Corridor Resources 2011 Reserve Report

Page: 1 of 102
CORRIDOR RESOURCES INC.

RESERVES ASSESSMENT AND
CANADIAN OIL AND GAS PROPERTIES
CORPORATE SUMMARY
Effective December 31, 2011
1121357
GLJ
Petroleum Consultants
Page: 2 of 102
CORPORATE SUMMARY
TABLE OF CONTENTS
Page
COVERING LETTER
INDEPENDENT PETROLEUM CONSULTANTS' CONSENT
INTRODUCTION
SUMMARY
RESERVES DEFINITIONS
45
EVALUATION PROCEDURE
49
PRODUCT PRICE AND MARKET FORECASTS
55
SECURITIES REPORTING
59
AFTER TAX ANALYSIS
77
APPENDIX I
Certificates of Qualification
98
March 13, 2012 15:51:05
GLJ
GLJ
Principal Officers:
Petroleum
Consultants
Keith M. Braaten, P. Eng.

President & CEO
Jodi L. Anhorn, M.Sc., P. Eng.
Executive Vice President & COO
Officers / Vice Presidents:
February 17, 2012

Project 1121357
Terry L. Aarsby, P. Eng.

Caralyn P. Bennett, P. Eng.
Leonard L. Herchen, P. Eng.
Myron J. Hladyshevsky, P. Eng.
Bryan M. Joa, P. Eng.
Mark Jobin, P. Geol.
John E. Keith, P. Eng.
John H. Stilling, P. Eng.
Douglas R. Sutton, P. Eng.
James H. Willmon, P. Eng.
Chairman of the Reserves Committee

c/o Ms. Lisette Hachey
Corridor Resources Inc.
301, 5475 Spring Garden Road
Halifax, Nova Scotia B3J 3T2
Dear Madam:
Re:

Corporate Evaluation
Effective December 31, 2011
GLJ Petroleum Consultants (GLJ) has completed an independent reserves assessment and evaluation of the oil
and gas properties of Corridor Resources Inc. (the Company). The effective date of this evaluation is
December 31, 2011.
This report has been prepared for the Company for the purpose of annual disclosure and other financial
requirements. This evaluation has been prepared in accordance with reserves definitions, standards and
procedures contained in the Canadian Oil and Gas Evaluation Handbook.
It was GLJs primary mandate in this evaluation to provide an independent evaluation of the oil and gas reserves
of the Company in aggregate. Accordingly it may not be appropriate to extract individual property or entity
estimates for other purposes. Our engagement letter notes these limitations on the use of this report.
It is trusted that this evaluation meets your current requirements. Should you have any questions regarding this
analysis, please contact the undersigned.
Yours very truly,
GLJ PETROLEUM CONSULTANTS LTD.
ORIGINALLY SIGNED BY
Jodi L. Anhorn, M. Sc., P. Eng.
Executive Vice President & COO
JLA/ljn
Attachments
4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada T2P 4H2 (403) 266-9500 Fax (403) 262-1855 GLJPC.com
Page: 4 of 102
INDEPENDENT PETROLEUM CONSULTANTS CONSENT
The undersigned firm of Independent Petroleum Consultants of Calgary, Alberta, Canada has
prepared an independent evaluation of the Corridor Resources Inc. (the Company) Canadian oil
and gas properties and hereby gives consent to the use of its name and to the said estimates. The
effective date of the evaluation is December 31, 2011.
In the course of the evaluation, the Company provided GLJ Petroleum Consultants Ltd. personnel
with basic information which included land data, well information, geological information, reservoir
studies, estimates of on-stream dates, contract information, current hydrocarbon product prices,
operating cost data, capital budget forecasts, financial data and future operating plans. Other
engineering, geological or economic data required to conduct the evaluation and upon which this
report is based, were obtained from public records, other operators and from GLJ Petroleum
Consultants Ltd. nonconfidential files. The Company has provided a representation letter
confirming that all information provided to GLJ Petroleum Consultants Ltd. is correct and complete
to the best of its knowledge. Procedures recommended in the Canadian Oil and Gas Evaluation
(COGE) Handbook to verify certain interests and financial information were applied in this
evaluation. In applying these procedures and tests, nothing came to GLJ Petroleum Consultants
Ltd.s attention that would suggest that information provided by the Company was not complete and
accurate. GLJ Petroleum Consultants Ltd. reserves the right to review all calculations referred to or
included in this report and to revise the estimates in light of erroneous data supplied or information
existing but not made available which becomes known subsequent to the preparation of this report.
The accuracy of any reserves and production estimate is a function of the quality and quantity of
available data and of engineering interpretation and judgment. While reserves and production
estimates presented herein are considered reasonable, the estimates should be accepted with the
understanding that reservoir performance subsequent to the date of the estimate may justify
revision, either upward or downward.
Revenue projections presented in this report are based in part on forecasts of market prices, currency
exchange rates, inflation, market demand and government policy which are subject to many
uncertainties and may, in future, differ materially from the forecasts utilized herein. Present values
of revenues documented in this report do not necessarily represent the fair market value of the
reserves evaluated herein.
PERMIT TO PRACTICE
GLJ PETROLEUM CONSULTANTS LTD.
Signature:
Carolyn P. Bennett
Date:
February 17, 2012
PERMIT NUMBER: P 2066

The Association of Professional Engineers,
Geologists and Geophysicists of Alberta
Keith M. Braaten
GLJ Petroleum Consultants Ltd.
GLJ
Page: 5 of 102
INTRODUCTION
GLJ Petroleum Consultants (GLJ) was commissioned by Corridor Resources Inc. (the
Company) to prepare an independent evaluation of its oil and gas reserves effective December
31, 2011. The locations of the most significant reserves properties are indicated on the attached
index map.
The evaluation was initiated in December 2011 and completed by February 2012. Estimates of
reserves and projections of production were generally prepared using well information and
production data available from public sources to approximately December 31, 2011. The
Company provided land, accounting data and other technical information not available in the
public domain to approximately December 31, 2011. In certain instances, the Company also
provided recent engineering, geological and other information up to December 31, 2011. The
Company has confirmed that, to the best of its knowledge, all information provided to GLJ is
correct and complete as of the effective date.
This evaluation has been prepared in accordance with procedures and standards contained in the
Canadian Oil and Gas Evaluation (COGE) Handbook. The reserves definitions used in preparing
this report (included herein under Reserves Definitions) are those contained in the COGE
Handbook and the Canadian Securities Administrators National Instrument 51-101 (NI 51-101).
The evaluation was conducted on the basis of the GLJ January 1, 2012 Price Forecast which is
summarized in the Product Price and Market Forecasts section of this report.
Tables summarizing production, royalties, costs, revenue projections, reserves and present value
estimates for various reserves categories for individual properties and the Company total are
provided in the tabbed sections of this Summary Report.
The Evaluation Procedure section outlines general procedures used in preparing this evaluation. The
individual property reports, provided under separate cover, provide additional evaluation details.
The following summarizes evaluation matters that have been included/excluded in cash flow
projections:
processing income has been included as Other Income,
in accordance with NI 51-101, the effect on projected revenues of the Companys

financial hedging activity has not been included,
GLJ
Page: 6 of 102
provisions for the abandonment of all of the Companys wells to which reserves have
been attributed have been included; all other abandonment and reclamation costs have
not been included,
general and administrative (G&A) costs and overhead recovery have not been included,
undeveloped land values have not been included.
The Securities Reporting section of this report provides reserves data in a format that is consistent
with the disclosure requirements set out in NI 51-101.
Economic forecasts are provided on an after tax basis including tax pools provided by the Company
in the After Tax Analysis section.
GLJ
Page: 7 of 102
GLJ
Page: 8 of 102
SUMMARY
TABLE OF CONTENTS
Page
LIST OF TABLES
Table 1
Summary of Reserves and Values
Table 2
Company Production, Reserves and Present Value Summary
9
10
LIST OF DRAWINGS
Drawing 1
Historical and Forecast Company Interest Oil Equivalent Production
Drawing 2
Historical and Forecast Company Interest Production Oil/Sales Gas/NGL
11
12
PROVED RESERVES
13
PROBABLE AND PROVED PLUS PROBABLE RESERVES
27
POSSIBLE AND PROVED PLUS PROBABLE PLUS POSSIBLE RESERVES
36
March 13, 2012 15:51:06
GLJ
Page: 9 of 102
Table 1
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Proved
Developed
NonProved
producing Undeveloped
Proved
Producing
MARKETABLE RESERVES
Light/Medium Oil (Mbbl)
Total Company Interest
Working Interest
Net After Royalty
Gas (MMcf)
Working Interest
Net After Royalty
Natural Gas Liquids (Mbbl)
Working Interest
Net After Royalty
Oil Equivalent (Mbbl)
Working Interest
Net After Royalty
Total
PPP
0
0
0
87
87
79
87
87
79
434
434
393
521
521
471
694
694
628
21,949
21,949
20,944
0
0
0
36,739
36,739
33,249
58,688
58,688
54,192
43,967
43,967
39,955
102,654
102,654
94,147
216,732
216,732
197,558
28
28
27
0
0
0
47
47
42
75
75
69
56
56
51
131
131
120
277
277
252
3,686
3,686
3,517
0
0
0
6,257
6,257
5,662
9,943
9,943
9,180
7,818
7,818
7,103
17,761
17,761
16,282
37,093
37,093
33,807
0
0
0
0
0
0
0
151,236
83,361
60,516
49,417
40,621
30,547
19,232
219,240
138,756
110,128
95,742
84,037
70,192
53,834
244,854
127,138
91,823
75,405
62,717
48,508
32,905
464,094
265,894
201,951
171,147
146,754
118,701
86,738
1,217,007
593,714
426,512
351,488
294,512
231,566
163,152
102
-7,680
-7,671
-1,579
10,846
18,063
9,721
1,098
416
5,821
17,616
24,244
385
-229
-5,717
7,094
-798
18,905
10,106
869
-5,301
12,915
16,818
43,149
10,663
3,575
-801
23,066
25,314
62,194
FIRST 6 YEARS BEFORE TAX CASH FLOW (M$)

2012
9,619
0
2013
8,778
0
2014
8,087
0
2015
7,400
0
2016
6,770
0
2017
6,181
0
HVY OIL 1.0

COND
1.0
Total
Probable
0
0
0
BEFORE TAX PRESENT VALUE (M$)

0%
68,004
5%
55,395
8%
49,612
10%
46,325
12%
43,416
15%
39,645
20%
34,602
BOE Factors:
Total
Proved
Total
Proved
Plus
Probable
RES GAS 6.0

SLN GAS 6.0
PROPANE 1.0
BUTANE 1.0
ETHANE 1.0
SULPHUR 0.0
Run Date: February 16, 2012 11:30:22
1121357
Class (A,B1,B2,C,F,I,R), GLJ (2012-01), psum
February 16, 2012 12:52:00
GLJ
Table 2
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

2012 Company Interest Prod'n
Gas
Mcf/d
Entity Description
Proved Producing
Proved Developed Nonproducing
Proved Undeveloped
Total Proved
Probable Producing
Probable Developed Nonproducing
Probable Undeveloped
Total Probable
Proved Plus Probable Producing
Proved Plus Probable Developed Nonproducing
Proved Plus Probable Undeveloped
Total Proved Plus Probable
Total Possible
Total PPP
9,348
0
0
9,348
204
0
0
204
9,553
0
0
9,553
190
9,743
Oil
bbl/d
NGL
bbl/d
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Oil Eq.
boe/d
12
0
0
12
0
0
0
0
12
0
0
12
0
12
Company Interest Reserves

Gas
MMcf
Oil
Mbbl
1,570 21,949
0
0
0 36,739
1,570 58,688
34
5,951
0
0
0 38,016
34 43,967
1,604 27,899
0
0
0 74,755
1,604 102,654
32 114,078
1,636 216,732
NGL
Mbbl
0
0
87
87
0
0
434
434
0
0
521
521
174
694
28
0
47
75
8
0
49
56
36
0
95
131
146
277
Net After Royalty Reserves
Sulphur Oil Eq.

Mlt
Mboe
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Gas
MMcf
3,686 20,944
0
0
6,257 33,249
9,943 54,192
999
5,551
0
0
6,818 34,404
7,818 39,955
4,686 26,494
0
0
13,075 67,653
17,761 94,147
19,332 103,411
37,093 197,558
Oil
Mbbl
NGL
Mbbl
0
0
79
79
0
0
393
393
0
0
471
471
157
628
Reserve
Life
Sulphur Oil Eq. Index
Mlt
Mboe
yrs
27
0
42
69
7
0
44
51
34
0
86
120
132
252
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,517
0
5,662
9,180
932
0
6,171
7,103
4,450
0
11,833
16,282
17,524
33,807
Before Income Tax

Discounted Present Value (M$)
0%
6.4
68,004
0.0
0
34.6
151,236
17.4
219,240
79.8
26,644
0.0
0
102.5
218,210
624.3
244,854
8.0
94,648
0.0
0
52.9
369,446
30.3
464,094
999.9
752,914
62.1 1,217,007
8%
10%
12%
49,612
0
60,516
110,128
13,737
0
78,086
91,823
63,349
0
138,602
201,951
224,561
426,512
46,325
0
49,417
95,742
11,892
0
63,513
75,405
58,217
0
112,930
171,147
180,341
351,488
43,416
0
40,621
84,037
10,381
0
52,336
62,717
53,797
0
92,958
146,754
147,758
294,512
Reserves Characterization
Percentage of Total PPP Company Interest BOE Reserves
Product Types
Reserves Classifications
L & M Oil (2 %)
Pb Prd (3 %)
NGLs (<1 %)
Pv Prd (10 %)
Pb UDev (18 %)
Pv UDev (17 %)
Poss Prd (4 %)
Poss UDev (48 %)
Natural Gas (97 %)
1121357
HVY OIL
COND
1.0
1.0
RES GAS
SLN GAS
6.0
6.0
PROPANE
BUTANE
1.0
1.0
ETHANE
SULPHUR
1.0
0.0
Class (A,B1,B2,C,D,E1,E2,F,G,H1,H2,I,O,R), GLJ (2012-01), crv
February 16, 2012 12:52:02
GLJ
Page: 10 of 102
BOE Factors:
Page: 11 of 102
Historical and Forecast Production

Company:
Property:
Description:

Corporate
Summary
Pricing:
Effective Date:
GLJ (2012-01)
December 31, 2011
8000
Company Interest Oil Equivalent

Legend
Proved Producing
Total Proved
Total PPP
4000
2000
3000
(boe/d)
5000
6000
7000
A
C
I
R
1000
A
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
Year
8000
Company Interest Oil Equivalent - Total PPP

Legend
7000
Sales Gas
Natural Gas Liquids
4000
0
1000
2000
3000
(boe/d)
5000
6000
Light Medium Oil
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
Year
*Note: Historical company interest production is based on current interests in the evaluated reserves entities applied to reported actual gross
lease production. Consequently, company actuals may differ from the history shown due to changes in ownership.
Drawing 1
Company Interest Oil Equivalent

1121357 / Feb 16, 2012
GLJ
Page: 12 of 102
Historical and Forecast Production

Company:
Property:
Description:

Corporate
Summary
Pricing:
Effective Date:
GLJ (2012-01)
December 31, 2011
500
Company Interest Oil

Legend
Proved Producing
Total Proved
Total PPP
250
50
100
150
200
(bbl/d)
300
350
400
450
A
C
I
R
R
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
C
2024
I
2025
2026
2027
2028
2029
2030
2031
Year
50
Company Interest Sales Gas

Legend
Proved Producing
Total Proved
Total PPP
25
15
20
(MMcf/d)
30
35
40
45
A
C
I
R
10
A
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
Year
60
Company Interest NGL
55
Legend
Proved Producing
Total Proved
Total PPP
30
15
20
25
(bbl/d)
35
40
45
50
A
C
I
R
10
A
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
Year
*Note: Historical company interest production is based on current interests in the evaluated reserves entities applied to reported actual gross
lease production. Consequently, company actuals may differ from the history shown due to changes in ownership.
Drawing 2
Company Interest Oil

1121357 / Feb 16, 2012
GLJ
Page: 13 of 102
PROVED RESERVES
TABLE OF CONTENTS
Page
SUMMARY OF RESERVES AND VALUES
14
COMPANY PRODUCTION, RESERVES AND PRESENT VALUE SUMMARY
15
ECONOMIC FORECASTS
Proved Producing
Proved Undeveloped
Total Proved Nonproducing
Total Proved
16
18
21
24
March 13, 2012 15:51:06
GLJ
Page: 14 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Proved
Developed
Nonproducing
Proved
Producing
MARKETABLE RESERVES
Working Interest
Net After Royalty
Gas (MMcf)
Working Interest
Net After Royalty
Working Interest
Net After Royalty
Working Interest
Net After Royalty
0%
5%
8%
10%
12%
15%
20%
HVY OIL 1.0

COND
1.0
Total
Proved
0
0
0
0
0
0
87
87
79
87
87
79
87
87
79
21,949
21,949
20,944
0
0
0
36,739
36,739
33,249
36,739
36,739
33,249
58,688
58,688
54,192
28
28
27
0
0
0
47
47
42
47
47
42
75
75
69
3,686
3,686
3,517
0
0
0
6,257
6,257
5,662
6,257
6,257
5,662
9,943
9,943
9,180
68,004
55,395
49,612
46,325
43,416
39,645
34,602
0
0
0
0
0
0
0
151,236
83,361
60,516
49,417
40,621
30,547
19,232
151,236
83,361
60,516
49,417
40,621
30,547
19,232
219,240
138,756
110,128
95,742
84,037
70,192
53,834
0
0
0
0
0
0
102
-7,680
-7,671
-1,579
10,846
18,063
102
-7,680
-7,671
-1,579
10,846
18,063
9,721
1,098
416
5,821
17,616
24,244

2012
9,619
2013
8,778
2014
8,087
2015
7,400
2016
6,770
2017
6,181
BOE Factors:
Proved
Undeveloped
Total
Proved
Nonproducing
RES GAS 6.0

SLN GAS 6.0
PROPANE 1.0
BUTANE 1.0
ETHANE 1.0
SULPHUR 0.0
1121357
Class (A,B1,B2,B,C), GLJ (2012-01), psum
February 16, 2012 12:52:04
GLJ
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Gas
Mcf/d
Entity Description
Oil
bbl/d
NGL
bbl/d
Oil Eq.
boe/d
Gas
MMcf
Oil
Mbbl
NGL
Mbbl
Sulphur Oil Eq.

Mlt
Mboe
Gas
MMcf
Oil
Mbbl
NGL
Mbbl
Reserve
Life
Mlt
Mboe
yrs
Before Income Tax

0%
8%
10%
12%
Proved Producing
McCully
9,348
12
1,570
21,949
28
3,686
20,944
27
3,517
6.4
68,004
49,612
46,325
43,416
Total: Proved Producing
9,348
12
1,570
21,949
28
3,686
20,944
27
3,517
6.4
68,004
49,612
46,325
43,416
Proved Undeveloped
McCully
36,739
87
47
6,257
33,249
79
42
5,662
34.6
151,236
60,516
49,417
40,621
Total: Proved Undeveloped
36,739
87
47
6,257
33,249
79
42
5,662
34.6
151,236
60,516
49,417
40,621
Total Proved Nonproducing

McCully
36,739
87
47
6,257
33,249
79
42
5,662
34.6
151,236
60,516
49,417
40,621
Total: Total Proved Nonproducing
36,739
87
47
6,257
33,249
79
42
5,662
34.6
151,236
60,516
49,417
40,621
Total Proved
McCully
9,348
12
1,570
58,688
87
75
9,943
54,192
79
69
9,180
17.4
219,240
110,128
95,742
84,037
Total: Total Proved
9,348
12
1,570
58,688
87
75
9,943
54,192
79
69
9,180
17.4
219,240
110,128
95,742
84,037
1121357
HVY OIL
COND
1.0
1.0
RES GAS
SLN GAS
6.0
6.0
PROPANE
BUTANE
1.0
1.0
ETHANE
SULPHUR
1.0
0.0
Class (A,B2,B,C), GLJ (2012-01), crv
February 17, 2012 15:13:03
GLJ
Page: 15 of 102
BOE Factors:
Page: 16 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved
Producing
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Residue Gas Production
Year
Company Company
Gas
Daily
Wells
Mcf/d
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
22
22
19
17
17
17
17
17
16
16
16
15
Company
Yearly
MMcf
9,348
7,733
6,409
5,131
4,358
3,837
3,409
3,064
2,768
2,490
2,240
1,998
Condensate Production
Net Yearly
MMcf
3,412
2,823
2,339
1,873
1,591
1,400
1,244
1,118
1,010
909
818
729
19,267
2,682
21,949
Company
Daily
bbl/d
Price
$/Mcf
3,224
2,690
2,243
1,805
1,545
1,368
1,195
1,050
955
864
784
706
18,430
2,514
20,944
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.33
7.73
5.63
Company
Yearly
Mbbl
12
10
8
7
6
5
4
4
4
3
3
3
Total Oil Equiv. Production
Net Yearly
Mbbl
4
4
3
2
2
2
2
1
1
1
1
1
25
3
28
Company
Daily
boe/d
Price
$/bbl
4
3
3
2
2
2
2
1
1
1
1
1
24
3
27
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
85.12
100.10
86.95
Company
Yearly
Mboe
1,570
1,299
1,076
862
732
644
573
515
465
418
376
336
Net Yearly
Mboe
573
474
393
315
267
235
209
188
170
153
137
122
3,236
450
3,686
Price
$/boe
542
452
377
303
259
230
201
176
160
145
132
119
3,095
422
3,517
21.50
25.48
28.65
31.82
35.00
38.19
39.84
40.69
41.60
42.51
43.36
44.23
32.41
46.78
34.17
REVENUE AND EXPENSE FORECAST

Revenue Before Burdens
Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
1121357
Oil
M$
Gas
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Mineral
Tax
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
11,943
11,767
11,004
9,813
9,185
8,835
8,195
7,522
6,947
6,384
5,860
5,330
102,784
20,728
123,512
71,531
377
312
249
195
165
145
131
121
112
103
95
87
2,093
343
2,436
1,533
Capital
Tax
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
12,320
12,079
11,253
10,007
9,350
8,980
8,326
7,643
7,059
6,488
5,955
5,417
104,878
21,070
125,948
73,064
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8,228
8,163
7,510
6,441
5,875
5,550
4,747
3,893
3,362
2,830
2,346
1,869
60,813
2,520
63,334
41,898
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
12,320
12,079
11,253
10,007
9,350
8,980
8,326
7,643
7,059
6,488
5,955
5,417
104,878
21,070
125,948
73,064
Other
M$
678
568
461
360
271
207
333
466
388
318
244
173
4,468
1,342
5,810
3,235
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
678
568
461
360
271
207
333
466
388
318
244
173
4,468
1,342
5,810
3,235
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
11,642
11,511
10,792
9,647
9,079
8,774
7,993
7,177
6,671
6,170
5,711
5,243
100,410
19,728
120,138
69,828
2,766
2,802
2,819
2,829
2,877
2,930
2,980
3,039
3,084
3,134
3,176
3,203
35,637
16,538
52,175
25,070
Net Capital Investment

Other
Income
M$
1,391
1,125
967
960
895
769
677
601
540
471
426
388
9,209
1,960
11,169
6,644
Aband.
Costs
M$
0
510
390
0
0
138
0
144
146
0
305
311
1,944
4,554
6,498
2,217
Oper.
Income
M$
9,619
8,778
8,087
7,400
6,770
6,181
5,424
4,350
3,755
3,301
2,467
1,946
68,079
-74
68,004
46,325
Dev.
M$
Plant
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
648
547
462
378
327
294
266
244
225
206
189
172
3,959
670
4,629
2,860
Total
M$
3,414
3,349
3,282
3,206
3,204
3,223
3,246
3,284
3,309
3,340
3,365
3,375
39,597
17,208
56,805
27,930
Before Tax Cash Flow

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Proved Producing, GLJ (2012-01), pri
9,619
8,778
8,087
7,400
6,770
6,181
5,424
4,350
3,755
3,301
2,467
1,946
68,079
-74
68,004
46,325
Cum.
M$
9,619
18,397
26,484
33,884
40,654
46,835
52,259
56,609
60,364
63,666
66,133
68,079
68,079
68,004
68,004
46,325
10.0% Dcf
M$
9,171
16,780
23,152
28,453
32,862
36,522
39,441
41,569
43,239
44,574
45,481
46,132
46,132
46,325
46,325
46,325
February 16, 2012 12:52:08
GLJ
Page: 17 of 102
Page 2
SUMMARY OF RESERVES
Remaining Reserves at Jan 01, 2012
Product
Working
Interest
Units
Residue Gas
Gas Heat Content
Condensate
Total: Oil Eq.
MMcf
BBtu
Mbbl
Mboe
Roy/NPI
Interest
21,949
23,266
28
3,686
Total
Company
0
0
0
0
21,949
23,266
28
3,686
Oil Equivalents
Oil Eq.
Factor
Net
20,944
22,200
27
3,517
Reserve Life Indic. (yr)
Company
Mboe
6.000
0.000
1.000
1.000
% of
Total
3,658
0
28
3,686
Reserve
Life
99
0
1
100
Life
Index
17.0
17.0
17.0
17.0
Half
Life
6.4
6.4
6.4
6.4
4.3
4.3
4.3
4.3
PRODUCT REVENUE AND EXPENSES

Average First Year Unit Values
Product
Units
Residue Gas
Condensate
Total: Oil Eq.
Base Price Price Adjust.
$/Mcf
$/bbl
$/boe
3.29
107.14
20.42
0.21
-20.64
1.08
Wellhead
Price
3.50
86.50
21.50
Net Burdens
0.19
4.76
1.18
Operating
Expenses
Net Revenue After Royalties

Other
Expenses
1.00
0.00
5.96
Prod'n
Revenue
0.00
0.00
0.00
Undisc
M$
2.31
81.75
14.36
% of
Total
117,815
2,323
120,138
98
2
100
10% Disc
M$
% of
Total
68,365
1,463
69,828
98
2
100
REVENUE BURDENS AND NET PRESENT VALUE SUMMARY

Net Present Value Before Income Tax
Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
4.6130
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
63,334
50,639
45,033
41,898
39,154
35,634
30,986
Operating
Income
M$
68,004
55,395
49,612
46,325
43,416
39,645
34,602
Capital
Invest.
M$
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Cash Flow
M$
68,004
55,395
49,612
46,325
43,416
39,645
34,602
$/boe
18.45
15.03
13.46
12.57
11.78
10.76
9.39
Evaluator: Werth, James P.

