<br />
7,684<br />
6,094<br />
6,257<br />
Attributed Year-end Attributed Year-end Attributed Year-end Attributed Year-end Attributed Year-end<br />
Prior 434<br />
2009 -<br />
2010 -<br />
2011 -<br />
Light & Medium Oil<br />
(Mbbl)<br />
Light & Medium Oil<br />
(Mbbl)<br />
Company Gross Reserves First Attributed by Year<br />
434<br />
434<br />
434<br />
434<br />
Heavy Oil (Mbbl) Natural Gas (MMcf) Natural Gas Liquids<br />
(Mbbl)<br />
Heavy Oil (Mbbl)<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
Natural Gas (MMcf)<br />
37,355<br />
4,254<br />
1,233<br />
3,489<br />
57,401<br />
54,580<br />
51,517<br />
38,016<br />
Natural Gas Liquids<br />
(Mbbl)<br />
* "First Attributed" refers to reserves first attributed at year-end of the corresponding fiscal yr<br />
48<br />
5<br />
2<br />
4<br />
73<br />
70<br />
66<br />
49<br />
Oil Equivalent (Mbbl)<br />
Oil Equivalent (Mbbl)<br />
6,707<br />
714<br />
207<br />
586<br />
Page: 63 of 102<br />
10,074<br />
9,600<br />
9,086<br />
6,819<br />
1.(b) and 2.(b) General Basis for Reserves and Timing of Development<br />
Proved and probable undeveloped reserves have been estimated in accordance<br />
with procedures and standards contained in the COGE Handbook. The significant<br />
majority of the undeveloped reserves are scheduled to be developed within the<br />
next two years.<br />
Item 5.2 Significant Factors or Uncertainties<br />
The evaluated oil and gas properties of the Company have no material<br />
extraordinary risks or uncertainties beyond those which are inherent of an oil and<br />
gas producing company.<br />
Item 5.3 Future Development Costs<br />
1. Table FP-7 summarizes capital development costs related to the recovery<br />
of the Company’s reserves.<br />
GLJ<br />
Petroleum Consultants
PART 6 OTHER OIL AND GAS INFORMATION<br />
Item 6.3 Forward Contracts<br />
In accordance with the provisions in NI 51-101, the impact of the Company’s<br />
financial hedges has not been included in this report.<br />
Item 6.4 Additional Information Concerning Abandonment and Reclamation Costs<br />
The following aspects of the Company’s future abandonment and reclamation<br />
costs have been included/excluded in the economic forecasts.<br />
<strong>Inc</strong>luded:<br />
• Well Abandonment Costs:<br />
o existing and future reserves wells<br />
Excluded:<br />
• Well Abandonment Costs:<br />
o non-reserves wells<br />
• Pipelines<br />
• Production Facilities<br />
• Site Reclamation<br />
Total abandonment costs are included in the reserves data summarized in Table<br />
FP-8.<br />
Item 6.5 Tax Horizon<br />
Based on after tax economic forecasts prepared by GLJ, income taxes are payable<br />
by the Company in 2016. After tax revenue projections are provided in the After<br />
Tax Analysis section of this report.<br />
Item 6.8 Production Estimates<br />
Table FP-9 presents a forecast of the Company’s production by product type in<br />
the first year of forecast.<br />
Page: 64 of 102<br />
Production for properties which individually account for 20 percent or more of the<br />
Company’s forecast production (total proved plus probable reserves, BOE basis)<br />
in the first year of forecast has been identified separately in this table.<br />
GLJ<br />
Petroleum Consultants
Table FP-1<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Summary Of Oil And Gas Reserves And Net Present Values of Future Net Revenue<br />
RESERVES SUMMARY<br />
Light And Medium Oil Heavy Oil Natural Gas Natural Gas Liquids Total Oil Equivalent<br />
Company Company Company Company Company Company Company Company Company Company<br />
Gross Net Gross Net Gross Net Gross Net Gross Net<br />
Reserves Category Mbbl Mbbl Mbbl Mbbl MMcf MMcf Mbbl Mbbl Mboe Mboe<br />
PROVED<br />
Producing 0 0 0 0 21,949 20,944 28 27 3,686 3,517<br />
Developed Nonproducing 0 0 0 0 0 0 0 0 0 0<br />
Undeveloped 87 79 0 0 36,739 33,249 47 42 6,257 5,662<br />
TOTAL PROVED 87 79 0 0 58,688 54,192 75 69 9,943 9,180<br />
TOTAL PROBABLE 434 393 0 0 43,967 39,955 56 51 7,818 7,103<br />
TOTAL PROVED PLUS PROBABLE 521 471 0 0 102,654 94,147 131 120 17,761 16,282<br />
TOTAL PPP 694 628 0 0 216,732 197,558 277 252 37,093 33,807<br />
NET PRESENT VALUE SUMMARY<br />
Net Present Values of Future Net Revenue<br />
Before <strong>Inc</strong>ome Taxes Discounted At (%/year) Unit Value Before <strong>Inc</strong>ome Tax<br />
Discounted at 10%/year<br />
0% 5% 10% 15% 20%<br />
Reserves Category M$ M$ M$ M$ M$ $/boe $/Mcfe<br />
PROVED<br />
Producing 68,004 55,395 46,325 39,645 34,602 13.17 2.20<br />
Developed Nonproducing 0 0 0 0 0 0.00 0.00<br />
Undeveloped 151,236 83,361 49,417 30,547 19,232 8.73 1.45<br />
TOTAL PROVED 219,240 138,756 95,742 70,192 53,834 10.43 1.74<br />
TOTAL PROBABLE 244,854 127,138 75,405 48,508 32,905 10.62 1.77<br />
TOTAL PROVED PLUS PROBABLE 464,094 265,894 171,147 118,701 86,738 10.51 1.75<br />
TOTAL PPP 1,217,007 593,714 351,488 231,566 163,152 10.40 1.73<br />
Net Present Values of Future Net Revenue<br />
After <strong>Inc</strong>ome Taxes Discounted At (%/year)<br />
0% 5% 10% 15% 20%<br />
Reserves Category M$ M$ M$ M$ M$<br />
PROVED<br />
Producing 68,004 55,395 46,325 39,645 34,602<br />
Developed Nonproducing 0 0 0 0 0<br />
Undeveloped 143,176 80,594 48,392 30,141 19,062<br />
TOTAL PROVED 211,180 135,989 94,717 69,786 53,664<br />
TOTAL PROBABLE 176,697 94,147 57,408 37,922 26,345<br />
TOTAL PROVED PLUS PROBABLE 387,877 230,136 152,124 107,708 80,009<br />
TOTAL PPP 930,490 466,780 282,516 189,632 135,843<br />
Note: Unit values are based on Company Net Reserves.<br />
Page: 65 of 102<br />
1121357 Class (A,B1,B2,C,F,I,R), GLJ (2012-01), cs1a February 16, 2012 12:23:22<br />
GLJ<br />
Petroleum Consultants
Table FP-2<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Total Future Net Revenue (Undiscounted)<br />
Future Future<br />
Capital Net Revenue Net Revenue<br />
Operating Development Abandonment Before <strong>Inc</strong>ome After<br />
Revenue Royalties Costs Costs Costs <strong>Inc</strong>ome Taxes Tax <strong>Inc</strong>ome Taxes<br />
Reserves Category M$ M$ M$ M$ M$ M$ M$ M$<br />
Proved Producing 137,117 5,810 56,805 0 6,498 68,004 0 68,004<br />
Proved Developed Nonproducing 0 0 0 0 0 0 0 0<br />
Proved Undeveloped 277,388 24,828 22,212 72,193 6,919 151,236 8,060 143,176<br />
Total Proved 414,504 30,638 79,016 72,193 13,417 219,240 8,060 211,180<br />
Total Probable 393,207 34,888 42,526 64,991 5,949 244,854 68,156 176,697<br />
Total Proved Plus Probable 807,712 65,526 121,542 137,184 19,366 464,094 76,216 387,877<br />
Total PPP 1,829,257 157,827 214,214 210,435 29,773 1,217,007 286,517 930,490<br />
Notes<br />
1. Disclosure is required for Total Proved and Proved Plus Probable reserves<br />
Page: 66 of 102<br />
1121357 Class (A,B1,B2,C,F,I,R), GLJ (2012-01), cs2new February 16, 2012 12:53:43<br />
GLJ<br />
Petroleum Consultants
Table FP-3<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Future Net Revenue by Production Group<br />
Future Net Revenue Before <strong>Inc</strong>ome Taxes [3]<br />
(Discounted at 10% per year)<br />
M$ $/boe $/Mcfe<br />
Proved Producing<br />
Light & Medium Oil [1] 0 0.00 0.00<br />
Natural Gas [2] 46,325 13.17 2.20<br />
Total: Proved Producing 46,325 13.17 2.20<br />
Total Proved<br />
Light & Medium Oil [1] 4,698 52.89 8.82<br />
Natural Gas [2] 91,044 10.01 1.67<br />
Total: Total Proved 95,742 10.43 1.74<br />
Total Proved Plus Probable<br />
Light & Medium Oil [1] 14,695 27.57 4.60<br />
Natural Gas [2] 156,452 9.93 1.66<br />
Total: Total Proved Plus Probable 171,147 10.51 1.75<br />
Total PPP<br />
Light & Medium Oil [1] 26,033 30.34 5.06<br />
Natural Gas [2] 325,455 9.88 1.65<br />
Total: Total PPP 351,488 10.40 1.73<br />
Notes<br />
1. <strong>Inc</strong>luding solution gas and other by-products<br />
2. <strong>Inc</strong>luding by-products but excluding solution gas<br />
3. Other company revenue and costs not related to a specific production group have been allocated proportionately to production groups. Unit values are based on<br />
Company Net Reserves.<br />
Natural Gas (95.1 %)<br />
Total Proved<br />
L & M Oil (4.9 %)<br />
Percentage of Future Net Revenue (10% DCF)<br />
Natural Gas (91.4 %)<br />
Total Proved Plus Probable<br />
L & M Oil (8.6 %)<br />
Natural Gas (92.6 %)<br />
Total PPP<br />
Page: 67 of 102<br />
L & M Oil (7.4 %)<br />
1121357 Class (A,C,I,R), GLJ (2012-01), cs3new March 13, 2012 15:45:45<br />
GLJ<br />
Petroleum Consultants
Table FP-4<br />
GLJ Petroleum Consultants Ltd.<br />
Crude Oil and Natural Gas Liquids<br />
GLJ (2012-01)<br />
Effective January 01, 2012<br />
Light, Sweet Bow River Lloyd Blend WCS Crude Heavy Light Sour Medium<br />
NYMEX WTI Near Brent Blend Crude Oil Crude Oil Crude Oil Oil Crude Oil Crude Oil Crude Oil<br />
Bank of Month Futures Contract Crude Oil (40 API, Stream Stream Stream Proxy (12 (35 API, (29 API, Alberta Natural Gas Liquids<br />
Canada Crude Oil at FOB North 0.3%S) Quality Quality Quality API) 1.2%S) 2.0%S) (Then Current Dollars)<br />
Average Cushing Oklahoma Sea at Edmonton at Hardisty at Hardisty at Hardisty at Hardisty at Cromer at Cromer<br />
Noon Edmonton<br />
Exchange Constant Then Then Then Then Then Then Then Then Then Spec Edmonton Edmonton Pentanes<br />
Inflation Rate 2012 $ Current Current Current Current Current Current Current Current Current Ethane Propane Butane Plus<br />
Year % $US/$C $US/bbl $US/bbl $US/bbl $C/bbl $C/bbl $C/bbl $C/bbl $C/bbl $C/bbl $C/bbl $C/bbl $C/bbl $C/bbl $C/bbl<br />
2002 2.3 0.6369 32.05 26.08 25.02 40.33 31.83 30.60 N/A 26.57 37.43 35.48 N/A 21.39 27.08 40.73<br />
2003 2.8 0.7158 37.32 31.07 28.47 43.66 32.11 31.18 N/A 26.26 40.09 37.55 N/A 32.14 34.36 44.23<br />
2004 1.8 0.7698 48.41 41.38 38.02 52.96 37.43 36.31 N/A 29.11 49.14 45.64 N/A 34.70 39.97 53.94<br />
2005 2.2 0.8260 64.96 56.58 55.14 69.02 44.73 43.03 43.74 34.07 62.18 56.77 N/A 43.04 51.80 69.57<br />
2006 2.0 0.8818 74.35 66.22 66.16 73.21 51.82 50.36 50.66 41.84 66.38 62.26 N/A 43.85 60.17 75.41<br />
2007 2.2 0.9352 79.74 72.39 72.71 77.06 53.64 52.03 52.38 43.42 71.13 65.71 N/A 49.56 61.78 77.38<br />
2008 2.4 0.9428 107.29 99.64 98.30 102.89 84.31 82.60 82.95 74.94 96.08 93.10 N/A 58.38 75.33 104.78<br />
2009 0.4 0.8798 65.02 61.78 62.50 66.32 60.18 58.40 58.66 54.46 63.84 62.96 N/A 38.03 48.17 68.17<br />
2010 1.8 0.9711 83.35 79.52 80.25 77.87 68.45 66.95 67.27 60.76 76.58 73.76 N/A 46.84 65.91 84.27<br />
2011 3.0 1.0118 97.65 94.83 110.63 95.15 78.12 76.37 76.68 67.03 91.61 87.57 N/A 53.47 74.24 103.75<br />
2012 Q1 2.0 0.9800 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 10.50 58.78 76.41 107.76<br />
2012 Q2 2.0 0.9800 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 10.98 58.78 76.41 107.76<br />
2012 Q3 2.0 0.9800 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 11.61 58.78 76.41 107.76<br />
2012 Q4 2.0 0.9800 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 12.72 58.78 76.41 107.76<br />
2012 Full Year 2.0 0.9800 97.00 97.00 105.00 97.96 83.27 81.31 81.61 72.37 93.06 90.12 11.46 58.78 76.41 107.76<br />
2013 2.0 0.9800 98.04 100.00 105.00 101.02 84.35 82.33 82.63 73.60 94.96 92.94 13.67 60.61 78.80 108.09<br />
2014 2.0 0.9800 96.12 100.00 102.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 15.26 60.61 78.80 105.06<br />
2015 2.0 0.9800 94.23 100.00 100.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 16.85 60.61 78.80 105.06<br />
2016 2.0 0.9800 92.38 100.00 100.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 18.43 60.61 78.80 105.06<br />
2017 2.0 0.9800 90.57 100.00 100.00 101.02 84.35 82.33 82.63 74.51 93.95 91.93 20.02 60.61 78.80 105.06<br />
2018 2.0 0.9800 90.00 101.35 101.35 102.40 85.50 83.45 83.75 75.54 95.23 93.18 20.84 61.44 79.87 106.49<br />
2019 2.0 0.9800 90.00 103.38 103.38 104.47 87.23 85.14 85.44 77.09 97.16 95.07 21.25 62.68 81.49 108.65<br />
2020 2.0 0.9800 90.00 105.45 105.45 106.58 89.00 86.86 87.16 78.67 99.12 96.99 21.70 63.95 83.13 110.84<br />
2021 2.0 0.9800 90.00 107.56 107.56 108.73 90.79 88.62 88.92 80.28 101.12 98.95 22.14 65.24 84.81 113.08<br />
2022+ 2.0 0.9800 90.00 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr<br />
Historical futures contract price is an average of the daily settlement price of the near month contract over the calendar month.<br />
GLJ<br />
Petroleum Consultants<br />
Page: 68 of 102
Table FP-4 (Continued)<br />
GLJ Petroleum Consultants Ltd.<br />
Natural Gas and Sulphur<br />
GLJ (2012-01)<br />
Effective January 01, 2012<br />
Midwest Alberta Plant Gate<br />
Henry Hub Nymex Price @ AECO/NIT<br />
Near Month Contract Chicago Spot Spot British Columbia Alberta<br />
Saskatchewan Plant Gate Sulphur Sulphur<br />
Constant Then Then Then Then Westcoast Spot FOB at Plant<br />
2012 $ Current Current Current 2012 $ Current ARP Aggregator Alliance SaskEnergy Spot Sumas Spot Station 2 Plant Gate Vancouver Gate<br />
Year $US/MMbtu $US/MMbtu $US/MMbtu $C/MMbtu $C/MMbtu $C/MMbtu $C/MMbtu $C/MMbtu $C/MMbtu $C/MMbtu $C/MMbtu $US/MMbtu $C/MMbtu $C/MMbtu $US/LT $C/LT<br />
2002 4.13 3.36 3.25 4.04 4.77 3.88 3.88 3.64 3.66 4.04 3.96 2.68 4.18 3.93 29.38 3.04<br />
2003 6.57 5.47 5.46 6.66 7.80 6.49 6.13 5.87 6.15 6.41 6.57 4.66 6.45 6.32 59.81 39.83<br />
2004 7.23 6.18 6.13 6.88 7.83 6.70 6.31 6.16 6.39 6.48 6.78 5.26 6.56 6.45 62.99 38.61<br />
2005 10.34 9.00 8.24 8.58 9.66 8.42 8.30 8.27 8.29 8.36 8.48 7.13 8.22 8.12 63.50 33.77<br />
2006 7.85 6.99 6.93 7.16 7.81 6.96 6.57 6.36 6.34 6.67 7.06 6.27 6.58 6.45 55.07 19.27<br />
2007 7.83 7.12 6.83 6.65 7.08 6.43 6.20 6.13 5.86 6.18 6.55 6.52 6.40 6.25 81.66 42.03<br />
2008 9.58 8.90 8.91 8.16 8.53 7.92 7.88 7.85 7.84 8.07 8.04 8.33 8.21 8.09 497.39 488.64<br />
2009 4.38 4.16 4.05 4.19 4.19 3.98 3.85 3.69 3.23 3.87 4.04 3.91 4.17 4.04 57.06 24.57<br />
2010 4.60 4.40 4.53 4.17 4.11 3.93 3.77 3.63 3.31 3.96 4.00 4.31 4.01 3.91 88.94 48.26<br />
2011 4.15 4.03 4.26 3.68 3.58 3.47 3.57 3.40 2.89 3.67 3.72 3.88 3.37 3.28 217.14 172.03<br />
2012 Q1 3.50 3.50 3.60 3.21 3.02 3.02 2.96 2.89 2.36 3.06 3.15 3.20 3.01 2.86 200.00 161.08<br />
2012 Q2 3.65 3.65 3.75 3.35 3.16 3.16 3.09 3.02 2.50 3.19 3.29 3.35 3.15 3.00 200.00 161.08<br />
2012 Q3 3.85 3.85 3.95 3.54 3.34 3.34 3.27 3.20 2.70 3.37 3.48 3.55 3.34 3.18 200.00 161.08<br />
2012 Q4 4.20 4.20 4.30 3.86 3.66 3.66 3.58 3.50 3.04 3.68 3.80 3.90 3.66 3.50 200.00 161.08<br />
2012 Full Year 3.80 3.80 3.90 3.49 3.29 3.29 3.23 3.15 2.65 3.33 3.43 3.50 3.29 3.14 200.00 161.08<br />
2013 4.41 4.50 4.60 4.13 3.85 3.93 3.85 3.76 3.33 3.95 4.07 4.20 3.93 3.78 175.00 135.57<br />
2014 4.81 5.00 5.10 4.59 4.21 4.39 4.30 4.20 3.82 4.40 4.53 4.70 4.39 4.23 150.00 110.06<br />
2015 5.18 5.50 5.60 5.05 4.56 4.84 4.74 4.64 4.31 4.84 4.99 5.20 4.85 4.69 125.00 84.55<br />
2016 5.54 6.00 6.10 5.51 4.89 5.30 5.19 5.08 4.80 5.29 5.45 5.70 5.31 5.14 125.00 84.55<br />
2017 5.89 6.50 6.60 5.97 5.21 5.75 5.64 5.51 5.29 5.74 5.91 6.20 5.77 5.60 127.50 87.10<br />
2018 6.00 6.76 6.86 6.21 5.32 5.99 5.87 5.74 5.55 5.97 6.15 6.46 6.01 5.84 130.05 89.70<br />
2019 6.00 6.89 6.99 6.33 5.32 6.11 5.98 5.85 5.67 6.08 6.27 6.59 6.13 5.95 132.65 92.36<br />
2020 6.00 7.03 7.13 6.46 5.32 6.23 6.11 5.98 5.81 6.21 6.40 6.73 6.26 6.08 135.30 95.06<br />
2021 6.00 7.17 7.27 6.58 5.32 6.36 6.23 6.10 5.95 6.33 6.52 6.87 6.38 6.21 138.01 97.83<br />
2022+ 6.00 +2.0%/yr +2.0%/yr +2.0%/yr 5.32 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr<br />
Unless otherwise stated, the gas price reference point is the receipt point on the applicable provincial gas transmission system known as the plant gate.<br />
The plant gate price represents the price before raw gas gathering and processing charges are deducted.<br />
AECO-C Spot refers to the one month price averaged for the year. Page: 69 of 102<br />
GLJ<br />
Petroleum Consultants
Table FP-4 (Continued.)<br />
GLJ Petroleum Consultants Ltd.<br />
Crude and Natural Gas<br />
GLJ (2012-01)<br />
Effective January 01, 2012<br />
NYMEX WTI Near National<br />
Month Futures Contract Brent Blend Balancing<br />
Bank of Crude Oil at Crude Oil Henry Hub Nova Scotia Point<br />
Canada Cushing Oklahoma FOB North Sea Spot Goldboro (UK)<br />
Average Noon Can. - UK Can. - EURO<br />
Exchange Exchange Exchange Then Then Then Then Then Then Then Then Then Then<br />
Inflation Rate Rate Rate Current Current Current Current Current Current Current Current Current Current<br />
Year % $US/$C $C/GBP $C/EURO $US/bbl $C/bbl $US/bbl $C/bbl $US/MMbtu $C/MMbtu $US/MMbtu $C/MMbtu $US/MMbtu C$/MMbtu<br />
2002 2.3 0.637 2.3587 1.4266 26.08 40.93 25.02 39.27 3.36 5.27 2.70 4.23 2.58 4.05<br />
2003 2.8 0.716 2.2877 1.5229 31.07 43.60 28.47 39.93 5.47 7.67 5.16 7.31 3.38 4.69<br />
2004 1.8 0.770 2.3837 1.5559 41.38 53.65 38.02 49.29 6.18 8.02 5.62 7.32 4.76 6.13<br />
2005 2.2 0.826 2.2057 1.4523 56.58 68.42 55.14 66.69 9.00 10.83 8.19 9.87 7.51 9.02<br />
2006 2.0 0.882 2.0898 1.3686 66.22 75.08 66.16 75.01 6.99 7.94 6.20 7.04 8.34 9.48<br />
2007 2.2 0.935 2.1475 1.4361 72.39 76.89 72.71 77.33 7.12 7.65 6.33 6.84 6.14 6.44<br />
2008 2.4 0.943 1.9605 1.5480 99.64 104.27 98.30 102.81 8.90 9.36 8.32 8.77 11.41 12.12<br />
2009 0.4 0.880 1.7799 1.5850 61.78 69.57 62.50 70.47 4.16 4.75 3.35 3.87 4.95 5.68<br />
2010 1.8 0.971 1.5928 1.3671 79.52 81.85 80.25 82.58 4.40 4.53 3.83 3.96 6.39 6.58<br />
2011 3.0 1.012 1.5863 1.3764 94.83 93.68 110.63 109.32 4.03 3.98 3.41 3.65 9.38 8.49<br />
2012 Q1 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.50 3.57 3.95 4.03 9.13 9.32<br />
2012 Q2 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.65 3.72 2.42 2.47 9.13 9.32<br />
2012 Q3 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.85 3.93 3.11 3.18 9.13 9.32<br />
2012 Q4 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 4.20 4.29 3.46 3.53 9.13 9.32<br />
2012 Full Year 2.0 0.980 1.6000 1.3500 97.00 98.98 105.00 107.14 3.80 3.88 3.24 3.30 9.13 9.32<br />
2013 2.0 0.980 1.6000 1.3500 100.00 102.04 105.00 107.14 4.50 4.59 3.85 3.93 9.55 9.74<br />
2014 2.0 0.980 1.6000 1.3500 100.00 102.04 102.00 104.08 5.00 5.10 4.35 4.44 9.71 9.91<br />
2015 2.0 0.980 1.6000 1.3500 100.00 102.04 100.00 102.04 5.50 5.61 4.84 4.94 10.00 10.20<br />
2016 2.0 0.980 1.6000 1.3500 100.00 102.04 100.00 102.04 6.00 6.12 5.34 5.45 10.00 10.20<br />
2017 2.0 0.980 1.6000 1.3500 100.00 102.04 100.00 102.04 6.50 6.63 5.83 5.95 10.00 10.20<br />
2018 2.0 0.980 1.6000 1.3500 101.35 103.42 101.35 103.42 6.76 6.90 6.09 6.21 10.14 10.34<br />
2019 2.0 0.980 1.6000 1.3500 103.38 105.49 103.38 105.49 6.89 7.03 6.22 6.34 10.34 10.55<br />
2020 2.0 0.980 1.6000 1.3500 105.45 107.60 105.45 107.60 7.03 7.17 6.36 6.49 10.55 10.76<br />
2021 2.0 0.980 1.6000 1.3500 107.56 109.76 107.56 109.76 7.17 7.32 6.49 6.63 10.76 10.98<br />
2022+ 2.0 0.980 1.6000 1.3500 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr<br />
Historical futures contract price is an average of the daily settlement price of the near month contract over the calendar month.<br />
GLJ<br />
Petroleum Consultants<br />
Page: 70 of 102
TABLE FP-5A<br />
DECEMBER 31, 2011<br />
RECONCILIATION OF COMPANY GROSS RESERVES<br />
BY PRINCIPAL PRODUCT TYPE<br />
FORECAST PRICES AND COSTS<br />
Total Oil Light and Medium Oil Heavy Oil Natural Gas Liquids<br />
Proved Proved Proved Proved<br />
Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable<br />
FACTORS (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl)<br />
December 31, 2010 87 434 521 87 434 521 0 0 0 79 76 155<br />
Discoveries 0 0 0 0 0 0 0 0 0 0 0 0<br />
Extensions* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Infill Drilling* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Improved Recovery* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Technical Revisions 0 0 0 0 0 0 0 0 0 1 (20) (19)<br />
Acquisitions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Dispositions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Economic Factors 0 0 0 0 0 0 0 0 0 0 0 0<br />
Production 0 0 0 0 0 0 0 0 0 (5) 0 (5)<br />
December 31, 2011 87 434 521 87 434 521 0 0 0 75 56 131<br />
Total Gas Conventional Natural Gas Coal Bed Methane BOE<br />
Proved Proved Proved Proved<br />
Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable<br />
FACTORS (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (Mboe) (Mboe) (Mboe)<br />
December 31, 2010 62,207 59,197 121,403 62,207 59,197 121,403 0 0 0 10,534 10,375 20,909<br />
Discoveries 0 0 0 0 0 0 0 0 0 0 0 0<br />
Extensions* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Infill Drilling* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Improved Recovery* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Technical Revisions 681 (15,230) (14,549) 681 (15,230) (14,549) 0 0 0 114 (2,558) (2,444)<br />
Acquisitions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Dispositions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Economic Factors 0 0 0 0 0 0 0 0 0 0 0 0<br />
Production (4,200) 0 (4,200) (4,200) 0 (4,200) 0 0 0 (705) 0 (705)<br />
December 31, 2011 58,688 43,966 102,654 58,688 43,966 102,654 0 0 0 9,943 7,817 17,760<br />
* The above change categories correspond to standards set out in the Canadian Oil and Gas Evaluation Handbook. For reporting under NI 51-101, reserves additions<br />
under Infill Drilling, Improved Recovery and Extensions should be combined and reported as "Extensions and Improved Recovery".<br />
GLJ<br />
Petroleum Consultants<br />
Page: 71 of 102
TABLE FP-5B<br />
DECEMBER 31, 2010<br />
RECONCILIATION OF COMPANY GROSS RESERVES<br />
BY PRINCIPAL PRODUCT TYPE<br />
FORECAST PRICES AND COSTS<br />
Total Oil Light and Medium Oil Heavy Oil Natural Gas Liquids<br />
Proved Proved Proved Proved<br />
Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable<br />
FACTORS (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl)<br />
December 31, 2009 87 434 521 87 434 521 0 0 0 95 81 176<br />
Discoveries 0 0 0 0 0 0 0 0 0 0 0 0<br />
Extensions* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Infill Drilling* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Improved Recovery* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Technical Revisions 0 0 0 0 0 0 0 0 0 (9) (5) (15)<br />
Acquisitions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Dispositions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Economic Factors 0 0 0 0 0 0 0 0 0 0 0 0<br />
Production 0 0 0 0 0 0 0 0 0 (6) 0 (6)<br />
December 31, 2010 87 434 521 87 434 521 0 0 0 79 76 155<br />
Total Gas Conventional Natural Gas Coal Bed Methane BOE<br />
Proved Proved Proved Proved<br />
Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable Proved Probable + Probable<br />
FACTORS (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (MMcf) (Mboe) (Mboe) (Mboe)<br />
December 31, 2009 74,313 63,283 137,596 74,313 63,283 137,596 0 0 0 12,567 11,062 23,629<br />
Discoveries 0 0 0 0 0 0 0 0 0 0 0 0<br />
Extensions* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Infill Drilling* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Improved Recovery* 0 0 0 0 0 0 0 0 0 0 0 0<br />
Technical Revisions (7,287) (4,087) (11,374) (7,287) (4,087) (11,374) 0 0 0 (1,224) (687) (1,911)<br />
Acquisitions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Dispositions 0 0 0 0 0 0 0 0 0 0 0 0<br />
Economic Factors 0 0 0 0 0 0 0 0 0 0 0 0<br />
Production (4,819) 0 (4,819) (4,819) 0 (4,819) 0 0 0 (809) 0 (809)<br />
December 31, 2010 62,207 59,197 121,403 62,207 59,197 121,403 0 0 0 10,534 10,375 20,909<br />
* The above change categories correspond to standards set out in the Canadian Oil and Gas Evaluation Handbook. For reporting under NI 51-101, reserves additions<br />
under Infill Drilling, Improved Recovery and Extensions should be combined and reported as "Extensions and Improved Recovery".<br />
GLJ<br />
Petroleum Consultants<br />
Page: 72 of 102
Table FP-6<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Proved Undeveloped Reserves<br />
Undeveloped Reserves Attributed in Current Year<br />
Conventional Natural Gas<br />
L&M Oil (Mbbl) Heavy Oil (Mbbl) Natural Gas (MMcf) Liquids (Mbbl) BOE (Mbbl)<br />
Attributed Current Attributed Current Attributed Current Attributed Current Attributed Current<br />
This Year* Total This Year Total This Year Total This Year Total This Year Total<br />
0 87 0 0 0 36,739 0 47 0 6,257<br />
Probable Undeveloped Reserves<br />
Conventional Natural Gas<br />
L&M Oil (Mbbl) Heavy Oil (Mbbl) Natural Gas (MMcf) Liquids (Mbbl) BOE (Mbbl)<br />
Attributed Current Attributed Current Attributed Current Attributed Current Attributed Current<br />
This Year Total This Year Total This Year Total This Year Total This Year Total<br />
0 434 0 0 3,489 38,016 4 49 586 6,818<br />
* Refers to reserves first attributed in this fiscal year ending on the effective date.<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
Page: 73 of 102<br />
1121357 Class (A,C,I,R), GLJ (2012-01), cs7a March 13, 2012 12:53:08<br />
GLJ<br />
Petroleum Consultants
Table FP-7<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Company Annual Capital Expenditures (M$)<br />
Year Totals<br />
Entity Description 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Subtotal Remainder Total<br />
10%<br />
Discounted<br />
Proved Producing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
Total Proved 0 13,306 21,193 21,882 12,600 3,213 0 0 0 0 0 0 72,193 0 72,193 54,016<br />
Total Proved Plus Probable 0 19,242 39,358 31,146 37,799 9,639 0 0 0 0 0 0 137,184 0 137,184 100,326<br />