1121357
February 16, 2012 12:52:08
GLJ
Page: 18 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved
Undeveloped
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Light/Medium Oil Production
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
1
1
1
1
1
1
1
1
1
1
Company
Daily
bbl/d
0
5
8
13
15
15
15
15
15
15
15
15
Company
Yearly Net Yearly
Mbbl
Mbbl
0
59
65
35
22
15
11
8
7
5
4
4
0
22
24
13
8
5
4
3
2
2
2
1
86
1
87
0
20
21
12
7
5
4
3
2
2
1
1
78
1
79
Solution Gas Production

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.95
106.15
108.39
98.97
110.67
99.08
Total Gas Production
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
0
2,593
7,113
10,506
11,473
9,713
7,796
6,419
5,404
4,598
3,975
3,475
Company
Yearly
MMcf
0
946
2,596
3,835
4,188
3,545
2,846
2,343
1,973
1,678
1,451
1,269
26,669
10,070
36,739
Company
Yearly Net Yearly
MMcf
MMcf
0
46
51
27
17
12
9
7
5
4
3
3
0
17
19
10
6
4
3
2
2
2
1
1
67
1
68
Price
$/Mcf
0
15
17
9
6
4
3
2
2
1
1
1
61
1
61
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.21
7.45
5.23
Company
Daily
Mcf/d
0
2,546
7,063
10,478
11,456
9,702
7,788
6,412
5,399
4,594
3,972
3,473
Net Yearly
MMcf
Price
$/Mcf
0
856
2,350
3,470
3,790
3,209
2,575
2,120
1,785
1,519
1,313
1,148
24,135
9,113
33,249
Company
Daily
bbl/d
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.09
8.55
6.76
0
3
9
13
15
12
10
8
7
6
5
4
Company
Yearly
Mbbl
0
1
3
5
5
5
4
3
3
2
2
2
34
13
47
Net Yearly
Mbbl
0
1
3
4
5
4
3
3
2
2
2
1
31
12
42
Company
Yearly Net Yearly
MMcf
MMcf
0
929
2,578
3,825
4,181
3,541
2,842
2,340
1,971
1,677
1,450
1,267
26,602
10,069
36,671
0
841
2,333
3,461
3,784
3,205
2,572
2,118
1,783
1,517
1,312
1,147
24,075
9,113
33,187
Price
$/Mcf
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.09
8.55
6.77
Total Oil + NGL Production

Company
Daily
bbl/d
Price
$/bbl
0.00
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
84.24
112.97
92.12
Company
Yearly
Mbbl
0
63
74
48
37
27
21
17
13
11
9
8
0
23
27
18
13
10
8
6
5
4
3
3
120
14
134
Net Yearly
Mbbl
0
21
24
16
12
9
7
5
4
4
3
3
109
12
121
Price
$/bbl
0.00
100.56
96.46
92.13
90.31
89.53
90.55
92.33
94.19
96.14
98.16
100.24
94.80
112.84
96.64
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
0
495
1,260
1,799
1,949
1,646
1,320
1,086
914
777
672
587
Company
Yearly
Mboe
0
181
460
657
711
601
482
397
334
284
245
214
4,565
1,692
6,257
Net Yearly
Mboe
0
163
416
594
644
544
436
359
302
257
222
194
4,131
1,531
5,662
Price
$/boe
0.00
34.59
32.23
33.07
35.69
38.72
40.32
41.14
42.03
42.93
43.77
44.63
38.05
51.81
41.77
Proved Undeveloped, GLJ (2012-01), pri
February 16, 2012 12:52:15
GLJ
Page: 19 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
Oil
M$
Gas
M$
0
2,197
2,329
1,232
773
528
390
303
244
200
168
144
8,507
89
8,596
6,122
Mineral
Tax
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
Total
M$
0
3,945
12,214
20,091
24,178
22,368
18,741
15,757
13,561
11,791
10,398
9,271
162,316
86,120
248,436
106,937
0
104
277
398
435
368
301
254
219
191
169
151
2,868
1,452
4,320
1,919
Capital
Tax
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,246
14,819
21,722
25,387
23,265
19,431
16,314
14,024
12,182
10,735
9,567
173,691
87,661
261,352
114,978
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
0
6,246
14,819
21,722
25,387
23,265
19,431
16,314
14,024
12,182
10,735
9,567
173,691
87,661
261,352
114,978
Other
M$
0
593
1,408
2,064
2,412
2,210
1,846
1,550
1,332
1,157
1,020
909
16,501
8,328
24,828
10,923
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
0
593
1,408
2,064
2,412
2,210
1,846
1,550
1,332
1,157
1,020
909
16,501
8,328
24,828
10,923
Operating Expenses
Fixed
M$
0
5,653
13,411
19,658
22,975
21,054
17,585
14,764
12,692
11,025
9,715
8,658
157,190
79,333
236,523
104,055
0
64
178
303
390
424
432
441
450
459
468
477
4,086
9,250
13,337
3,412

Other
Income
M$
0
5,301
12,603
18,518
21,682
19,858
16,522
13,795
11,789
10,174
8,902
7,873
147,017
67,295
214,312
96,578
Aband.
Costs
M$
102
325
919
1,785
1,763
1,418
1,170
983
840
723
631
556
11,214
4,822
16,036
7,412
Oper.
Income
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
6,919
6,919
558
Dev.
M$
102
5,626
13,522
20,303
23,446
21,276
17,692
14,778
12,629
10,897
9,533
8,429
158,231
65,198
223,429
103,433
Plant
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Total
M$
0
288
630
838
903
773
630
528
452
392
345
308
6,087
2,788
8,875
4,065
0
352
809
1,140
1,292
1,196
1,063
969
902
851
813
785
10,173
12,039
22,212
7,476

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Annual
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Cum.
M$
102
-7,680
-7,671
-1,579
10,846
18,063
17,692
14,778
12,629
10,897
9,533
8,429
86,038
65,198
151,236
49,417
10.0% Dcf
M$
102
-7,578
-15,250
-16,829
-5,983
12,080
29,772
44,550
57,179
68,076
77,609
86,038
86,038
151,236
151,236
49,417
97
-6,560
-12,605
-13,736
-6,673
4,021
13,543
20,773
26,391
30,797
34,301
37,118
37,118
49,417
49,417
49,417
SUMMARY OF RESERVES
Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Working
Interest
Units
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
87
68
36,671
36,739
38,943
47
134
6,257
Total
Company
0
0
0
0
0
0
0
0
87
68
36,671
36,739
38,943
47
134
6,257
Oil Equivalents
Oil Eq.
Factor
Net
79
61
33,187
33,249
35,244
42
121
5,662
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
87
11
6,112
6,123
0
47
134
6,257
Reserve
Life
1
0
98
98
0
1
2
100
Life
Index
13.0
13.0
39.0
39.0
39.0
39.0
39.0
39.0
Half
Life
4.0
4.0
39.5
38.8
38.8
38.8
5.8
34.6
2.9
2.9
7.2
7.2
7.2
7.2
4.0
7.1

Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
1121357
Units
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Wellhead
Price
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Net Burdens
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Operating
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
0.00
0.00
0.00
0.00
0.00
% of
Total
7,779
321
224,514
224,835
3,909
11,688
236,523
3
0
95
95
2
5
100
10% Disc
M$
5,540
220
96,558
96,778
1,737
7,277
104,055
% of
Total
5
0
93
93
2
7
100
February 16, 2012 12:52:15
GLJ
Page: 20 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
0.0000
0.0000
0.0000
Average
9.5000
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
214,312
136,932
110,054
96,578
85,584
72,482
56,715
Operating
Income
M$
223,429
145,507
117,585
103,433
91,817
77,904
61,074
Capital
Invest.
M$
72,193
62,146
57,069
54,016
51,196
47,357
41,843
Cash Flow
M$
151,236
83,361
60,516
49,417
40,621
30,547
19,232
$/boe
24.17
13.32
9.67
7.90
6.49
4.88
3.07

1121357
February 16, 2012 12:52:15
GLJ
Page: 21 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved
Total Nonproducing
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
1
1
1
1
1
1
1
1
1
1
Company
Daily
bbl/d
0
5
8
13
15
15
15
15
15
15
15
15
Company
Yearly Net Yearly
Mbbl
Mbbl
0
59
65
35
22
15
11
8
7
5
4
4
0
22
24
13
8
5
4
3
2
2
2
1
86
1
87
0
20
21
12
7
5
4
3
2
2
1
1
78
1
79

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.95
106.15
108.39
98.97
110.67
99.08
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
0
2,593
7,113
10,506
11,473
9,713
7,796
6,419
5,404
4,598
3,975
3,475
Company
Yearly
MMcf
0
946
2,596
3,835
4,188
3,545
2,846
2,343
1,973
1,678
1,451
1,269
26,669
10,070
36,739
Company
Yearly Net Yearly
MMcf
MMcf
0
46
51
27
17
12
9
7
5
4
3
3
0
17
19
10
6
4
3
2
2
2
1
1
67
1
68
Price
$/Mcf
0
15
17
9
6
4
3
2
2
1
1
1
61
1
61
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.21
7.45
5.23
Company
Daily
Mcf/d
0
2,546
7,063
10,478
11,456
9,702
7,788
6,412
5,399
4,594
3,972
3,473
Net Yearly
MMcf
Price
$/Mcf
0
856
2,350
3,470
3,790
3,209
2,575
2,120
1,785
1,519
1,313
1,148
24,135
9,113
33,249
Company
Daily
bbl/d
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.09
8.55
6.76
0
3
9
13
15
12
10
8
7
6
5
4
Company
Yearly
Mbbl
0
1
3
5
5
5
4
3
3
2
2
2
34
13
47
Net Yearly
Mbbl
0
1
3
4
5
4
3
3
2
2
2
1
31
12
42
Company
Yearly Net Yearly
MMcf
MMcf
0
929
2,578
3,825
4,181
3,541
2,842
2,340
1,971
1,677
1,450
1,267
26,602
10,069
36,671
0
841
2,333
3,461
3,784
3,205
2,572
2,118
1,783
1,517
1,312
1,147
24,075
9,113
33,187
Price
$/Mcf
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.09
8.55
6.77

Company
Daily
bbl/d
Price
$/bbl
0.00
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
84.24
112.97
92.12
Company
Yearly
Mbbl
0
63
74
48
37
27
21
17
13
11
9
8
0
23
27
18
13
10
8
6
5
4
3
3
120
14
134
Net Yearly
Mbbl
0
21
24
16
12
9
7
5
4
4
3
3
109
12
121
Price
$/bbl
0.00
100.56
96.46
92.13
90.31
89.53
90.55
92.33
94.19
96.14
98.16
100.24
94.80
112.84
96.64
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
0
495
1,260
1,799
1,949
1,646
1,320
1,086
914
777
672
587
Company
Yearly
Mboe
0
181
460
657
711
601
482
397
334
284
245
214
4,565
1,692
6,257
Net Yearly
Mboe
0
163
416
594
644
544
436
359
302
257
222
194
4,131
1,531
5,662
Price
$/boe
0.00
34.59
32.23
33.07
35.69
38.72
40.32
41.14
42.03
42.93
43.77
44.63
38.05
51.81
41.77
Total Proved Nonproducing, GLJ (2012-01), pri
February 16, 2012 12:52:20
GLJ
Page: 22 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
Oil
M$
Gas
M$
0
2,197
2,329
1,232
773
528
390
303
244
200
168
144
8,507
89
8,596
6,122
Mineral
Tax
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
Total
M$
0
3,945
12,214
20,091
24,178
22,368
18,741
15,757
13,561
11,791
10,398
9,271
162,316
86,120
248,436
106,937
0
104
277
398
435
368
301
254
219
191
169
151
2,868
1,452
4,320
1,919
Capital
Tax
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,246
14,819
21,722
25,387
23,265
19,431
16,314
14,024
12,182
10,735
9,567
173,691
87,661
261,352
114,978
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
0
6,246
14,819
21,722
25,387
23,265
19,431
16,314
14,024
12,182
10,735
9,567
173,691
87,661
261,352
114,978
Other
M$
0
593
1,408
2,064
2,412
2,210
1,846
1,550
1,332
1,157
1,020
909
16,501
8,328
24,828
10,923
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
0
593
1,408
2,064
2,412
2,210
1,846
1,550
1,332
1,157
1,020
909
16,501
8,328
24,828
10,923
Operating Expenses
Fixed
M$
0
5,653
13,411
19,658
22,975
21,054
17,585
14,764
12,692
11,025
9,715
8,658
157,190
79,333
236,523
104,055
0
64
178
303
390
424
432
441
450
459
468
477
4,086
9,250
13,337
3,412

Other
Income
M$
0
5,301
12,603
18,518
21,682
19,858
16,522
13,795
11,789
10,174
8,902
7,873
147,017
67,295
214,312
96,578
Aband.
Costs
M$
102
325
919
1,785
1,763
1,418
1,170
983
840
723
631
556
11,214
4,822
16,036
7,412
Oper.
Income
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
6,919
6,919
558
Dev.
M$
102
5,626
13,522
20,303
23,446
21,276
17,692
14,778
12,629
10,897
9,533
8,429
158,231
65,198
223,429
103,433
Plant
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Total
M$
0
288
630
838
903
773
630
528
452
392
345
308
6,087
2,788
8,875
4,065
0
352
809
1,140
1,292
1,196
1,063
969
902
851
813
785
10,173
12,039
22,212
7,476

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Annual
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Cum.
M$
102
-7,680
-7,671
-1,579
10,846
18,063
17,692
14,778
12,629
10,897
9,533
8,429
86,038
65,198
151,236
49,417
10.0% Dcf
M$
102
-7,578
-15,250
-16,829
-5,983
12,080
29,772
44,550
57,179
68,076
77,609
86,038
86,038
151,236
151,236
49,417
97
-6,560
-12,605
-13,736
-6,673
4,021
13,543
20,773
26,391
30,797
34,301
37,118
37,118
49,417
49,417
49,417
SUMMARY OF RESERVES
Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Working
Interest
Units
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
87
68
36,671
36,739
38,943
47
134
6,257
Total
Company
0
0
0
0
0
0
0
0
87
68
36,671
36,739
38,943
47
134
6,257
Oil Equivalents
Oil Eq.
Factor
Net
79
61
33,187
33,249
35,244
42
121
5,662
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
87
11
6,112
6,123
0
47
134
6,257
Reserve
Life
1
0
98
98
0
1
2
100
Life
Index
13.0
13.0
39.0
39.0
39.0
39.0
39.0
39.0
Half
Life
4.0
4.0
39.5
38.8
38.8
38.8
5.8
34.6
2.9
2.9
7.2
7.2
7.2
7.2
4.0
7.1

Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
1121357
Units
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Wellhead
Price
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Net Burdens
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Operating
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
0.00
0.00
0.00
0.00
0.00
% of
Total
7,779
321
224,514
224,835
3,909
11,688
236,523
3
0
95
95
2
5
100
10% Disc
M$
5,540
220
96,558
96,778
1,737
7,277
104,055
% of
Total
5
0
93
93
2
7
100
February 16, 2012 12:52:20
GLJ
Page: 23 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
0.0000
0.0000
0.0000
Average
9.5000
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
214,312
136,932
110,054
96,578
85,584
72,482
56,715
Operating
Income
M$
223,429
145,507
117,585
103,433
91,817
77,904
61,074
Capital
Invest.
M$
72,193
62,146
57,069
54,016
51,196
47,357
41,843
Cash Flow
M$
151,236
83,361
60,516
49,417
40,621
30,547
19,232
$/boe
24.17
13.32
9.67
7.90
6.49
4.88
3.07

1121357
February 16, 2012 12:52:20
GLJ
Page: 24 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved
Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
1
1
1
1
1
1
1
1
1
1
Company
Daily
bbl/d
22
26
27
30
32
32
32
32
31
31
31
30
Company
Yearly Net Yearly
Mbbl
Mbbl
0
59
65
35
22
15
11
8
7
5
4
4
0
22
24
13
8
5
4
3
2
2
2
1
86
1
87
0
20
21
12
7
5
4
3
2
2
1
1
78
1
79

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.95
106.15
108.39
98.97
110.67
99.08
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
9,348
10,326
13,522
15,637
15,831
13,550
11,205
9,483
8,172
7,088
6,216
5,473
Company
Yearly
MMcf
0
46
51
27
17
12
9
7
5
4
3
3
0
17
19
10
6
4
3
2
2
2
1
1
67
1
68
Price
$/Mcf
0
15
17
9
6
4
3
2
2
1
1
1
61
1
61
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.21
7.45
5.23
Company
Daily
Mcf/d
Price
$/Mcf
3,224
3,546
4,593
5,276
5,334
4,577
3,770
3,170
2,740
2,383
2,097
1,854
42,565
11,627
54,192
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.77
8.38
6.34
12
13
17
20
20
17
14
12
10
9
8
7
Company
Yearly
Mbbl
4
5
6
7
7
6
5
4
4
3
3
3
59
16
75
Net Yearly
Mbbl
4
5
6
7
7
6
5
4
3
3
3
2
54
15
69
Company
Yearly Net Yearly
MMcf
MMcf
9,348
10,279
13,471
15,609
15,814
13,538
11,197
9,476
8,167
7,083
6,212
5,470
Net Yearly
MMcf
3,412
3,769
4,936
5,707
5,778
4,946
4,090
3,461
2,983
2,587
2,269
1,998
45,936
12,752
58,688
Company
Yearly Net Yearly
MMcf
MMcf
3,412
3,752
4,917
5,697
5,772
4,941
4,087
3,459
2,981
2,585
2,268
1,997
45,868
12,752
58,620
3,224
3,531
4,576
5,267
5,329
4,573
3,767
3,168
2,738
2,382
2,096
1,853
42,504
11,627
54,131
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.77
8.38
6.34

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
84.61
110.27
90.19
Company
Yearly
Mbbl
12
73
82
55
42
32
25
20
17
14
12
11
4
26
30
20
15
12
9
7
6
5
4
4
145
17
162
Net Yearly
Mbbl
4
24
27
18
14
11
8
7
6
5
4
4
132
16
148
Price
$/bbl
86.50
98.65
95.16
90.86
89.14
88.30
89.21
90.89
92.69
94.58
96.56
98.64
93.15
110.28
94.96
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
1,570
1,794
2,336
2,661
2,681
2,291
1,893
1,601
1,379
1,196
1,048
923
Company
Yearly
Mboe
573
655
853
971
978
836
691
584
503
436
383
337
7,801
2,142
9,943
Net Yearly
Mboe
542
615
793
898
903
774
637
535
462
402
354
313
7,226
1,953
9,180
Price
$/boe
21.50
27.99
30.58
32.67
35.50
38.57
40.18
41.00
41.88
42.78
43.62
44.48
35.71
50.75
38.95
Total Proved, GLJ (2012-01), pri
February 16, 2012 12:52:25
GLJ
Page: 25 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
Oil
M$
Gas
M$
0
2,197
2,329
1,232
773
528
390
303
244
200
168
144
8,507
89
8,596
6,122
Mineral
Tax
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
Total
M$
11,943
15,712
23,218
29,904
33,364
31,203
26,935
23,279
20,508
18,175
16,257
14,601
265,101
106,848
371,948
178,468
377
416
526
593
600
514
432
375
331
294
264
239
4,961
1,795
6,756
3,452
Capital
Tax
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
12,320
18,326
26,073
31,729
34,737
32,245
27,757
23,957
21,083
18,669
16,690
14,984
278,568
108,731
387,300
188,041
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
12,320
18,326
26,073
31,729
34,737
32,245
27,757
23,957
21,083
18,669
16,690
14,984
278,568
108,731
387,300
188,041
Other
M$
678
1,161
1,869
2,424
2,683
2,417
2,179
2,016
1,721
1,475
1,264
1,082
20,968
9,670
30,638
14,158
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
678
1,161
1,869
2,424
2,683
2,417
2,179
2,016
1,721
1,475
1,264
1,082
20,968
9,670
30,638
14,158
Operating Expenses
Fixed
M$
11,642
17,164
24,203
29,305
32,054
29,828
25,578
21,941
19,362
17,194
15,426
13,901
257,600
99,061
356,661
173,883
2,766
2,865
2,997
3,131
3,267
3,354
3,412
3,481
3,534
3,592
3,644
3,680
39,723
25,788
65,512
28,481

Other
Income
M$
8,228
13,464
20,113
24,958
27,557
25,408
21,269
17,688
15,151
13,004
11,248
9,742
207,831
69,815
277,645
138,477
Aband.
Costs
M$
1,493
1,450
1,886
2,745
2,658
2,187
1,846
1,584
1,380
1,195
1,058
944
20,423
6,782
27,205
14,056
Oper.
Income
M$
0
510
390
0
0
138
0
144
146
0
305
311
1,944
11,473
13,417
2,775
Dev.
M$
9,721
14,404
21,609
27,703
30,216
27,457
23,116
19,128
16,385
14,198
12,000
10,374
226,310
65,124
291,433
149,758
Plant
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Total
M$
648
835
1,093
1,215
1,230
1,066
896
772
677
598
535
480
10,046
3,458
13,504
6,925
3,414
3,701
4,090
4,347
4,497
4,420
4,309
4,252
4,211
4,191
4,178
4,160
49,770
29,246
79,016
35,406

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Annual
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Cum.
M$
9,721
1,098
416
5,821
17,616
24,244
23,116
19,128
16,385
14,198
12,000
10,374
154,116
65,124
219,240
95,742
10.0% Dcf
M$
9,721
10,818
11,234
17,055
34,671
58,915
82,031
101,159
117,543
131,742
143,742
154,116
154,116
219,240
219,240
95,742
9,268
10,220
10,547
14,717
26,189
40,542
52,983
62,342
69,630
75,371
79,783
83,250
83,250
95,742
95,742
95,742
SUMMARY OF RESERVES
Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Working
Interest
Units
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
87
68
58,620
58,688
62,209
75
162
9,943
Total
Company
0
0
0
0
0
0
0
0
87
68
58,620
58,688
62,209
75
162
9,943
Oil Equivalents
Oil Eq.
Factor
Net
79
61
54,131
54,192
57,444
69
148
9,180
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
87
11
9,770
9,781
0
75
162
9,943
Reserve
Life
1
0
98
98
0
1
2
100
Life
Index
13.0
13.0
39.0
39.0
39.0
39.0
39.0
39.0
Half
Life
4.0
4.0
17.2
17.2
17.2
17.2
37.1
17.4
2.9
2.9
6.2
6.2
6.2
6.2
4.0
6.2

Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
1121357
Units
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
3.29
3.29
107.14
107.14
20.42
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Wellhead
Price
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Net Burdens
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Operating
Expenses
0.00
0.00
1.00
1.00
0.00
0.00
5.96

Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
2.31
2.31
81.75
81.75
14.36
% of
Total
7,779
321
342,329
342,650
6,232
14,011
356,661
2
0
96
96
2
4
100
10% Disc
M$
5,540
220
164,923
165,143
3,200
8,740
173,883
% of
Total
3
0
95
95
2
5
100
February 16, 2012 12:52:25
GLJ
Page: 26 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
7.9108
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
277,645
187,571
155,087
138,477
124,738
108,116
87,701
Operating
Income
M$
291,433
200,901
167,198
149,758
135,233
117,549
95,676
Capital
Invest.
M$
72,193
62,146
57,069
54,016
51,196
47,357
41,843
Cash Flow
M$
219,240
138,756
110,128
95,742
84,037
70,192
53,834
$/boe
22.05
13.96
11.08
9.63
8.45
7.06
5.41

1121357
February 16, 2012 12:52:25
GLJ
Page: 27 of 102
PROBABLE AND PROVED PLUS PROBABLE RESERVES

TABLE OF CONTENTS
Page
28
29
ECONOMIC FORECASTS
Total Probable
30
33
March 13, 2012 15:51:06
GLJ
Page: 28 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Total
Proved
Plus
Probable
Total
Probable
MARKETABLE RESERVES
Working Interest
Net After Royalty
Gas (MMcf)
Working Interest
Net After Royalty
Working Interest
Net After Royalty
Working Interest
Net After Royalty
0%
5%
8%
10%
12%
15%
20%
2012
2013
2014
2015
2016
2017
BOE Factors:
HVY OIL 1.0

COND
1.0
RES GAS 6.0

SLN GAS 6.0
PROPANE 1.0
BUTANE 1.0
434
434
393
521
521
471
43,967
43,967
39,955
102,654
102,654
94,147
56
56
51
131
131
120
7,818
7,818
7,103
17,761
17,761
16,282
244,854
127,138
91,823
75,405
62,717
48,508
32,905
464,094
265,894
201,951
171,147
146,754
118,701
86,738
385
-229
-5,717
7,094
-798
18,905
10,106
869
-5,301
12,915
16,818
43,149
ETHANE 1.0
SULPHUR 0.0
1121357
Class (F,I), GLJ (2012-01), psum
February 16, 2012 12:52:27
GLJ
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Gas
Mcf/d
Entity Description
Oil
bbl/d
NGL
bbl/d
Oil Eq.
boe/d
Gas
MMcf
Oil
Mbbl
NGL
Mbbl
Sulphur Oil Eq.

Mlt
Mboe
Gas
MMcf
Oil
Mbbl
NGL
Mbbl
Reserve
Life
Mlt
Mboe
yrs
Before Income Tax

0%
8%
10%
12%
Total Probable
McCully
204
34
43,967
434
56
7,818
39,955
393
51
7,103
624.3
244,854
91,823
75,405
62,717
Total: Total Probable
204
34
43,967
434
56
7,818
39,955
393
51
7,103
624.3
244,854
91,823
75,405
62,717

McCully
9,553
12
1,604 102,654
521
131
17,761
94,147
471
120
16,282
30.3
464,094
201,951
171,147
146,754
Total: Total Proved Plus Probable
9,553
12
1,604 102,654
521
131
17,761
94,147
471
120
16,282
30.3
464,094
201,951
171,147
146,754
1121357
HVY OIL
COND
1.0
1.0
RES GAS
SLN GAS
6.0
6.0
PROPANE
BUTANE
1.0
1.0
ETHANE
SULPHUR
1.0
0.0
Class (F,I), GLJ (2012-01), crv
February 16, 2012 12:52:28
GLJ
Page: 29 of 102
BOE Factors:
Page: 30 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Probable
Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
0
2
2
2
2
2
2
2
2
2
2
Company
Daily
bbl/d
0
0
3
4
7
8
8
8
8
9
8
9
Company
Yearly Net Yearly
Mbbl
Mbbl
0
114
273
265
156
97
67
49
37
29
24
20
0
41
100
97
57
35
24
18
14
11
9
7
412
21
434
0
38
90
88
52
32
22
16
12
10
8
6
373
19
393

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.96
106.15
108.39
98.27
113.83
99.04
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
204
926
2,384
4,826
10,233
10,622
8,977
7,680
6,699
5,891
5,256
4,742
Company
Yearly
MMcf
75
338
870
1,762
3,735
3,877
3,277
2,803
2,445
2,150
1,919
1,731
24,981
18,985
43,967
Company
Yearly Net Yearly
MMcf
MMcf
0
89
213
208
122
76
52
38
29
23
18
15
0
32
78
76
45
28
19
14
11
8
7
6
323
17
339
Price
$/Mcf
0
29
70
69
40
25
17
13
10
8
6
5
292
15
307
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.49
7.66
5.59
Company
Daily
Mcf/d
204
837
2,171
4,618
10,111
10,546
8,925
7,642
6,670
5,868
5,238
4,727
Net Yearly
MMcf
Price
$/Mcf
70
315
799
1,608
3,396
3,526
2,979
2,545
2,222
1,957
1,749
1,582
22,749
17,206
39,955
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.40
8.96
7.50
0
1
3
6
13
14
11
10
9
8
7
6
Company
Yearly
Mbbl
0
0
1
2
5
5
4
4
3
3
2
2
32
24
56
Net Yearly
Mbbl
0
0
1
2
4
5
4
3
3
2
2
2
29
22
51
Company
Yearly Net Yearly
MMcf
MMcf
75
306
792
1,686
3,691
3,849
3,258
2,789
2,435
2,142
1,912
1,725
24,659
18,969
43,627
70
286
728
1,539
3,356
3,501
2,962
2,532
2,213
1,949
1,743
1,577
22,457
17,191
39,648
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.41
8.96
7.52

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.12
91.31
93.55
84.93
119.29
99.77
Company
Yearly
Mbbl
0
115
276
272
169
111
78
58
46
37
30
26
0
42
101
99
62
40
28
21
17
13
11
9
444
46
490
Net Yearly
Mbbl
0
38
91
90
56
37
26
19
15
12
10
8
402
41
444
Price
$/bbl
86.50
101.19
98.12
95.90
95.10
94.42
95.44
97.20
99.03
100.92
102.87
104.88
97.32
116.73
99.12
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
34
269
673
1,076
1,875
1,881
1,574
1,338
1,162
1,019
906
816
Company
Yearly
Mboe
13
98
246
393
684
687
575
488
424
372
331
298
4,608
3,210
7,818
Net Yearly
Mboe
12
90
224
358
622
624
522
443
386
338
302
272
4,194
2,909
7,103
Price
$/boe
21.50
57.51
56.86
47.71
40.10
41.18
42.29
42.83
43.52
44.27
45.00
45.76
44.06
54.63
48.40
Total Probable, GLJ (2012-01), pri
February 16, 2012 12:52:34
GLJ
Page: 31 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
Oil
M$
Gas
M$
0
4,204
9,786
9,324
5,491
3,410
2,372
1,768
1,381
1,108
916
772
40,531
2,429
42,960
28,079
261
1,409
4,094
9,230
21,566
24,460
21,580
18,853
16,811
15,107
13,747
12,651
159,768
170,045
329,813
108,969
8
37
93
183
388
403
346
304
271
245
224
207
2,708
2,891
5,599
1,867
Capital
Tax
M$
NPI
Burden
M$
Mineral
Tax
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
269
5,650
13,972
18,737
27,445
28,272
24,298
20,924
18,463
16,460
14,886
13,630
203,008
175,365
378,373
138,916
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
269
5,650
13,972
18,737
27,445
28,272
24,298
20,924
18,463
16,460
14,886
13,630
203,008
175,365
378,373
138,916
Other
M$
15
498
1,273
1,708
2,515
2,572
2,216
1,932
1,688
1,486
1,319
1,179
18,401
16,487
34,888
12,657
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
15
498
1,273
1,708
2,515
2,572
2,216
1,932
1,688
1,486
1,319
1,179
18,401
16,487
34,888
12,657
Operating Expenses
Fixed
M$
254
5,152
12,700
17,029
24,930
25,700
22,082
18,992
16,775
14,975
13,567
12,450
184,607
158,878
343,485
126,259
0
20
47
119
195
257
270
264
283
301
313
345
2,414
26,981
29,395
4,790

Other
Income
M$
240
4,866
11,989
16,066
23,674
24,444
20,980
18,020
15,872
14,125
12,760
11,655
174,691
126,268
300,959
116,333
Aband.
Costs
M$
145
331
590
690
727
749
726
692
657
630
595
545
7,076
7,759
14,835
5,047
Oper.
Income
M$
0
-510
130
398
0
-138
0
0
-146
149
-305
-155
-577
6,526
5,949
-336
Dev.
M$
385
5,707
12,448
16,358
24,401
25,331
21,706
18,712
16,675
14,606
13,659
12,355
182,343
127,501
309,845
121,716
Plant
M$
0
5,936
18,165
9,264
25,199
6,426
0
0
0
0
0
0
64,991
0
64,991
46,311
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Total
M$
14
267
664
844
1,062
999
831
709
620
549
494
451
7,502
5,628
13,130
5,136
14
286
711
963
1,257
1,256
1,101
972
903
850
807
796
9,917
32,609
42,526
9,927

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Annual
M$
0
5,936
18,165
9,264
25,199
6,426
0
0
0
0
0
0
64,991
0
64,991
46,311
Cum.
M$
385
-229
-5,717
7,094
-798
18,905
21,706
18,712
16,675
14,606
13,659
12,355
117,352
127,501
244,854
75,405
10.0% Dcf
M$
385
156
-5,561
1,533
734
19,639
41,346
60,058
76,733
91,338
104,997
117,352
117,352
244,854
244,854
75,405
367
168
-4,337
745
225
11,417
23,100
32,255
39,672
45,578
50,599
54,728
54,728
75,405
75,405
75,405
SUMMARY OF RESERVES
Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Working
Interest
Units
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
434
339
43,627
43,967
46,605
56
490
7,818
Total
Company
0
0
0
0
0
0
0
0
434
339
43,627
43,967
46,605
56
490
7,818
Oil Equivalents
Oil Eq.
Factor
Net
393
307
39,648
39,955
42,352
51
444
7,103
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
434
57
7,271
7,328
0
56
490
7,818
Reserve
Life
6
1
93
94
0
1
6
100
Life
Index
17.0
17.0
43.0
43.0
43.0
43.0
43.0
43.0
Half
Life
10.5
10.5
585.1
589.6
589.6
589.6
999.9
624.3
3.8
3.8
10.4
10.3
10.3
10.3
4.1
9.8

Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
1121357
Units
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
3.29
3.29
107.14
107.14
20.42
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Wellhead
Price
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Net Burdens
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Operating
Expenses
0.00
0.00
0.19
0.19
0.00
0.00
1.13

Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
3.12
3.12
81.75
81.75
19.18
% of
Total
38,879
1,718
297,803
299,520
5,085
43,964
343,485
11
1
87
87
1
13
100
10% Disc
M$
25,412
1,083
98,065
99,148
1,700
27,112
126,259
% of
Total
20
1
78
79
1
21
100
February 16, 2012 12:52:34
GLJ
Page: 32 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
9.2205
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
300,959
174,186
135,059
116,333
101,477
84,255
64,220
Operating
Income
M$
309,845
181,690
141,205
121,716
106,218
88,225
67,281
Capital
Invest.
M$
64,991
54,552
49,383
46,311
43,500
39,717
34,377
Cash Flow
M$
244,854
127,138
91,823
75,405
62,717
48,508
32,905
$/boe
31.32
16.26
11.75
9.65
8.02
6.21
4.21

1121357
February 16, 2012 12:52:34
GLJ
Page: 33 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved Plus Probable

Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
3
3
3
3
3
3
3
3
3
3
Company
Daily
bbl/d
22
26
31
34
38
40
40
40
39
39
39
39
Company
Yearly Net Yearly
Mbbl
Mbbl
0
173
338
301
178
112
78
57
44
34
28
23
0
63
123
110
65
41
28
21
16
13
10
8
498
22
521
0
57
112
99
59
37
26
19
14
11
9
8
451
20
471

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.95
106.15
108.39
98.40
113.71
99.05
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
9,553
11,252
15,906
20,463
26,065
24,172
20,183
17,162
14,871
12,979
11,472
10,216
Company
Yearly
MMcf
3,487
4,107
5,806
7,469
9,514
8,823
7,367
6,264
5,428
4,737
4,187
3,729
70,917
31,738
102,654
Company
Yearly Net Yearly
MMcf
MMcf
0
135
264
235
139
88
61
45
34
27
22
18
0
49
96
86
51
32
22
16
12
10
8
7
390
17
407
Price
$/Mcf
0
45
87
78
46
29
20
15
11
9
7
6
353
16
368
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.44
7.65
5.53
Company
Daily
Mcf/d
9,553
11,117
15,642
20,228
25,925
24,084
20,122
17,118
14,837
12,952
11,450
10,198
Net Yearly
MMcf
Price
$/Mcf
3,295
3,861
5,392
6,883
8,730
8,103
6,749
5,715
4,962
4,340
3,847
3,436
65,314
28,833
94,147
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.99
8.72
6.84
12
14
20
26
33
31
26
22
19
17
15
13
Company
Yearly
Mbbl
4
5
7
10
12
11
9
8
7
6
5
5
91
41
131
Net Yearly
Mbbl
4
5
7
9
11
10
9
7
6
6
5
4
83
37
120
Company
Yearly Net Yearly
MMcf
MMcf
3,487
4,058
5,709
7,383
9,463
8,791
7,345
6,248
5,416
4,727
4,179
3,722
70,527
31,720
102,247
3,295
3,817
5,305
6,806
8,684
8,074
6,729
5,701
4,951
4,331
3,839
3,430
64,962
28,817
93,779
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.99
8.73
6.84

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.12
91.31
93.55
84.73
115.67
94.29
Company
Yearly
Mbbl
12
187
358
327
212
143
103
79
63
51
43
36
4
68
131
119
77
52
38
29
23
19
16
13
589
63
652
Net Yearly
Mbbl
4
62
118
108
70
47
34
26
21
17
14
12
534
57
591
Price
$/bbl
86.50
100.20
97.44
95.05
93.91
93.04
93.92
95.56
97.31
99.14
101.05
103.04
96.29
114.98
98.09
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
1,604
2,063
3,009
3,737
4,556
4,172
3,467
2,939
2,541
2,214
1,955
1,739
Company
Yearly
Mboe
586
753
1,098
1,364
1,663
1,523
1,265
1,073
928
808
713
635
12,408
5,352
17,761
Net Yearly
Mboe
553
706
1,017
1,255
1,525
1,398
1,159
979
848
740
655
585
11,420
4,862
16,282
Price
$/boe
21.50
31.85
36.46
37.00
37.40
39.75
41.14
41.83
42.63
43.47
44.26
45.08
38.81
53.08
43.11
Total Proved Plus Probable, GLJ (2012-01), pri
February 16, 2012 12:52:40
GLJ
Page: 34 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
Oil
M$
Gas
M$
0
6,401
12,115
10,556
6,264
3,937
2,762
2,071
1,624
1,308
1,084
916
49,038
2,518
51,556
34,201
12,204
17,122
27,312
39,134
54,930
55,663
48,515
42,132
37,319
33,282
30,005
27,252
424,869
276,893
701,762
287,437
385
453
618
776
988
917
778
678
602
539
488
445
7,669
4,686
12,355
5,319
12,589
23,976
40,045
50,466
62,182
60,517
52,055
44,881
39,546
35,130
31,577
28,613
481,576
284,096
765,672
326,957
Capital
Tax
M$
NPI
Burden
M$
Net
Prod'n
Revenue
M$
Mineral
Tax
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
12,589
23,976
40,045
50,466
62,182
60,517
52,055
44,881
39,546
35,130
31,577
28,613
481,576
284,096
765,672
326,957
Other
M$
692
1,659
3,142
4,132
5,198
4,989
4,395
3,948
3,408
2,961
2,583
2,262
39,369
26,157
65,526
26,815
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
692
1,659
3,142
4,132
5,198
4,989
4,395
3,948
3,408
2,961
2,583
2,262
39,369
26,157
65,526
26,815
Operating Expenses
Fixed
M$
11,897
22,317
36,903
46,334
56,984
55,528
47,660
40,933
36,137
32,169
28,993
26,352
442,207
257,939
700,146
300,142
2,766
2,885
3,044
3,251
3,462
3,610
3,683
3,744
3,817
3,894
3,957
4,025
42,137
52,770
94,907
33,272

Other
Income
M$
8,468
18,330
32,102
41,025
51,231
49,852
42,250
35,708
31,023
27,128
24,007
21,396
382,521
196,083
578,604
254,810
Aband.
Costs
M$
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
19,103
Oper.
Income
M$
0
0
520
398
0
0
0
144
0
149
0
155
1,367
17,999
19,366
2,439
Dev.
M$
10,106
20,111
34,057
44,061
54,616
52,788
44,822
37,840
33,060
28,804
25,659
22,729
408,653
192,625
601,278
271,474
Plant
M$
0
19,242
39,358
31,146
37,799
9,639
0
0
0
0
0
0
137,184
0
137,184
100,326
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
662
1,102
1,757
2,059
2,291
2,065
1,728
1,481
1,297
1,147
1,029
931
17,549
9,086
26,635
12,061
3,428
3,987
4,801
5,310
5,753
5,676
5,410
5,225
5,114
5,041
4,986
4,956
59,686
61,856
121,542
45,333

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
0
19,242
39,358
31,146
37,799
9,639
0
0
0
0
0
0
137,184
0
137,184
100,326
Cum.
M$
10,106
869
-5,301
12,915
16,818
43,149
44,822
37,840
33,060
28,804
25,659
22,729
271,469
192,625
464,094
171,147
10.0% Dcf
M$
10,106
10,974
5,673
18,588
35,405
78,554
123,376
161,216
194,276
223,080
248,739
271,469
271,469
464,094
464,094
171,147
9,635
10,388
6,211
15,462
26,414
51,960
76,083
94,597
109,302
120,950
130,382
137,978
137,978
171,147
171,147
171,147
SUMMARY OF RESERVES
Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Working
Interest
Units
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
521
407
102,247
102,654
108,814
131
652
17,761
Total
Company
0
0
0
0
0
0
0
0
521
407
102,247
102,654
108,814
131
652
17,761
Oil Equivalents
Oil Eq.
Factor
Net
471
368
93,779
94,147
99,796
120
591
16,282
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
521
68
17,041
17,109
0
131
652
17,761
Reserve
Life
3
0
96
96
0
1
4
100
Life
Index
17.0
17.0
43.0
43.0
43.0
43.0
43.0
43.0
Half
Life
8.2
8.2
29.3
29.4
29.4
29.4
146.4
30.3
3.7
3.7
7.8
7.8
7.8
7.8
4.0
7.6

Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
1121357
Units
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe

0.00
0.00
3.29
3.29
107.14
107.14
20.42
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Wellhead
Price
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Net Burdens
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Operating
Expenses
0.00
0.00
0.98
0.98
0.00
0.00
5.85

Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
2.32
2.32
81.75
81.75
14.46
% of
Total
46,658
2,039
640,132
642,170
11,317
57,976
700,146
7
0
91
92
2
8
100
10% Disc
M$
30,952
1,303
262,988
264,290
4,900
35,852
300,142
% of
Total
10
0
88
88
2
12
100
February 16, 2012 12:52:40
GLJ
Page: 35 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
8.5580
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
578,604
361,757
290,146
254,810
226,215
192,371
151,920
Operating
Income
M$
601,278
382,591
308,403
271,474
241,451
205,774
162,958
Capital
Invest.
M$
137,184
116,698
106,452
100,326
94,696
87,073
76,219
Cash Flow
M$
464,094
265,894
201,951
171,147
146,754
118,701
86,738
$/boe
26.13
14.97
11.37
9.64
8.26
6.68
4.88

1121357
February 16, 2012 12:52:40
GLJ
Page: 36 of 102
POSSIBLE AND PROVED PLUS PROBABLE PLUS POSSIBLE RESERVES

TABLE OF CONTENTS
Page
37
38
ECONOMIC FORECASTS
Total Possible
Total PPP
39
42
March 13, 2012 15:51:06
GLJ
Page: 37 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Total
Possible
MARKETABLE RESERVES
Working Interest
Net After Royalty
Gas (MMcf)
Working Interest
Net After Royalty
Working Interest
Net After Royalty
Working Interest
Net After Royalty
0%
5%
8%
10%
12%
15%
20%
2012
2013
2014
2015
2016
2017
BOE Factors:
HVY OIL 1.0

COND
1.0
RES GAS 6.0

SLN GAS 6.0
PROPANE 1.0
BUTANE 1.0
Total
PPP
174
174
157
694
694
628
114,078
114,078
103,411
216,732
216,732
197,558
146
146
132
277
277
252
19,332
19,332
17,524
37,093
37,093
33,807
752,914
327,821
224,561
180,341
147,758
112,865
76,414
1,217,007
593,714
426,512
351,488
294,512
231,566
163,152
557
2,706
4,500
10,151
8,496
19,045
10,663
3,575
-801
23,066
25,314
62,194
ETHANE 1.0
SULPHUR 0.0
1121357
Class (O,R), GLJ (2012-01), psum
February 16, 2012 12:52:42
GLJ
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Gas
Mcf/d
Entity Description
Oil
bbl/d
NGL
bbl/d
Oil Eq.
boe/d
Gas
MMcf
Oil
Mbbl
NGL
Mbbl
Sulphur Oil Eq.

Mlt
Mboe
Gas
MMcf
Oil
Mbbl
NGL
Mbbl
Reserve
Life
Mlt
Mboe
yrs
0%
8%
10%
12%
999.9
752,914
224,561
180,341
147,758
999.9
752,914
224,561
180,341
147,758
33,807
62.1 1,217,007
426,512
351,488
294,512
33,807
62.1 1,217,007
426,512
351,488
294,512
Total Possible
McCully
190
32 114,078
174
146
19,332 103,411
157
132
17,524
Total: Total Possible
190
32 114,078
174
146
19,332 103,411
157
132
17,524
Total PPP
McCully
9,743
12
1,636 216,732
694
277
37,093 197,558
628
252
Total: Total PPP
9,743
12
1,636 216,732
694
277
37,093 197,558
628
252
1121357
HVY OIL
COND
1.0
1.0
RES GAS
SLN GAS
6.0
6.0
PROPANE
BUTANE
1.0
1.0
ETHANE
SULPHUR
1.0
0.0
Class (O,R), GLJ (2012-01), crv
February 16, 2012 12:52:44
GLJ
Page: 38 of 102
BOE Factors:
Before Income Tax

Page: 39 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
Possible
Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
1
1
1
1
1
1
1
1
1
1
Company
Daily
bbl/d
0
1
1
4
5
8
10
11
12
12
12
12
Company
Yearly Net Yearly
Mbbl
Mbbl
0
11
47
65
59
46
36
29
24
19
16
14
0
4
17
24
22
17
13
11
9
7
6
5
134
40
174
0
4
15
21
20
15
12
10
8
6
5
5
121
36
157

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.96
106.15
108.39
98.73
120.28
103.65
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
190
1,718
5,394
8,227
10,624
15,368
19,777
19,670
17,210
15,128
13,536
12,250
Company
Yearly
MMcf
69
627
1,969
3,003
3,878
5,609
7,219
7,179
6,282
5,522
4,941
4,471
50,768
63,310
114,078
Company
Yearly Net Yearly
MMcf
MMcf
0
8
37
51
46
36
28
23
18
15
13
11
0
3
13
19
17
13
10
8
7
6
5
4
105
31
136
Price
$/Mcf
0
3
12
17
15
12
9
7
6
5
4
4
95
28
123
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.98
8.07
6.46
Company
Daily
Mcf/d
190
1,709
5,357
8,176
10,578
15,331
19,748
19,647
17,192
15,113
13,523
12,239
Net Yearly
MMcf
Price
$/Mcf
66
576
1,794
2,732
3,528
5,096
6,548
6,507
5,697
5,010
4,487
4,064
46,104
57,307
103,411
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.53
9.74
8.31
0
2
7
11
14
20
25
25
22
19
17
16
Company
Yearly
Mbbl
0
1
3
4
5
7
9
9
8
7
6
6
65
81
146
Net Yearly
Mbbl
0
1
2
3
5
7
8
8
7
6
6
5
59
73
132
Company
Yearly Net Yearly
MMcf
MMcf
69
624
1,955
2,984
3,861
5,596
7,208
7,171
6,275
5,516
4,936
4,467
50,664
63,279
113,942
66
573
1,782
2,715
3,513
5,084
6,539
6,500
5,690
5,005
4,482
4,061
46,010
57,278
103,288
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.53
9.75
8.32

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
85.79
131.60
111.21
Company
Yearly
Mbbl
0
13
54
75
73
66
62
54
46
39
34
30
0
5
20
28
27
24
22
20
17
14
12
11
199
120
319
Net Yearly
Mbbl
0
4
18
25
24
22
20
18
15
13
11
10
180
109
289
Price
$/bbl
86.50
98.82
96.38
94.17
93.47
91.83
91.54
92.81
94.65
96.57
98.53
100.54
94.51
127.88
107.10
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
32
299
953
1,446
1,843
2,627
3,358
3,332
2,914
2,560
2,290
2,071
Company
Yearly
Mboe
12
109
348
528
673
959
1,226
1,216
1,064
934
836
756
8,660
10,672
19,332
Net Yearly
Mboe
11
100
317
480
612
871
1,112
1,102
964
848
759
687
7,864
9,660
17,524
Price
$/boe
21.50
28.19
32.07
34.71
36.96
39.21
40.47
41.21
42.09
42.98
43.81
44.66
40.45
59.25
50.83
Total Possible, GLJ (2012-01), pri
February 16, 2012 12:52:50
GLJ
Page: 40 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
Oil
M$
Gas
M$
0
396
1,682
2,278
2,077
1,631
1,297
1,056
878
739
634
550
13,218
4,766
17,984
8,948
243
2,614
9,261
15,733
22,389
35,389
47,540
48,286
43,188
38,795
35,403
32,680
331,521
616,909
948,430
235,548
8
69
210
312
403
583
763
778
697
628
576
534
5,559
10,634
16,194
4,002
251
3,079
11,153
18,323
24,869
37,602
49,599
50,120
44,764
40,162
36,613
33,764
350,299
632,309
982,608
248,499
Capital
Tax
M$
NPI
Burden
M$
Net
Prod'n
Revenue
M$
Mineral
Tax
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
251
3,079
11,153
18,323
24,869
37,602
49,599
50,120
44,764
40,162
36,613
33,764
350,299
632,309
982,608
248,499
Other
M$
14
257
999
1,666
2,252
3,444
4,610
4,695
4,172
3,722
3,368
3,075
32,274
60,027
92,301
23,016
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
14
257
999
1,666
2,252
3,444
4,610
4,695
4,172
3,722
3,368
3,075
32,274
60,027
92,301
23,016
Operating Expenses
Fixed
M$
237
2,822
10,154
16,657
22,618
34,159
44,989
45,425
40,591
36,440
33,245
30,689
318,026
572,282
890,308
225,483
0
25
99
116
136
192
260
339
351
359
380
399
2,656
58,045
60,701
5,825

Other
Income
M$
224
2,657
9,581
15,817
21,573
32,701
43,113
43,461
38,794
34,787
31,686
29,203
303,597
494,038
797,635
211,316
Aband.
Costs
M$
334
356
454
643
1,882
2,822
3,010
2,516
2,125
1,825
1,609
1,453
19,028
19,909
38,936
12,681
Oper.
Income
M$
0
0
-520
133
0
414
0
-144
0
-149
0
-155
-422
10,829
10,407
-545
Dev.
M$
557
3,012
10,555
16,327
23,455
35,109
46,124
46,120
40,919
36,762
33,295
30,812
323,047
503,118
826,165
224,543
Plant
M$
0
306
6,055
6,176
14,959
16,064
19,663
10,028
0
0
0
0
73,251
0
73,251
44,202
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Total
M$
13
140
474
725
908
1,266
1,616
1,625
1,446
1,294
1,179
1,086
11,772
20,199
31,971
8,342
13
165
572
840
1,045
1,457
1,876
1,964
1,798
1,653
1,559
1,485
14,429
78,244
92,672
14,167

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Annual
M$
0
306
6,055
6,176
14,959
16,064
19,663
10,028
0
0
0
0
73,251
0
73,251
44,202
Cum.
M$
557
2,706
4,500
10,151
8,496
19,045
26,461
36,092
40,919
36,762
33,295
30,812
249,796
503,118
752,914
180,341
10.0% Dcf
M$
557
3,264
7,764
17,915
26,411
45,456
71,916
108,009
148,928
185,689
218,984
249,796
249,796
752,914
752,914
180,341
531
2,877
6,423
13,695
19,228
30,503
44,744
62,403
80,604
95,469
107,708
118,005
118,005
180,341
180,341
180,341
SUMMARY OF RESERVES
Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Working
Interest
Units
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
174
136
113,942
114,078
120,922
146
319
19,332
Total
Company
0
0
0
0
0
0
0
0
174
136
113,942
114,078
120,922
146
319
19,332
Oil Equivalents
Oil Eq.
Factor
Net
157
123
103,288
103,411
109,615
132
289
17,524
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
174
23
18,990
19,013
0
146
319
19,332
Reserve
Life
1
0
98
98
0
1
2
100
Life
Index
22.0
22.0
50.0
50.0
50.0
50.0
50.0
50.0
Half
Life
44.4
44.4
999.9
999.9
999.9
999.9
999.9
999.9
6.3
6.3
13.6
13.6
13.6
13.6
8.9
13.5

Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
1121357
Units
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
3.29
3.29
107.14
107.14
20.42
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Wellhead
Price
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Net Burdens
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Operating
Expenses
0.00
0.00
0.19
0.19
0.00
0.00
1.13

Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
3.12
3.12
81.75
81.75
19.18
% of
Total
16,276
793
858,566
859,359
14,673
30,949
890,308
2
0
96
97
2
3
100
10% Disc
M$
8,098
379
213,374
213,752
3,632
11,730
225,483
% of
Total
4
0
95
95
2
5
100
February 16, 2012 12:52:50
GLJ
Page: 41 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
9.3934
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
797,635
363,900
257,590
211,316
176,697
138,874
98,071
Operating
Income
M$
826,165
384,239
273,201
224,543
188,027
148,035
104,792
Capital
Invest.
M$
73,251
56,418
48,640
44,202
40,269
35,170
28,379
Cash Flow
M$
752,914
327,821
224,561
180,341
147,758
112,865
76,414
$/boe
38.95
16.96
11.62
9.33
7.64
5.84
3.95

1121357
February 16, 2012 12:52:50
GLJ
Page: 42 of 102
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:
PPP
Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
2
4
4
4
4
4
4
4
4
4
4
Company
Daily
bbl/d
22
27
32
38
43
47
49
51
51
51
51
51
Company
Yearly Net Yearly
Mbbl
Mbbl
0
184
385
365
237
159
114
86
67
54
44
37
0
67
140
133
87
58
42
31
25
20
16
14
632
62
694
0
61
127
121
78
52
38
28
22
18
15
12
572
56
628