Total PPP 0 19,548 45,413 37,323 52,757 25,703 19,663 10,028 0 0 0 0 210,435 0 210,435 144,528<br />
1121357 Class (A,C,I,R), GLJ (2012-01), cs4 February 16, 2012 12:54:04<br />
GLJ<br />
Petroleum Consultants<br />
Page: 74 of 102
Table FP-8<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Company Annual Abandonment Costs (M$)<br />
Year Totals<br />
Entity Description 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Subtotal Remainder Total<br />
10%<br />
Discounted<br />
Proved Producing 0 510 390 0 0 138 0 144 146 0 305 311 1,944 4,554 6,498 2,217<br />
Total Proved 0 510 390 0 0 138 0 144 146 0 305 311 1,944 11,473 13,417 2,775<br />
Total Proved Plus Probable 0 0 520 398 0 0 0 144 0 149 0 155 1,367 17,999 19,366 2,439<br />
Total PPP 0 0 0 531 0 414 0 0 0 0 0 0 945 28,828 29,773 1,894<br />
1121357 Class (A,C,I,R), GLJ (2012-01), cs5 February 16, 2012 12:54:05<br />
GLJ<br />
Petroleum Consultants<br />
Page: 75 of 102
Table FP-9<br />
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Summary of First Year Production and Oil and Gas Reserves<br />
2012 Average Daily Production Reserves<br />
Light and Heavy Natural Natural Gas Oil Light and Heavy Natural Oil<br />
Medium Oil Oil Gas Liquids Equivalent Medium Oil Oil Gas Natural Gas Equivalent<br />
Liquids<br />
Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny<br />
Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net Compny Compny Gross Net<br />
Entity Description bbl/d bbl/d bbl/d bbl/d Mcf/d Mcf/d bbl/d bbl/d bbl/d bbl/d Mbbl Mbbl Mbbl Mbbl MMcf MMcf Gross Net Mboe Mboe<br />
Proved Producing<br />
McCully 0 0 0 0 9,348 8,834 12 11 1,570 1,484 0 0 0 0 21,949 20,944 28 27 3,686 3,517<br />
Total: Proved Producing 0 0 0 0 9,348 8,834 12 11 1,570 1,484 0 0 0 0 21,949 20,944 28 27 3,686 3,517<br />
Proved Developed Nonproducing<br />
McCully 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
Total: Proved Developed Nonproducing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
Proved Undeveloped<br />
McCully 0 0 0 0 0 0 0 0 0 0 87 79 0 0 36,739 33,249 47 42 6,257 5,662<br />
Total: Proved Undeveloped 0 0 0 0 0 0 0 0 0 0 87 79 0 0 36,739 33,249 47 42 6,257 5,662<br />
Total Proved<br />
McCully 0 0 0 0 9,348 8,834 12 11 1,570 1,484 87 79 0 0 58,688 54,192 75 69 9,943 9,180<br />
Total: Total Proved 0 0 0 0 9,348 8,834 12 11 1,570 1,484 87 79 0 0 58,688 54,192 75 69 9,943 9,180<br />
Total Probable<br />
McCully 0 0 0 0 204 193 0 0 34 32 434 393 0 0 43,967 39,955 56 51 7,818 7,103<br />
Total: Total Probable 0 0 0 0 204 193 0 0 34 32 434 393 0 0 43,967 39,955 56 51 7,818 7,103<br />
Total Proved Plus Probable<br />
McCully 0 0 0 0 9,553 9,027 12 12 1,604 1,516 521 471 0 0 102,654 94,147 131 120 17,761 16,282<br />
Total: Total Proved Plus Probable 0 0 0 0 9,553 9,027 12 12 1,604 1,516 521 471 0 0 102,654 94,147 131 120 17,761 16,282<br />
Total PPP<br />
McCully 0 0 0 0 9,743 9,207 12 12 1,636 1,546 694 628 0 0 216,732 197,558 277 252 37,093 33,807<br />
Total: Total PPP 0 0 0 0 9,743 9,207 12 12 1,636 1,546 694 628 0 0 216,732 197,558 277 252 37,093 33,807<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
1121357 Class (A,B1,B2,C,F,I,R), GLJ (2012-01), cs6 March 13, 2012 10:15:35<br />
GLJ<br />
Petroleum Consultants<br />
Page: 76 of 102
AFTER TAX ANALYSIS<br />
TABLE OF CONTENTS<br />
GLJ<br />
Page: 77 of 102<br />
DISCUSSION 78<br />
SUMMARY OF RESERVES AND VALUES 79<br />
ECONOMIC FORECASTS<br />
Proved Producing 80<br />
Proved Undeveloped 83<br />
Total Proved 86<br />
Total Probable 89<br />
Total Proved Plus Probable 92<br />
Total PPP 95<br />
Page<br />
March 13, 2012 15:51:06<br />
Petroleum Consultants
AFTER TAX ANALYSIS<br />
Canadian income taxes were calculated based on currently legislated federal and provincial tax<br />
rates, tax regulations and tax pool information provided by the Company. After tax values for<br />
reserves development status or production status subcategories (i.e. developed, undeveloped,<br />
producing, non-producing) are calculated by difference.<br />
Tax Pools<br />
The following tax pools as of the effective date were included in the income tax calculations:<br />
Tax Pool Classification Write-Off Rate (%)_ Tax Pool (M$)<br />
Canadian Oil and Gas Property Expense (COGPE) 10 3,091<br />
Canadian Exploration Expense (CEE) 100 72,387<br />
Non-Capital Losses 100 626<br />
Canadian Development Expense (CDE) 30 80,063<br />
Capital Cost Allowance: (CCA)<br />
Class 41 25 20,845<br />
Class 10 30 18,716<br />
Tax Rates<br />
Federal income tax calculations incorporate recently enacted reductions in general corporate<br />
income tax rates as follows:<br />
Year<br />
Federal <strong>Inc</strong>ome<br />
Tax Rate<br />
2012+ 15.0%<br />
Allocation of revenues to Canadian provinces for income tax purposes depends on several<br />
factors in addition to the provincial origin of the resource revenues. The average future annual<br />
provincial tax rate has been calculated based on an allocation of provincial resource revenues and<br />
their respective tax rate as follows:<br />
Year<br />
Alberta<br />
Tax Rate<br />
Alberta<br />
Allocation<br />
N.S.<br />
Tax Rate<br />
N.S.<br />
Allocation<br />
N.B.<br />
Tax Rate<br />
N.B.<br />
Allocation<br />
Man.<br />
Tax Rate<br />
Man.<br />
Allocation<br />
Avg. Ann.<br />
Tax Rate<br />
2011+ 10.00% % 10.00% 65% 10.00% 35% 12.00% 0% 12.75%<br />
Company total after tax economic forecasts for all reserves categories are attached.<br />
GLJ<br />
Page: 78 of 102<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Various<br />
Property: Corporate Development Class: Classifications<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Summary of Reserves and Values<br />
Proved Total<br />
Developed Proved<br />
Proved Non- Proved Total Total Plus Total<br />
Producing producing Undeveloped Proved Probable Probable PPP<br />
MARKETABLE RESERVES<br />
Light/Medium Oil (Mbbl)<br />
Total Company Interest 0 0 87 87 434 521 694<br />
Working Interest 0 0 87 87 434 521 694<br />
Net After Royalty 0 0 79 79 393 471 628<br />
Gas (MMcf)<br />
Total Company Interest 21,949 0 36,739 58,688 43,967 102,654 216,732<br />
Working Interest 21,949 0 36,739 58,688 43,967 102,654 216,732<br />
Net After Royalty 20,944 0 33,249 54,192 39,955 94,147 197,558<br />
Natural Gas Liquids (Mbbl)<br />
Total Company Interest 28 0 47 75 56 131 277<br />
Working Interest 28 0 47 75 56 131 277<br />
Net After Royalty 27 0 42 69 51 120 252<br />
Oil Equivalent (Mbbl)<br />
Total Company Interest 3,686 0 6,257 9,943 7,818 17,761 37,093<br />
Working Interest 3,686 0 6,257 9,943 7,818 17,761 37,093<br />
Net After Royalty 3,517 0 5,662 9,180 7,103 16,282 33,807<br />
BEFORE TAX PRESENT VALUE (M$)<br />
0% 68,004 0 151,236 219,240 244,854 464,094 1,217,007<br />
5% 55,395 0 83,361 138,756 127,138 265,894 593,714<br />
8% 49,612 0 60,516 110,128 91,823 201,951 426,512<br />
10% 46,325 0 49,417 95,742 75,405 171,147 351,488<br />
12% 43,416 0 40,621 84,037 62,717 146,754 294,512<br />
15% 39,645 0 30,547 70,192 48,508 118,701 231,566<br />
20% 34,602 0 19,232 53,834 32,905 86,738 163,152<br />
AFTER TAX PRESENT VALUE (M$)<br />
0% 68,004 0 143,176 211,180 176,697 387,877 930,490<br />
5% 55,395 0 80,594 135,989 94,147 230,136 466,780<br />
8% 49,612 0 59,004 108,616 69,137 177,753 339,978<br />
10% 46,325 0 48,392 94,717 57,408 152,124 282,516<br />
12% 43,416 0 39,919 83,334 48,269 131,603 238,570<br />
15% 39,645 0 30,141 69,786 37,922 107,708 189,632<br />
20% 34,602 0 19,062 53,664 26,345 80,009 135,843<br />
Run Date: February 16, 2012 11:30:22<br />
BOE Factors: HVY OIL 1.0 RES GAS 6.0 PROPANE 1.0 ETHANE 1.0<br />
COND 1.0 SLN GAS 6.0 BUTANE 1.0 SULPHUR 0.0<br />
Page: 79 of 102<br />
1121357 Class (A,B1,B2,C,F,I,R), GLJ (2012-01), psum February 16, 2012 12:52:59<br />
GLJ<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved<br />
Property: Corporate Development Class: Producing<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Residue Gas Production Condensate Production Total Oil Equiv. Production<br />
Company Company Company Company Company Company Company<br />
Gas Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Wells Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl boe/d Mboe Mboe $/boe<br />
2012 22 9,348 3,412 3,224 3.50 12 4 4 86.50 1,570 573 542 21.50<br />
2013 22 7,733 2,823 2,690 4.17 10 4 3 86.50 1,299 474 452 25.48<br />
2014 19 6,409 2,339 2,243 4.70 8 3 3 83.44 1,076 393 377 28.65<br />
2015 17 5,131 1,873 1,805 5.24 7 2 2 81.40 862 315 303 31.82<br />
2016 17 4,358 1,591 1,545 5.77 6 2 2 81.40 732 267 259 35.00<br />
2017 17 3,837 1,400 1,368 6.31 5 2 2 81.40 644 235 230 38.19<br />
2018 17 3,409 1,244 1,195 6.59 4 2 2 82.78 573 209 201 39.84<br />
2019 17 3,064 1,118 1,050 6.73 4 1 1 84.85 515 188 176 40.69<br />
2020 16 2,768 1,010 955 6.88 4 1 1 86.96 465 170 160 41.60<br />
2021 16 2,490 909 864 7.03 3 1 1 89.11 418 153 145 42.51<br />
2022 16 2,240 818 784 7.17 3 1 1 91.31 376 137 132 43.36<br />
2023 15 1,998 729 706 7.31 3 1 1 93.55 336 122 119 44.23<br />
Sub. 19,267 18,430 5.33 25 24 85.12 3,236 3,095 32.41<br />
Rem. 2,682 2,514 7.73 3 3 100.10 450 422 46.78<br />
Tot. 21,949 20,944 5.63 28 27 86.95 3,686 3,517 34.17<br />
REVENUE AND EXPENSE FORECAST<br />
Page: 80 of 102<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 11,943 377 12,320 0 12,320 678 0 0 0 678 11,642 2,766 648 3,414<br />
2013 0 11,767 312 12,079 0 12,079 568 0 0 0 568 11,511 2,802 547 3,349<br />
2014 0 11,004 249 11,253 0 11,253 461 0 0 0 461 10,792 2,819 462 3,282<br />
2015 0 9,813 195 10,007 0 10,007 360 0 0 0 360 9,647 2,829 378 3,206<br />
2016 0 9,185 165 9,350 0 9,350 271 0 0 0 271 9,079 2,877 327 3,204<br />
2017 0 8,835 145 8,980 0 8,980 207 0 0 0 207 8,774 2,930 294 3,223<br />
2018 0 8,195 131 8,326 0 8,326 333 0 0 0 333 7,993 2,980 266 3,246<br />
2019 0 7,522 121 7,643 0 7,643 466 0 0 0 466 7,177 3,039 244 3,284<br />
2020 0 6,947 112 7,059 0 7,059 388 0 0 0 388 6,671 3,084 225 3,309<br />
2021 0 6,384 103 6,488 0 6,488 318 0 0 0 318 6,170 3,134 206 3,340<br />
2022 0 5,860 95 5,955 0 5,955 244 0 0 0 244 5,711 3,176 189 3,365<br />
2023 0 5,330 87 5,417 0 5,417 173 0 0 0 173 5,243 3,203 172 3,375<br />
Sub. 0 102,784 2,093 104,878 0 104,878 4,468 0 0 0 4,468 100,410 35,637 3,959 39,597<br />
Rem. 0 20,728 343 21,070 0 21,070 1,342 0 0 0 1,342 19,728 16,538 670 17,208<br />
Tot. 0 123,512 2,436 125,948 0 125,948 5,810 0 0 0 5,810 120,138 52,175 4,629 56,805<br />
Disc 0 71,531 1,533 73,064 0 73,064 3,235 0 0 0 3,235 69,828 25,070 2,860 27,930<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,228 1,391 0 9,619 0 0 0 0 9,619 9,619 9,171<br />
2013 0 0 0 8,163 1,125 510 8,778 0 0 0 0 8,778 18,397 16,780<br />
2014 0 0 0 7,510 967 390 8,087 0 0 0 0 8,087 26,484 23,152<br />
2015 0 0 0 6,441 960 0 7,400 0 0 0 0 7,400 33,884 28,453<br />
2016 0 0 0 5,875 895 0 6,770 0 0 0 0 6,770 40,654 32,862<br />
2017 0 0 0 5,550 769 138 6,181 0 0 0 0 6,181 46,835 36,522<br />
2018 0 0 0 4,747 677 0 5,424 0 0 0 0 5,424 52,259 39,441<br />
2019 0 0 0 3,893 601 144 4,350 0 0 0 0 4,350 56,609 41,569<br />
2020 0 0 0 3,362 540 146 3,755 0 0 0 0 3,755 60,364 43,239<br />
2021 0 0 0 2,830 471 0 3,301 0 0 0 0 3,301 63,666 44,574<br />
2022 0 0 0 2,346 426 305 2,467 0 0 0 0 2,467 66,133 45,481<br />
2023 0 0 0 1,869 388 311 1,946 0 0 0 0 1,946 68,079 46,132<br />
Sub. 0 0 0 60,813 9,209 1,944 68,079 0 0 0 0 68,079 68,079 46,132<br />
Rem. 0 0 0 2,520 1,960 4,554 -74 0 0 0 0 -74 68,004 46,325<br />
Tot. 0 0 0 63,334 11,169 6,498 68,004 0 0 0 0 68,004 68,004 46,325<br />
Disc 0 0 0 41,898 6,644 2,217 46,325 0 0 0 0 46,325 46,325 46,325<br />
1121357 Proved Producing, GLJ (2012-01), pri February 16, 2012 12:53:04<br />
GLJ<br />
Petroleum Consultants
AFTER TAX ANALYSIS<br />
Tax Pool Balances <strong>Inc</strong>l. Current Year Additions Depreciation & Writeoffs<br />
Oper.<br />
<strong>Inc</strong>ome CCA COGPE CDE CEE Other CCA COGPE CDE CEE Other Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 9,619 39,561 3,091 80,063 72,387 626 5,960 309 24,019 0 0 30,288<br />
2013 8,778 33,601 2,782 56,044 72,387 626 4,627 278 16,813 0 0 21,719<br />
2014 8,087 28,974 2,504 39,231 72,387 626 3,621 250 11,769 0 0 15,641<br />
2015 7,400 25,353 2,253 27,462 72,387 626 2,861 225 8,238 0 0 11,325<br />
2016 6,770 22,492 2,028 19,223 72,387 626 2,285 203 5,767 0 0 8,254<br />
2017 6,181 20,207 1,825 13,456 72,387 626 1,847 183 4,037 0 115 6,181<br />
2018 5,424 18,360 1,643 9,419 72,387 511 1,513 164 2,826 409 511 5,424<br />
2019 4,350 16,847 1,478 6,594 71,978 0 1,258 148 1,978 966 0 4,350<br />
2020 3,755 15,588 1,331 4,615 71,012 0 1,062 133 1,385 1,176 0 3,755<br />
2021 3,301 14,527 1,198 3,231 69,836 0 910 120 969 1,303 0 3,301<br />
2022 2,467 13,617 1,078 2,262 68,534 0 791 108 678 890 0 2,467<br />