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.96
106.15
108.39
98.47
117.93
100.20
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
9,743
12,970
21,300
28,689
36,688
39,539
39,959
36,832
32,082
28,107
25,008
22,466
Company
Yearly
MMcf
0
144
301
286
186
124
89
67
53
42
35
29
0
52
110
104
68
45
33
25
19
15
13
11
494
48
543
Price
$/Mcf
0
47
99
94
61
41
29
22
17
14
11
10
447
44
491
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.55
7.92
5.76
Company
Daily
Mcf/d
9,743
12,826
20,999
28,404
36,503
39,415
39,870
36,765
32,029
28,065
24,974
22,437
Net Yearly
MMcf
3,556
4,734
7,774
10,472
13,391
14,432
14,585
13,444
11,710
10,259
9,128
8,200
121,685
95,047
216,732
Company
Yearly Net Yearly
MMcf
MMcf
Price
$/Mcf
3,361
4,437
7,186
9,615
12,259
13,199
13,297
12,222
10,659
9,350
8,333
7,500
111,419
86,140
197,558
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.22
9.40
7.61
12
17
27
37
47
50
51
47
41
36
32
29
Company
Yearly
Mbbl
5
6
10
13
17
18
19
17
15
13
12
10
155
121
277
Net Yearly
Mbbl
4
6
9
12
16
17
17
16
14
12
11
10
142
110
252
Company
Yearly Net Yearly
MMcf
MMcf
3,556
4,682
7,665
10,367
13,323
14,387
14,553
13,419
11,691
10,244
9,115
8,190
121,191
94,999
216,189
3,361
4,390
7,087
9,520
12,197
13,158
13,268
12,200
10,641
9,336
8,322
7,491
110,971
86,096
197,067
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.22
9.40
7.62

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
85.17
126.28
103.20
Company
Yearly
Mbbl
12
200
412
402
284
209
165
133
108
90
76
66
5
73
150
147
104
76
60
49
40
33
28
24
788
183
971
Net Yearly
Mbbl
4
66
136
133
94
69
55
44
36
30
25
22
714
166
880
Price
$/bbl
86.50
100.12
97.30
94.89
93.80
92.66
93.03
94.44
96.19
98.03
99.94
101.92
95.84
123.46
101.05
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
1,636
2,362
3,962
5,184
6,399
6,799
6,825
6,272
5,455
4,774
4,244
3,810
Company
Yearly
Mboe
597
862
1,446
1,892
2,336
2,482
2,491
2,289
1,991
1,743
1,549
1,391
21,068
16,024
37,093
Net Yearly
Mboe
564
806
1,334
1,735
2,137
2,269
2,271
2,081
1,812
1,588
1,414
1,272
19,284
14,522
33,807
Price
$/boe
21.50
31.38
35.41
36.36
37.27
39.54
40.81
41.50
42.34
43.21
44.02
44.85
39.48
57.19
47.13
Total PPP, GLJ (2012-01), pri
February 16, 2012 12:52:55
GLJ
Page: 43 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
Oil
M$
Gas
M$
NGL+Sul
M$
0
12,447
6,797
19,736
13,797
36,573
12,834
54,867
8,342
77,319
5,568
91,052
4,059
96,055
3,127
90,418
2,502
80,507
2,047
72,077
1,717
65,408
1,467
59,932
62,257 756,390
7,284 893,802
69,541 1,650,192
43,149 522,986
Mineral
Tax
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Total
M$
393
12,839
523
27,055
828
51,198
1,088
68,789
1,391
87,052
1,499
98,120
1,541 101,654
1,456
95,001
1,300
84,309
1,167
75,292
1,064
68,189
979
62,378
13,229 831,875
15,320 916,405
28,548 1,748,281
9,321 575,456
Capital
Tax
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Company
Interest Interest
Total
Total
M$
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
0
12,839
0
27,055
0
51,198
0
68,789
0
87,052
0
98,120
0 101,654
0
95,001
0
84,309
0
75,292
0
68,189
0
62,378
0 831,875
0 916,405
0 1,748,281
0 575,456
Net
Prod'n
Revenue
M$
Other
M$
706
1,916
4,141
5,797
7,449
8,433
9,005
8,643
7,580
6,683
5,951
5,337
71,643
86,184
157,827
49,831
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
706
12,133
1,916
25,139
4,141
47,057
5,797
62,992
7,449
79,602
8,433
89,687
9,005
92,649
8,643
86,358
7,580
76,729
6,683
68,609
5,951
62,238
5,337
57,041
71,643 760,233
86,184 830,221
157,827 1,590,454
49,831 525,625
2,766
2,909
3,143
3,366
3,598
3,802
3,943
4,084
4,169
4,252
4,337
4,424
44,794
110,815
155,608
39,096

Other
Income
M$
0
8,692
0
20,987
0
41,683
0
56,842
0
72,804
0
82,554
0
85,363
0
79,169
0
69,817
0
61,915
0
55,693
0
50,600
0
686,118
0
690,121
0 1,376,240
0
466,126
Aband.
Costs
M$
1,971
2,136
2,929
4,078
5,267
5,757
5,583
4,792
4,162
3,650
3,261
2,942
46,526
34,449
80,976
31,785
Oper.
Income
M$
Dev.
M$
0
10,663
0
23,123
0
44,612
531
60,389
0
78,071
414
87,897
0
90,946
0
83,960
0
73,979
0
65,565
0
58,954
0
53,541
945
731,700
28,828
695,743
29,773 1,427,443
1,894
496,016
Plant
M$
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
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
676
1,242
2,231
2,784
3,200
3,331
3,343
3,105
2,744
2,441
2,208
2,017
29,321
29,285
58,606
20,403
3,442
4,152
5,373
6,150
6,798
7,133
7,286
7,189
6,912
6,693
6,545
6,441
74,115
140,100
214,214
59,499

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
Cum.
M$
10.0% Dcf
M$
0
10,663
10,663
19,548
3,575
14,238
45,413
-801
13,437
37,323
23,066
36,503
52,757
25,314
61,816
25,703
62,194
124,010
19,663
71,283
195,293
10,028
73,932
269,225
0
73,979
343,204
0
65,565
408,769
0
58,954
467,723
0
53,541
521,265
210,435
521,265
521,265
0
695,743 1,217,007
210,435 1,217,007 1,217,007
144,528
351,488
351,488
10,167
13,265
12,634
29,158
45,642
82,463
120,827
157,001
189,906
216,418
238,090
255,983
255,983
351,488
351,488
351,488
SUMMARY OF RESERVES
Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Working
Interest
Units
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
694
543
216,189
216,732
229,736
277
971
37,093
Total
Company
0
0
0
0
0
0
0
0
694
543
216,189
216,732
229,736
277
971
37,093
Oil Equivalents
Oil Eq.
Factor
Net
628
491
197,067
197,558
209,412
252
880
33,807
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
694
90
36,032
36,122
0
277
971
37,093
Reserve
Life
2
0
97
97
0
1
3
100
Life
Index
22.0
22.0
50.0
50.0
50.0
50.0
50.0
50.0
Half
Life
10.3
10.3
60.8
60.9
60.9
60.9
213.9
62.1
4.1
4.1
10.5
10.4
10.4
10.4
5.1
10.3

Product
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
1121357
Units
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe

0.00
0.00
3.29
3.29
107.14
107.14
20.42
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Wellhead
Price
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Net Burdens
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Operating
Expenses
0.00
0.00
0.97
0.97
0.00
0.00
5.76

Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
2.34
2.34
81.75
81.75
14.55
% of
Total
62,934
2,831
1,498,698
1,501,529
25,991
88,925
1,590,454
4
0
94
94
2
6
100
10% Disc
M$
39,050
1,682
476,361
478,043
8,532
47,582
525,625
% of
Total
7
0
91
91
2
9
100
February 16, 2012 12:52:55
GLJ
Page: 44 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
Average
5.5000
0.0000
0.0000
9.0276
0.0000
0.0000
Disc.
Rate
%
Prod'n
Revenue
M$
Operating
Income
M$
0.0 1,376,240 1,427,443

5.0
725,658
766,830
8.0
547,735
581,604
10.0
466,126
496,016
12.0
402,912
429,477
15.0
331,245
353,809
20.0
249,991
267,750
Capital
Invest.
M$
Cash Flow
M$
210,435 1,217,007
173,116
593,714
155,092
426,512
144,528
351,488
134,965
294,512
122,243
231,566
104,598
163,152
$/boe
32.81
16.01
11.50
9.48
7.94
6.24
4.40

1121357
February 16, 2012 12:52:55
GLJ
Page: 45 of 102
RESERVES DEFINITIONS
Reserves estimates have been prepared by GLJ Petroleum Consultants (GLJ) in accordance with
standards contained in the Canadian Oil and Gas Evaluation (COGE) Handbook. The following
reserves definitions are set out by the Canadian Securities Administrators in National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101; in Part 2 of the Glossary to
NI 51-101) with reference to the COGE Handbook.
Reserves Categories
Reserves are estimated remaining quantities of oil and natural gas and related
substances anticipated to be recoverable from known accumulations, as of a given date,
based on:
analysis of drilling, geological, geophysical, and engineering data;
the use of established technology;
specified economic conditions , which are generally accepted as being

reasonable, and shall be disclosed.
Reserves are classified according to the degree of certainty associated with the
estimates.
Proved Reserves
Proved reserves are those reserves that can be estimated with a high degree of certainty
to be recoverable. It is likely that the actual remaining quantities recovered will exceed
the estimated proved reserves.
Probable Reserves
Probable reserves are those additional reserves that are less certain to be recovered
than proved reserves. It is equally likely that the actual remaining quantities recovered
will be greater or less than the sum of the estimated proved plus probable reserves.
Possible Reserves
Possible reserves are those additional reserves that are less certain to be recovered than
probable reserves. It is unlikely that the actual remaining quantities recovered will exceed
the sum of the estimated proved plus probable plus possible reserves.
Other criteria that must also be met for the classification of reserves are provided in
[Section 5.5 of the COGE Handbook].
Development and Production Status
Each of the reserves categories (proved, probable, and possible) may be divided into
developed and undeveloped categories.
1
For securities reporting, the key economic assumptions will be the prices and costs used in the
estimate. The required assumptions may vary by jurisdiction, for example:
(a) forecast prices and costs, in Canada under NI 51-101
(b) constant prices and costs, based on the average of the first day posted prices in each of the 12
months of the reporting issuers financial year, under US SEC rules (this is optional disclosure
under NI 51-101).
GLJ
Page: 46 of 102
Developed Reserves
Developed reserves are those reserves that are expected to be recovered from existing
wells and installed facilities or, if facilities have not been installed, that would involve a
low expenditure (e.g., when compared to the cost of drilling a well) to put the reserves on
production. The developed category may be subdivided into producing and nonproducing.
Developed Producing Reserves
Developed producing reserves are those reserves that are expected to be recovered
from completion intervals open at the time of the estimate. These reserves may be
currently producing or, if shut in, they must have previously been on production, and the
date of resumption of production must be known with reasonable certainty.
Developed Non-producing Reserves
Developed non-producing reserves are those reserves that either have not been on
production, or have previously been on production, but are shut in, and the date of
resumption of production is unknown.
Undeveloped Reserves
Undeveloped reserves are those reserves expected to be recovered from known
accumulations where a significant expenditure (for example, when compared to the cost
of drilling a well) is required to render them capable of production. They must fully meet
the requirements of the reserves category (proved, probable, possible) to which they are
assigned.
In multi-well pools, it may be appropriate to allocate total pool reserves between the
developed and undeveloped categories or to subdivide the developed reserves for the
pool between developed producing and developed non-producing. This allocation should
be based on the estimators assessment as to the reserves that will be recovered from
specific wells, facilities, and completion intervals in the pool and their respective
development and production status.
Levels of Certainty for Reported Reserves
The qualitative certainty levels referred to in the definitions above are applicable to
individual reserves entities (which refers to the lowest level at which reserves calculations
are performed) and to Reported Reserves (which refers to the highest level sum of
individual entity estimates for which reserves estimates are presented). Reported
Reserves should target the following levels of certainty under a specific set of economic
conditions:
at least a 90 percent probability that the quantities actually recovered will equal
or exceed the estimated proved reserves;
or exceed the sum of the estimated proved plus probable reserves;
or exceed the sum of the estimated proved plus probable plus possible reserves.
A quantitative measure of the certainty levels pertaining to estimates prepared for the
various reserves categories is desirable to provide a clearer understanding of the
associated risks and uncertainties. However, the majority of reserves estimates are
prepared using deterministic methods that do not provide a mathematically derived
quantitative measure of probability. In principle, there should be no difference between
estimates prepared using probabilistic or deterministic methods.
Additional clarification of certainty levels associated with reserves estimates and the
effect of aggregation is provided in Section 5.5.3 [of the COGE Handbook].
GLJ
Page: 47 of 102
DOCUMENTED RESERVES CATEGORIES

Production and revenue projections are prepared for each of the following main reserves
categories:
Reserves Category
Proved
Proved Plus Probable Plus Possible
Production and Development Status
Developed Producing*
Developed Non-producing
Undeveloped
Total (sum of developed producing, developed non-producing and undeveloped)
* as producing reserves are inherently developed, GLJ simply refers to developed producing
reserves as producing
Reserves and revenue projections are available in GLJs evaluation database for any reserves and
development subcategory including those determined by difference (e.g., probable producing).
The following reserves categories are documented in this Corporate Summary volume:
Proved Producing
Proved Developed Non-producing
Proved Undeveloped
Total Proved
Total Probable
Total Possible
Total Proved Plus Probable Plus Possible
Documentation for the following additional reserves categories is provided in the Expanded
Corporate Summary Information, which has been provided to the Company in electronic format
only.
Proved
Developed Producing
Undeveloped
Total
GLJ
Page: 48 of 102
Probable
Developed Producing
Undeveloped
Total
Developed Producing
Undeveloped
Total
Proved Plus Probable Plus Possible
Developed Producing
Undeveloped
Total
Individual property evaluation reports contain detailed documentation of reserves estimation

methodology and evaluation procedures.
When evaluating reserves, GLJ evaluators generally first identify the producing situation and
assign proved, proved plus probable and proved plus probable plus possible reserves in
recognition of the existing level of development and the existing depletion strategy. Incremental
non-producing (developed non-producing or undeveloped) reserves are subsequently assigned
recognizing future development opportunities and enhancements to the depletion mechanism. It
should be recognized that future developments may result in accelerated recovery of producing
reserves.
GLJ
Page: 49 of 102
TABLE OF CONTENTS
INTEREST DESCRIPTIONS
WELL DATA
ACCOUNTING SUMMARY
PRODUCTION FORECASTS
OTHER INCOME
ECONOMIC PARAMETERS
OIL EQUIVALENT OR GAS EQUIVALENT
LIST OF ABBREVIATIONS
List of Tables
Table EP-1
Summary of Company Annual Other Income
GLJ
Page: 50 of 102
The following outlines the methodology employed by GLJ Petroleum Consultants (GLJ) in
conducting the evaluation of the Companys oil and gas properties. GLJ evaluation procedures are
in compliance with standards contained in the Canadian Oil and Gas Evaluation (COGE)
Handbook.
INTEREST DESCRIPTIONS
The Company provided GLJ with current land interest information. The Company provided a
representation letter confirming accuracy of land information. Certain cross-checks of land and
accounting information were undertaken by GLJ as recommended in the COGE Handbook. In this
process, nothing came to GLJs attention that indicated that information provided by the Company
was incomplete or unreliable.
In GLJs reports, Company Interest reserves and values refer to the sum of royalty interest* and
working interest reserves before deduction of royalty burdens payable. Working Interest reserves
equate to those reserves that are referred to as Company Gross reserves by the Canadian
Securities Administrators (CSA) in NI 51-101.
In the Securities Reporting section, working interest (or Company Gross) volumes are presented in
tables to correspond to NI 51-101 disclosure requirements.
*
Royalty interest reserves include royalty volumes derived only from other working interest owners.
WELL DATA
Pertinent interest and offset well data such as drill stem tests, workovers, pressure surveys,
production tests, etc., were provided by the Company or were obtained from other operators, public
records or GLJ nonconfidential files.
ACCOUNTING SUMMARY
The Company provided GLJ with available accounting data on a property basis and for the
corporate total for the period January 1, 2011 to December 31, 2011. In some circumstances this
information was also provided on a cost centre basis to address major reserves entities that are a
subset of a Company property.
GLJ
Page: 51 of 102
PRODUCTION FORECASTS
In establishing all production forecasts, consideration was given to existing gas contracts and the
possibility of contract revisions, to the operator's plans for development drilling and to reserves
and well capability. Generally, development drilling in an area was not considered unless there
was some indication from the operator that drilling could be expected.
The on-stream date for currently shut-in reserves was estimated with consideration given to the
following:
proximity to existing facilities

plans of the operator
economics
OTHER INCOME
The following streams are included as Other Income in the Companys corporate total economic
forecasts:
Processing Income The Company receives revenue from processing partner and thirdparty oil, gas and/or water volumes in certain properties as summarized (for the total proved
plus probable reserves category) in Table EP-1.
ECONOMIC PARAMETERS
Pertinent economic parameters are listed as follows:
a) The effective date is December 31, 2011.
b) Operating and capital costs were estimated in 2012 dollars and then escalated as summarized in
the Product Price and Market Forecasts section of this report.
c) Economic forecasts were prepared for each property on a before income tax basis. Detailed
discounting of future cash flow was performed using a discount factor of 10.0 percent with all
values discounted annually to December 31, 2011, on a mid-calendar-year basis.
GLJ
Page: 52 of 102
d) Alberta crown royalties have been determined in accordance with the Alberta New Royalty
Framework (NRF) which passed provincial legislation in December 2008, including March 11
and May 27, 2010 announcements.
e) Royalty holidays applicable to existing wells or forecast drilling are included in individual
well economics. These credits are itemized within the property reports.
f) Gas processing allowances relating to remaining undepreciated capital bases, were included in
individual property economic evaluations. Alberta gas cost allowance calculations have
incorporated changes associated with the Alberta NRF.
g) Mineral taxes on freehold interests were included.
h) Field level overhead charges have been included; recovery of overhead expenses has not been
included.
i) The Companys office G&A costs have not been included.
j) Well abandonment costs for all wells with reserves have been included at the property level.
Additional abandonment costs associated with non-reserves wells, lease reclamation costs and
facility abandonment and reclamation expenses have not been included in this analysis.
OIL EQUIVALENT OR GAS EQUIVALENT
In this report, quantities of hydrocarbons have been converted to barrels of oil equivalent (boe);
or to sales gas equivalent (sge) using factors of 6 Mcf/boe for gas, 1 bbl/boe for all liquids, and 0
boe for sulphur. Users of oil equivalent values are cautioned that while boe based metrics are
useful for comparative purposes, they may be misleading when used in isolation.
LIST OF ABBREVIATIONS
AOF
bbl
Bcf
boe
bopd
Btu
bwpd
DSU
absolute open flow

barrels
billion cubic feet of gas at standard conditions
barrel of oil equivalent, in this evaluation determined using 6 Mcf/boe
for gas, 1 bbl/boe for all liquids, and 0 boe for sulphur
barrels of oil per day
British thermal units
barrels of water per day
drilling spacing unit
GLJ
Page: 53 of 102
GCA
GOC
GOR
GORR
GWC
Mbbl
Mboe
Mcf
Mcfe
Mlt
M$
MM$
MMbbl
MMboe
MMBtu
MMcf
MRL
Mstb
MMstb
NGL
NPI
OGIP
OOIP
ORRI
OWC
P&NG
psia
psig
PVT
RLI
scf
sge
stb
WI
WTI
gas cost allowance

gas-oil contact
gas-oil ratio
gross overriding royalty
gas-water contact
thousand barrels
thousand boe
thousand cubic feet of gas at standard conditions
thousand cubic feet of gas equivalent
thousand long tons
thousand Canadian dollars
million Canadian dollars
million barrels
million boe
million British thermal units
million cubic feet of gas at standard conditions
maximum rate limitation
thousand stock tank barrels
million stock tank barrels
natural gas liquids (ethane, propane, butane and condensate)
net profits interest
original gas-in-place
original oil-in-place
overriding royalty interest
oil-water contact
petroleum and natural gas
pounds per square inch absolute
pounds per square inch gauge
pressure-volume-temperature
reserves life index, calculated by dividing reserves by the forecast of
first year production
standard cubic feet
sales gas equivalent if presented in this evaluation, determined using 1
barrel of oil or natural gas liquid = 6 Mcfe; 0 for sulphur
stock tank barrel
working interest
West Texas Intermediate
GLJ
Table EP-1
Company:
Property:
Description:

Corporate
Summary
Reserve Class:
Development Class:
Pricing:
Effective Date:

Total
GLJ (2012-01)
December 31, 2011
Company Annual Other Income (M$)

Year
Entity Description
2012
2013
2014
2015
2016
2017
Totals
2018
2019
2020
2021
2022
2023
Subtotal
Remainder
Total
Summary
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
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
Total Proved Plus Probable, GLJ (2012-01), oth
February 16, 2012 12:52:57
GLJ
Page: 54 of 102
1121357
Page: 55 of 102
PRODUCT PRICE AND MARKET FORECASTS

January 1, 2012
GLJ Petroleum Consultants has prepared its January 1, 2012 price and market forecasts as
summarized in the attached Tables 1 to 3 after a comprehensive review of information.
Information sources include numerous government agencies, industry publications, Canadian oil
refiners and natural gas marketers. The forecasts presented herein are based on an informed
interpretation of currently available data. While these forecasts are considered reasonable at this
time, users of these forecasts should understand the inherent high uncertainty in forecasting any
commodity or market. These forecasts will be revised periodically as market, economic and
political conditions change. These future revisions may be significant.
GLJ
Table 1
Crude Oil and Natural Gas Liquids
Price Forecast
Effective January 1, 2012
Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 (e)
Inflation
%
1.6
1.6
1.0
1.7
2.7
2.5
2.3
2.8
1.8
2.2
2.0
2.2
2.4
0.4
1.8
3.0
Bank of
Canada
Average
Noon
Exchange
Rate
$US/$Cdn
0.733
0.722
0.675
0.673
0.673
0.646
0.637
0.716
0.770
0.826
0.882
0.935
0.943
0.880
0.971
1.012
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2.0
2.0
2.0
2.0
0.980
0.980
0.980
0.980
Nymex Wti Near Month

Futures Contract
Crude Oil at
Cushing Oklahoma
Constant
Then
2012 $
Current
$US/bbl
$US/bbl
30.16
21.98
27.84
20.62
19.18
14.44
25.38
19.25
39.12
30.23
32.75
26.00
32.05
26.08
37.32
31.07
48.41
41.38
64.96
56.58
74.35
66.22
79.74
72.39
107.29
99.64
65.02
61.78
83.35
79.52
97.65
94.83
97.00
97.00
97.00
97.00
97.00
97.00
97.00
97.00
ICE Brent Near

Month Futures
Light Sweet
Bow River
Lloyd Blend
Contract
Crude Oil
Crude Oil
Crude Oil
Crude Oil
(40 API, 0.3%S) Stream Quality Stream Quality
FOB North Sea at Edmonton
at Hardisty
at Hardisty
Then
Then
Then
Then
Current
Current
Current
Current
$US/bbl
$Cdn/bbl
$Cdn/bbl
$Cdn/bbl
20.31
29.38
25.12
21.55
19.32
27.85
21.18
20.55
13.34
20.36
14.63
15.38
17.99
27.63
23.78
22.14
28.41
44.57
35.28
32.61
24.87
39.44
27.69
23.47
25.02
40.33
31.83
30.60
28.47
43.66
32.11
31.18
38.02
52.96
37.43
36.31
55.14
69.02
44.73
43.03
66.16
73.21
51.82
50.36
72.71
77.06
53.64
52.03
98.30
102.89
84.31
82.60
62.50
66.32
60.18
58.40
80.25
77.87
68.45
66.95
110.63
95.15
78.12
76.37
105.00
105.00
105.00
105.00
97.96
97.96
97.96
97.96
83.27
83.27
83.27
83.27
81.31
81.31
81.31
81.31
WCS
Heavy Crude Oil Light Crude Oil Medium Crude Oil
Alberta Natural Gas Liquids
Stream Quality Proxy (12 API) (35 API, 1.2%S) (29 API, 2.0%S)
(Then Current Dollars)
at Hardisty
at Hardisty
at Cromer
at Cromer
Edmonton
Then
Then
Then
Then
Spec
Edmonton Edmonton Pentanes
Current
Current
Current
Current
Ethane
Propane
Butane
Plus
$Cdn/bbl
$Cdn/bbl
$Cdn/bbl
$Cdn/bbl
$Cdn/bbl $Cdn/bbl
$Cdn/bbl
$Cdn/bbl
N/A
20.06
28.41
26.08
N/A
23.13
17.83
30.05
N/A
14.41
26.52
23.72
N/A
19.41
19.76
30.91
N/A
9.45
19.31
16.96
N/A
11.74
12.69
21.87
N/A
19.49
26.97
25.37
N/A
15.86
18.65
27.64
N/A
27.49
43.28
39.92
N/A
32.15
35.59
46.31
N/A
16.77
35.22
31.58
N/A
31.92
31.25
42.48
N/A
26.57
37.43
35.48
N/A
21.39
27.08
40.73
N/A
26.26
40.09
37.55
N/A
32.14
34.36
44.23
N/A
29.11
49.14
45.64
N/A
34.70
39.97
53.94
43.74
34.07
62.18
56.77
N/A
43.04
51.80
69.57
50.66
41.84
66.38
62.26
N/A
43.85
60.17
75.41
52.38
43.42
71.13
65.71
N/A
49.56
61.78
77.38
82.95
74.94
96.08
93.10
N/A
58.38
75.33
104.78
58.66
54.46
63.84
62.96
N/A
38.03
48.17
68.17
67.27
60.76
76.58
73.76
N/A
46.84
65.91
84.27
76.68
67.03
91.61
87.57
N/A
53.47
74.24
103.75
81.61
81.61
81.61
81.61
72.37
72.37
72.37
72.37
93.06
93.06
93.06
93.06
90.12
90.12
90.12
90.12
10.50
10.98
11.61
12.72
58.78
58.78
58.78
58.78
76.41
76.41
76.41
76.41
107.76
107.76
107.76
107.76
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
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022+
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
0.980
0.980
0.980
0.980
0.980
0.980
0.980
0.980
0.980
0.980
98.04
96.12
94.23
92.38
90.57
90.00
90.00
90.00
90.00
90.00
100.00
100.00
100.00
100.00
100.00
101.35
103.38
105.45
107.56
+2.0%/yr
105.00
102.00
100.00
100.00
100.00
101.35
103.38
105.45
107.56
+2.0%/yr
101.02
101.02
101.02
101.02
101.02
102.40
104.47
106.58
108.73
+2.0%/yr
84.35
84.35
84.35
84.35
84.35
85.50
87.23
89.00
90.79
+2.0%/yr
82.33
82.33
82.33
82.33
82.33
83.45
85.14
86.86
88.62
+2.0%/yr
82.63
82.63
82.63
82.63
82.63
83.75
85.44
87.16
88.92
+2.0%/yr
73.60
74.51
74.51
74.51
74.51
75.54
77.09
78.67
80.28
+2.0%/yr
94.96
93.95
93.95
93.95
93.95
95.23
97.16
99.12
101.12
+2.0%/yr
92.94
91.93
91.93
91.93
91.93
93.18
95.07
96.99
98.95
+2.0%/yr
13.67
15.26
16.85
18.43
20.02
20.84
21.25
21.70
22.14
+2.0%/yr
60.61
60.61
60.61
60.61
60.61
61.44
62.68
63.95
65.24
+2.0%/yr
78.80
78.80
78.80
78.80
78.80
79.87
81.49
83.13
84.81
+2.0%/yr
108.09
105.06
105.06
105.06
105.06
106.49
108.65
110.84
113.08
+2.0%/yr
Historical futures contract price is an average of the daily settlement price of the near month contract over the calendar month.
Revised
2011-12-31
Page: 56 of 102
GLJ
Table 2
Natural Gas and Sulphur
Price Forecast
Henry Hub Nymex