2023 1,946 12,826 970 1,583 67,644 0 698 97 475 676 0 1,946<br />
Sub. 68,079 12,826 970 1,583 67,644 0 27,433 2,218 78,955 5,419 626 114,651<br />
Rem. -74 12,826 970 1,583 67,644 0 2,621 357 922 469 0 4,370<br />
Tot. 68,004 12,826 970 1,583 67,644 0 30,054 2,576 79,877 5,888 626 119,021<br />
Disc 46,325 20,647 1,567 62,949 2,433 343 87,940<br />
Federal Provincial Net Cash Flow Net Cash Flow<br />
ARTD & <strong>Inc</strong>ome Before <strong>Inc</strong>ome Tax After <strong>Inc</strong>ome Tax<br />
Taxable Tax <strong>Inc</strong>ome Tax <strong>Inc</strong>ome Investment Tax<br />
<strong>Inc</strong>ome Rate Tax Rate Tax Credits Payable Annual Cum. 10.0% Dcf Annual Cum. 10.0% Dcf<br />
Year M$ % M$ % M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 -20,669 15.0 0 12.8 0 0 0 9,619 9,619 9,171 9,619 9,619 9,171<br />
2013 -12,940 15.0 0 12.8 0 0 0 8,778 18,397 16,780 8,778 18,397 16,780<br />
2014 -7,554 15.0 0 12.8 0 0 0 8,087 26,484 23,152 8,087 26,484 23,152<br />
2015 -3,924 15.0 0 12.8 0 0 0 7,400 33,884 28,453 7,400 33,884 28,453<br />
2016 -1,485 15.0 0 12.8 0 0 0 6,770 40,654 32,862 6,770 40,654 32,862<br />
2017 0 15.0 0 12.8 0 0 0 6,181 46,835 36,522 6,181 46,835 36,522<br />
2018 0 15.0 0 12.8 0 0 0 5,424 52,259 39,441 5,424 52,259 39,441<br />
2019 0 15.0 0 12.8 0 0 0 4,350 56,609 41,569 4,350 56,609 41,569<br />
2020 0 15.0 0 12.8 0 0 0 3,755 60,364 43,239 3,755 60,364 43,239<br />
2021 0 15.0 0 12.8 0 0 0 3,301 63,666 44,574 3,301 63,666 44,574<br />
2022 0 15.0 0 12.8 0 0 0 2,467 66,133 45,481 2,467 66,133 45,481<br />
2023 0 15.0 0 12.8 0 0 0 1,946 68,079 46,132 1,946 68,079 46,132<br />
Sub. -46,573 0 0 0 0 68,079 68,079 46,132 68,079 68,079 46,132<br />
Rem. -4,444 0 0 0 0 -74 68,004 46,325 -74 68,004 46,325<br />
Tot. -51,017 0 0 0 0 68,004 68,004 46,325 68,004 68,004 46,325<br />
Disc -41,615 0 0 0 0 46,325 46,325 46,325 46,325 46,325 46,325<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Residue Gas MMcf 21,949 0 21,949 20,944 6.000 3,658 99 17.0 6.4 4.3<br />
Gas Heat Content BBtu 23,266 0 23,266 22,200 0.000 0 0 17.0 6.4 4.3<br />
Condensate Mbbl 28 0 28 27 1.000 28 1 17.0 6.4 4.3<br />
Total: Oil Eq. Mboe 3,686 0 3,686 3,517 1.000 3,686 100 17.0 6.4 4.3<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 1.00 0.00 2.31 117,815 98 68,365 98<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 2,323 2 1,463 2<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.96 0.00 14.36 120,138 100 69,828 100<br />
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REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax Net Present Value After <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest. <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 4.6130 0.0 63,334 68,004 0.0 68,004 18.45 68,004 0 68,004 18.45<br />
Non-crown Royalty 0.0000 0.0000 5.0 50,639 55,395 0.0 55,395 15.03 55,395 0 55,395 15.03<br />
Mineral Tax 0.0000 0.0000 8.0 45,033 49,612 0.0 49,612 13.46 49,612 0 49,612 13.46<br />
10.0 41,898 46,325 0.0 46,325 12.57 46,325 0 46,325 12.57<br />
12.0 39,154 43,416 0.0 43,416 11.78 43,416 0 43,416 11.78<br />
15.0 35,634 39,645 0.0 39,645 10.76 39,645 0 39,645 10.76<br />
20.0 30,986 34,602 0.0 34,602 9.39 34,602 0 34,602 9.39<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:19<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved<br />
Property: Corporate Development Class: Undeveloped<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 0 0 0 0 0.00 0 0 0 0.00 0 0 0 0.00<br />
2013 1 5 59 22 20 101.34 46 17 15 4.17 2,546 929 841 4.17<br />
2014 1 8 65 24 21 98.28 51 19 17 4.70 7,063 2,578 2,333 4.70<br />
2015 1 13 35 13 12 96.24 27 10 9 5.24 10,478 3,825 3,461 5.24<br />
2016 1 15 22 8 7 96.24 17 6 6 5.77 11,456 4,181 3,784 5.77<br />
2017 1 15 15 5 5 96.24 12 4 4 6.31 9,702 3,541 3,205 6.31<br />
2018 1 15 11 4 4 97.62 9 3 3 6.59 7,788 2,842 2,572 6.59<br />
2019 1 15 8 3 3 99.69 7 2 2 6.73 6,412 2,340 2,118 6.73<br />
2020 1 15 7 2 2 101.80 5 2 2 6.88 5,399 1,971 1,783 6.88<br />
2021 1 15 5 2 2 103.95 4 2 1 7.03 4,594 1,677 1,517 7.03<br />
2022 1 15 4 2 1 106.15 3 1 1 7.17 3,972 1,450 1,312 7.17<br />
2023 1 15 4 1 1 108.39 3 1 1 7.31 3,473 1,267 1,147 7.31<br />
Sub. 86 78 98.97 67 61 5.21 26,602 24,075 6.09<br />
Rem. 1 1 110.67 1 1 7.45 10,069 9,113 8.55<br />
Tot. 87 79 99.08 68 61 5.23 36,671 33,187 6.77<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 0 0 0 0.00 0 0 0 0.00 0 0 0 0.00<br />
2013 2,593 946 856 4.17 3 1 1 86.50 63 23 21 100.56<br />
2014 7,113 2,596 2,350 4.70 9 3 3 83.44 74 27 24 96.46<br />
2015 10,506 3,835 3,470 5.24 13 5 4 81.40 48 18 16 92.13<br />
2016 11,473 4,188 3,790 5.77 15 5 5 81.40 37 13 12 90.31<br />
2017 9,713 3,545 3,209 6.31 12 5 4 81.40 27 10 9 89.53<br />
2018 7,796 2,846 2,575 6.59 10 4 3 82.78 21 8 7 90.55<br />
2019 6,419 2,343 2,120 6.73 8 3 3 84.85 17 6 5 92.33<br />
2020 5,404 1,973 1,785 6.88 7 3 2 86.96 13 5 4 94.19<br />
2021 4,598 1,678 1,519 7.03 6 2 2 89.11 11 4 4 96.14<br />
2022 3,975 1,451 1,313 7.17 5 2 2 91.31 9 3 3 98.16<br />
2023 3,475 1,269 1,148 7.31 4 2 1 93.55 8 3 3 100.24<br />
Sub. 26,669 24,135 6.09 34 31 84.24 120 109 94.80<br />
Rem. 10,070 9,113 8.55 13 12 112.97 14 12 112.84<br />
Tot. 36,739 33,249 6.76 47 42 92.12 134 121 96.64<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 0 0 0 0.00<br />
2013 495 181 163 34.59<br />
2014 1,260 460 416 32.23<br />
2015 1,799 657 594 33.07<br />
2016 1,949 711 644 35.69<br />
2017 1,646 601 544 38.72<br />
2018 1,320 482 436 40.32<br />
2019 1,086 397 359 41.14<br />
2020 914 334 302 42.03<br />
2021 777 284 257 42.93<br />
2022 672 245 222 43.77<br />
2023 587 214 194 44.63<br />
Sub. 4,565 4,131 38.05<br />
Rem. 1,692 1,531 51.81<br />
Tot. 6,257 5,662 41.77<br />
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REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
2013 2,197 3,945 104 6,246 0 6,246 593 0 0 0 593 5,653 64 288 352<br />
2014 2,329 12,214 277 14,819 0 14,819 1,408 0 0 0 1,408 13,411 178 630 809<br />
2015 1,232 20,091 398 21,722 0 21,722 2,064 0 0 0 2,064 19,658 303 838 1,140<br />
2016 773 24,178 435 25,387 0 25,387 2,412 0 0 0 2,412 22,975 390 903 1,292<br />
2017 528 22,368 368 23,265 0 23,265 2,210 0 0 0 2,210 21,054 424 773 1,196<br />
2018 390 18,741 301 19,431 0 19,431 1,846 0 0 0 1,846 17,585 432 630 1,063<br />
2019 303 15,757 254 16,314 0 16,314 1,550 0 0 0 1,550 14,764 441 528 969<br />
2020 244 13,561 219 14,024 0 14,024 1,332 0 0 0 1,332 12,692 450 452 902<br />
2021 200 11,791 191 12,182 0 12,182 1,157 0 0 0 1,157 11,025 459 392 851<br />
2022 168 10,398 169 10,735 0 10,735 1,020 0 0 0 1,020 9,715 468 345 813<br />
2023 144 9,271 151 9,567 0 9,567 909 0 0 0 909 8,658 477 308 785<br />
Sub. 8,507 162,316 2,868 173,691 0 173,691 16,501 0 0 0 16,501 157,190 4,086 6,087 10,173<br />
Rem. 89 86,120 1,452 87,661 0 87,661 8,328 0 0 0 8,328 79,333 9,250 2,788 12,039<br />
Tot. 8,596 248,436 4,320 261,352 0 261,352 24,828 0 0 0 24,828 236,523 13,337 8,875 22,212<br />
Disc 6,122 106,937 1,919 114,978 0 114,978 10,923 0 0 0 10,923 104,055 3,412 4,065 7,476<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 0 102 0 102 0 0 0 0 102 102 97<br />
2013 0 0 0 5,301 325 0 5,626 13,306 0 0 13,306 -7,680 -7,578 -6,560<br />
2014 0 0 0 12,603 919 0 13,522 21,193 0 0 21,193 -7,671 -15,250 -12,605<br />
2015 0 0 0 18,518 1,785 0 20,303 21,882 0 0 21,882 -1,579 -16,829 -13,736<br />
2016 0 0 0 21,682 1,763 0 23,446 12,600 0 0 12,600 10,846 -5,983 -6,673<br />
2017 0 0 0 19,858 1,418 0 21,276 3,213 0 0 3,213 18,063 12,080 4,021<br />
2018 0 0 0 16,522 1,170 0 17,692 0 0 0 0 17,692 29,772 13,543<br />
2019 0 0 0 13,795 983 0 14,778 0 0 0 0 14,778 44,550 20,773<br />
2020 0 0 0 11,789 840 0 12,629 0 0 0 0 12,629 57,179 26,391<br />
2021 0 0 0 10,174 723 0 10,897 0 0 0 0 10,897 68,076 30,797<br />
2022 0 0 0 8,902 631 0 9,533 0 0 0 0 9,533 77,609 34,301<br />
2023 0 0 0 7,873 556 0 8,429 0 0 0 0 8,429 86,038 37,118<br />
Sub. 0 0 0 147,017 11,214 0 158,231 72,193 0 0 72,193 86,038 86,038 37,118<br />
Rem. 0 0 0 67,295 4,822 6,919 65,198 0 0 0 0 65,198 151,236 49,417<br />
Tot. 0 0 0 214,312 16,036 6,919 223,429 72,193 0 0 72,193 151,236 151,236 49,417<br />
Disc 0 0 0 96,578 7,412 558 103,433 54,016 0 0 54,016 49,417 49,417 49,417<br />
AFTER TAX ANALYSIS<br />
Tax Pool Balances <strong>Inc</strong>l. Current Year Additions Depreciation & Writeoffs<br />
Oper.<br />
<strong>Inc</strong>ome CCA COGPE CDE CEE Other CCA COGPE CDE CEE Other Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 102 0 0 0 0 0 0 0 0 0 0 0<br />
2013 5,626 0 0 13,306 0 0 0 0 3,992 0 0 3,992<br />
2014 13,522 0 0 30,507 0 0 0 0 9,152 0 0 9,152<br />
2015 20,303 0 0 43,237 0 0 0 0 12,971 2,781 626 16,378<br />
2016 23,446 0 0 42,865 -2,781 -626 0 0 12,860 9,101 0 21,961<br />
2017 21,276 0 0 33,219 -11,883 -626 0 0 9,966 11,425 -115 21,276<br />
2018 17,692 0 0 23,253 -23,308 -511 0 0 6,976 11,227 -511 17,692<br />
2019 14,778 0 0 16,277 -34,535 0 0 0 4,883 9,894 0 14,778<br />
2020 12,629 0 0 11,394 -44,429 0 0 0 3,418 9,211 0 12,629<br />
2021 10,897 0 0 7,976 -53,641 0 0 0 2,393 8,504 0 10,897<br />
2022 9,533 0 0 5,583 -62,145 0 0 0 1,675 5,499 0 7,174<br />
2023 8,429 0 0 3,908 -67,644 0 0 0 1,172 -676 0 497<br />
Sub. 158,231 0 0 3,908 -67,644 0 0 0 69,458 66,968 0 136,426<br />
Rem. 65,198 0 0 3,908 -67,644 0 5,698 465 2,922 -469 0 8,615<br />
Tot. 223,429 0 0 3,908 -67,644 0 5,698 465 72,379 66,499 0 145,040<br />
Disc 103,433 550 53 44,592 34,761 105 80,060<br />
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Page 3<br />
Federal Provincial Net Cash Flow Net Cash Flow<br />
ARTD & <strong>Inc</strong>ome Before <strong>Inc</strong>ome Tax After <strong>Inc</strong>ome Tax<br />
Taxable Tax <strong>Inc</strong>ome Tax <strong>Inc</strong>ome Investment Tax<br />
<strong>Inc</strong>ome Rate Tax Rate Tax Credits Payable Annual Cum. 10.0% Dcf Annual Cum. 10.0% Dcf<br />
Year M$ % M$ % M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 102 15.0 0 12.8 0 0 0 102 102 97 102 102 97<br />
2013 1,634 15.0 0 12.8 0 0 0 -7,680 -7,578 -6,560 -7,680 -7,578 -6,560<br />
2014 4,370 15.0 0 12.8 0 0 0 -7,671 -15,250 -12,605 -7,671 -15,250 -12,605<br />
2015 3,924 15.0 0 12.8 0 0 0 -1,579 -16,829 -13,736 -1,579 -16,829 -13,736<br />
2016 1,485 15.0 0 12.8 0 0 0 10,846 -5,983 -6,673 10,846 -5,983 -6,673<br />
2017 0 15.0 0 12.8 0 0 0 18,063 12,080 4,021 18,063 12,080 4,021<br />
2018 0 15.0 0 12.8 0 0 0 17,692 29,772 13,543 17,692 29,772 13,543<br />
2019 0 15.0 0 12.8 0 0 0 14,778 44,550 20,773 14,778 44,550 20,773<br />
2020 0 15.0 0 12.8 0 0 0 12,629 57,179 26,391 12,629 57,179 26,391<br />
2021 0 15.0 0 12.8 0 0 0 10,897 68,076 30,797 10,897 68,076 30,797<br />
2022 2,359 15.0 0 12.8 0 0 0 9,533 77,609 34,301 9,533 77,609 34,301<br />
2023 7,932 15.0 0 12.8 0 0 0 8,429 86,038 37,118 8,429 86,038 37,118<br />
Sub. 21,806 0 0 0 0 86,038 86,038 37,118 86,038 86,038 37,118<br />
Rem. 56,583 4,357 3,703 0 8,060 65,198 151,236 49,417 57,138 143,176 48,392<br />
Tot. 78,389 4,357 3,703 0 8,060 151,236 151,236 49,417 143,176 143,176 48,392<br />
Disc 23,372 554 471 0 1,025 49,417 49,417 49,417 48,392 48,392 48,392<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 87 0 87 79 1.000 87 1 13.0 4.0 2.9<br />
Solution Gas MMcf 68 0 68 61 6.000 11 0 13.0 4.0 2.9<br />
Residue Gas MMcf 36,671 0 36,671 33,187 6.000 6,112 98 39.0 39.5 7.2<br />
Total: Gas MMcf 36,739 0 36,739 33,249 6.000 6,123 98 39.0 38.8 7.2<br />
Gas Heat Content BBtu 38,943 0 38,943 35,244 0.000 0 0 39.0 38.8 7.2<br />
Condensate Mbbl 47 0 47 42 1.000 47 1 39.0 38.8 7.2<br />
Total: Oil+NGL Mbbl 134 0 134 121 1.000 134 2 39.0 5.8 4.0<br />
Total: Oil Eq. Mboe 6,257 0 6,257 5,662 1.000 6,257 100 39.0 34.6 7.1<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,779 3 5,540 5<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 321 0 220 0<br />
Residue Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 224,514 95 96,558 93<br />
Total: Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 224,835 95 96,778 93<br />
Condensate $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,909 2 1,737 2<br />
Total: Oil+NGL $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,688 5 7,277 7<br />
Total: Oil Eq. $/boe 0.00 0.00 0.00 0.00 0.00 0.00 0.00 236,523 100 104,055 100<br />
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax Net Present Value After <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest. <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe M$ M$ M$ $/boe<br />
Crown Royalty 0.0000 9.5000 0.0 214,312 223,429 72,193 151,236 24.17 215,369 72,193 143,176 22.88<br />
Non-crown Royalty 0.0000 0.0000 5.0 136,932 145,507 62,146 83,361 13.32 142,740 62,146 80,594 12.88<br />
Mineral Tax 0.0000 0.0000 8.0 110,054 117,585 57,069 60,516 9.67 116,073 57,069 59,004 9.43<br />
10.0 96,578 103,433 54,016 49,417 7.90 102,407 54,016 48,392 7.73<br />
12.0 85,584 91,817 51,196 40,621 6.49 91,115 51,196 39,919 6.38<br />
15.0 72,482 77,904 47,357 30,547 4.88 77,498 47,357 30,141 4.82<br />
20.0 56,715 61,074 41,843 19,232 3.07 60,904 41,843 19,062 3.05<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:21<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved<br />
Property: Corporate Development Class: Total<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 22 0 0 0 0.00 0 0 0 0.00 9,348 3,412 3,224 3.50<br />
2013 1 26 59 22 20 101.34 46 17 15 4.17 10,279 3,752 3,531 4.17<br />
2014 1 27 65 24 21 98.28 51 19 17 4.70 13,471 4,917 4,576 4.70<br />
2015 1 30 35 13 12 96.24 27 10 9 5.24 15,609 5,697 5,267 5.24<br />
2016 1 32 22 8 7 96.24 17 6 6 5.77 15,814 5,772 5,329 5.77<br />
2017 1 32 15 5 5 96.24 12 4 4 6.31 13,538 4,941 4,573 6.31<br />
2018 1 32 11 4 4 97.62 9 3 3 6.59 11,197 4,087 3,767 6.59<br />
2019 1 32 8 3 3 99.69 7 2 2 6.73 9,476 3,459 3,168 6.73<br />
2020 1 31 7 2 2 101.80 5 2 2 6.88 8,167 2,981 2,738 6.88<br />
2021 1 31 5 2 2 103.95 4 2 1 7.03 7,083 2,585 2,382 7.03<br />
2022 1 31 4 2 1 106.15 3 1 1 7.17 6,212 2,268 2,096 7.17<br />
2023 1 30 4 1 1 108.39 3 1 1 7.31 5,470 1,997 1,853 7.31<br />
Sub. 86 78 98.97 67 61 5.21 45,868 42,504 5.77<br />
Rem. 1 1 110.67 1 1 7.45 12,752 11,627 8.38<br />
Tot. 87 79 99.08 68 61 5.23 58,620 54,131 6.34<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 9,348 3,412 3,224 3.50 12 4 4 86.50 12 4 4 86.50<br />
2013 10,326 3,769 3,546 4.17 13 5 5 86.50 73 26 24 98.65<br />
2014 13,522 4,936 4,593 4.70 17 6 6 83.44 82 30 27 95.16<br />
2015 15,637 5,707 5,276 5.24 20 7 7 81.40 55 20 18 90.86<br />
2016 15,831 5,778 5,334 5.77 20 7 7 81.40 42 15 14 89.14<br />
2017 13,550 4,946 4,577 6.31 17 6 6 81.40 32 12 11 88.30<br />
2018 11,205 4,090 3,770 6.59 14 5 5 82.78 25 9 8 89.21<br />
2019 9,483 3,461 3,170 6.73 12 4 4 84.85 20 7 7 90.89<br />
2020 8,172 2,983 2,740 6.88 10 4 3 86.96 17 6 6 92.69<br />
2021 7,088 2,587 2,383 7.03 9 3 3 89.11 14 5 5 94.58<br />
2022 6,216 2,269 2,097 7.17 8 3 3 91.31 12 4 4 96.56<br />
2023 5,473 1,998 1,854 7.31 7 3 2 93.55 11 4 4 98.64<br />
Sub. 45,936 42,565 5.77 59 54 84.61 145 132 93.15<br />
Rem. 12,752 11,627 8.38 16 15 110.27 17 16 110.28<br />
Tot. 58,688 54,192 6.34 75 69 90.19 162 148 94.96<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 1,570 573 542 21.50<br />
2013 1,794 655 615 27.99<br />
2014 2,336 853 793 30.58<br />
2015 2,661 971 898 32.67<br />
2016 2,681 978 903 35.50<br />
2017 2,291 836 774 38.57<br />
2018 1,893 691 637 40.18<br />
2019 1,601 584 535 41.00<br />
2020 1,379 503 462 41.88<br />
2021 1,196 436 402 42.78<br />
2022 1,048 383 354 43.62<br />
2023 923 337 313 44.48<br />
Sub. 7,801 7,226 35.71<br />
Rem. 2,142 1,953 50.75<br />
Tot. 9,943 9,180 38.95<br />
Page: 86 of 102<br />
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REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 11,943 377 12,320 0 12,320 678 0 0 0 678 11,642 2,766 648 3,414<br />
2013 2,197 15,712 416 18,326 0 18,326 1,161 0 0 0 1,161 17,164 2,865 835 3,701<br />
2014 2,329 23,218 526 26,073 0 26,073 1,869 0 0 0 1,869 24,203 2,997 1,093 4,090<br />
2015 1,232 29,904 593 31,729 0 31,729 2,424 0 0 0 2,424 29,305 3,131 1,215 4,347<br />
2016 773 33,364 600 34,737 0 34,737 2,683 0 0 0 2,683 32,054 3,267 1,230 4,497<br />
2017 528 31,203 514 32,245 0 32,245 2,417 0 0 0 2,417 29,828 3,354 1,066 4,420<br />
2018 390 26,935 432 27,757 0 27,757 2,179 0 0 0 2,179 25,578 3,412 896 4,309<br />
2019 303 23,279 375 23,957 0 23,957 2,016 0 0 0 2,016 21,941 3,481 772 4,252<br />
2020 244 20,508 331 21,083 0 21,083 1,721 0 0 0 1,721 19,362 3,534 677 4,211<br />
2021 200 18,175 294 18,669 0 18,669 1,475 0 0 0 1,475 17,194 3,592 598 4,191<br />
2022 168 16,257 264 16,690 0 16,690 1,264 0 0 0 1,264 15,426 3,644 535 4,178<br />
2023 144 14,601 239 14,984 0 14,984 1,082 0 0 0 1,082 13,901 3,680 480 4,160<br />
Sub. 8,507 265,101 4,961 278,568 0 278,568 20,968 0 0 0 20,968 257,600 39,723 10,046 49,770<br />
Rem. 89 106,848 1,795 108,731 0 108,731 9,670 0 0 0 9,670 99,061 25,788 3,458 29,246<br />
Tot. 8,596 371,948 6,756 387,300 0 387,300 30,638 0 0 0 30,638 356,661 65,512 13,504 79,016<br />
Disc 6,122 178,468 3,452 188,041 0 188,041 14,158 0 0 0 14,158 173,883 28,481 6,925 35,406<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,228 1,493 0 9,721 0 0 0 0 9,721 9,721 9,268<br />
2013 0 0 0 13,464 1,450 510 14,404 13,306 0 0 13,306 1,098 10,818 10,220<br />
2014 0 0 0 20,113 1,886 390 21,609 21,193 0 0 21,193 416 11,234 10,547<br />
2015 0 0 0 24,958 2,745 0 27,703 21,882 0 0 21,882 5,821 17,055 14,717<br />
2016 0 0 0 27,557 2,658 0 30,216 12,600 0 0 12,600 17,616 34,671 26,189<br />
2017 0 0 0 25,408 2,187 138 27,457 3,213 0 0 3,213 24,244 58,915 40,542<br />
2018 0 0 0 21,269 1,846 0 23,116 0 0 0 0 23,116 82,031 52,983<br />
2019 0 0 0 17,688 1,584 144 19,128 0 0 0 0 19,128 101,159 62,342<br />
2020 0 0 0 15,151 1,380 146 16,385 0 0 0 0 16,385 117,543 69,630<br />
2021 0 0 0 13,004 1,195 0 14,198 0 0 0 0 14,198 131,742 75,371<br />
2022 0 0 0 11,248 1,058 305 12,000 0 0 0 0 12,000 143,742 79,783<br />
2023 0 0 0 9,742 944 311 10,374 0 0 0 0 10,374 154,116 83,250<br />
Sub. 0 0 0 207,831 20,423 1,944 226,310 72,193 0 0 72,193 154,116 154,116 83,250<br />
Rem. 0 0 0 69,815 6,782 11,473 65,124 0 0 0 0 65,124 219,240 95,742<br />
Tot. 0 0 0 277,645 27,205 13,417 291,433 72,193 0 0 72,193 219,240 219,240 95,742<br />
Disc 0 0 0 138,477 14,056 2,775 149,758 54,016 0 0 54,016 95,742 95,742 95,742<br />
AFTER TAX ANALYSIS<br />
Tax Pool Balances <strong>Inc</strong>l. Current Year Additions Depreciation & Writeoffs<br />
Oper.<br />
<strong>Inc</strong>ome CCA COGPE CDE CEE Other CCA COGPE CDE CEE Other Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 9,721 39,561 3,091 80,063 72,387 626 5,960 309 24,019 0 0 30,288<br />
2013 14,404 33,601 2,782 69,350 72,387 626 4,627 278 20,805 0 0 25,710<br />
2014 21,609 28,974 2,504 69,738 72,387 626 3,621 250 20,921 0 0 24,793<br />
2015 27,703 25,353 2,253 70,699 72,387 626 2,861 225 21,210 2,781 626 27,703<br />
2016 30,216 22,492 2,028 62,089 69,606 0 2,285 203 18,627 9,101 0 30,216<br />
2017 27,457 20,207 1,825 46,675 60,504 0 1,847 183 14,002 11,425 0 27,457<br />
2018 23,116 18,360 1,643 32,672 49,079 0 1,513 164 9,802 11,636 0 23,116<br />
2019 19,128 16,847 1,478 22,871 37,443 0 1,258 148 6,861 10,861 0 19,128<br />
2020 16,385 15,588 1,331 16,009 26,582 0 1,062 133 4,803 10,387 0 16,385<br />
2021 14,198 14,527 1,198 11,207 16,196 0 910 120 3,362 9,807 0 14,198<br />
2022 12,000 13,617 1,078 7,845 6,389 0 791 108 2,353 6,389 0 9,641<br />
2023 10,374 12,826 970 5,491 0 0 698 97 1,647 0 0 2,442<br />
Sub. 226,310 12,826 970 5,491 0 0 27,433 2,218 148,412 72,387 626 251,077<br />
Rem. 65,124 12,826 970 5,491 0 0 8,319 822 3,844 0 0 12,985<br />
Tot. 291,433 12,826 970 5,491 0 0 35,752 3,040 152,256 72,387 626 264,061<br />
Disc 149,758 21,197 1,620 107,541 37,194 448 168,000<br />
1121357 Total Proved, GLJ (2012-01), pri February 16, 2012 12:53:20<br />
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Page 3<br />
Federal Provincial Net Cash Flow Net Cash Flow<br />
ARTD & <strong>Inc</strong>ome Before <strong>Inc</strong>ome Tax After <strong>Inc</strong>ome Tax<br />
Taxable Tax <strong>Inc</strong>ome Tax <strong>Inc</strong>ome Investment Tax<br />
<strong>Inc</strong>ome Rate Tax Rate Tax Credits Payable Annual Cum. 10.0% Dcf Annual Cum. 10.0% Dcf<br />
Year M$ % M$ % M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 -20,567 15.0 0 12.8 0 0 0 9,721 9,721 9,268 9,721 9,721 9,268<br />
2013 -11,307 15.0 0 12.8 0 0 0 1,098 10,818 10,220 1,098 10,818 10,220<br />
2014 -3,184 15.0 0 12.8 0 0 0 416 11,234 10,547 416 11,234 10,547<br />
2015 0 15.0 0 12.8 0 0 0 5,821 17,055 14,717 5,821 17,055 14,717<br />
2016 0 15.0 0 12.8 0 0 0 17,616 34,671 26,189 17,616 34,671 26,189<br />
2017 0 15.0 0 12.8 0 0 0 24,244 58,915 40,542 24,244 58,915 40,542<br />
2018 0 15.0 0 12.8 0 0 0 23,116 82,031 52,983 23,116 82,031 52,983<br />
2019 0 15.0 0 12.8 0 0 0 19,128 101,159 62,342 19,128 101,159 62,342<br />
2020 0 15.0 0 12.8 0 0 0 16,385 117,543 69,630 16,385 117,543 69,630<br />
2021 0 15.0 0 12.8 0 0 0 14,198 131,742 75,371 14,198 131,742 75,371<br />
2022 2,359 15.0 0 12.8 0 0 0 12,000 143,742 79,783 12,000 143,742 79,783<br />
2023 7,932 15.0 0 12.8 0 0 0 10,374 154,116 83,250 10,374 154,116 83,250<br />
Sub. -24,767 0 0 0 0 154,116 154,116 83,250 154,116 154,116 83,250<br />
Rem. 52,139 4,357 3,703 0 8,060 65,124 219,240 95,742 57,063 211,180 94,717<br />
Tot. 27,372 4,357 3,703 0 8,060 219,240 219,240 95,742 211,180 211,180 94,717<br />
Disc -18,243 554 471 0 1,025 95,742 95,742 95,742 94,717 94,717 94,717<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 87 0 87 79 1.000 87 1 13.0 4.0 2.9<br />
Solution Gas MMcf 68 0 68 61 6.000 11 0 13.0 4.0 2.9<br />
Residue Gas MMcf 58,620 0 58,620 54,131 6.000 9,770 98 39.0 17.2 6.2<br />
Total: Gas MMcf 58,688 0 58,688 54,192 6.000 9,781 98 39.0 17.2 6.2<br />
Gas Heat Content BBtu 62,209 0 62,209 57,444 0.000 0 0 39.0 17.2 6.2<br />
Condensate Mbbl 75 0 75 69 1.000 75 1 39.0 17.2 6.2<br />
Total: Oil+NGL Mbbl 162 0 162 148 1.000 162 2 39.0 37.1 4.0<br />
Total: Oil Eq. Mboe 9,943 0 9,943 9,180 1.000 9,943 100 39.0 17.4 6.2<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,779 2 5,540 3<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 321 0 220 0<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 1.00 0.00 2.31 342,329 96 164,923 95<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 1.00 0.00 2.31 342,650 96 165,143 95<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 6,232 2 3,200 2<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 14,011 4 8,740 5<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.96 0.00 14.36 356,661 100 173,883 100<br />
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax Net Present Value After <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest. <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 7.9108 0.0 277,645 291,433 72,193 219,240 22.05 283,373 72,193 211,180 21.24<br />
Non-crown Royalty 0.0000 0.0000 5.0 187,571 200,901 62,146 138,756 13.96 198,134 62,146 135,989 13.68<br />
Mineral Tax 0.0000 0.0000 8.0 155,087 167,198 57,069 110,128 11.08 165,685 57,069 108,616 10.92<br />
10.0 138,477 149,758 54,016 95,742 9.63 148,732 54,016 94,717 9.53<br />
12.0 124,738 135,233 51,196 84,037 8.45 134,530 51,196 83,334 8.38<br />
15.0 108,116 117,549 47,357 70,192 7.06 117,143 47,357 69,786 7.02<br />
20.0 87,701 95,676 41,843 53,834 5.41 95,506 41,843 53,664 5.40<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:20<br />
Page: 88 of 102<br />
1121357 Total Proved, GLJ (2012-01), pri February 16, 2012 12:53:20<br />
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Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Probable<br />
Property: Corporate Development Class: Total<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 0 0 0 0 0.00 0 0 0 0.00 204 75 70 3.50<br />
2013 0 0 114 41 38 101.34 89 32 29 4.17 837 306 286 4.17<br />
2014 2 3 273 100 90 98.28 213 78 70 4.70 2,171 792 728 4.70<br />
2015 2 4 265 97 88 96.24 208 76 69 5.24 4,618 1,686 1,539 5.24<br />
2016 2 7 156 57 52 96.24 122 45 40 5.77 10,111 3,691 3,356 5.77<br />
2017 2 8 97 35 32 96.24 76 28 25 6.31 10,546 3,849 3,501 6.31<br />
2018 2 8 67 24 22 97.62 52 19 17 6.59 8,925 3,258 2,962 6.59<br />
2019 2 8 49 18 16 99.69 38 14 13 6.73 7,642 2,789 2,532 6.73<br />
2020 2 8 37 14 12 101.80 29 11 10 6.88 6,670 2,435 2,213 6.88<br />
2021 2 9 29 11 10 103.96 23 8 8 7.03 5,868 2,142 1,949 7.03<br />
2022 2 8 24 9 8 106.15 18 7 6 7.17 5,238 1,912 1,743 7.17<br />
2023 2 9 20 7 6 108.39 15 6 5 7.31 4,727 1,725 1,577 7.31<br />
Sub. 412 373 98.27 323 292 5.49 24,659 22,457 6.41<br />
Rem. 21 19 113.83 17 15 7.66 18,969 17,191 8.96<br />
Tot. 434 393 99.04 339 307 5.59 43,627 39,648 7.52<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 204 75 70 3.50 0 0 0 86.50 0 0 0 86.50<br />
2013 926 338 315 4.17 1 0 0 86.50 115 42 38 101.19<br />
2014 2,384 870 799 4.70 3 1 1 83.44 276 101 91 98.12<br />
2015 4,826 1,762 1,608 5.24 6 2 2 81.40 272 99 90 95.90<br />
2016 10,233 3,735 3,396 5.77 13 5 4 81.40 169 62 56 95.10<br />
2017 10,622 3,877 3,526 6.31 14 5 5 81.40 111 40 37 94.42<br />
2018 8,977 3,277 2,979 6.59 11 4 4 82.78 78 28 26 95.44<br />
2019 7,680 2,803 2,545 6.73 10 4 3 84.85 58 21 19 97.20<br />
2020 6,699 2,445 2,222 6.88 9 3 3 86.96 46 17 15 99.03<br />
2021 5,891 2,150 1,957 7.03 8 3 2 89.12 37 13 12 100.92<br />
2022 5,256 1,919 1,749 7.17 7 2 2 91.31 30 11 10 102.87<br />
2023 4,742 1,731 1,582 7.31 6 2 2 93.55 26 9 8 104.88<br />
Sub. 24,981 22,749 6.40 32 29 84.93 444 402 97.32<br />