Near Month Contract
Constant
Then
2012 $
Current
Midwest
Alberta Plant Gate
Price @ Chicago AECO/NIT Spot
Spot
Then
Then
Constant
Then
Current
Current
2012 $ Current
ARP
Aggregator
Saskatchewan Plant Gate
British Columbia
Alliance
SaskEnergy
Spot
Sumas Spot
Westcoast
Station 2
Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 (e)
$US/mmbtu
$US/mmbtu
$US/mmbtu
$Cdn/mmbtu
$/mmbtu
$/mmbtu
$/mmbtu
$/mmbtu
$/mmbtu
$/mmbtu
$/mmbtu
$US/mmbtu
$/mmbtu
3.44
3.34
2.87
3.05
5.58
5.08
4.13
6.57
7.23
10.34
7.85
7.83
9.58
4.38
4.60
4.15
2.51
2.47
2.16
2.31
4.32
4.03
3.36
5.47
6.18
9.00
6.99
7.12
8.90
4.16
4.40
4.03
2.73
2.75
2.20
2.33
3.96
4.45
3.25
5.46
6.13
8.24
6.93
6.83
8.91
4.05
4.53
4.26
1.39
1.85
2.03
2.92
5.08
6.23
4.04
6.66
6.88
8.58
7.16
6.65
8.16
4.19
4.17
3.68
1.72
2.29
2.49
3.63
6.37
7.65
4.77
7.80
7.83
9.66
7.81
7.08
8.53
4.19
4.11
3.58
1.26
1.70
1.87
2.75
4.93
6.07
3.88
6.49
6.70
8.42
6.96
6.43
7.92
3.98
3.93
3.47
1.63
1.97
1.94
2.48
4.50
5.41
3.88
6.13
6.31
8.30
6.57
6.20
7.88
3.85
3.77
3.57
1.49
1.69
1.78
2.17
4.44
4.97
3.64
5.87
6.16
8.27
6.36
6.13
7.85
3.69
3.63
3.40
N/A
N/A
N/A
N/A
N/A
5.29
3.66
6.15
6.39
8.29
6.34
5.86
7.84
3.23
3.31
2.89
1.52
1.85
2.05
2.82
4.79
5.72
4.04
6.41
6.48
8.36
6.67
6.18
8.07
3.87
3.96
3.67
1.31
1.77
1.94
2.84
4.99
6.15
3.96
6.57
6.78
8.48
7.06
6.55
8.04
4.04
4.00
3.72
1.32
1.71
1.60
2.15
4.15
4.57
2.68
4.66
5.26
7.13
6.27
6.52
8.33
3.91
4.31
3.88
1.49
1.90
2.15
2.93
5.06
6.32
4.18
6.45
6.56
8.22
6.58
6.40
8.21
4.17
4.01
3.37
2012 Q1
2012 Q2
2012 Q3
2012 Q4
3.50
3.65
3.85
4.20
3.50
3.65
3.85
4.20
3.60
3.75
3.95
4.30
3.21
3.35
3.54
3.86
3.02
3.16
3.34
3.66
3.02
3.16
3.34
3.66
2.96
3.09
3.27
3.58
2.89
3.02
3.20
3.50
2.36
2.50
2.70
3.04
3.06
3.19
3.37
3.68
3.15
3.29
3.48
3.80
3.20
3.35
3.55
3.90
3.01
3.15
3.34
3.66
Alberta
Sulphur
Sulphur
Spot
FOB
at Plant
Plant Gate Vancouver
Gate
$/mmbtu
$US/LT
$Cdn/LT
1.47
36.28
6.48
1.98
34.75
5.12
2.00
24.59
-6.51
2.78
33.74
6.93
4.88
38.14
13.59
6.29
18.29
-14.67
3.93
29.38
3.04
6.32
59.81
39.83
6.45
62.99
38.61
8.12
63.50
33.77
6.45
55.07
19.27
6.25
81.66
42.03
8.09
497.39
488.64
4.04
57.06
24.57
3.91
88.94
48.26
3.28
217.14
172.03
2.86
3.00
3.18
3.50
200.00
200.00
200.00
200.00
161.08
161.08
161.08
161.08
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
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022+
4.41
4.81
5.18
5.54
5.89
6.00
6.00
6.00
6.00
6.00
4.50
5.00
5.50
6.00
6.50
6.76
6.89
7.03
7.17
+2.0%/yr
4.60
5.10
5.60
6.10
6.60
6.86
6.99
7.13
7.27
+2.0%/yr
4.13
4.59
5.05
5.51
5.97
6.21
6.33
6.46
6.58
+2.0%/yr
3.85
4.21
4.56
4.89
5.21
5.32
5.32
5.32
5.32
5.32
3.93
4.39
4.84
5.30
5.75
5.99
6.11
6.23
6.36
+2.0%/yr
3.85
4.30
4.74
5.19
5.64
5.87
5.98
6.11
6.23
+2.0%/yr
3.76
4.20
4.64
5.08
5.51
5.74
5.85
5.98
6.10
+2.0%/yr
3.33
3.82
4.31
4.80
5.29
5.55
5.67
5.81
5.95
+2.0%/yr
3.95
4.40
4.84
5.29
5.74
5.97
6.08
6.21
6.33
+2.0%/yr
4.07
4.53
4.99
5.45
5.91
6.15
6.27
6.40
6.52
+2.0%/yr
4.20
4.70
5.20
5.70
6.20
6.46
6.59
6.73
6.87
+2.0%/yr
3.93
4.39
4.85
5.31
5.77
6.01
6.13
6.26
6.38
+2.0%/yr
3.78
4.23
4.69
5.14
5.60
5.84
5.95
6.08
6.21
+2.0%/yr
175.00
150.00
125.00
125.00
127.50
130.05
132.65
135.30
138.01
+2.0%/yr
135.57
110.06
84.55
84.55
87.10
89.70
92.36
95.06
97.83
+2.0%/yr
Unless otherwise stated, the gas price reference point is the receipt point on the applicable provincial gas transmission system known as the plant gate.
The plant gate price represents the price before raw gas gathering and processing charges are deducted.
AECO-C Spot refers to the one month price averaged for the year.
Revised
2011-12-31
Page: 57 of 102
GLJ
Table 3
Crude and Natural Gas
GLJ (2012-01)
NYMEX WTI Near
Month Futures Contract
Crude Oil at
Cushing Oklahoma
Brent Blend
Crude Oil
FOB North Sea
Henry Hub
Spot
National
Balancing
Point
(UK)
Year
Inflation
%
Bank of
Canada
Average Noon
Exchange
Rate
$US/$C
Nova Scotia
Goldboro
Can. - UK
Exchange
Rate
$C/GBP
Can. - EURO
Exchange
Rate
$C/EURO
Then
Current
$US/bbl
Then
Current
$C/bbl
Then
Current
$US/bbl
Then
Current
$C/bbl
Then
Current
$US/MMbtu
Then
Current
$C/MMbtu
Then
Current
$US/MMbtu
Then
Current
$C/MMbtu
Then
Current
$US/MMbtu
Then
Current
C$/MMbtu
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Page: 58 of 102
GLJ
Page: 59 of 102
SECURITIES REPORTING
TABLE OF CONTENTS
Page
SECURITIES OUTLINE
60
SECURITIES DISCUSSION
61
AFTER TAX FORECAST PRICING RESERVES DATA

Table FP-1
Reserves And NPV Summary
Table FP-2
Total Future Net Revenue (Undiscounted)
Table FP-3
Future Net Revenue by Production Group
Table FP-4
Forecast Prices Used
Table FP-5A Current Reserves Reconciliation
Table FP-5B Prior Reserves Reconciliation
Table FP-6
Undeveloped Reserves Attributed In Current Year
Table FP-7
Company Annual Capital Expenditures
Table FP-8
Company Annual Abandonment Costs
Table FP-9
Summary of First Year Production and Oil and Gas Reserves
65
66
67
68
71
72
73
74
75
76
March 13, 2012 15:51:06
GLJ
Page: 60 of 102
SECURITIES REPORTING OUTLINE
PART 1
DATE OF STATEMENT
1.1 Relevant Dates
1. Effective Date
2. Data Date
3. Preparation Date
PART 2
DISCLOSURE OF RESERVES DATA

2.1 Reserves Data (Forecast Prices and Costs)
1. Breakdown of Proved Reserves
2. Net Present Value of Future Net Revenue
3. Additional Information Concerning Future Net Revenue
PART 3
PRICING ASSUMPTIONS
3.2 Forecast Prices Used in Estimates
PART 4
RECONCILIATION OF CHANGES IN RESERVES

4.1 Reserves Reconciliation
PART 5
ADDITIONAL INFORMATION RELATING TO RESERVES DATA

5.1 Undeveloped Reserves
5.2 Significant Factors or Uncertainties
5.3 Future Development Costs
PART 6
OTHER OIL AND GAS INFORMATION

6.3 Forward Contracts
6.4 Additional Information Concerning Abandonment and Reclamation Costs
6.5 Tax Horizon
6.8 Production Estimates
GLJ
Page: 61 of 102
SECURITIES REPORTING DISCUSSION
The Canadian Securities Administrators (CSA) have set out disclosure standards for Canadian
publicly traded oil and gas companies in National Instrument 51-101 (NI 51-101).
This section presents reserves data following the item numbering and formatting in CSA Form
51-101F1 and the sample tables contained in Appendix 1 to the NI 51-101 Companion Policy
(51-101CP).
The Report on Reserves Data, Form 51-101F2, is provided separately.
Note Regarding Nomenclature:
Throughout this report, Company Interest reserves refers to the sum of royalty
interest* and working interest reserves before deduction of royalty burdens payable.
Working Interest reserves equate to those reserves that are referred to as
Company Gross reserves by the Canadian Securities Administrators (CSA) in
NI 51-101.
In this Securities Reporting section, Company Gross (or working interest) volumes
are presented in tables to correspond to NI 51-101 disclosure requirements.
*
Royalty interest reserves include royalty volumes derived only from other working interest owners.
PART 1
DATE OF STATEMENT
Item 1.1
Relevant Dates
1. Effective Date:
The effective date of the reserves estimates and revenue projections in this report
is December 31, 2011.
2. Data Date:
Estimates of reserves and projections of production were generally prepared using
general well information and production data available in the public domain to
approximately December 31, 2011. The Company has provided GLJ with a
representation letter confirming that complete and correct information has been
provided to GLJ.
3. Preparation Date:
The preparation date (the latest date of receipt of information relevant to this
evaluation) of this report is February 15, 2012.
GLJ
Page: 62 of 102
PART 2
DISCLOSURE OF RESERVES DATA
Item 2.1
Reserves Data (Forecast Prices and Costs)

1.
Breakdown of Reserves (Forecast Case)
Refer to Table FP-1
2.
Net Present Value of Future Net Revenue (Forecast Case)

Refer to Table FP-1
3.
Additional Information Concerning Future Net Revenue (Forecast Case)

(a) and (b)
Undiscounted Revenue and Costs
Refer to Table FP-2
(c)
Discounted Future Net Revenue by Production Group

Refer to Table FP-3
PART 3
PRICING ASSUMPTIONS
Item 3.2
Forecast Prices Used in Estimates

1. (a) The forecast reference prices used in preparing the Companys reserves
data are provided in Table FP-4.
This price forecast is GLJs standard price forecast effective January 1, 2012.
PART 4
RECONCILIATION OF CHANGES IN RESERVES
Item 4.1
Reserves Reconciliation
Tables FP-5A and FP-5B provide reconciliations of Company Gross reserves
based on forecast prices and costs for the current and prior year-end evaluations,
respectively.
PART 5
ADDITIONAL INFORMATION RELATING TO RESERVES DATA
Item 5.1
Undeveloped Reserves
1.(a) and 2.(a) Year First Attributed
Table FP-6 provides a summary of the undeveloped reserves first attributed
during the current fiscal year and the Company total at the current year-end
effective date.
GLJ
Page: 63 of 102
The following table sets out total Company undeveloped reserves evaluated by
GLJ utilizing the format preferred by the CSA.
Company Gross Reserves First Attributed by Year
Proved Undeveloped Reserves
Light & Medium Oil
(Mbbl)
* First
Total at
Attributed
Prior
87
Heavy Oil (Mbbl)

First
Year-end Attributed
Total at
Natural Gas (MMcf)

First
Year-end Attributed
Total at
Natural Gas Liquids

(Mbbl)
First
Total at
Year-end Attributed
First
Year-end Attributed
Total at
Year-end
87
21,790
45,987
28
59
3,747
7,810
2009
87
7,836
45,239
10
58
1,316
7,684
2010
87
1,513
35,772
46
254
6,094
2011
87
36,739
47
6,257
Probable Undeveloped Reserves

Light & Medium Oil
(Mbbl)
* First
Total at
Attributed
Heavy Oil (Mbbl)

First
Year-end Attributed
Total at
Natural Gas (MMcf)

First
Year-end Attributed
Total at
Natural Gas Liquids

(Mbbl)
First
Total at
Year-end Attributed
First
Year-end Attributed
Total at
Year-end
Prior
434
434
37,355
57,401
48
73
6,707
10,074
2009
434
4,254
54,580
70
714
9,600
2010
434
1,233
51,517
66
207
9,086
2011
434
3,489
38,016
49
586
6,819
* "First Attributed" refers to reserves first attributed at year-end of the corresponding fiscal yr
1.(b) and 2.(b) General Basis for Reserves and Timing of Development
Proved and probable undeveloped reserves have been estimated in accordance
with procedures and standards contained in the COGE Handbook. The significant
majority of the undeveloped reserves are scheduled to be developed within the
next two years.
Item 5.2
Significant Factors or Uncertainties

The evaluated oil and gas properties of the Company have no material
extraordinary risks or uncertainties beyond those which are inherent of an oil and
gas producing company.
Item 5.3
Future Development Costs

1.
Table FP-7 summarizes capital development costs related to the recovery
of the Companys reserves.
GLJ
Page: 64 of 102
PART 6
OTHER OIL AND GAS INFORMATION
Item 6.3
Forward Contracts
In accordance with the provisions in NI 51-101, the impact of the Companys
financial hedges has not been included in this report.
Item 6.4
Additional Information Concerning Abandonment and Reclamation Costs

The following aspects of the Companys future abandonment and reclamation
costs have been included/excluded in the economic forecasts.
Included:
Well Abandonment Costs:
o existing and future reserves wells
Excluded:
Well Abandonment Costs:
o non-reserves wells
Pipelines
Production Facilities
Site Reclamation
Total abandonment costs are included in the reserves data summarized in Table
FP-8.
Item 6.5
Tax Horizon
Based on after tax economic forecasts prepared by GLJ, income taxes are payable
by the Company in 2016. After tax revenue projections are provided in the After
Tax Analysis section of this report.
Item 6.8
Production Estimates
Table FP-9 presents a forecast of the Companys production by product type in
the first year of forecast.
Production for properties which individually account for 20 percent or more of the
Companys forecast production (total proved plus probable reserves, BOE basis)
in the first year of forecast has been identified separately in this table.
GLJ
Page: 65 of 102
Company:
Property:
Description:
Table FP-1
Reserve Class:
Development Class:
Pricing:
Effective Date:

Corporate
After Tax Analysis
Various
Classifications
GLJ (2012-01)
December 31, 2011
Summary Of Oil And Gas Reserves And Net Present Values of Future Net Revenue
RESERVES SUMMARY
Light And Medium Oil
Reserves Category
Company
Gross
Mbbl
Heavy Oil
Company
Net
Mbbl
Company
Gross
Mbbl
Natural Gas
Company
Net
Mbbl
Company
Gross
MMcf
Company
Net
MMcf
Natural Gas Liquids
Total Oil Equivalent
Company
Gross
Mbbl
Company
Gross
Mboe
Company
Net
Mbbl
Company
Net
Mboe
PROVED
Producing
Developed Nonproducing
Undeveloped
0
0
87
0
0
79
0
0
0
0
0
0
21,949
0
36,739
20,944
0
33,249
28
0
47
27
0
42
3,686
0
6,257
3,517
0
5,662
TOTAL PROVED
87
79
58,688
54,192
75
69
9,943
9,180
TOTAL PROBABLE
434
393
43,967
39,955
56
51
7,818
7,103
TOTAL PROVED PLUS PROBABLE
521
471
102,654
94,147
131
120
17,761
16,282
TOTAL PPP
694
628
216,732
197,558
277
252
37,093
33,807
NET PRESENT VALUE SUMMARY

Net Present Values of Future Net Revenue
Before Income Taxes Discounted At (%/year)
Reserves Category
0%
M$
5%
M$
10%
M$
15%
M$
Unit Value Before Income Tax

Discounted at 10%/year
20%
M$
$/boe
$/Mcfe
PROVED
Producing
Undeveloped
68,004
0
151,236
55,395
0
83,361
46,325
0
49,417
39,645
0
30,547
34,602
0
19,232
13.17
0.00
8.73
2.20
0.00
1.45
TOTAL PROVED
219,240
138,756
95,742
70,192
53,834
10.43
1.74
TOTAL PROBABLE
244,854
127,138
75,405
48,508
32,905
10.62
1.77
464,094
265,894
171,147
118,701
86,738
10.51
1.75
1,217,007
593,714
351,488
231,566
163,152
10.40
1.73
TOTAL PPP
Net Present Values of Future Net Revenue

After Income Taxes Discounted At (%/year)
Reserves Category
0%
M$
5%
M$
10%
M$
15%
M$
20%
M$
PROVED
Producing
Undeveloped
68,004
0
143,176
55,395
0
80,594
46,325
0
48,392
39,645
0
30,141
34,602
0
19,062
TOTAL PROVED
211,180
135,989
94,717
69,786
53,664
TOTAL PROBABLE
176,697
94,147
57,408
37,922
26,345
387,877
230,136
152,124
107,708
80,009
TOTAL PPP
930,490
466,780
282,516
189,632
135,843
Note: Unit values are based on Company Net Reserves.
1121357
Class (A,B1,B2,C,F,I,R), GLJ (2012-01), cs1a
February 16, 2012 12:23:22
GLJ
Page: 66 of 102
Company:
Property:
Description:
Table FP-2
Reserve Class:
Development Class:
Pricing:
Effective Date:

Corporate
After Tax Analysis
Various
Classifications
GLJ (2012-01)
December 31, 2011
Total Future Net Revenue (Undiscounted)
Reserves Category
Proved Producing
Revenue
M$
Future
Capital
Net Revenue
Development Abandonment
Before
Costs
Costs
Income Taxes
M$
M$
M$
Operating
Costs
M$
Royalties
M$
Future
Net Revenue
After
Income Taxes
M$
Income
Tax
M$
137,117
5,810
56,805
6,498
68,004
68,004
Proved Undeveloped
277,388
24,828
22,212
72,193
6,919
151,236
8,060
143,176
Total Proved
414,504
30,638
79,016
72,193
13,417
219,240
8,060
211,180
Total Probable
393,207
34,888
42,526
64,991
5,949
244,854
68,156
176,697
807,712
65,526
121,542
137,184
19,366
464,094
76,216
387,877
1,829,257
157,827
214,214
210,435
29,773
1,217,007
286,517
930,490
Total PPP
Notes
1.
1121357
Disclosure is required for Total Proved and Proved Plus Probable reserves
Class (A,B1,B2,C,F,I,R), GLJ (2012-01), cs2new
February 16, 2012 12:53:43
GLJ
Page: 67 of 102
Company:
Property:
Description:
Table FP-3
Reserve Class:
Development Class:
Pricing:
Effective Date:

Corporate
After Tax Analysis
Various
Classifications
GLJ (2012-01)
December 31, 2011
Future Net Revenue by Production Group

Future Net Revenue Before Income Taxes [3]
(Discounted at 10% per year)
M$
Notes
1.
2.
3.
$/boe
$/Mcfe
Proved Producing
Light & Medium Oil [1]
Natural Gas [2]
0
46,325
46,325
0.00
13.17
13.17
0.00
2.20
2.20
Total Proved
Natural Gas [2]
Total: Total Proved
4,698
91,044
95,742
52.89
10.01
10.43
8.82
1.67
1.74

Natural Gas [2]
14,695
156,452
171,147
27.57
9.93
10.51
4.60
1.66
1.75
Total PPP
Natural Gas [2]
Total: Total PPP
26,033
325,455
351,488
30.34
9.88
10.40
5.06
1.65
1.73
Including solution gas and other by-products

Including by-products but excluding solution gas
Other company revenue and costs not related to a specific production group have been allocated proportionately to production groups. Unit values are based on
Company Net Reserves.
Percentage of Future Net Revenue (10% DCF)

Total Proved
L & M Oil (4.9 %)
Natural Gas (95.1 %)
1121357
Total PPP
L & M Oil (7.4 %)
L & M Oil (8.6 %)
Class (A,C,I,R), GLJ (2012-01), cs3new
March 13, 2012 15:45:45
GLJ
Table FP-4
Crude Oil and Natural Gas Liquids
GLJ (2012-01)
Light, Sweet Bow River Lloyd Blend WCS Crude
Heavy
NYMEX WTI Near
Brent Blend Crude Oil
Crude Oil
Crude Oil
Oil
Crude Oil
Month Futures Contract Crude Oil
(40 API,
Stream
Stream
Stream
Proxy (12
Crude Oil at
FOB North
0.3%S)
Quality
Quality
Quality
API)
Cushing Oklahoma
Sea
at Edmonton at Hardisty at Hardisty at Hardisty at Hardisty
Light Sour
Crude Oil
(35 API,
1.2%S)
at Cromer
Medium
Crude Oil
(29 API,
2.0%S)
at Cromer
Year
Inflation
%
Bank of
Canada
Average
Noon
Exchange
Rate
$US/$C
Alberta Natural Gas Liquids

(Then Current Dollars)
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Constant
2012 $
$US/bbl
Then
Current
$US/bbl
Then
Current
$US/bbl
Then
Current
$C/bbl
Then
Current
$C/bbl
Then
Current
$C/bbl
Then
Current
$C/bbl
Then
Current
$C/bbl
Then
Current
$C/bbl
Then
Current
$C/bbl
Spec
Ethane
$C/bbl
Edmonton
Propane
$C/bbl
Edmonton
Butane
$C/bbl
Edmonton
Pentanes
Plus
$C/bbl
Page: 68 of 102
GLJ
Table FP-4 (Continued)

Natural Gas and Sulphur
GLJ (2012-01)
Henry Hub Nymex
Near Month Contract
Midwest
Price @
Chicago
Alberta Plant Gate

AECO/NIT
Spot
Spot
British Columbia
Saskatchewan Plant Gate
Year
Constant
Then
Then
Then
Then
Westcoast
Spot
2012 $
Current
Current
Current
2012 $
Current
ARP
Aggregator
Alliance
SaskEnergy
Spot
Sumas Spot Station 2
Plant Gate
$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
Sulphur
FOB
Vancouver
$US/LT
Alberta
Sulphur
at Plant
Gate
$C/LT
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Unless otherwise stated, the gas price reference point is the receipt point on the applicable provincial gas transmission system known as the plant gate.
The plant gate price represents the price before raw gas gathering and processing charges are deducted.
AECO-C Spot refers to the one month price averaged for the year.
Page: 69 of 102
GLJ
Table FP-4 (Continued.)