Rem. 18,985 17,206 8.96 24 22 119.29 46 41 116.73<br />
Tot. 43,967 39,955 7.50 56 51 99.77 490 444 99.12<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 34 13 12 21.50<br />
2013 269 98 90 57.51<br />
2014 673 246 224 56.86<br />
2015 1,076 393 358 47.71<br />
2016 1,875 684 622 40.10<br />
2017 1,881 687 624 41.18<br />
2018 1,574 575 522 42.29<br />
2019 1,338 488 443 42.83<br />
2020 1,162 424 386 43.52<br />
2021 1,019 372 338 44.27<br />
2022 906 331 302 45.00<br />
2023 816 298 272 45.76<br />
Sub. 4,608 4,194 44.06<br />
Rem. 3,210 2,909 54.63<br />
Tot. 7,818 7,103 48.40<br />
Page: 89 of 102<br />
1121357 Total Probable, GLJ (2012-01), pri February 16, 2012 12:53:26<br />
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REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 261 8 269 0 269 15 0 0 0 15 254 0 14 14<br />
2013 4,204 1,409 37 5,650 0 5,650 498 0 0 0 498 5,152 20 267 286<br />
2014 9,786 4,094 93 13,972 0 13,972 1,273 0 0 0 1,273 12,700 47 664 711<br />
2015 9,324 9,230 183 18,737 0 18,737 1,708 0 0 0 1,708 17,029 119 844 963<br />
2016 5,491 21,566 388 27,445 0 27,445 2,515 0 0 0 2,515 24,930 195 1,062 1,257<br />
2017 3,410 24,460 403 28,272 0 28,272 2,572 0 0 0 2,572 25,700 257 999 1,256<br />
2018 2,372 21,580 346 24,298 0 24,298 2,216 0 0 0 2,216 22,082 270 831 1,101<br />
2019 1,768 18,853 304 20,924 0 20,924 1,932 0 0 0 1,932 18,992 264 709 972<br />
2020 1,381 16,811 271 18,463 0 18,463 1,688 0 0 0 1,688 16,775 283 620 903<br />
2021 1,108 15,107 245 16,460 0 16,460 1,486 0 0 0 1,486 14,975 301 549 850<br />
2022 916 13,747 224 14,886 0 14,886 1,319 0 0 0 1,319 13,567 313 494 807<br />
2023 772 12,651 207 13,630 0 13,630 1,179 0 0 0 1,179 12,450 345 451 796<br />
Sub. 40,531 159,768 2,708 203,008 0 203,008 18,401 0 0 0 18,401 184,607 2,414 7,502 9,917<br />
Rem. 2,429 170,045 2,891 175,365 0 175,365 16,487 0 0 0 16,487 158,878 26,981 5,628 32,609<br />
Tot. 42,960 329,813 5,599 378,373 0 378,373 34,888 0 0 0 34,888 343,485 29,395 13,130 42,526<br />
Disc 28,079 108,969 1,867 138,916 0 138,916 12,657 0 0 0 12,657 126,259 4,790 5,136 9,927<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 240 145 0 385 0 0 0 0 385 385 367<br />
2013 0 0 0 4,866 331 -510 5,707 5,936 0 0 5,936 -229 156 168<br />
2014 0 0 0 11,989 590 130 12,448 18,165 0 0 18,165 -5,717 -5,561 -4,337<br />
2015 0 0 0 16,066 690 398 16,358 9,264 0 0 9,264 7,094 1,533 745<br />
2016 0 0 0 23,674 727 0 24,401 25,199 0 0 25,199 -798 734 225<br />
2017 0 0 0 24,444 749 -138 25,331 6,426 0 0 6,426 18,905 19,639 11,417<br />
2018 0 0 0 20,980 726 0 21,706 0 0 0 0 21,706 41,346 23,100<br />
2019 0 0 0 18,020 692 0 18,712 0 0 0 0 18,712 60,058 32,255<br />
2020 0 0 0 15,872 657 -146 16,675 0 0 0 0 16,675 76,733 39,672<br />
2021 0 0 0 14,125 630 149 14,606 0 0 0 0 14,606 91,338 45,578<br />
2022 0 0 0 12,760 595 -305 13,659 0 0 0 0 13,659 104,997 50,599<br />
2023 0 0 0 11,655 545 -155 12,355 0 0 0 0 12,355 117,352 54,728<br />
Sub. 0 0 0 174,691 7,076 -577 182,343 64,991 0 0 64,991 117,352 117,352 54,728<br />
Rem. 0 0 0 126,268 7,759 6,526 127,501 0 0 0 0 127,501 244,854 75,405<br />
Tot. 0 0 0 300,959 14,835 5,949 309,845 64,991 0 0 64,991 244,854 244,854 75,405<br />
Disc 0 0 0 116,333 5,047 -336 121,716 46,311 0 0 46,311 75,405 75,405 75,405<br />
AFTER TAX ANALYSIS<br />
Tax Pool Balances <strong>Inc</strong>l. Current Year Additions Depreciation & Writeoffs<br />
Oper.<br />
<strong>Inc</strong>ome CCA COGPE CDE CEE Other CCA COGPE CDE CEE Other Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 385 0 0 0 0 0 0 0 0 0 0 0<br />
2013 5,707 0 0 5,936 0 0 0 0 1,781 0 0 1,781<br />
2014 12,448 0 0 22,321 0 0 0 0 6,696 1,942 626 9,264<br />
2015 16,358 0 0 24,889 -1,942 -626 0 0 7,467 9,518 -626 16,358<br />
2016 24,401 0 0 42,621 -11,459 0 0 0 12,786 11,614 0 24,401<br />
2017 25,331 0 0 36,261 -23,074 0 0 0 10,878 14,452 0 25,331<br />
2018 21,706 0 0 25,382 -37,526 0 0 0 7,615 -83 0 7,532<br />
2019 18,712 0 0 17,768 -37,443 0 0 0 5,330 -10,861 0 -5,531<br />
2020 16,675 0 0 12,437 -26,582 0 0 0 3,731 -10,387 0 -6,656<br />
2021 14,606 0 0 8,706 -16,196 0 0 0 2,612 -9,807 0 -7,195<br />
2022 13,659 0 0 6,094 -6,389 0 0 0 1,828 -6,389 0 -4,561<br />
2023 12,355 0 0 4,266 0 0 0 0 1,280 0 0 1,280<br />
Sub. 182,343 0 0 4,266 0 0 0 0 62,005 0 0 62,005<br />
Rem. 127,501 0 0 4,266 0 0 574 17 2,986 0 0 3,578<br />
Tot. 309,845 0 0 4,266 0 0 574 17 64,991 0 0 65,583<br />
Disc 121,716 12 0 38,206 8,175 45 46,438<br />
1121357 Total Probable, GLJ (2012-01), pri February 16, 2012 12:53:26<br />
GLJ<br />
Page: 90 of 102<br />
Page 2<br />
Petroleum Consultants
Page 3<br />
Federal Provincial Net Cash Flow Net Cash Flow<br />
ARTD & <strong>Inc</strong>ome Before <strong>Inc</strong>ome Tax After <strong>Inc</strong>ome Tax<br />
Taxable Tax <strong>Inc</strong>ome Tax <strong>Inc</strong>ome Investment Tax<br />
<strong>Inc</strong>ome Rate Tax Rate Tax Credits Payable Annual Cum. 10.0% Dcf Annual Cum. 10.0% Dcf<br />
Year M$ % M$ % M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 385 15.0 0 12.8 0 0 0 385 385 367 385 385 367<br />
2013 3,926 15.0 0 12.8 0 0 0 -229 156 168 -229 156 168<br />
2014 3,184 15.0 0 12.8 0 0 0 -5,717 -5,561 -4,337 -5,717 -5,561 -4,337<br />
2015 0 15.0 0 12.8 0 0 0 7,094 1,533 745 7,094 1,533 745<br />
2016 0 15.0 0 12.8 0 0 0 -798 734 225 -798 734 225<br />
2017 0 15.0 0 12.8 0 0 0 18,905 19,639 11,417 18,905 19,639 11,417<br />
2018 14,174 15.0 0 12.8 0 0 0 21,706 41,346 23,100 21,706 41,346 23,100<br />
2019 24,243 15.0 1,628 12.8 1,384 0 3,012 18,712 60,058 32,255 15,700 57,045 30,781<br />
2020 23,331 15.0 3,500 12.8 2,975 0 6,474 16,675 76,733 39,672 10,201 67,246 35,319<br />
2021 21,800 15.0 3,270 12.8 2,780 0 6,050 14,606 91,338 45,578 8,556 75,802 38,779<br />
2022 18,219 15.0 3,087 12.8 2,624 0 5,711 13,659 104,997 50,599 7,948 83,751 41,700<br />
2023 11,075 15.0 2,851 12.8 2,423 0 5,275 12,355 117,352 54,728 7,081 90,831 44,067<br />
Sub. 120,339 14,336 12,185 0 26,521 117,352 117,352 54,728 90,831 90,831 44,067<br />
Rem. 123,923 22,506 19,130 0 41,635 127,501 244,854 75,405 85,866 176,697 57,408<br />
Tot. 244,262 36,841 31,315 0 68,156 244,854 244,854 75,405 176,697 176,697 57,408<br />
Disc 75,278 9,729 8,269 0 17,998 75,405 75,405 75,405 57,408 57,408 57,408<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 434 0 434 393 1.000 434 6 17.0 10.5 3.8<br />
Solution Gas MMcf 339 0 339 307 6.000 57 1 17.0 10.5 3.8<br />
Residue Gas MMcf 43,627 0 43,627 39,648 6.000 7,271 93 43.0 585.1 10.4<br />
Total: Gas MMcf 43,967 0 43,967 39,955 6.000 7,328 94 43.0 589.6 10.3<br />
Gas Heat Content BBtu 46,605 0 46,605 42,352 0.000 0 0 43.0 589.6 10.3<br />
Condensate Mbbl 56 0 56 51 1.000 56 1 43.0 589.6 10.3<br />
Total: Oil+NGL Mbbl 490 0 490 444 1.000 490 6 43.0 999.9 4.1<br />
Total: Oil Eq. Mboe 7,818 0 7,818 7,103 1.000 7,818 100 43.0 624.3 9.8<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38,879 11 25,412 20<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,718 1 1,083 1<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 0.19 0.00 3.12 297,803 87 98,065 78<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 0.19 0.00 3.12 299,520 87 99,148 79<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 5,085 1 1,700 1<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 43,964 13 27,112 21<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 1.13 0.00 19.18 343,485 100 126,259 100<br />
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax Net Present Value After <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest. <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 9.2205 0.0 300,959 309,845 64,991 244,854 31.32 241,688 64,991 176,697 22.60<br />
Non-crown Royalty 0.0000 0.0000 5.0 174,186 181,690 54,552 127,138 16.26 148,699 54,552 94,147 12.04<br />
Mineral Tax 0.0000 0.0000 8.0 135,059 141,205 49,383 91,823 11.75 118,520 49,383 69,137 8.84<br />
10.0 116,333 121,716 46,311 75,405 9.65 103,718 46,311 57,408 7.34<br />
12.0 101,477 106,218 43,500 62,717 8.02 91,769 43,500 48,269 6.17<br />
15.0 84,255 88,225 39,717 48,508 6.21 77,638 39,717 37,922 4.85<br />
20.0 64,220 67,281 34,377 32,905 4.21 60,722 34,377 26,345 3.37<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:20<br />
Page: 91 of 102<br />
1121357 Total Probable, GLJ (2012-01), pri February 16, 2012 12:53:26<br />
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Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: Proved Plus Probable<br />
Property: Corporate Development Class: Total<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 22 0 0 0 0.00 0 0 0 0.00 9,553 3,487 3,295 3.50<br />
2013 1 26 173 63 57 101.34 135 49 45 4.17 11,117 4,058 3,817 4.17<br />
2014 3 31 338 123 112 98.28 264 96 87 4.70 15,642 5,709 5,305 4.70<br />
2015 3 34 301 110 99 96.24 235 86 78 5.24 20,228 7,383 6,806 5.24<br />
2016 3 38 178 65 59 96.24 139 51 46 5.77 25,925 9,463 8,684 5.77<br />
2017 3 40 112 41 37 96.24 88 32 29 6.31 24,084 8,791 8,074 6.31<br />
2018 3 40 78 28 26 97.62 61 22 20 6.59 20,122 7,345 6,729 6.59<br />
2019 3 40 57 21 19 99.69 45 16 15 6.73 17,118 6,248 5,701 6.73<br />
2020 3 39 44 16 14 101.80 34 12 11 6.88 14,837 5,416 4,951 6.88<br />
2021 3 39 34 13 11 103.95 27 10 9 7.03 12,952 4,727 4,331 7.03<br />
2022 3 39 28 10 9 106.15 22 8 7 7.17 11,450 4,179 3,839 7.17<br />
2023 3 39 23 8 8 108.39 18 7 6 7.31 10,198 3,722 3,430 7.31<br />
Sub. 498 451 98.40 390 353 5.44 70,527 64,962 5.99<br />
Rem. 22 20 113.71 17 16 7.65 31,720 28,817 8.73<br />
Tot. 521 471 99.05 407 368 5.53 102,247 93,779 6.84<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 9,553 3,487 3,295 3.50 12 4 4 86.50 12 4 4 86.50<br />
2013 11,252 4,107 3,861 4.17 14 5 5 86.50 187 68 62 100.20<br />
2014 15,906 5,806 5,392 4.70 20 7 7 83.44 358 131 118 97.44<br />
2015 20,463 7,469 6,883 5.24 26 10 9 81.40 327 119 108 95.05<br />
2016 26,065 9,514 8,730 5.77 33 12 11 81.40 212 77 70 93.91<br />
2017 24,172 8,823 8,103 6.31 31 11 10 81.40 143 52 47 93.04<br />
2018 20,183 7,367 6,749 6.59 26 9 9 82.78 103 38 34 93.92<br />
2019 17,162 6,264 5,715 6.73 22 8 7 84.85 79 29 26 95.56<br />
2020 14,871 5,428 4,962 6.88 19 7 6 86.96 63 23 21 97.31<br />
2021 12,979 4,737 4,340 7.03 17 6 6 89.12 51 19 17 99.14<br />
2022 11,472 4,187 3,847 7.17 15 5 5 91.31 43 16 14 101.05<br />
2023 10,216 3,729 3,436 7.31 13 5 4 93.55 36 13 12 103.04<br />
Sub. 70,917 65,314 5.99 91 83 84.73 589 534 96.29<br />
Rem. 31,738 28,833 8.72 41 37 115.67 63 57 114.98<br />
Tot. 102,654 94,147 6.84 131 120 94.29 652 591 98.09<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 1,604 586 553 21.50<br />
2013 2,063 753 706 31.85<br />
2014 3,009 1,098 1,017 36.46<br />
2015 3,737 1,364 1,255 37.00<br />
2016 4,556 1,663 1,525 37.40<br />
2017 4,172 1,523 1,398 39.75<br />
2018 3,467 1,265 1,159 41.14<br />
2019 2,939 1,073 979 41.83<br />
2020 2,541 928 848 42.63<br />
2021 2,214 808 740 43.47<br />
2022 1,955 713 655 44.26<br />
2023 1,739 635 585 45.08<br />
Sub. 12,408 11,420 38.81<br />
Rem. 5,352 4,862 53.08<br />
Tot. 17,761 16,282 43.11<br />
Page: 92 of 102<br />
1121357 Total Proved Plus Probable, GLJ (2012-01), pri February 16, 2012 12:53:33<br />
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Petroleum Consultants
REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 12,204 385 12,589 0 12,589 692 0 0 0 692 11,897 2,766 662 3,428<br />
2013 6,401 17,122 453 23,976 0 23,976 1,659 0 0 0 1,659 22,317 2,885 1,102 3,987<br />
2014 12,115 27,312 618 40,045 0 40,045 3,142 0 0 0 3,142 36,903 3,044 1,757 4,801<br />
2015 10,556 39,134 776 50,466 0 50,466 4,132 0 0 0 4,132 46,334 3,251 2,059 5,310<br />
2016 6,264 54,930 988 62,182 0 62,182 5,198 0 0 0 5,198 56,984 3,462 2,291 5,753<br />
2017 3,937 55,663 917 60,517 0 60,517 4,989 0 0 0 4,989 55,528 3,610 2,065 5,676<br />
2018 2,762 48,515 778 52,055 0 52,055 4,395 0 0 0 4,395 47,660 3,683 1,728 5,410<br />
2019 2,071 42,132 678 44,881 0 44,881 3,948 0 0 0 3,948 40,933 3,744 1,481 5,225<br />
2020 1,624 37,319 602 39,546 0 39,546 3,408 0 0 0 3,408 36,137 3,817 1,297 5,114<br />
2021 1,308 33,282 539 35,130 0 35,130 2,961 0 0 0 2,961 32,169 3,894 1,147 5,041<br />
2022 1,084 30,005 488 31,577 0 31,577 2,583 0 0 0 2,583 28,993 3,957 1,029 4,986<br />
2023 916 27,252 445 28,613 0 28,613 2,262 0 0 0 2,262 26,352 4,025 931 4,956<br />
Sub. 49,038 424,869 7,669 481,576 0 481,576 39,369 0 0 0 39,369 442,207 42,137 17,549 59,686<br />
Rem. 2,518 276,893 4,686 284,096 0 284,096 26,157 0 0 0 26,157 257,939 52,770 9,086 61,856<br />
Tot. 51,556 701,762 12,355 765,672 0 765,672 65,526 0 0 0 65,526 700,146 94,907 26,635 121,542<br />
Disc 34,201 287,437 5,319 326,957 0 326,957 26,815 0 0 0 26,815 300,142 33,272 12,061 45,333<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,468 1,638 0 10,106 0 0 0 0 10,106 10,106 9,635<br />
2013 0 0 0 18,330 1,781 0 20,111 19,242 0 0 19,242 869 10,974 10,388<br />
2014 0 0 0 32,102 2,475 520 34,057 39,358 0 0 39,358 -5,301 5,673 6,211<br />
2015 0 0 0 41,025 3,435 398 44,061 31,146 0 0 31,146 12,915 18,588 15,462<br />
2016 0 0 0 51,231 3,385 0 54,616 37,799 0 0 37,799 16,818 35,405 26,414<br />
2017 0 0 0 49,852 2,935 0 52,788 9,639 0 0 9,639 43,149 78,554 51,960<br />
2018 0 0 0 42,250 2,572 0 44,822 0 0 0 0 44,822 123,376 76,083<br />
2019 0 0 0 35,708 2,276 144 37,840 0 0 0 0 37,840 161,216 94,597<br />
2020 0 0 0 31,023 2,037 0 33,060 0 0 0 0 33,060 194,276 109,302<br />
2021 0 0 0 27,128 1,825 149 28,804 0 0 0 0 28,804 223,080 120,950<br />
2022 0 0 0 24,007 1,652 0 25,659 0 0 0 0 25,659 248,739 130,382<br />
2023 0 0 0 21,396 1,489 155 22,729 0 0 0 0 22,729 271,469 137,978<br />
Sub. 0 0 0 382,521 27,498 1,367 408,653 137,184 0 0 137,184 271,469 271,469 137,978<br />
Rem. 0 0 0 196,083 14,541 17,999 192,625 0 0 0 0 192,625 464,094 171,147<br />
Tot. 0 0 0 578,604 42,039 19,366 601,278 137,184 0 0 137,184 464,094 464,094 171,147<br />
Disc 0 0 0 254,810 19,103 2,439 271,474 100,326 0 0 100,326 171,147 171,147 171,147<br />
AFTER TAX ANALYSIS<br />
Tax Pool Balances <strong>Inc</strong>l. Current Year Additions Depreciation & Writeoffs<br />
Oper.<br />
<strong>Inc</strong>ome CCA COGPE CDE CEE Other CCA COGPE CDE CEE Other Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 10,106 39,561 3,091 80,063 72,387 626 5,960 309 24,019 0 0 30,288<br />
2013 20,111 33,601 2,782 75,286 72,387 626 4,627 278 22,586 0 0 27,491<br />
2014 34,057 28,974 2,504 92,059 72,387 626 3,621 250 27,618 1,942 626 34,057<br />
2015 44,061 25,353 2,253 95,588 70,445 0 2,861 225 28,676 12,299 0 44,061<br />
2016 54,616 22,492 2,028 104,710 58,146 0 2,285 203 31,413 20,716 0 54,616<br />
2017 52,788 20,207 1,825 82,936 37,431 0 1,847 183 24,881 25,877 0 52,788<br />
2018 44,822 18,360 1,643 58,055 11,554 0 1,513 164 17,416 11,554 0 30,648<br />
2019 37,840 16,847 1,478 40,638 0 0 1,258 148 12,192 0 0 13,598<br />
2020 33,060 15,588 1,331 28,447 0 0 1,062 133 8,534 0 0 9,729<br />
2021 28,804 14,527 1,198 19,913 0 0 910 120 5,974 0 0 7,003<br />
2022 25,659 13,617 1,078 13,939 0 0 791 108 4,182 0 0 5,081<br />
2023 22,729 12,826 970 9,757 0 0 698 97 2,927 0 0 3,722<br />
Sub. 408,653 12,826 970 9,757 0 0 27,433 2,218 210,417 72,387 626 313,081<br />
Rem. 192,625 12,826 970 9,757 0 0 8,893 840 6,830 0 0 16,562<br />
Tot. 601,278 12,826 970 9,757 0 0 36,326 3,058 217,247 72,387 626 329,644<br />
Disc 271,474 21,208 1,621 145,747 45,369 493 214,439<br />
1121357 Total Proved Plus Probable, GLJ (2012-01), pri February 16, 2012 12:53:33<br />
GLJ<br />
Page: 93 of 102<br />
Page 2<br />
Petroleum Consultants
Page 3<br />
Federal Provincial Net Cash Flow Net Cash Flow<br />
ARTD & <strong>Inc</strong>ome Before <strong>Inc</strong>ome Tax After <strong>Inc</strong>ome Tax<br />
Taxable Tax <strong>Inc</strong>ome Tax <strong>Inc</strong>ome Investment Tax<br />
<strong>Inc</strong>ome Rate Tax Rate Tax Credits Payable Annual Cum. 10.0% Dcf Annual Cum. 10.0% Dcf<br />
Year M$ % M$ % M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 -20,182 15.0 0 12.8 0 0 0 10,106 10,106 9,635 10,106 10,106 9,635<br />
2013 -7,380 15.0 0 12.8 0 0 0 869 10,974 10,388 869 10,974 10,388<br />
2014 0 15.0 0 12.8 0 0 0 -5,301 5,673 6,211 -5,301 5,673 6,211<br />
2015 0 15.0 0 12.8 0 0 0 12,915 18,588 15,462 12,915 18,588 15,462<br />
2016 0 15.0 0 12.8 0 0 0 16,818 35,405 26,414 16,818 35,405 26,414<br />
2017 0 15.0 0 12.8 0 0 0 43,149 78,554 51,960 43,149 78,554 51,960<br />
2018 14,174 15.0 0 12.8 0 0 0 44,822 123,376 76,083 44,822 123,376 76,083<br />
2019 24,243 15.0 1,628 12.8 1,384 0 3,012 37,840 161,216 94,597 34,828 158,204 93,124<br />
2020 23,331 15.0 3,500 12.8 2,975 0 6,474 33,060 194,276 109,302 26,585 184,790 104,949<br />
2021 21,800 15.0 3,270 12.8 2,780 0 6,050 28,804 223,080 120,950 22,754 207,544 114,150<br />
2022 20,579 15.0 3,087 12.8 2,624 0 5,711 25,659 248,739 130,382 19,949 227,493 121,483<br />
2023 19,007 15.0 2,851 12.8 2,423 0 5,275 22,729 271,469 137,978 17,455 244,948 127,316<br />
Sub. 95,572 14,336 12,185 0 26,521 271,469 271,469 137,978 244,948 244,948 127,316<br />
Rem. 176,062 26,862 22,833 0 49,695 192,625 464,094 171,147 142,929 387,877 152,124<br />
Tot. 271,634 41,198 35,018 0 76,216 464,094 464,094 171,147 387,877 387,877 152,124<br />
Disc 57,035 10,283 8,740 0 19,023 171,147 171,147 171,147 152,124 152,124 152,124<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 521 0 521 471 1.000 521 3 17.0 8.2 3.7<br />
Solution Gas MMcf 407 0 407 368 6.000 68 0 17.0 8.2 3.7<br />
Residue Gas MMcf 102,247 0 102,247 93,779 6.000 17,041 96 43.0 29.3 7.8<br />
Total: Gas MMcf 102,654 0 102,654 94,147 6.000 17,109 96 43.0 29.4 7.8<br />
Gas Heat Content BBtu 108,814 0 108,814 99,796 0.000 0 0 43.0 29.4 7.8<br />
Condensate Mbbl 131 0 131 120 1.000 131 1 43.0 29.4 7.8<br />
Total: Oil+NGL Mbbl 652 0 652 591 1.000 652 4 43.0 146.4 4.0<br />
Total: Oil Eq. Mboe 17,761 0 17,761 16,282 1.000 17,761 100 43.0 30.3 7.6<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 46,658 7 30,952 10<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,039 0 1,303 0<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 0.98 0.00 2.32 640,132 91 262,988 88<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 0.98 0.00 2.32 642,170 92 264,290 88<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 11,317 2 4,900 2<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 57,976 8 35,852 12<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.85 0.00 14.46 700,146 100 300,142 100<br />
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax Net Present Value After <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest. <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 8.5580 0.0 578,604 601,278 137,184 464,094 26.13 525,061 137,184 387,877 21.84<br />
Non-crown Royalty 0.0000 0.0000 5.0 361,757 382,591 116,698 265,894 14.97 346,833 116,698 230,136 12.96<br />
Mineral Tax 0.0000 0.0000 8.0 290,146 308,403 106,452 201,951 11.37 284,205 106,452 177,753 10.01<br />
10.0 254,810 271,474 100,326 171,147 9.64 252,450 100,326 152,124 8.57<br />
12.0 226,215 241,451 94,696 146,754 8.26 226,300 94,696 131,603 7.41<br />
15.0 192,371 205,774 87,073 118,701 6.68 194,781 87,073 107,708 6.06<br />
20.0 151,920 162,958 76,219 86,738 4.88 156,228 76,219 80,009 4.50<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:20<br />
Page: 94 of 102<br />
1121357 Total Proved Plus Probable, GLJ (2012-01), pri February 16, 2012 12:53:33<br />
GLJ<br />
Petroleum Consultants
Company: <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. Reserve Class: PPP<br />
Property: Corporate Development Class: Total<br />
Description: After Tax Analysis Pricing: GLJ (2012-01)<br />
Effective Date: December 31, 2011<br />
Economic Forecast<br />
PRODUCTION FORECAST<br />
Light/Medium Oil Production Solution Gas Production Residue Gas Production<br />
Company Wells Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Oil Gas bbl/d Mbbl Mbbl $/bbl Mcf/d MMcf MMcf $/Mcf Mcf/d MMcf MMcf $/Mcf<br />
2012 0 22 0 0 0 0.00 0 0 0 0.00 9,743 3,556 3,361 3.50<br />
2013 2 27 184 67 61 101.34 144 52 47 4.17 12,826 4,682 4,390 4.17<br />
2014 4 32 385 140 127 98.28 301 110 99 4.70 20,999 7,665 7,087 4.70<br />
2015 4 38 365 133 121 96.24 286 104 94 5.24 28,404 10,367 9,520 5.24<br />
2016 4 43 237 87 78 96.24 186 68 61 5.77 36,503 13,323 12,197 5.77<br />
2017 4 47 159 58 52 96.24 124 45 41 6.31 39,415 14,387 13,158 6.31<br />
2018 4 49 114 42 38 97.62 89 33 29 6.59 39,870 14,553 13,268 6.59<br />
2019 4 51 86 31 28 99.69 67 25 22 6.73 36,765 13,419 12,200 6.73<br />
2020 4 51 67 25 22 101.80 53 19 17 6.88 32,029 11,691 10,641 6.88<br />
2021 4 51 54 20 18 103.96 42 15 14 7.03 28,065 10,244 9,336 7.03<br />
2022 4 51 44 16 15 106.15 35 13 11 7.17 24,974 9,115 8,322 7.17<br />
2023 4 51 37 14 12 108.39 29 11 10 7.31 22,437 8,190 7,491 7.31<br />
Sub. 632 572 98.47 494 447 5.55 121,191 110,971 6.22<br />
Rem. 62 56 117.93 48 44 7.92 94,999 86,096 9.40<br />
Tot. 694 628 100.20 543 491 5.76 216,189 197,067 7.62<br />
Total Gas Production Condensate Production Total Oil + NGL Production<br />
Company Company Company Company Company Company<br />
Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price Daily Yearly Net Yearly Price<br />
Year Mcf/d MMcf MMcf $/Mcf bbl/d Mbbl Mbbl $/bbl bbl/d Mbbl Mbbl $/bbl<br />
2012 9,743 3,556 3,361 3.50 12 5 4 86.50 12 5 4 86.50<br />
2013 12,970 4,734 4,437 4.17 17 6 6 86.50 200 73 66 100.12<br />
2014 21,300 7,774 7,186 4.70 27 10 9 83.44 412 150 136 97.30<br />
2015 28,689 10,472 9,615 5.24 37 13 12 81.40 402 147 133 94.89<br />
2016 36,688 13,391 12,259 5.77 47 17 16 81.40 284 104 94 93.80<br />
2017 39,539 14,432 13,199 6.31 50 18 17 81.40 209 76 69 92.66<br />
2018 39,959 14,585 13,297 6.59 51 19 17 82.78 165 60 55 93.03<br />
2019 36,832 13,444 12,222 6.73 47 17 16 84.85 133 49 44 94.44<br />
2020 32,082 11,710 10,659 6.88 41 15 14 86.96 108 40 36 96.19<br />
2021 28,107 10,259 9,350 7.03 36 13 12 89.11 90 33 30 98.03<br />
2022 25,008 9,128 8,333 7.17 32 12 11 91.31 76 28 25 99.94<br />
2023 22,466 8,200 7,500 7.31 29 10 10 93.55 66 24 22 101.92<br />
Sub. 121,685 111,419 6.22 155 142 85.17 788 714 95.84<br />
Rem. 95,047 86,140 9.40 121 110 126.28 183 166 123.46<br />
Tot. 216,732 197,558 7.61 277 252 103.20 971 880 101.05<br />
Total Oil Equiv. Production<br />
Company Company<br />
Daily Yearly Net Yearly Price<br />
Year boe/d Mboe Mboe $/boe<br />
2012 1,636 597 564 21.50<br />
2013 2,362 862 806 31.38<br />
2014 3,962 1,446 1,334 35.41<br />
2015 5,184 1,892 1,735 36.36<br />
2016 6,399 2,336 2,137 37.27<br />
2017 6,799 2,482 2,269 39.54<br />
2018 6,825 2,491 2,271 40.81<br />
2019 6,272 2,289 2,081 41.50<br />
2020 5,455 1,991 1,812 42.34<br />
2021 4,774 1,743 1,588 43.21<br />
2022 4,244 1,549 1,414 44.02<br />
2023 3,810 1,391 1,272 44.85<br />
Sub. 21,068 19,284 39.48<br />
Rem. 16,024 14,522 57.19<br />
Tot. 37,093 33,807 47.13<br />
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REVENUE AND EXPENSE FORECAST<br />
Revenue Before Burdens<br />
Royalty Burdens Gas Processing Total Net<br />
Working Interest Royalty Company Pre-Processing Allowance Royalty Revenue Operating Expenses<br />
Interest Interest After After<br />
Oil Gas NGL+Sul Total Total Total Crown Other Crown Other Process. Royalty Fixed Variable Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 12,447 393 12,839 0 12,839 706 0 0 0 706 12,133 2,766 676 3,442<br />
2013 6,797 19,736 523 27,055 0 27,055 1,916 0 0 0 1,916 25,139 2,909 1,242 4,152<br />
2014 13,797 36,573 828 51,198 0 51,198 4,141 0 0 0 4,141 47,057 3,143 2,231 5,373<br />
2015 12,834 54,867 1,088 68,789 0 68,789 5,797 0 0 0 5,797 62,992 3,366 2,784 6,150<br />
2016 8,342 77,319 1,391 87,052 0 87,052 7,449 0 0 0 7,449 79,602 3,598 3,200 6,798<br />
2017 5,568 91,052 1,499 98,120 0 98,120 8,433 0 0 0 8,433 89,687 3,802 3,331 7,133<br />
2018 4,059 96,055 1,541 101,654 0 101,654 9,005 0 0 0 9,005 92,649 3,943 3,343 7,286<br />
2019 3,127 90,418 1,456 95,001 0 95,001 8,643 0 0 0 8,643 86,358 4,084 3,105 7,189<br />
2020 2,502 80,507 1,300 84,309 0 84,309 7,580 0 0 0 7,580 76,729 4,169 2,744 6,912<br />
2021 2,047 72,077 1,167 75,292 0 75,292 6,683 0 0 0 6,683 68,609 4,252 2,441 6,693<br />
2022 1,717 65,408 1,064 68,189 0 68,189 5,951 0 0 0 5,951 62,238 4,337 2,208 6,545<br />
2023 1,467 59,932 979 62,378 0 62,378 5,337 0 0 0 5,337 57,041 4,424 2,017 6,441<br />
Sub. 62,257 756,390 13,229 831,875 0 831,875 71,643 0 0 0 71,643 760,233 44,794 29,321 74,115<br />
Rem. 7,284 893,802 15,320 916,405 0 916,405 86,184 0 0 0 86,184 830,221 110,815 29,285 140,100<br />
Tot. 69,541 1,650,192 28,548 1,748,281 0 1,748,281 157,827 0 0 0 157,827 1,590,454 155,608 58,606 214,214<br />
Disc 43,149 522,986 9,321 575,456 0 575,456 49,831 0 0 0 49,831 525,625 39,096 20,403 59,499<br />
Net Net Capital Investment Before Tax Cash Flow<br />
Mineral Capital NPI Prod'n Other Aband. Oper.<br />
Tax Tax Burden Revenue <strong>Inc</strong>ome Costs <strong>Inc</strong>ome Dev. Plant Tang. Total Annual Cum. 10.0% Dcf<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 0 0 0 8,692 1,971 0 10,663 0 0 0 0 10,663 10,663 10,167<br />
2013 0 0 0 20,987 2,136 0 23,123 19,548 0 0 19,548 3,575 14,238 13,265<br />
2014 0 0 0 41,683 2,929 0 44,612 45,413 0 0 45,413 -801 13,437 12,634<br />
2015 0 0 0 56,842 4,078 531 60,389 37,323 0 0 37,323 23,066 36,503 29,158<br />
2016 0 0 0 72,804 5,267 0 78,071 52,757 0 0 52,757 25,314 61,816 45,642<br />
2017 0 0 0 82,554 5,757 414 87,897 25,703 0 0 25,703 62,194 124,010 82,463<br />