Crude and Natural Gas
GLJ (2012-01)
NYMEX WTI Near
Month Futures Contract
Crude Oil at
Cushing Oklahoma
Brent Blend
Crude Oil
FOB North Sea
Henry Hub
Spot
National
Balancing
Point
(UK)
Year
Inflation
%
Bank of
Canada
Average Noon
Exchange
Rate
$US/$C
Nova Scotia
Goldboro
Can. - UK
Exchange
Rate
$C/GBP
Can. - EURO
Exchange
Rate
$C/EURO
Then
Current
$US/bbl
Then
Current
$C/bbl
Then
Current
$US/bbl
Then
Current
$C/bbl
Then
Current
$US/MMbtu
Then
Current
$C/MMbtu
Then
Current
$US/MMbtu
Then
Current
$C/MMbtu
Then
Current
$US/MMbtu
Then
Current
C$/MMbtu
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Page: 70 of 102
GLJ
TABLE FP-5A
DECEMBER 31, 2011
RECONCILIATION OF COMPANY GROSS RESERVES
BY PRINCIPAL PRODUCT TYPE
FORECAST PRICES AND COSTS
Total Oil
FACTORS
December 31, 2010
Proved
(Mbbl)
Proved
Probable + Probable
(Mbbl)
(Mbbl)
Light and Medium Oil

Proved
Proved
Probable + Probable
(Mbbl)
(Mbbl)
(Mbbl)
Heavy Oil
Proved
(Mbbl)
Proved
Probable + Probable
(Mbbl)
(Mbbl)
Natural Gas Liquids

Proved
Proved
Probable + Probable
(Mbbl)
(Mbbl)
(Mbbl)
87
434
521
87
434
521
79
76
Discoveries
Extensions*
Infill Drilling*
Improved Recovery*
Technical Revisions
(20)
(19)
Acquisitions
Dispositions
Economic Factors
Production
December 31, 2011
(5)
87
434
521
87
434
521
75
56
Total Gas
FACTORS
December 31, 2010
Proved
(MMcf)
Proved
Probable + Probable
(MMcf)
(MMcf)
Conventional Natural Gas

Proved
Proved
Probable + Probable
(MMcf)
(MMcf)
(MMcf)
Coal Bed Methane

Proved
Proved
Probable + Probable
(MMcf)
(MMcf)
(MMcf)
155
(5)
131
BOE
Proved
(Mboe)
Proved
Probable + Probable
(Mboe)
(Mboe)
62,207
59,197
121,403
62,207
59,197
121,403
10,534
10,375
20,909
Discoveries
Extensions*
Infill Drilling*
Improved Recovery*
Technical Revisions
681
114
(15,230)
(14,549)
681
(15,230)
(14,549)
(2,558)
(2,444)
Acquisitions
Dispositions
Economic Factors
Production
(4,200)
December 31, 2011
58,688
0
43,966
(4,200)
102,654
(4,200)
58,688
0
43,966
(4,200)
102,654
(705)
9,943
0
7,817
(705)
17,760
GLJ
Page: 71 of 102
* 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
under Infill Drilling, Improved Recovery and Extensions should be combined and reported as "Extensions and Improved Recovery".
TABLE FP-5B
DECEMBER 31, 2010
RECONCILIATION OF COMPANY GROSS RESERVES
BY PRINCIPAL PRODUCT TYPE
FORECAST PRICES AND COSTS
Total Oil
FACTORS
December 31, 2009
Proved
(Mbbl)
Proved
Probable + Probable
(Mbbl)
(Mbbl)
Light and Medium Oil

Proved
Proved
Probable + Probable
(Mbbl)
(Mbbl)
(Mbbl)
Heavy Oil
Proved
(Mbbl)
Proved
Probable + Probable
(Mbbl)
(Mbbl)
Natural Gas Liquids

Proved
Proved
Probable + Probable
(Mbbl)
(Mbbl)
(Mbbl)
87
434
521
87
434
521
95
81
Discoveries
176
0
Extensions*
Infill Drilling*
Improved Recovery*
0
(15)
Technical Revisions
(9)
(5)
Acquisitions
Dispositions
Economic Factors
Production
(6)
(6)
87
434
521
87
434
521
79
76
December 31, 2010
Total Gas
FACTORS
December 31, 2009
Proved
(MMcf)
Proved
Probable + Probable
(MMcf)
(MMcf)
Conventional Natural Gas

Proved
Proved
Probable + Probable
(MMcf)
(MMcf)
(MMcf)
Coal Bed Methane

Proved
Proved
Probable + Probable
(MMcf)
(MMcf)
(MMcf)
155
BOE
Proved
(Mboe)
Proved
Probable + Probable
(Mboe)
(Mboe)
74,313
63,283
137,596
74,313
63,283
137,596
12,567
11,062
23,629
Discoveries
Extensions*
Infill Drilling*
Improved Recovery*
Technical Revisions
(7,287)
(4,087)
(11,374)
(7,287)
(4,087)
(11,374)
(1,224)
(687)
(1,911)
Acquisitions
Dispositions
Economic Factors
Production
(4,819)
December 31, 2010
62,207
0
59,197
(4,819)
121,403
(4,819)
62,207
0
59,197
(4,819)
121,403
(809)
10,534
0
10,375
(809)
20,909
GLJ
Page: 72 of 102
* 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
under Infill Drilling, Improved Recovery and Extensions should be combined and reported as "Extensions and Improved Recovery".
Page: 73 of 102
Company:
Property:
Description:
Table FP-6
Reserve Class:
Development Class:
Pricing:
Effective Date:

Corporate
After Tax Analysis
Various
Classifications
GLJ (2012-01)
December 31, 2011
Undeveloped Reserves Attributed in Current Year

Proved Undeveloped Reserves
L&M Oil (Mbbl)
Attributed
This Year*
Current
Total
Conventional
Natural Gas (MMcf)
Heavy Oil (Mbbl)

Attributed
This Year
87
Current
Total
Attributed
This Year
0
Current
Total
Natural Gas
Liquids (Mbbl)
Attributed
This Year
36,739
BOE (Mbbl)
Current
Total
Attributed
This Year
47
Current
Total
6,257
Probable Undeveloped Reserves

L&M Oil (Mbbl)
Attributed
This Year
Current
Total
Conventional
Natural Gas (MMcf)
Heavy Oil (Mbbl)

Attributed
This Year
434
Current
Total
Attributed
This Year
0
3,489
Current
Total
Natural Gas
Liquids (Mbbl)
Attributed
This Year
38,016
BOE (Mbbl)
Current
Total
Attributed
This Year
49
586
Current
Total
6,818
* Refers to reserves first attributed in this fiscal year ending on the effective date.
BOE Factors:
1121357
HVY OIL 1.0

COND
1.0
RES GAS 6.0

SLN GAS 6.0
PROPANE 1.0
BUTANE 1.0
ETHANE 1.0
SULPHUR 0.0
Class (A,C,I,R), GLJ (2012-01), cs7a
March 13, 2012 12:53:08
GLJ
Table FP-7
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011
Company Annual Capital Expenditures (M$)

Year
Entity Description
2012
2013
2014
2015
2016
2017
Totals
2018
2019
2020
2021
2022
2023
Subtotal
Remainder
10%
Discounted
Total
Proved Producing
Total Proved
13,306
21,193
21,882
12,600
3,213
72,193
72,193
54,016
19,242
39,358
31,146
37,799
9,639
137,184
137,184
100,326
Total PPP
19,548
45,413
37,323
52,757
25,703
19,663
10,028
210,435
210,435
144,528
Class (A,C,I,R), GLJ (2012-01), cs4
February 16, 2012 12:54:04
GLJ
Page: 74 of 102
1121357
Table FP-8
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011
Company Annual Abandonment Costs (M$)

Year
Entity Description
2012
2013
2014
2015
2016
2017
Totals
2018
2019
2020
2021
2022
2023
Subtotal
Remainder
Total
10%
Discounted
Proved Producing
510
390
138
144
146
305
311
1,944
4,554
6,498
2,217
Total Proved
510
390
138
144
146
305
311
1,944
11,473
13,417
2,775
520
398
144
149
155
1,367
17,999
19,366
2,439
Total PPP
531
414
945
28,828
29,773
1,894
Class (A,C,I,R), GLJ (2012-01), cs5
February 16, 2012 12:54:05
GLJ
Page: 75 of 102
1121357
Table FP-9
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011
Summary of First Year Production and Oil and Gas Reserves

2012 Average Daily Production
Light and
Medium Oil
Heavy
Oil
Natural
Gas
Reserves
Natural Gas
Liquids
Oil
Equivalent
Light and
Medium Oil
Compny Compny Compny Compny Compny Compny Compny Compny Compny Compny
Gross
Net
Gross
Net
Gross
Net
Gross
Net
Gross
Net
bbl/d
bbl/d
bbl/d
bbl/d
Mcf/d
Mcf/d
bbl/d
bbl/d
bbl/d
bbl/d
Entity Description
Heavy
Oil
Natural
Gas
Oil
Equivalent
Natural Gas
Liquids
Compny Compny Compny Compny Compny Compny

Compny Compny
Gross
Net
Gross
Net
Gross
Net
Compny Compny Gross
Net
Mbbl
Mbbl
Mbbl
Mbbl
MMcf MMcf
Gross
Net
Mboe
Mboe
Proved Producing
McCully
9,348
8,834
12
11
1,570
1,484
21,949
20,944
28
27
3,686
3,517
9,348
8,834
12
11
1,570
1,484
21,949
20,944
28
27
3,686
3,517

McCully
Total: Proved Developed Nonproducing
Proved Undeveloped
McCully
87
79
36,739
33,249
47
42
6,257
5,662
Total: Proved Undeveloped
87
79
36,739
33,249
47
42
6,257
5,662
Total Proved
McCully
9,348
8,834
12
11
1,570
1,484
87
79
58,688
54,192
75
69
9,943
9,180
Total: Total Proved
9,348
8,834
12
11
1,570
1,484
87
79
58,688
54,192
75
69
9,943
9,180
Total Probable
McCully
204
193
34
32
434
393
43,967
39,955
56
51
7,818
7,103
Total: Total Probable
204
193
34
32
434
393
43,967
39,955
56
51
7,818
7,103

McCully
9,553
9,027
12
12
1,604
1,516
521
471
0 102,654
94,147
131
120
17,761
16,282
9,553
9,027
12
12
1,604
1,516
521
471
0 102,654
94,147
131
120
17,761
16,282
Total PPP
McCully
9,743
9,207
12
12
1,636
1,546
694
628
0 216,732 197,558
277
252
37,093
33,807
Total: Total PPP
9,743
9,207
12
12
1,636
1,546
694
628
0 216,732 197,558
277
252
37,093
33,807
1121357
HVY OIL
COND
1.0
1.0
RES GAS
SLN GAS
6.0
6.0
PROPANE
BUTANE
1.0
1.0
ETHANE
SULPHUR
1.0
0.0
Class (A,B1,B2,C,F,I,R), GLJ (2012-01), cs6
March 13, 2012 10:15:35
GLJ
Page: 76 of 102
BOE Factors:
Page: 77 of 102
AFTER TAX ANALYSIS

TABLE OF CONTENTS
Page
DISCUSSION
78
79
ECONOMIC FORECASTS
Proved Producing
Proved Undeveloped
Total Proved
Total Probable
Total PPP
80
83
86
89
92
95
March 13, 2012 15:51:06
GLJ
Page: 78 of 102
AFTER TAX ANALYSIS
Canadian income taxes were calculated based on currently legislated federal and provincial tax
rates, tax regulations and tax pool information provided by the Company. After tax values for
reserves development status or production status subcategories (i.e. developed, undeveloped,
producing, non-producing) are calculated by difference.
Tax Pools
The following tax pools as of the effective date were included in the income tax calculations:
Tax Pool Classification
Write-Off Rate (%)_
Canadian Oil and Gas Property Expense (COGPE)

Canadian Exploration Expense (CEE)
Non-Capital Losses
Canadian Development Expense (CDE)
Capital Cost Allowance: (CCA)
Class 41
Class 10
Tax Pool (M$)
10
100
100
30
3,091
72,387
626
80,063
25
30
20,845
18,716
Tax Rates
Federal income tax calculations incorporate recently enacted reductions in general corporate
income tax rates as follows:
Federal Income
Tax Rate
15.0%
Year
2012+
Allocation of revenues to Canadian provinces for income tax purposes depends on several
factors in addition to the provincial origin of the resource revenues. The average future annual
provincial tax rate has been calculated based on an allocation of provincial resource revenues and
their respective tax rate as follows:
Year
Alberta
Tax Rate
Alberta
Allocation
N.S.
Tax Rate
N.S.
Allocation
N.B.
Tax Rate
N.B.
Allocation
Man.
Tax Rate
Man.
Allocation
Avg. Ann.
Tax Rate
2011+
10.00%
10.00%
65%
10.00%
35%
12.00%
0%
12.75%
Company total after tax economic forecasts for all reserves categories are attached.
GLJ
Page: 79 of 102
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Various
Classifications
GLJ (2012-01)
December 31, 2011

Proved
Developed
NonProved
producing Undeveloped
Proved
Producing
MARKETABLE RESERVES
Working Interest
Net After Royalty
Gas (MMcf)
Working Interest
Net After Royalty
Working Interest
Net After Royalty
Working Interest
Net After Royalty
Total
Proved
Total
Proved
Plus
Probable
Total
Probable
Total
PPP
0
0
0
0
0
0
87
87
79
87
87
79
434
434
393
521
521
471
694
694
628
21,949
21,949
20,944
0
0
0
36,739
36,739
33,249
58,688
58,688
54,192
43,967
43,967
39,955
102,654
102,654
94,147
216,732
216,732
197,558
28
28
27
0
0
0
47
47
42
75
75
69
56
56
51
131
131
120
277
277
252
3,686
3,686
3,517
0
0
0
6,257
6,257
5,662
9,943
9,943
9,180
7,818
7,818
7,103
17,761
17,761
16,282
37,093
37,093
33,807

0%
68,004
5%
55,395
8%
49,612
10%
46,325
12%
43,416
15%
39,645
20%
34,602
0
0
0
0
0
0
0
151,236
83,361
60,516
49,417
40,621
30,547
19,232
219,240
138,756
110,128
95,742
84,037
70,192
53,834
244,854
127,138
91,823
75,405
62,717
48,508
32,905
464,094
265,894
201,951
171,147
146,754
118,701
86,738
1,217,007
593,714
426,512
351,488
294,512
231,566
163,152
AFTER TAX PRESENT VALUE (M$)

0%
68,004
5%
55,395
8%
49,612
10%
46,325
12%
43,416
15%
39,645
20%
34,602
0
0
0
0
0
0
0
143,176
80,594
59,004
48,392
39,919
30,141
19,062
211,180
135,989
108,616
94,717
83,334
69,786
53,664
176,697
94,147
69,137
57,408
48,269
37,922
26,345
387,877
230,136
177,753
152,124
131,603
107,708
80,009
930,490
466,780
339,978
282,516
238,570
189,632
135,843
BOE Factors:
HVY OIL 1.0

COND
1.0
RES GAS 6.0

SLN GAS 6.0
PROPANE 1.0
BUTANE 1.0
ETHANE 1.0
SULPHUR 0.0
1121357
Class (A,B1,B2,C,F,I,R), GLJ (2012-01), psum
February 16, 2012 12:52:59
GLJ
Page: 80 of 102
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved
Producing
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Year
Company Company
Gas
Daily
Wells
Mcf/d
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
22
22
19
17
17
17
17
17
16
16
16
15
Company
Yearly
MMcf
9,348
7,733
6,409
5,131
4,358
3,837
3,409
3,064
2,768
2,490
2,240
1,998
Net Yearly
MMcf
3,412
2,823
2,339
1,873
1,591
1,400
1,244
1,118
1,010
909
818
729
19,267
2,682
21,949
Company
Daily
bbl/d
Price
$/Mcf
3,224
2,690
2,243
1,805
1,545
1,368
1,195
1,050
955
864
784
706
18,430
2,514
20,944
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.33
7.73
5.63
Company
Yearly
Mbbl
12
10
8
7
6
5
4
4
4
3
3
3
Net Yearly
Mbbl
4
4
3
2
2
2
2
1
1
1
1
1
25
3
28
Company
Daily
boe/d
Price
$/bbl
4
3
3
2
2
2
2
1
1
1
1
1
24
3
27
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
85.12
100.10
86.95
Company
Yearly
Mboe
1,570
1,299
1,076
862
732
644
573
515
465
418
376
336
Net Yearly
Mboe
573
474
393
315
267
235
209
188
170
153
137
122
3,236
450
3,686
Price
$/boe
542
452
377
303
259
230
201
176
160
145
132
119
3,095
422
3,517
21.50
25.48
28.65
31.82
35.00
38.19
39.84
40.69
41.60
42.51
43.36
44.23
32.41
46.78
34.17

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
1121357
Oil
M$
Gas
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Mineral
Tax
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
11,943
11,767
11,004
9,813
9,185
8,835
8,195
7,522
6,947
6,384
5,860
5,330
102,784
20,728
123,512
71,531
377
312
249
195
165
145
131
121
112
103
95
87
2,093
343
2,436
1,533
Capital
Tax
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
12,320
12,079
11,253
10,007
9,350
8,980
8,326
7,643
7,059
6,488
5,955
5,417
104,878
21,070
125,948
73,064
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8,228
8,163
7,510
6,441
5,875
5,550
4,747
3,893
3,362
2,830
2,346
1,869
60,813
2,520
63,334
41,898
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
12,320
12,079
11,253
10,007
9,350
8,980
8,326
7,643
7,059
6,488
5,955
5,417
104,878
21,070
125,948
73,064
Other
M$
678
568
461
360
271
207
333
466
388
318
244
173
4,468
1,342
5,810
3,235
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
678
568
461
360
271
207
333
466
388
318
244
173
4,468
1,342
5,810
3,235
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
11,642
11,511
10,792
9,647
9,079
8,774
7,993
7,177
6,671
6,170
5,711
5,243
100,410
19,728
120,138
69,828
2,766
2,802
2,819
2,829
2,877
2,930
2,980
3,039
3,084
3,134
3,176
3,203
35,637
16,538
52,175
25,070

Other
Income
M$
1,391
1,125
967
960
895
769
677
601
540
471
426
388
9,209
1,960
11,169
6,644
Aband.
Costs
M$
0
510
390
0
0
138
0
144
146
0
305
311
1,944
4,554
6,498
2,217
Oper.
Income
M$
9,619
8,778
8,087
7,400
6,770
6,181
5,424
4,350
3,755
3,301
2,467
1,946
68,079
-74
68,004
46,325
Dev.
M$
Plant
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
648
547
462
378
327
294
266
244
225
206
189
172
3,959
670
4,629
2,860
Total
M$
3,414
3,349
3,282
3,206
3,204
3,223
3,246
3,284
3,309
3,340
3,365
3,375
39,597
17,208
56,805
27,930

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9,619
8,778
8,087
7,400
6,770
6,181
5,424
4,350
3,755
3,301
2,467
1,946
68,079
-74
68,004
46,325
Cum.
M$
9,619
18,397
26,484
33,884
40,654
46,835
52,259
56,609
60,364
63,666
66,133
68,079
68,079
68,004
68,004
46,325
10.0% Dcf
M$
9,171
16,780
23,152
28,453
32,862
36,522
39,441
41,569
43,239
44,574
45,481
46,132
46,132
46,325
46,325
46,325
February 16, 2012 12:53:04
GLJ
Page: 81 of 102
Page 2
AFTER TAX ANALYSIS

Tax Pool Balances Incl. Current Year Additions
Oper.
Income
M$
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
9,619
8,778
8,087
7,400
6,770
6,181
5,424
4,350
3,755
3,301
2,467
1,946
68,079
-74
68,004
46,325
CCA
M$
COGPE
M$
39,561
33,601
28,974
25,353
22,492
20,207
18,360
16,847
15,588
14,527
13,617
12,826
12,826
12,826
12,826
CDE
M$
3,091
2,782
2,504
2,253
2,028
1,825
1,643
1,478
1,331
1,198
1,078
970
970
970
970
80,063
56,044
39,231
27,462
19,223
13,456
9,419
6,594
4,615
3,231
2,262
1,583
1,583
1,583
1,583
Federal
Year
Taxable
Income
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
-20,669
-12,940
-7,554
-3,924
-1,485
0
0
0
0
0
0
0
-46,573
-4,444
-51,017
-41,615
Tax
Rate
%
CEE
M$
Depreciation & Writeoffs
Other
M$
72,387
72,387
72,387
72,387
72,387
72,387
72,387
71,978
71,012
69,836
68,534
67,644
67,644
67,644
67,644
CCA
M$
626
626
626
626
626
626
511
0
0
0
0
0
0
0
0
COGPE
M$
5,960
4,627
3,621
2,861
2,285
1,847
1,513
1,258
1,062
910
791
698
27,433
2,621
30,054
20,647
309
278
250
225
203
183
164
148
133
120
108
97
2,218
357
2,576
1,567
Provincial
Income
Tax
M$
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
Tax
Rate
%
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
ARTD &
Investment
Credits
M$
Income
Tax
M$
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CEE
M$
24,019
16,813
11,769
8,238
5,767
4,037
2,826
1,978
1,385
969
678
475
78,955
922
79,877
62,949
Annual
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Cum.
M$
9,619
8,778
8,087
7,400
6,770
6,181
5,424
4,350
3,755
3,301
2,467
1,946
68,079
-74
68,004
46,325
Total
M$
0
0
0
0
0
115
511
0
0
0
0
0
626
0
626
343
30,288
21,719
15,641
11,325
8,254
6,181
5,424
4,350
3,755
3,301
2,467
1,946
114,651
4,370
119,021
87,940
Net Cash Flow

After Income Tax
10.0% Dcf
M$
9,619
18,397
26,484
33,884
40,654
46,835
52,259
56,609
60,364
63,666
66,133
68,079
68,079
68,004
68,004
46,325
Other
M$
0
0
0
0
0
0
409
966
1,176
1,303
890
676
5,419
469
5,888
2,433
Net Cash Flow

Before Income Tax
Income
Tax
Payable
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CDE
M$
Annual
M$
9,171
16,780
23,152
28,453
32,862
36,522
39,441
41,569
43,239
44,574
45,481
46,132
46,132
46,325
46,325
46,325
Cum.
M$
9,619
8,778
8,087
7,400
6,770
6,181
5,424
4,350
3,755
3,301
2,467
1,946
68,079
-74
68,004
46,325
10.0% Dcf
M$
9,619
18,397
26,484
33,884
40,654
46,835
52,259
56,609
60,364
63,666
66,133
68,079
68,079
68,004
68,004
46,325
9,171
16,780
23,152
28,453
32,862
36,522
39,441
41,569
43,239
44,574
45,481
46,132
46,132
46,325
46,325
46,325
SUMMARY OF RESERVES
Product
Residue Gas
Gas Heat Content
Condensate
Total: Oil Eq.
Working
Interest
Units
MMcf
BBtu
Mbbl
Mboe
Roy/NPI
Interest
21,949
23,266
28
3,686
Total
Company
0
0
0
0
21,949
23,266
28
3,686
Oil Equivalents
Oil Eq.
Factor
Net
20,944
22,200
27
3,517
Company
Mboe
6.000
0.000
1.000
1.000

% of
Total
3,658
0
28
3,686
Reserve
Life
99
0
1
100
Life
Index
17.0
17.0
17.0
17.0
Half
Life
6.4
6.4
6.4
6.4
4.3
4.3
4.3
4.3

Product
Residue Gas
Condensate
Total: Oil Eq.
1121357
Units
$/Mcf
$/bbl
$/boe

3.29
107.14
20.42
0.21
-20.64
1.08
Wellhead
Price
3.50
86.50
21.50
Net Burdens
0.19
4.76
1.18
Operating
Expenses
1.00
0.00
5.96

Other
Expenses
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
2.31
81.75
14.36
% of
Total
117,815
2,323
120,138
98
2
100
10% Disc
M$
68,365
1,463
69,828
% of
Total
98
2
100
February 16, 2012 12:53:04
GLJ
Page: 82 of 102
Page 3

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
4.6130
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
63,334
50,639
45,033
41,898
39,154
35,634
30,986
Operating
Income
M$
68,004
55,395
49,612
46,325
43,416
39,645
34,602
Capital
Invest.
M$
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Net Present Value After Income Tax
Cash Flow
M$
68,004
55,395
49,612
46,325
43,416
39,645
34,602
$/boe
18.45
15.03
13.46
12.57
11.78
10.76
9.39
Operating
Income
M$
Capital
Invest.
M$
68,004
55,395
49,612
46,325
43,416
39,645
34,602
Cash Flow
M$
0
0
0
0
0
0
0
68,004
55,395
49,612
46,325
43,416
39,645
34,602
$/boe
18.45
15.03
13.46
12.57
11.78
10.76
9.39

1121357
February 16, 2012 12:53:04
GLJ
Page: 83 of 102
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved
Undeveloped
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
1
1
1
1
1
1
1
1
1
1
Company
Daily
bbl/d
0
5
8
13
15
15
15
15
15
15
15
15
Company
Yearly Net Yearly
Mbbl
Mbbl
0
59
65
35
22
15
11
8
7
5
4
4
0
22
24
13
8
5
4
3
2
2
2
1
86
1
87
0
20
21
12
7
5
4
3
2
2
1
1
78
1
79

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.95
106.15
108.39
98.97
110.67
99.08
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
0
2,593
7,113
10,506
11,473
9,713
7,796
6,419
5,404
4,598
3,975
3,475
Company
Yearly
MMcf
0
946
2,596
3,835
4,188
3,545
2,846
2,343
1,973
1,678
1,451
1,269
26,669
10,070
36,739
Company
Yearly Net Yearly
MMcf
MMcf
0
46
51
27
17
12
9
7
5
4
3
3
0
17
19
10
6
4
3
2
2
2
1
1
67
1
68
Price
$/Mcf
0
15
17
9
6
4
3
2
2
1
1
1
61
1
61
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.21
7.45
5.23
Company
Daily
Mcf/d
0
2,546
7,063
10,478
11,456
9,702
7,788
6,412
5,399
4,594
3,972
3,473
Net Yearly
MMcf
Price
$/Mcf
0
856
2,350
3,470
3,790
3,209
2,575
2,120
1,785
1,519
1,313
1,148
24,135
9,113
33,249
Company
Daily
bbl/d
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.09
8.55
6.76
0
3
9
13
15
12
10
8
7
6
5
4
Company
Yearly
Mbbl
0
1
3
5
5
5
4
3
3
2
2
2
34
13
47
Net Yearly
Mbbl
0
1
3
4
5
4
3
3
2
2
2
1
31
12
42
Company
Yearly Net Yearly
MMcf
MMcf
0
929
2,578
3,825
4,181
3,541
2,842
2,340
1,971
1,677
1,450
1,267
26,602
10,069
36,671
0
841
2,333
3,461
3,784
3,205
2,572
2,118
1,783
1,517
1,312
1,147
24,075
9,113
33,187
Price
$/Mcf
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.09
8.55
6.77

Company
Daily
bbl/d
Price
$/bbl
0.00
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
84.24
112.97
92.12
Company
Yearly
Mbbl
0
63
74
48
37
27
21
17
13
11
9
8
0
23
27
18
13
10
8
6
5
4
3
3
120
14
134
Net Yearly
Mbbl
0
21
24
16
12
9
7
5
4
4
3
3
109
12
121
Price
$/bbl
0.00
100.56
96.46
92.13
90.31
89.53
90.55
92.33
94.19
96.14
98.16
100.24
94.80
112.84
96.64
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
0
495
1,260
1,799
1,949
1,646
1,320
1,086
914
777
672
587
Company
Yearly
Mboe
0
181
460
657
711
601
482
397
334
284
245
214
4,565
1,692
6,257
Net Yearly
Mboe
0
163
416
594
644
544
436
359
302
257
222
194
4,131
1,531
5,662
Price
$/boe
0.00
34.59
32.23
33.07
35.69
38.72
40.32
41.14
42.03
42.93
43.77
44.63
38.05
51.81
41.77
February 16, 2012 12:53:13
GLJ
Page: 84 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Oil
M$
Gas
M$
0
2,197
2,329
1,232
773
528
390
303
244
200
168
144
8,507
89
8,596
6,122
Mineral
Tax
M$
NGL+Sul
M$
0
3,945
12,214
20,091
24,178
22,368
18,741
15,757
13,561
11,791
10,398
9,271
162,316
86,120
248,436
106,937
0
104
277
398
435
368
301
254
219
191
169
151
2,868
1,452
4,320
1,919
Capital
Tax
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
0
6,246
14,819
21,722
25,387
23,265
19,431
16,314
14,024
12,182
10,735
9,567
173,691
87,661
261,352
114,978
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
0
6,246
14,819
21,722
25,387
23,265
19,431
16,314
14,024
12,182
10,735
9,567
173,691
87,661
261,352
114,978
Other
M$
0
593
1,408
2,064
2,412
2,210
1,846
1,550
1,332
1,157
1,020
909
16,501
8,328
24,828
10,923
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
593
1,408
2,064
2,412
2,210
1,846
1,550
1,332
1,157
1,020
909
16,501
8,328
24,828
10,923
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
0
5,653
13,411
19,658
22,975
21,054
17,585
14,764
12,692
11,025
9,715
8,658
157,190
79,333
236,523
104,055
0
64
178
303
390
424
432
441
450
459
468
477
4,086
9,250
13,337
3,412