2018 0 0 0 85,363 5,583 0 90,946 19,663 0 0 19,663 71,283 195,293 120,827<br />
2019 0 0 0 79,169 4,792 0 83,960 10,028 0 0 10,028 73,932 269,225 157,001<br />
2020 0 0 0 69,817 4,162 0 73,979 0 0 0 0 73,979 343,204 189,906<br />
2021 0 0 0 61,915 3,650 0 65,565 0 0 0 0 65,565 408,769 216,418<br />
2022 0 0 0 55,693 3,261 0 58,954 0 0 0 0 58,954 467,723 238,090<br />
2023 0 0 0 50,600 2,942 0 53,541 0 0 0 0 53,541 521,265 255,983<br />
Sub. 0 0 0 686,118 46,526 945 731,700 210,435 0 0 210,435 521,265 521,265 255,983<br />
Rem. 0 0 0 690,121 34,449 28,828 695,743 0 0 0 0 695,743 1,217,007 351,488<br />
Tot. 0 0 0 1,376,240 80,976 29,773 1,427,443 210,435 0 0 210,435 1,217,007 1,217,007 351,488<br />
Disc 0 0 0 466,126 31,785 1,894 496,016 144,528 0 0 144,528 351,488 351,488 351,488<br />
AFTER TAX ANALYSIS<br />
Tax Pool Balances <strong>Inc</strong>l. Current Year Additions Depreciation & Writeoffs<br />
Oper.<br />
<strong>Inc</strong>ome CCA COGPE CDE CEE Other CCA COGPE CDE CEE Other Total<br />
Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 10,663 39,561 3,091 80,063 72,387 626 5,960 309 24,019 0 0 30,288<br />
2013 23,123 33,601 2,782 75,592 72,387 626 4,627 278 22,678 0 0 27,583<br />
2014 44,612 28,974 2,504 98,328 72,387 626 3,621 250 29,498 10,616 626 44,612<br />
2015 60,389 25,353 2,253 106,152 61,771 0 2,861 225 31,846 25,457 0 60,389<br />
2016 78,071 22,492 2,028 127,064 36,314 0 2,285 203 38,119 36,314 0 76,921<br />
2017 87,897 20,207 1,825 114,648 0 0 1,847 183 34,394 0 0 36,424<br />
2018 90,946 18,360 1,643 99,916 0 0 1,513 164 29,975 0 0 31,653<br />
2019 83,960 16,847 1,478 79,969 0 0 1,258 148 23,991 0 0 25,397<br />
2020 73,979 15,588 1,331 55,979 0 0 1,062 133 16,794 0 0 17,988<br />
2021 65,565 14,527 1,198 39,185 0 0 910 120 11,755 0 0 12,785<br />
2022 58,954 13,617 1,078 27,429 0 0 791 108 8,229 0 0 9,128<br />
2023 53,541 12,826 970 19,201 0 0 698 97 5,760 0 0 6,555<br />
Sub. 731,700 12,826 970 19,201 0 0 27,433 2,218 277,058 72,387 626 379,722<br />
Rem. 695,743 12,826 970 19,201 0 0 9,697 857 13,440 0 0 23,994<br />
Tot. 1,427,443 12,826 970 19,201 0 0 37,130 3,075 290,498 72,387 626 403,716<br />
Disc 496,016 21,218 1,621 182,214 50,250 493 255,796<br />
1121357 Total PPP, GLJ (2012-01), pri February 16, 2012 12:53:41<br />
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Page 3<br />
Federal Provincial Net Cash Flow Net Cash Flow<br />
ARTD & <strong>Inc</strong>ome Before <strong>Inc</strong>ome Tax After <strong>Inc</strong>ome Tax<br />
Taxable Tax <strong>Inc</strong>ome Tax <strong>Inc</strong>ome Investment Tax<br />
<strong>Inc</strong>ome Rate Tax Rate Tax Credits Payable Annual Cum. 10.0% Dcf Annual Cum. 10.0% Dcf<br />
Year M$ % M$ % M$ M$ M$ M$ M$ M$ M$ M$ M$<br />
2012 -19,625 15.0 0 12.8 0 0 0 10,663 10,663 10,167 10,663 10,663 10,167<br />
2013 -4,460 15.0 0 12.8 0 0 0 3,575 14,238 13,265 3,575 14,238 13,265<br />
2014 0 15.0 0 12.8 0 0 0 -801 13,437 12,634 -801 13,437 12,634<br />
2015 0 15.0 0 12.8 0 0 0 23,066 36,503 29,158 23,066 36,503 29,158<br />
2016 1,150 15.0 0 12.8 0 0 0 25,314 61,816 45,642 25,314 61,816 45,642<br />
2017 51,473 15.0 4,281 12.8 3,639 0 7,919 62,194 124,010 82,463 54,274 116,091 77,774<br />
2018 59,293 15.0 8,894 12.8 7,560 0 16,454 71,283 195,293 120,827 54,829 170,920 107,283<br />
2019 58,564 15.0 8,785 12.8 7,467 0 16,251 73,932 269,225 157,001 57,681 228,601 135,505<br />
2020 55,990 15.0 8,399 12.8 7,139 0 15,537 73,979 343,204 189,906 58,441 287,042 161,500<br />
2021 52,780 15.0 7,917 12.8 6,730 0 14,647 65,565 408,769 216,418 50,919 337,961 182,090<br />
2022 49,826 15.0 7,474 12.8 6,353 0 13,827 58,954 467,723 238,090 45,127 383,088 198,678<br />
2023 46,986 15.0 7,048 12.8 5,991 0 13,039 53,541 521,265 255,983 40,503 423,591 212,214<br />
Sub. 351,978 52,797 44,877 0 97,674 521,265 521,265 255,983 423,591 423,591 212,214<br />
Rem. 671,748 102,078 86,766 0 188,844 695,743 1,217,007 351,488 506,899 930,490 282,516<br />
Tot. 1,023,726 154,874 131,643 0 286,517 1,217,007 1,217,007 351,488 930,490 930,490 282,516<br />
Disc 240,220 37,282 31,690 0 68,972 351,488 351,488 351,488 282,516 282,516 282,516<br />
SUMMARY OF RESERVES<br />
Remaining Reserves at Jan 01, 2012 Oil Equivalents Reserve Life Indic. (yr)<br />
Working Roy/NPI Total Oil Eq. Company % of Reserve Life Half<br />
Product Units Interest Interest Company Net Factor Mboe Total Life Index Life<br />
Light/Med Oil Mbbl 694 0 694 628 1.000 694 2 22.0 10.3 4.1<br />
Solution Gas MMcf 543 0 543 491 6.000 90 0 22.0 10.3 4.1<br />
Residue Gas MMcf 216,189 0 216,189 197,067 6.000 36,032 97 50.0 60.8 10.5<br />
Total: Gas MMcf 216,732 0 216,732 197,558 6.000 36,122 97 50.0 60.9 10.4<br />
Gas Heat Content BBtu 229,736 0 229,736 209,412 0.000 0 0 50.0 60.9 10.4<br />
Condensate Mbbl 277 0 277 252 1.000 277 1 50.0 60.9 10.4<br />
Total: Oil+NGL Mbbl 971 0 971 880 1.000 971 3 50.0 213.9 5.1<br />
Total: Oil Eq. Mboe 37,093 0 37,093 33,807 1.000 37,093 100 50.0 62.1 10.3<br />
PRODUCT REVENUE AND EXPENSES<br />
Average First Year Unit Values Net Revenue After Royalties<br />
Wellhead Operating Other Prod'n Undisc % of 10% Disc % of<br />
Product Units Base Price Price Adjust. Price Net Burdens Expenses Expenses Revenue M$ Total M$ Total<br />
Light/Med Oil $/bbl 0.00 0.00 0.00 0.00 0.00 0.00 0.00 62,934 4 39,050 7<br />
Solution Gas $/Mcf 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,831 0 1,682 0<br />
Residue Gas $/Mcf 3.29 0.21 3.50 0.19 0.97 0.00 2.34 1,498,698 94 476,361 91<br />
Total: Gas $/Mcf 3.29 0.21 3.50 0.19 0.97 0.00 2.34 1,501,529 94 478,043 91<br />
Condensate $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 25,991 2 8,532 2<br />
Total: Oil+NGL $/bbl 107.14 -20.64 86.50 4.76 0.00 0.00 81.75 88,925 6 47,582 9<br />
Total: Oil Eq. $/boe 20.42 1.08 21.50 1.18 5.76 0.00 14.55 1,590,454 100 525,625 100<br />
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY<br />
Net Present Value Before <strong>Inc</strong>ome Tax Net Present Value After <strong>Inc</strong>ome Tax<br />
Revenue Burdens (%) Disc. Prod'n Operating Capital Cash Flow Operating Capital Cash Flow<br />
Rate Revenue <strong>Inc</strong>ome Invest. <strong>Inc</strong>ome Invest.<br />
Initial Average % M$ M$ M$ M$ $/boe M$ M$ M$ $/boe<br />
Crown Royalty 5.5000 9.0276 0.0 1,376,240 1,427,443 210,435 1,217,007 32.81 1,140,925 210,435 930,490 25.09<br />
Non-crown Royalty 0.0000 0.0000 5.0 725,658 766,830 173,116 593,714 16.01 639,896 173,116 466,780 12.58<br />
Mineral Tax 0.0000 0.0000 8.0 547,735 581,604 155,092 426,512 11.50 495,070 155,092 339,978 9.17<br />
10.0 466,126 496,016 144,528 351,488 9.48 427,044 144,528 282,516 7.62<br />
12.0 402,912 429,477 134,965 294,512 7.94 373,534 134,965 238,570 6.43<br />
15.0 331,245 353,809 122,243 231,566 6.24 311,876 122,243 189,632 5.11<br />
20.0 249,991 267,750 104,598 163,152 4.40 240,441 104,598 135,843 3.66<br />
Evaluator: Werth, James P.<br />
Run Date: February 16, 2012 11:30:22<br />
Page: 97 of 102<br />
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APPENDIX I<br />
CERTIFICATES OF QUALIFICATION<br />
Jodi L. Anhorn<br />
T. Mark Jobin<br />
James P. Werth<br />
Roger J. Mahoney<br />
GLJ<br />
Page: 98 of 102<br />
Petroleum Consultants
CERTIFICATION OF QUALIFICATION<br />
I, Jodi L. Anhorn, Professional Engineer, 4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada<br />
hereby certify:<br />
1. That I am an employee of GLJ Petroleum Consultants Ltd., which company did prepare a<br />
detailed analysis of Canadian oil and gas properties of <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong> (the<br />
“Company”). The effective date of this evaluation is December 31, 2011.<br />
2. That I do not have, nor do I expect to receive any direct or indirect interest in the securities of<br />
the Company or its affiliated companies.<br />
3. That I attended the University of Calgary and that I graduated with a Master of Science<br />
Degree in Chemical and Petroleum Engineering in 1992; that I am a Registered Professional<br />
Engineer in the Province of Alberta; and that I have in excess of nineteen years experience in<br />
engineering studies relating to Canadian and International oil and gas fields.<br />
4. That a personal field inspection of the properties was not made; however, such an inspection<br />
was not considered necessary in view of the information available from public information<br />
and records, the files of the Company, and the appropriate provincial regulatory authorities.<br />
ORIGINALLY SIGNED BY<br />
Page: 99 of 102<br />
Jodi L. Anhorn, M.Sc., P. Eng.<br />
GLJ<br />
Petroleum Consultants
CERTIFICATION OF QUALIFICATION<br />
I, T. Mark Jobin, Professional Geologist, 4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada<br />
hereby certify:<br />
1. That I am an employee of GLJ Petroleum Consultants Ltd., which company did prepare a<br />
detailed analysis of Canadian oil and gas properties of <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. (the<br />
“Company”). The effective date of this evaluation is December 31, 2011.<br />
2. That I do not have, nor do I expect to receive any direct or indirect interest in the securities of<br />
the Company or its affiliated companies.<br />
3. That I attended the University of Calgary and that I graduated in 1984 with a Bachelor of<br />
Science Degree in Geology; that I am a Registered Professional Geologist in the Province of<br />
Alberta; and, that I have in excess of twenty-seven years experience in geological studies<br />
relating to Canadian and International oil and gas fields.<br />
4. That a personal field inspection of the properties was not made; however, such an inspection<br />
was not considered necessary in view of the information available from public information<br />
and records, the files of the Company, and the appropriate provincial regulatory authorities.<br />
Page: 100 of 102<br />
ORIGINALLY SIGNED BY<br />
T. Mark Jobin, P. Geol.<br />
GLJ<br />
Petroleum Consultants
CERTIFICATION OF QUALIFICATION<br />
I, James P. Werth, Professional Engineer, 4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada<br />
hereby certify:<br />
1. That I am an employee of GLJ Petroleum Consultants Ltd., which company did prepare a<br />
detailed analysis of Canadian oil and gas properties of <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. (the<br />
“Company”). The effective date of this evaluation is December 31, 2011.<br />
2. That I do not have, nor do I expect to receive any direct or indirect interest in the securities of<br />
the Company or its affiliated companies.<br />
3. That I attended the University of Manitoba and that I graduated with a Bachelor of Science<br />
Degree in Civil Engineering in 1979; that I am a Registered Professional Engineer in the<br />
Province of Alberta; and, that I have in excess of thirty-two years experience in engineering<br />
studies relating to Canadian and International oil and gas fields.<br />
4. That a personal field inspection of the properties was not made; however, such an inspection<br />
was not considered necessary in view of the information available from public information<br />
and records, the files of the Company, and the appropriate provincial regulatory authorities.<br />
Page: 101 of 102<br />
ORIGINALLY SIGNED BY<br />
James P. Werth, P. Eng.<br />
GLJ<br />
Petroleum Consultants
CERTIFICATION OF QUALIFICATION<br />
I, Roger J. Mahoney, Professional Geophysicist, 230 - 38th Avenue S.W., Calgary, Alberta, Canada<br />
hereby certify:<br />
1. That I have been retained by GLJ Petroleum Consultants Ltd., which company did prepare a<br />
detailed analysis of Canadian oil and gas properties of <strong>Corridor</strong> <strong>Resources</strong> <strong>Inc</strong>. (the<br />
“Company”). The effective date of this evaluation is December 31, 2011.<br />
2. That I do not have, nor do I expect to receive any direct or indirect interest in the securities of<br />
the Company or its affiliated companies.<br />
3. That I attended the University of Manchester and that I graduated with a Bachelor of Science<br />
Degree in Physics with Honours in 1964; that I am a Registered Professional Geophysicist in<br />
the Province of Alberta; and, that I have in excess of forty-five years experience in<br />
geophysical studies relating to Canadian and International oil and gas fields.<br />
4. That a personal field inspection of the properties was not made; however, such an inspection<br />
was not considered necessary in view of the information available from public information<br />
and records, the files of the Company, and the appropriate provincial regulatory authorities.<br />
ORIGINALLY SIGNED BY<br />
Page: 102 of 102<br />
Roger J. Mahoney, P. Geoph.<br />
GLJ<br />
Petroleum Consultants