Other
Income
M$
0
5,301
12,603
18,518
21,682
19,858
16,522
13,795
11,789
10,174
8,902
7,873
147,017
67,295
214,312
96,578
Aband.
Costs
M$
102
325
919
1,785
1,763
1,418
1,170
983
840
723
631
556
11,214
4,822
16,036
7,412
Oper.
Income
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
6,919
6,919
558
102
5,626
13,522
20,303
23,446
21,276
17,692
14,778
12,629
10,897
9,533
8,429
158,231
65,198
223,429
103,433
Dev.
M$
Plant
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
288
630
838
903
773
630
528
452
392
345
308
6,087
2,788
8,875
4,065
Total
M$
0
352
809
1,140
1,292
1,196
1,063
969
902
851
813
785
10,173
12,039
22,212
7,476

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
102
-7,680
-7,671
-1,579
10,846
18,063
17,692
14,778
12,629
10,897
9,533
8,429
86,038
65,198
151,236
49,417
Cum.
M$
102
-7,578
-15,250
-16,829
-5,983
12,080
29,772
44,550
57,179
68,076
77,609
86,038
86,038
151,236
151,236
49,417
10.0% Dcf
M$
97
-6,560
-12,605
-13,736
-6,673
4,021
13,543
20,773
26,391
30,797
34,301
37,118
37,118
49,417
49,417
49,417
AFTER TAX ANALYSIS

Year
Oper.
Income
M$
CCA
M$
COGPE
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CDE
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
102
5,626
13,522
20,303
23,446
21,276
17,692
14,778
12,629
10,897
9,533
8,429
158,231
65,198
223,429
103,433
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1121357
0
13,306
30,507
43,237
42,865
33,219
23,253
16,277
11,394
7,976
5,583
3,908
3,908
3,908
3,908
CEE
M$
0
0
0
0
-2,781
-11,883
-23,308
-34,535
-44,429
-53,641
-62,145
-67,644
-67,644
-67,644
-67,644
Other
M$
0
0
0
0
-626
-626
-511
0
0
0
0
0
0
0
0
CCA
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
5,698
5,698
550
COGPE
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
465
465
53
CDE
M$
CEE
M$
0
3,992
9,152
12,971
12,860
9,966
6,976
4,883
3,418
2,393
1,675
1,172
69,458
2,922
72,379
44,592
Other
M$
0
0
0
2,781
9,101
11,425
11,227
9,894
9,211
8,504
5,499
-676
66,968
-469
66,499
34,761
0
0
0
626
0
-115
-511
0
0
0
0
0
0
0
0
105
Total
M$
0
3,992
9,152
16,378
21,961
21,276
17,692
14,778
12,629
10,897
7,174
497
136,426
8,615
145,040
80,060
February 16, 2012 12:53:13
GLJ
Page: 85 of 102
Page 3
Federal
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Taxable
Income
M$
102
1,634
4,370
3,924
1,485
0
0
0
0
0
2,359
7,932
21,806
56,583
78,389
23,372
Tax
Rate
%
Provincial
Income
Tax
M$
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
Tax
Rate
%
0
0
0
0
0
0
0
0
0
0
0
0
0
4,357
4,357
554
ARTD &
Investment
Credits
M$
Income
Tax
M$
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
0
0
0
0
0
0
0
0
0
0
0
0
0
3,703
3,703
471
Income
Tax
Payable
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8,060
8,060
1,025
Net Cash Flow

Before Income Tax
Annual
M$
Cum.
M$
102
-7,680
-7,671
-1,579
10,846
18,063
17,692
14,778
12,629
10,897
9,533
8,429
86,038
65,198
151,236
49,417
Net Cash Flow

After Income Tax
10.0% Dcf
M$
102
-7,578
-15,250
-16,829
-5,983
12,080
29,772
44,550
57,179
68,076
77,609
86,038
86,038
151,236
151,236
49,417
Annual
M$
97
-6,560
-12,605
-13,736
-6,673
4,021
13,543
20,773
26,391
30,797
34,301
37,118
37,118
49,417
49,417
49,417
Cum.
M$
102
-7,680
-7,671
-1,579
10,846
18,063
17,692
14,778
12,629
10,897
9,533
8,429
86,038
57,138
143,176
48,392
10.0% Dcf
M$
102
-7,578
-15,250
-16,829
-5,983
12,080
29,772
44,550
57,179
68,076
77,609
86,038
86,038
143,176
143,176
48,392
97
-6,560
-12,605
-13,736
-6,673
4,021
13,543
20,773
26,391
30,797
34,301
37,118
37,118
48,392
48,392
48,392
SUMMARY OF RESERVES
Product
Working
Interest
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
87
68
36,671
36,739
38,943
47
134
6,257
Total
Company
0
0
0
0
0
0
0
0
87
68
36,671
36,739
38,943
47
134
6,257
Oil Equivalents
Oil Eq.
Factor
Net
79
61
33,187
33,249
35,244
42
121
5,662
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
87
11
6,112
6,123
0
47
134
6,257
Reserve
Life
1
0
98
98
0
1
2
100
Life
Index
13.0
13.0
39.0
39.0
39.0
39.0
39.0
39.0
Half
Life
4.0
4.0
39.5
38.8
38.8
38.8
5.8
34.6
2.9
2.9
7.2
7.2
7.2
7.2
4.0
7.1

Product
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Wellhead
Price
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Net Burdens
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Operating
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Other
Expenses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
0.00
0.00
0.00
0.00
0.00
% of
Total
7,779
321
224,514
224,835
3,909
11,688
236,523
10% Disc
M$
3
0
95
95
2
5
100
% of
Total
5,540
220
96,558
96,778
1,737
7,277
104,055
5
0
93
93
2
7
100

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
0.0000
0.0000
0.0000
Average
9.5000
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
214,312
136,932
110,054
96,578
85,584
72,482
56,715
Operating
Income
M$
223,429
145,507
117,585
103,433
91,817
77,904
61,074
Capital
Invest.
M$
72,193
62,146
57,069
54,016
51,196
47,357
41,843
Cash Flow
M$
151,236
83,361
60,516
49,417
40,621
30,547
19,232
$/boe
24.17
13.32
9.67
7.90
6.49
4.88
3.07
Operating
Income
M$
Capital
Invest.
M$
215,369
142,740
116,073
102,407
91,115
77,498
60,904
72,193
62,146
57,069
54,016
51,196
47,357
41,843
Cash Flow
M$
143,176
80,594
59,004
48,392
39,919
30,141
19,062
$/boe
22.88
12.88
9.43
7.73
6.38
4.82
3.05

1121357
February 16, 2012 12:53:13
GLJ
Page: 86 of 102
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Proved
Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
1
1
1
1
1
1
1
1
1
1
Company
Daily
bbl/d
22
26
27
30
32
32
32
32
31
31
31
30
Company
Yearly Net Yearly
Mbbl
Mbbl
0
59
65
35
22
15
11
8
7
5
4
4
0
22
24
13
8
5
4
3
2
2
2
1
86
1
87
0
20
21
12
7
5
4
3
2
2
1
1
78
1
79

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.95
106.15
108.39
98.97
110.67
99.08
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
9,348
10,326
13,522
15,637
15,831
13,550
11,205
9,483
8,172
7,088
6,216
5,473
Company
Yearly
MMcf
0
46
51
27
17
12
9
7
5
4
3
3
0
17
19
10
6
4
3
2
2
2
1
1
67
1
68
Price
$/Mcf
0
15
17
9
6
4
3
2
2
1
1
1
61
1
61
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.21
7.45
5.23
Company
Daily
Mcf/d
Price
$/Mcf
3,224
3,546
4,593
5,276
5,334
4,577
3,770
3,170
2,740
2,383
2,097
1,854
42,565
11,627
54,192
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.77
8.38
6.34
12
13
17
20
20
17
14
12
10
9
8
7
Company
Yearly
Mbbl
4
5
6
7
7
6
5
4
4
3
3
3
59
16
75
Net Yearly
Mbbl
4
5
6
7
7
6
5
4
3
3
3
2
54
15
69
Company
Yearly Net Yearly
MMcf
MMcf
9,348
10,279
13,471
15,609
15,814
13,538
11,197
9,476
8,167
7,083
6,212
5,470
Net Yearly
MMcf
3,412
3,769
4,936
5,707
5,778
4,946
4,090
3,461
2,983
2,587
2,269
1,998
45,936
12,752
58,688
Company
Yearly Net Yearly
MMcf
MMcf
3,412
3,752
4,917
5,697
5,772
4,941
4,087
3,459
2,981
2,585
2,268
1,997
45,868
12,752
58,620
3,224
3,531
4,576
5,267
5,329
4,573
3,767
3,168
2,738
2,382
2,096
1,853
42,504
11,627
54,131
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.77
8.38
6.34

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
84.61
110.27
90.19
Company
Yearly
Mbbl
12
73
82
55
42
32
25
20
17
14
12
11
4
26
30
20
15
12
9
7
6
5
4
4
145
17
162
Net Yearly
Mbbl
4
24
27
18
14
11
8
7
6
5
4
4
132
16
148
Price
$/bbl
86.50
98.65
95.16
90.86
89.14
88.30
89.21
90.89
92.69
94.58
96.56
98.64
93.15
110.28
94.96
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
1,570
1,794
2,336
2,661
2,681
2,291
1,893
1,601
1,379
1,196
1,048
923
Company
Yearly
Mboe
573
655
853
971
978
836
691
584
503
436
383
337
7,801
2,142
9,943
Net Yearly
Mboe
542
615
793
898
903
774
637
535
462
402
354
313
7,226
1,953
9,180
Price
$/boe
21.50
27.99
30.58
32.67
35.50
38.57
40.18
41.00
41.88
42.78
43.62
44.48
35.71
50.75
38.95
February 16, 2012 12:53:20
GLJ
Page: 87 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Oil
M$
Gas
M$
0
2,197
2,329
1,232
773
528
390
303
244
200
168
144
8,507
89
8,596
6,122
Mineral
Tax
M$
NGL+Sul
M$
11,943
15,712
23,218
29,904
33,364
31,203
26,935
23,279
20,508
18,175
16,257
14,601
265,101
106,848
371,948
178,468
377
416
526
593
600
514
432
375
331
294
264
239
4,961
1,795
6,756
3,452
Capital
Tax
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
12,320
18,326
26,073
31,729
34,737
32,245
27,757
23,957
21,083
18,669
16,690
14,984
278,568
108,731
387,300
188,041
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
12,320
18,326
26,073
31,729
34,737
32,245
27,757
23,957
21,083
18,669
16,690
14,984
278,568
108,731
387,300
188,041
Other
M$
678
1,161
1,869
2,424
2,683
2,417
2,179
2,016
1,721
1,475
1,264
1,082
20,968
9,670
30,638
14,158
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
678
1,161
1,869
2,424
2,683
2,417
2,179
2,016
1,721
1,475
1,264
1,082
20,968
9,670
30,638
14,158
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
11,642
17,164
24,203
29,305
32,054
29,828
25,578
21,941
19,362
17,194
15,426
13,901
257,600
99,061
356,661
173,883
2,766
2,865
2,997
3,131
3,267
3,354
3,412
3,481
3,534
3,592
3,644
3,680
39,723
25,788
65,512
28,481

Other
Income
M$
8,228
13,464
20,113
24,958
27,557
25,408
21,269
17,688
15,151
13,004
11,248
9,742
207,831
69,815
277,645
138,477
Aband.
Costs
M$
1,493
1,450
1,886
2,745
2,658
2,187
1,846
1,584
1,380
1,195
1,058
944
20,423
6,782
27,205
14,056
Oper.
Income
M$
0
510
390
0
0
138
0
144
146
0
305
311
1,944
11,473
13,417
2,775
9,721
14,404
21,609
27,703
30,216
27,457
23,116
19,128
16,385
14,198
12,000
10,374
226,310
65,124
291,433
149,758
Dev.
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
Plant
M$
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
648
835
1,093
1,215
1,230
1,066
896
772
677
598
535
480
10,046
3,458
13,504
6,925
Total
M$
3,414
3,701
4,090
4,347
4,497
4,420
4,309
4,252
4,211
4,191
4,178
4,160
49,770
29,246
79,016
35,406

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
0
13,306
21,193
21,882
12,600
3,213
0
0
0
0
0
0
72,193
0
72,193
54,016
9,721
1,098
416
5,821
17,616
24,244
23,116
19,128
16,385
14,198
12,000
10,374
154,116
65,124
219,240
95,742
Cum.
M$
9,721
10,818
11,234
17,055
34,671
58,915
82,031
101,159
117,543
131,742
143,742
154,116
154,116
219,240
219,240
95,742
10.0% Dcf
M$
9,268
10,220
10,547
14,717
26,189
40,542
52,983
62,342
69,630
75,371
79,783
83,250
83,250
95,742
95,742
95,742
AFTER TAX ANALYSIS

Year
Oper.
Income
M$
CCA
M$
COGPE
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
9,721
14,404
21,609
27,703
30,216
27,457
23,116
19,128
16,385
14,198
12,000
10,374
226,310
65,124
291,433
149,758
39,561
33,601
28,974
25,353
22,492
20,207
18,360
16,847
15,588
14,527
13,617
12,826
12,826
12,826
12,826
1121357
3,091
2,782
2,504
2,253
2,028
1,825
1,643
1,478
1,331
1,198
1,078
970
970
970
970
CDE
M$
80,063
69,350
69,738
70,699
62,089
46,675
32,672
22,871
16,009
11,207
7,845
5,491
5,491
5,491
5,491
CEE
M$
72,387
72,387
72,387
72,387
69,606
60,504
49,079
37,443
26,582
16,196
6,389
0
0
0
0
Other
M$
CCA
M$
626
626
626
626
0
0
0
0
0
0
0
0
0
0
0
5,960
4,627
3,621
2,861
2,285
1,847
1,513
1,258
1,062
910
791
698
27,433
8,319
35,752
21,197
COGPE
M$
309
278
250
225
203
183
164
148
133
120
108
97
2,218
822
3,040
1,620
CDE
M$
CEE
M$
24,019
20,805
20,921
21,210
18,627
14,002
9,802
6,861
4,803
3,362
2,353
1,647
148,412
3,844
152,256
107,541
Other
M$
0
0
0
2,781
9,101
11,425
11,636
10,861
10,387
9,807
6,389
0
72,387
0
72,387
37,194
Total
M$
0
0
0
626
0
0
0
0
0
0
0
0
626
0
626
448
30,288
25,710
24,793
27,703
30,216
27,457
23,116
19,128
16,385
14,198
9,641
2,442
251,077
12,985
264,061
168,000
February 16, 2012 12:53:20
GLJ
Page: 88 of 102
Page 3
Federal
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Taxable
Income
M$
-20,567
-11,307
-3,184
0
0
0
0
0
0
0
2,359
7,932
-24,767
52,139
27,372
-18,243
Tax
Rate
%
Provincial
Income
Tax
M$
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
Tax
Rate
%
0
0
0
0
0
0
0
0
0
0
0
0
0
4,357
4,357
554
ARTD &
Investment
Credits
M$
Income
Tax
M$
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
0
0
0
0
0
0
0
0
0
0
0
0
0
3,703
3,703
471
Income
Tax
Payable
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8,060
8,060
1,025
Net Cash Flow

Before Income Tax
Annual
M$
Cum.
M$
9,721
1,098
416
5,821
17,616
24,244
23,116
19,128
16,385
14,198
12,000
10,374
154,116
65,124
219,240
95,742
Net Cash Flow

After Income Tax
10.0% Dcf
M$
9,721
10,818
11,234
17,055
34,671
58,915
82,031
101,159
117,543
131,742
143,742
154,116
154,116
219,240
219,240
95,742
Annual
M$
9,268
10,220
10,547
14,717
26,189
40,542
52,983
62,342
69,630
75,371
79,783
83,250
83,250
95,742
95,742
95,742
Cum.
M$
9,721
1,098
416
5,821
17,616
24,244
23,116
19,128
16,385
14,198
12,000
10,374
154,116
57,063
211,180
94,717
10.0% Dcf
M$
9,721
10,818
11,234
17,055
34,671
58,915
82,031
101,159
117,543
131,742
143,742
154,116
154,116
211,180
211,180
94,717
9,268
10,220
10,547
14,717
26,189
40,542
52,983
62,342
69,630
75,371
79,783
83,250
83,250
94,717
94,717
94,717
SUMMARY OF RESERVES
Product
Working
Interest
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
87
68
58,620
58,688
62,209
75
162
9,943
Total
Company
0
0
0
0
0
0
0
0
87
68
58,620
58,688
62,209
75
162
9,943
Oil Equivalents
Oil Eq.
Factor
Net
79
61
54,131
54,192
57,444
69
148
9,180
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
87
11
9,770
9,781
0
75
162
9,943
Reserve
Life
1
0
98
98
0
1
2
100
Life
Index
13.0
13.0
39.0
39.0
39.0
39.0
39.0
39.0
Half
Life
4.0
4.0
17.2
17.2
17.2
17.2
37.1
17.4
2.9
2.9
6.2
6.2
6.2
6.2
4.0
6.2

Product
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
3.29
3.29
107.14
107.14
20.42
Wellhead
Price
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Net Burdens
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Operating
Expenses
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Other
Expenses
0.00
0.00
1.00
1.00
0.00
0.00
5.96
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
2.31
2.31
81.75
81.75
14.36
% of
Total
7,779
321
342,329
342,650
6,232
14,011
356,661
10% Disc
M$
2
0
96
96
2
4
100
% of
Total
5,540
220
164,923
165,143
3,200
8,740
173,883
3
0
95
95
2
5
100

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
7.9108
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
277,645
187,571
155,087
138,477
124,738
108,116
87,701
Operating
Income
M$
291,433
200,901
167,198
149,758
135,233
117,549
95,676
Capital
Invest.
M$
72,193
62,146
57,069
54,016
51,196
47,357
41,843
Cash Flow
M$
219,240
138,756
110,128
95,742
84,037
70,192
53,834
$/boe
22.05
13.96
11.08
9.63
8.45
7.06
5.41
Operating
Income
M$
Capital
Invest.
M$
283,373
198,134
165,685
148,732
134,530
117,143
95,506
72,193
62,146
57,069
54,016
51,196
47,357
41,843
Cash Flow
M$
211,180
135,989
108,616
94,717
83,334
69,786
53,664
$/boe
21.24
13.68
10.92
9.53
8.38
7.02
5.40

1121357
February 16, 2012 12:53:20
GLJ
Page: 89 of 102
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
Probable
Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
0
2
2
2
2
2
2
2
2
2
2
Company
Daily
bbl/d
0
0
3
4
7
8
8
8
8
9
8
9
Company
Yearly Net Yearly
Mbbl
Mbbl
0
114
273
265
156
97
67
49
37
29
24
20
0
41
100
97
57
35
24
18
14
11
9
7
412
21
434
0
38
90
88
52
32
22
16
12
10
8
6
373
19
393

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.96
106.15
108.39
98.27
113.83
99.04
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
204
926
2,384
4,826
10,233
10,622
8,977
7,680
6,699
5,891
5,256
4,742
Company
Yearly
MMcf
75
338
870
1,762
3,735
3,877
3,277
2,803
2,445
2,150
1,919
1,731
24,981
18,985
43,967
Company
Yearly Net Yearly
MMcf
MMcf
0
89
213
208
122
76
52
38
29
23
18
15
0
32
78
76
45
28
19
14
11
8
7
6
323
17
339
Price
$/Mcf
0
29
70
69
40
25
17
13
10
8
6
5
292
15
307
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.49
7.66
5.59
Company
Daily
Mcf/d
204
837
2,171
4,618
10,111
10,546
8,925
7,642
6,670
5,868
5,238
4,727
Net Yearly
MMcf
Price
$/Mcf
70
315
799
1,608
3,396
3,526
2,979
2,545
2,222
1,957
1,749
1,582
22,749
17,206
39,955
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.40
8.96
7.50
0
1
3
6
13
14
11
10
9
8
7
6
Company
Yearly
Mbbl
0
0
1
2
5
5
4
4
3
3
2
2
32
24
56
Net Yearly
Mbbl
0
0
1
2
4
5
4
3
3
2
2
2
29
22
51
Company
Yearly Net Yearly
MMcf
MMcf
75
306
792
1,686
3,691
3,849
3,258
2,789
2,435
2,142
1,912
1,725
24,659
18,969
43,627
70
286
728
1,539
3,356
3,501
2,962
2,532
2,213
1,949
1,743
1,577
22,457
17,191
39,648
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.41
8.96
7.52

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.12
91.31
93.55
84.93
119.29
99.77
Company
Yearly
Mbbl
0
115
276
272
169
111
78
58
46
37
30
26
0
42
101
99
62
40
28
21
17
13
11
9
444
46
490
Net Yearly
Mbbl
0
38
91
90
56
37
26
19
15
12
10
8
402
41
444
Price
$/bbl
86.50
101.19
98.12
95.90
95.10
94.42
95.44
97.20
99.03
100.92
102.87
104.88
97.32
116.73
99.12
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
34
269
673
1,076
1,875
1,881
1,574
1,338
1,162
1,019
906
816
Company
Yearly
Mboe
13
98
246
393
684
687
575
488
424
372
331
298
4,608
3,210
7,818
Net Yearly
Mboe
12
90
224
358
622
624
522
443
386
338
302
272
4,194
2,909
7,103
Price
$/boe
21.50
57.51
56.86
47.71
40.10
41.18
42.29
42.83
43.52
44.27
45.00
45.76
44.06
54.63
48.40
February 16, 2012 12:53:26
GLJ
Page: 90 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Oil
M$
Gas
M$
0
4,204
9,786
9,324
5,491
3,410
2,372
1,768
1,381
1,108
916
772
40,531
2,429
42,960
28,079
261
1,409
4,094
9,230
21,566
24,460
21,580
18,853
16,811
15,107
13,747
12,651
159,768
170,045
329,813
108,969
8
37
93
183
388
403
346
304
271
245
224
207
2,708
2,891
5,599
1,867
Capital
Tax
M$
NPI
Burden
M$
Mineral
Tax
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
269
5,650
13,972
18,737
27,445
28,272
24,298
20,924
18,463
16,460
14,886
13,630
203,008
175,365
378,373
138,916
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Prod'n
Revenue
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
269
5,650
13,972
18,737
27,445
28,272
24,298
20,924
18,463
16,460
14,886
13,630
203,008
175,365
378,373
138,916
Other
M$
15
498
1,273
1,708
2,515
2,572
2,216
1,932
1,688
1,486
1,319
1,179
18,401
16,487
34,888
12,657
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
498
1,273
1,708
2,515
2,572
2,216
1,932
1,688
1,486
1,319
1,179
18,401
16,487
34,888
12,657
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
254
5,152
12,700
17,029
24,930
25,700
22,082
18,992
16,775
14,975
13,567
12,450
184,607
158,878
343,485
126,259
0
20
47
119
195
257
270
264
283
301
313
345
2,414
26,981
29,395
4,790

Other
Income
M$
240
4,866
11,989
16,066
23,674
24,444
20,980
18,020
15,872
14,125
12,760
11,655
174,691
126,268
300,959
116,333
Aband.
Costs
M$
145
331
590
690
727
749
726
692
657
630
595
545
7,076
7,759
14,835
5,047
Oper.
Income
M$
0
-510
130
398
0
-138
0
0
-146
149
-305
-155
-577
6,526
5,949
-336
385
5,707
12,448
16,358
24,401
25,331
21,706
18,712
16,675
14,606
13,659
12,355
182,343
127,501
309,845
121,716
Dev.
M$
Plant
M$
0
5,936
18,165
9,264
25,199
6,426
0
0
0
0
0
0
64,991
0
64,991
46,311
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14
267
664
844
1,062
999
831
709
620
549
494
451
7,502
5,628
13,130
5,136
Total
M$
14
286
711
963
1,257
1,256
1,101
972
903
850
807
796
9,917
32,609
42,526
9,927

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
0
5,936
18,165
9,264
25,199
6,426
0
0
0
0
0
0
64,991
0
64,991
46,311
385
-229
-5,717
7,094
-798
18,905
21,706
18,712
16,675
14,606
13,659
12,355
117,352
127,501
244,854
75,405
Cum.
M$
385
156
-5,561
1,533
734
19,639
41,346
60,058
76,733
91,338
104,997
117,352
117,352
244,854
244,854
75,405
10.0% Dcf
M$
367
168
-4,337
745
225
11,417
23,100
32,255
39,672
45,578
50,599
54,728
54,728
75,405
75,405
75,405
AFTER TAX ANALYSIS

Year
Oper.
Income
M$
CCA
M$
COGPE
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
385
5,707
12,448
16,358
24,401
25,331
21,706
18,712
16,675
14,606
13,659
12,355
182,343
127,501
309,845
121,716
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1121357
CDE
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,936
22,321
24,889
42,621
36,261
25,382
17,768
12,437
8,706
6,094
4,266
4,266
4,266
4,266
CEE
M$
0
0
0
-1,942
-11,459
-23,074
-37,526
-37,443
-26,582
-16,196
-6,389
0
0
0
0
Other
M$
0
0
0
-626
0
0
0
0
0
0
0
0
0
0
0
CCA
M$
COGPE
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
574
574
12
CDE
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
17
17
0
CEE
M$
0
1,781
6,696
7,467
12,786
10,878
7,615
5,330
3,731
2,612
1,828
1,280
62,005
2,986
64,991
38,206
Other
M$
0
0
1,942
9,518
11,614
14,452
-83
-10,861
-10,387
-9,807
-6,389
0
0
0
0
8,175
0
0
626
-626
0
0
0
0
0
0
0
0
0
0
0
45
Total
M$
0
1,781
9,264
16,358
24,401
25,331
7,532
-5,531
-6,656
-7,195
-4,561
1,280
62,005
3,578
65,583
46,438
February 16, 2012 12:53:26
GLJ
Page: 91 of 102
Page 3
Federal
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Taxable
Income
M$
385
3,926
3,184
0
0
0
14,174
24,243
23,331
21,800
18,219
11,075
120,339
123,923
244,262
75,278
Tax
Rate
%
Provincial
Income
Tax
M$
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
Tax
Rate
%
0
0
0
0
0
0
0
1,628
3,500
3,270
3,087
2,851
14,336
22,506
36,841
9,729
ARTD &
Investment
Credits
M$
Income
Tax
M$
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
0
0
0
0
0
0
0
1,384
2,975
2,780
2,624
2,423
12,185
19,130
31,315
8,269
Income
Tax
Payable
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,012
6,474
6,050
5,711
5,275
26,521
41,635
68,156
17,998
Net Cash Flow

Before Income Tax
Annual
M$
Cum.
M$
385
-229
-5,717
7,094
-798
18,905
21,706
18,712
16,675
14,606
13,659
12,355
117,352
127,501
244,854
75,405
Net Cash Flow

After Income Tax
10.0% Dcf
M$
385
156
-5,561
1,533
734
19,639
41,346
60,058
76,733
91,338
104,997
117,352
117,352
244,854
244,854
75,405
Annual
M$
367
168
-4,337
745
225
11,417
23,100
32,255
39,672
45,578
50,599
54,728
54,728
75,405
75,405
75,405
Cum.
M$
385
-229
-5,717
7,094
-798
18,905
21,706
15,700
10,201
8,556
7,948
7,081
90,831
85,866
176,697
57,408
10.0% Dcf
M$
385
156
-5,561
1,533
734
19,639
41,346
57,045
67,246
75,802
83,751
90,831
90,831
176,697
176,697
57,408
367
168
-4,337
745
225
11,417
23,100
30,781
35,319
38,779
41,700
44,067
44,067
57,408
57,408
57,408
SUMMARY OF RESERVES
Product
Working
Interest
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
434
339
43,627
43,967
46,605
56
490
7,818
Total
Company
0
0
0
0
0
0
0
0
434
339
43,627
43,967
46,605
56
490
7,818
Oil Equivalents
Oil Eq.
Factor
Net
393
307
39,648
39,955
42,352
51
444
7,103
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
434
57
7,271
7,328
0
56
490
7,818
Reserve
Life
6
1
93
94
0
1
6
100
Life
Index
17.0
17.0
43.0
43.0
43.0
43.0
43.0
43.0
Half
Life
10.5
10.5
585.1
589.6
589.6
589.6
999.9
624.3
3.8
3.8
10.4
10.3
10.3
10.3
4.1
9.8

Product
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
3.29
3.29
107.14
107.14
20.42
Wellhead
Price
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Net Burdens
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Operating
Expenses
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Other
Expenses
0.00
0.00
0.19
0.19
0.00
0.00
1.13
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
3.12
3.12
81.75
81.75
19.18
% of
Total
38,879
1,718
297,803
299,520
5,085
43,964
343,485
10% Disc
M$
11
1
87
87
1
13
100
% of
Total
25,412
1,083
98,065
99,148
1,700
27,112
126,259
20
1
78
79
1
21
100

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
9.2205
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
300,959
174,186
135,059
116,333
101,477
84,255
64,220
Operating
Income
M$
309,845
181,690
141,205
121,716
106,218
88,225
67,281
Capital
Invest.
M$
64,991
54,552
49,383
46,311
43,500
39,717
34,377
Cash Flow
M$
244,854
127,138
91,823
75,405
62,717
48,508
32,905
$/boe
31.32
16.26
11.75
9.65
8.02
6.21
4.21
Operating
Income
M$
Capital
Invest.
M$
241,688
148,699
118,520
103,718
91,769
77,638
60,722
64,991
54,552
49,383
46,311
43,500
39,717
34,377
Cash Flow
M$
176,697
94,147
69,137
57,408
48,269
37,922
26,345
$/boe
22.60
12.04
8.84
7.34
6.17
4.85
3.37

1121357
February 16, 2012 12:53:26
GLJ
Page: 92 of 102
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:

Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
1
3
3
3
3
3
3
3
3
3
3
Company
Daily
bbl/d
22
26
31
34
38
40
40
40
39
39
39
39
Company
Yearly Net Yearly
Mbbl
Mbbl
0
173
338
301
178
112
78
57
44
34
28
23
0
63
123
110
65
41
28
21
16
13
10
8
498
22
521
0
57
112
99
59
37
26
19
14
11
9
8
451
20
471

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.95
106.15
108.39
98.40
113.71
99.05
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
9,553
11,252
15,906
20,463
26,065
24,172
20,183
17,162
14,871
12,979
11,472
10,216
Company
Yearly
MMcf
3,487
4,107
5,806
7,469
9,514
8,823
7,367
6,264
5,428
4,737
4,187
3,729
70,917
31,738
102,654
Company
Yearly Net Yearly
MMcf
MMcf
0
135
264
235
139
88
61
45
34
27
22
18
0
49
96
86
51
32
22
16
12
10
8
7
390
17
407
Price
$/Mcf
0
45
87
78
46
29
20
15
11
9
7
6
353
16
368
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.44
7.65
5.53
Company
Daily
Mcf/d
9,553
11,117
15,642
20,228
25,925
24,084
20,122
17,118
14,837
12,952
11,450
10,198
Net Yearly
MMcf
Price
$/Mcf
3,295
3,861
5,392
6,883
8,730
8,103
6,749
5,715
4,962
4,340
3,847
3,436
65,314
28,833
94,147
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.99
8.72
6.84
12
14
20
26
33
31
26
22
19
17
15
13
Company
Yearly
Mbbl
4
5
7
10
12
11
9
8
7
6
5
5
91
41
131
Net Yearly
Mbbl
4
5
7
9
11
10
9
7
6
6
5
4
83
37
120
Company
Yearly Net Yearly
MMcf
MMcf
3,487
4,058
5,709
7,383
9,463
8,791
7,345
6,248
5,416
4,727
4,179
3,722
70,527
31,720
102,247
3,295
3,817
5,305
6,806
8,684
8,074
6,729
5,701
4,951
4,331
3,839
3,430
64,962
28,817
93,779
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.99
8.73
6.84

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.12
91.31
93.55
84.73
115.67
94.29
Company
Yearly
Mbbl
12
187
358
327
212
143
103
79
63
51
43
36
4
68
131
119
77
52
38
29
23
19
16
13
589
63
652
Net Yearly
Mbbl
4
62
118
108
70
47
34
26
21
17
14
12
534
57
591
Price
$/bbl
86.50
100.20
97.44
95.05
93.91
93.04
93.92
95.56
97.31
99.14
101.05
103.04
96.29
114.98
98.09
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
1,604
2,063
3,009
3,737
4,556
4,172
3,467
2,939
2,541
2,214
1,955
1,739
Company
Yearly
Mboe
586
753
1,098
1,364
1,663
1,523
1,265
1,073
928
808
713
635
12,408
5,352
17,761
Net Yearly
Mboe
553
706
1,017
1,255
1,525
1,398
1,159
979
848
740
655
585
11,420
4,862
16,282
Price
$/boe
21.50
31.85
36.46
37.00
37.40
39.75
41.14
41.83
42.63
43.47
44.26
45.08
38.81
53.08
43.11
February 16, 2012 12:53:33
GLJ
Page: 93 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Oil
M$
Gas
M$
0
6,401
12,115
10,556
6,264
3,937
2,762
2,071
1,624
1,308
1,084
916
49,038
2,518
51,556
34,201
12,204
17,122
27,312
39,134
54,930
55,663
48,515
42,132
37,319
33,282
30,005
27,252
424,869
276,893
701,762
287,437
385
453
618
776
988
917
778
678
602
539
488
445
7,669
4,686
12,355
5,319
12,589
23,976
40,045
50,466
62,182
60,517
52,055
44,881
39,546
35,130
31,577
28,613
481,576
284,096
765,672
326,957
Capital
Tax
M$
NPI
Burden
M$
Net
Prod'n
Revenue
M$
Mineral
Tax
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
NGL+Sul
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Company
Interest Interest
Total
Total
M$
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
12,589
23,976
40,045
50,466
62,182
60,517
52,055
44,881
39,546
35,130
31,577
28,613
481,576
284,096
765,672
326,957
Other
M$
692
1,659
3,142
4,132
5,198
4,989
4,395
3,948
3,408
2,961
2,583
2,262
39,369
26,157
65,526
26,815
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
692
1,659
3,142
4,132
5,198
4,989
4,395
3,948
3,408
2,961
2,583
2,262
39,369
26,157
65,526
26,815
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
11,897
22,317
36,903
46,334
56,984
55,528
47,660
40,933
36,137
32,169
28,993
26,352
442,207
257,939
700,146
300,142
2,766
2,885
3,044
3,251
3,462
3,610
3,683
3,744
3,817
3,894
3,957
4,025
42,137
52,770
94,907
33,272

Other
Income
M$
8,468
18,330
32,102
41,025
51,231
49,852
42,250
35,708
31,023
27,128
24,007
21,396
382,521
196,083
578,604
254,810
Aband.
Costs
M$
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
19,103
Oper.
Income
M$
0
0
520
398
0
0
0
144
0
149
0
155
1,367
17,999
19,366
2,439
10,106
20,111
34,057
44,061
54,616
52,788
44,822
37,840
33,060
28,804
25,659
22,729
408,653
192,625
601,278
271,474
Dev.
M$
0
19,242
39,358
31,146
37,799
9,639
0
0
0
0
0
0
137,184
0
137,184
100,326
Plant
M$
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
662
1,102
1,757
2,059
2,291
2,065
1,728
1,481
1,297
1,147
1,029
931
17,549
9,086
26,635
12,061
Total
M$
3,428
3,987
4,801
5,310
5,753
5,676
5,410
5,225
5,114
5,041
4,986
4,956
59,686
61,856
121,542
45,333

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
0
19,242
39,358
31,146
37,799
9,639
0
0
0
0
0
0
137,184
0
137,184
100,326
10,106
869
-5,301
12,915
16,818
43,149
44,822
37,840
33,060
28,804
25,659
22,729
271,469
192,625
464,094
171,147
Cum.
M$
10,106
10,974
5,673
18,588
35,405
78,554
123,376
161,216
194,276
223,080
248,739
271,469
271,469
464,094
464,094
171,147
10.0% Dcf
M$
9,635
10,388
6,211
15,462
26,414
51,960
76,083
94,597
109,302
120,950
130,382
137,978
137,978
171,147
171,147
171,147
AFTER TAX ANALYSIS

Year
Oper.
Income
M$
CCA
M$
39,561
33,601
28,974
25,353
22,492
20,207
18,360
16,847
15,588
14,527
13,617
12,826
12,826
12,826
12,826
COGPE
M$
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
10,106
20,111
34,057
44,061
54,616
52,788
44,822
37,840
33,060
28,804
25,659
22,729
408,653
192,625
601,278
271,474
3,091
2,782
2,504
2,253
2,028
1,825
1,643
1,478
1,331
1,198
1,078
970
970
970
970
1121357
CDE
M$
80,063
75,286
92,059
95,588
104,710
82,936
58,055
40,638
28,447
19,913
13,939
9,757
9,757
9,757
9,757
CEE
M$
72,387
72,387
72,387
70,445
58,146
37,431
11,554
0
0
0
0
0
0
0
0
Other
M$
CCA
M$
626
626
626
0
0
0
0
0
0
0
0
0
0
0
0
5,960
4,627
3,621
2,861
2,285
1,847
1,513
1,258
1,062
910
791
698
27,433
8,893
36,326
21,208
COGPE
M$
309
278
250
225
203
183
164
148
133
120
108
97
2,218
840
3,058
1,621
CDE
M$
CEE
M$
24,019
22,586
27,618
28,676
31,413
24,881
17,416
12,192
8,534
5,974
4,182
2,927
210,417
6,830
217,247
145,747
Other
M$
0
0
1,942
12,299
20,716
25,877
11,554
0
0
0
0
0
72,387
0
72,387
45,369
Total
M$
0
0
626
0
0
0
0
0
0
0
0
0
626
0
626
493
30,288
27,491
34,057
44,061
54,616
52,788
30,648
13,598
9,729
7,003
5,081
3,722
313,081
16,562
329,644
214,439
February 16, 2012 12:53:33
GLJ
Page: 94 of 102
Page 3
Federal
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Taxable
Income
M$
-20,182
-7,380
0
0
0
0
14,174
24,243
23,331
21,800
20,579
19,007
95,572
176,062
271,634
57,035
Tax
Rate
%
Provincial
Income
Tax
M$
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
Tax
Rate
%
0
0
0
0
0
0
0
1,628
3,500
3,270
3,087
2,851
14,336
26,862
41,198
10,283
ARTD &
Investment
Credits
M$
Income
Tax
M$
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
0
0
0
0
0
0
0
1,384
2,975
2,780
2,624
2,423
12,185
22,833
35,018
8,740
Income
Tax
Payable
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,012
6,474
6,050
5,711
5,275
26,521
49,695
76,216
19,023
Net Cash Flow

Before Income Tax
Annual
M$
Cum.
M$
10,106
869
-5,301
12,915
16,818
43,149
44,822
37,840
33,060
28,804
25,659
22,729
271,469
192,625
464,094
171,147
Net Cash Flow

After Income Tax
10.0% Dcf
M$
10,106
10,974
5,673
18,588
35,405
78,554
123,376
161,216
194,276
223,080
248,739
271,469
271,469
464,094
464,094
171,147
Annual
M$
9,635
10,388
6,211
15,462
26,414
51,960
76,083
94,597
109,302
120,950
130,382
137,978
137,978
171,147
171,147
171,147
Cum.
M$
10,106
869
-5,301
12,915
16,818
43,149
44,822
34,828
26,585
22,754
19,949
17,455
244,948
142,929
387,877
152,124
10.0% Dcf
M$
10,106
10,974
5,673
18,588
35,405
78,554
123,376
158,204
184,790
207,544
227,493
244,948
244,948
387,877
387,877
152,124
9,635
10,388
6,211
15,462
26,414
51,960
76,083
93,124
104,949
114,150
121,483
127,316
127,316
152,124
152,124
152,124
SUMMARY OF RESERVES
Product
Working
Interest
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
521
407
102,247
102,654
108,814
131
652
17,761
Total
Company
0
0
0
0
0
0
0
0
521
407
102,247
102,654
108,814
131
652
17,761
Oil Equivalents
Oil Eq.
Factor
Net
471
368
93,779
94,147
99,796
120
591
16,282
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
521
68
17,041
17,109
0
131
652
17,761
Reserve
Life
3
0
96
96
0
1
4
100
Life
Index
17.0
17.0
43.0
43.0
43.0
43.0
43.0
43.0
Half
Life
8.2
8.2
29.3
29.4
29.4
29.4
146.4
30.3
3.7
3.7
7.8
7.8
7.8
7.8
4.0
7.6

Product
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
3.29
3.29
107.14
107.14
20.42
Wellhead
Price
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Net Burdens
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Operating
Expenses
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Other
Expenses
0.00
0.00
0.98
0.98
0.00
0.00
5.85
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
2.32
2.32
81.75
81.75
14.46
% of
Total
46,658
2,039
640,132
642,170
11,317
57,976
700,146
10% Disc
M$
7
0
91
92
2
8
100
% of
Total
30,952
1,303
262,988
264,290
4,900
35,852
300,142
10
0
88
88
2
12
100

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
5.5000
0.0000
0.0000
Average
8.5580
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
578,604
361,757
290,146
254,810
226,215
192,371
151,920
Operating
Income
M$
601,278
382,591
308,403
271,474
241,451
205,774
162,958
Capital
Invest.
M$
137,184
116,698
106,452
100,326
94,696
87,073
76,219
Cash Flow
M$
464,094
265,894
201,951
171,147
146,754
118,701
86,738
$/boe
26.13
14.97
11.37
9.64
8.26
6.68
4.88
Operating
Income
M$
525,061
346,833
284,205
252,450
226,300
194,781
156,228
Capital
Invest.
M$
137,184
116,698
106,452
100,326
94,696
87,073
76,219
Cash Flow
M$
387,877
230,136
177,753
152,124
131,603
107,708
80,009
$/boe
21.84
12.96
10.01
8.57
7.41
6.06
4.50

1121357
February 16, 2012 12:53:33
GLJ
Page: 95 of 102
Company:
Property:
Description:

Corporate
After Tax Analysis
Reserve Class:
Development Class:
Pricing:
Effective Date:
PPP
Total
GLJ (2012-01)
December 31, 2011
Economic Forecast
PRODUCTION FORECAST
Company Wells
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Oil
Gas
0
2
4
4
4
4
4
4
4
4
4
4
Company
Daily
bbl/d
22
27
32
38
43
47
49
51
51
51
51
51
Company
Yearly Net Yearly
Mbbl
Mbbl
0
184
385
365
237
159
114
86
67
54
44
37
0
67
140
133
87
58
42
31
25
20
16
14
632
62
694
0
61
127
121
78
52
38
28
22
18
15
12
572
56
628

Company
Daily
Mcf/d
Price
$/bbl
0.00
101.34
98.28
96.24
96.24
96.24
97.62
99.69
101.80
103.96
106.15
108.39
98.47
117.93
100.20
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Company
Daily
Mcf/d
9,743
12,970
21,300
28,689
36,688
39,539
39,959
36,832
32,082
28,107
25,008
22,466
Company
Yearly
MMcf
0
144
301
286
186
124
89
67
53
42
35
29
0
52
110
104
68
45
33
25
19
15
13
11
494
48
543
Price
$/Mcf
0
47
99
94
61
41
29
22
17
14
11
10
447
44
491
0.00
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
5.55
7.92
5.76
Company
Daily
Mcf/d
9,743
12,826
20,999
28,404
36,503
39,415
39,870
36,765
32,029
28,065
24,974
22,437
Net Yearly
MMcf
3,556
4,734
7,774
10,472
13,391
14,432
14,585
13,444
11,710
10,259
9,128
8,200
121,685
95,047
216,732
Company
Yearly Net Yearly
MMcf
MMcf
Price
$/Mcf
3,361
4,437
7,186
9,615
12,259
13,199
13,297
12,222
10,659
9,350
8,333
7,500
111,419
86,140
197,558
Company
Daily
bbl/d
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.22
9.40
7.61
12
17
27
37
47
50
51
47
41
36
32
29
Company
Yearly
Mbbl
5
6
10
13
17
18
19
17
15
13
12
10
155
121
277
Net Yearly
Mbbl
4
6
9
12
16
17
17
16
14
12
11
10
142
110
252
Company
Yearly Net Yearly
MMcf
MMcf
3,556
4,682
7,665
10,367
13,323
14,387
14,553
13,419
11,691
10,244
9,115
8,190
121,191
94,999
216,189
3,361
4,390
7,087
9,520
12,197
13,158
13,268
12,200
10,641
9,336
8,322
7,491
110,971
86,096
197,067
Price
$/Mcf
3.50
4.17
4.70
5.24
5.77
6.31
6.59
6.73
6.88
7.03
7.17
7.31
6.22
9.40
7.62

Company
Daily
bbl/d
Price
$/bbl
86.50
86.50
83.44
81.40
81.40
81.40
82.78
84.85
86.96
89.11
91.31
93.55
85.17
126.28
103.20
Company
Yearly
Mbbl
12
200
412
402
284
209
165
133
108
90
76
66
5
73
150
147
104
76
60
49
40
33
28
24
788
183
971
Net Yearly
Mbbl
4
66
136
133
94
69
55
44
36
30
25
22
714
166
880
Price
$/bbl
86.50
100.12
97.30
94.89
93.80
92.66
93.03
94.44
96.19
98.03
99.94
101.92
95.84
123.46
101.05
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
1121357
Company
Daily
boe/d
1,636
2,362
3,962
5,184
6,399
6,799
6,825
6,272
5,455
4,774
4,244
3,810
Company
Yearly
Mboe
597
862
1,446
1,892
2,336
2,482
2,491
2,289
1,991
1,743
1,549
1,391
21,068
16,024
37,093
Net Yearly
Mboe
564
806
1,334
1,735
2,137
2,269
2,271
2,081
1,812
1,588
1,414
1,272
19,284
14,522
33,807
Price
$/boe
21.50
31.38
35.41
36.36
37.27
39.54
40.81
41.50
42.34
43.21
44.02
44.85
39.48
57.19
47.13
February 16, 2012 12:53:41
GLJ
Page: 96 of 102
Page 2

Working Interest
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Oil
M$
Gas
M$
NGL+Sul
M$
0
12,447
6,797
19,736
13,797
36,573
12,834
54,867
8,342
77,319
5,568
91,052
4,059
96,055
3,127
90,418
2,502
80,507
2,047
72,077
1,717
65,408
1,467
59,932
62,257 756,390
7,284 893,802
69,541 1,650,192
43,149 522,986
Mineral
Tax
M$
393
12,839
523
27,055
828
51,198
1,088
68,789
1,391
87,052
1,499
98,120
1,541 101,654
1,456
95,001
1,300
84,309
1,167
75,292
1,064
68,189
979
62,378
13,229 831,875
15,320 916,405
28,548 1,748,281
9,321 575,456
Capital
Tax
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
M$
Royalty Company
Interest Interest
Total
Total
M$
M$
NPI
Burden
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Royalty Burdens
Pre-Processing
Gas Processing
Allowance
Crown
M$
Crown
M$
0
12,839
0
27,055
0
51,198
0
68,789
0
87,052
0
98,120
0 101,654
0
95,001
0
84,309
0
75,292
0
68,189
0
62,378
0 831,875
0 916,405
0 1,748,281
0 575,456
Net
Prod'n
Revenue
M$
Other
M$
706
1,916
4,141
5,797
7,449
8,433
9,005
8,643
7,580
6,683
5,951
5,337
71,643
86,184
157,827
49,831
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
Royalty
After
Process.
M$
Other
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net
Revenue
After
Royalty
M$
Operating Expenses
Fixed
M$
706
12,133
1,916
25,139
4,141
47,057
5,797
62,992
7,449
79,602
8,433
89,687
9,005
92,649
8,643
86,358
7,580
76,729
6,683
68,609
5,951
62,238
5,337
57,041
71,643 760,233
86,184 830,221
157,827 1,590,454
49,831 525,625
2,766
2,909
3,143
3,366
3,598
3,802
3,943
4,084
4,169
4,252
4,337
4,424
44,794
110,815
155,608
39,096

Other
Income
M$
0
8,692
0
20,987
0
41,683
0
56,842
0
72,804
0
82,554
0
85,363
0
79,169
0
69,817
0
61,915
0
55,693
0
50,600
0
686,118
0
690,121
0 1,376,240
0
466,126
Aband.
Costs
M$
1,971
2,136
2,929
4,078
5,267
5,757
5,583
4,792
4,162
3,650
3,261
2,942
46,526
34,449
80,976
31,785
Oper.
Income
M$
0
10,663
0
23,123
0
44,612
531
60,389
0
78,071
414
87,897
0
90,946
0
83,960
0
73,979
0
65,565
0
58,954
0
53,541
945
731,700
28,828
695,743
29,773 1,427,443
1,894
496,016
Dev.
M$
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
Plant
M$
Tang.
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
676
1,242
2,231
2,784
3,200
3,331
3,343
3,105
2,744
2,441
2,208
2,017
29,321
29,285
58,606
20,403
Total
M$
3,442
4,152
5,373
6,150
6,798
7,133
7,286
7,189
6,912
6,693
6,545
6,441
74,115
140,100
214,214
59,499

Total
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Variable
M$
Annual
M$
Cum.
M$
0
10,663
10,663
19,548
3,575
14,238
45,413
-801
13,437
37,323
23,066
36,503
52,757
25,314
61,816
25,703
62,194
124,010
19,663
71,283
195,293
10,028
73,932
269,225
0
73,979
343,204
0
65,565
408,769
0
58,954
467,723
0
53,541
521,265
210,435
521,265
521,265
0
695,743 1,217,007
210,435 1,217,007 1,217,007
144,528
351,488
351,488
10.0% Dcf
M$
10,167
13,265
12,634
29,158
45,642
82,463
120,827
157,001
189,906
216,418
238,090
255,983
255,983
351,488
351,488
351,488
AFTER TAX ANALYSIS

Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
1121357
Oper.
Income
M$
10,663
23,123
44,612
60,389
78,071
87,897
90,946
83,960
73,979
65,565
58,954
53,541
731,700
695,743
1,427,443
496,016
CCA
M$
COGPE
M$
39,561
33,601
28,974
25,353
22,492
20,207
18,360
16,847
15,588
14,527
13,617
12,826
12,826
12,826
12,826
3,091
2,782
2,504
2,253
2,028
1,825
1,643
1,478
1,331
1,198
1,078
970
970
970
970
CDE
M$
80,063
75,592
98,328
106,152
127,064
114,648
99,916
79,969
55,979
39,185
27,429
19,201
19,201
19,201
19,201
CEE
M$
72,387
72,387
72,387
61,771
36,314
0
0
0
0
0
0
0
0
0
0
Other
M$
CCA
M$
626
626
626
0
0
0
0
0
0
0
0
0
0
0
0
5,960
4,627
3,621
2,861
2,285
1,847
1,513
1,258
1,062
910
791
698
27,433
9,697
37,130
21,218
COGPE
M$
309
278
250
225
203
183
164
148
133
120
108
97
2,218
857
3,075
1,621
CDE
M$
CEE
M$
24,019
22,678
29,498
31,846
38,119
34,394
29,975
23,991
16,794
11,755
8,229
5,760
277,058
13,440
290,498
182,214
Other
M$
0
0
10,616
25,457
36,314
0
0
0
0
0
0
0
72,387
0
72,387
50,250
Total
M$
0
0
626
0
0
0
0
0
0
0
0
0
626
0
626
493
30,288
27,583
44,612
60,389
76,921
36,424
31,653
25,397
17,988
12,785
9,128
6,555
379,722
23,994
403,716
255,796
February 16, 2012 12:53:41
GLJ
Page: 97 of 102
Page 3
Federal
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Sub.
Rem.
Tot.
Disc
Taxable
Income
M$
-19,625
-4,460
0
0
1,150
51,473
59,293
58,564
55,990
52,780
49,826
46,986
351,978
671,748
1,023,726
240,220
Tax
Rate
%
Provincial
Income
Tax
M$
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
15.0
Tax
Rate
%
0
0
0
0
0
4,281
8,894
8,785
8,399
7,917
7,474
7,048
52,797
102,078
154,874
37,282
ARTD &
Investment
Credits
M$
Income
Tax
M$
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
12.8
0
0
0
0
0
3,639
7,560
7,467
7,139
6,730
6,353
5,991
44,877
86,766
131,643
31,690
Income
Tax
Payable
M$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7,919
16,454
16,251
15,537
14,647
13,827
13,039
97,674
188,844
286,517
68,972
Net Cash Flow

Before Income Tax
Annual
M$
Cum.
M$
10,663
3,575
-801
23,066
25,314
62,194
71,283
73,932
73,979
65,565
58,954
53,541
521,265
695,743
1,217,007
351,488
Net Cash Flow

After Income Tax
10.0% Dcf
M$
10,663
14,238
13,437
36,503
61,816
124,010
195,293
269,225
343,204
408,769
467,723
521,265
521,265
1,217,007
1,217,007
351,488
Annual
M$
10,167
13,265
12,634
29,158
45,642
82,463
120,827
157,001
189,906
216,418
238,090
255,983
255,983
351,488
351,488
351,488
Cum.
M$
10,663
3,575
-801
23,066
25,314
54,274
54,829
57,681
58,441
50,919
45,127
40,503
423,591
506,899
930,490
282,516
10.0% Dcf
M$
10,663
14,238
13,437
36,503
61,816
116,091
170,920
228,601
287,042
337,961
383,088
423,591
423,591
930,490
930,490
282,516
10,167
13,265
12,634
29,158
45,642
77,774
107,283
135,505
161,500
182,090
198,678
212,214
212,214
282,516
282,516
282,516
SUMMARY OF RESERVES
Product
Working
Interest
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Gas Heat Content
Condensate
Total: Oil+NGL
Total: Oil Eq.
Mbbl
MMcf
MMcf
MMcf
BBtu
Mbbl
Mbbl
Mboe
Roy/NPI
Interest
694
543
216,189
216,732
229,736
277
971
37,093
Total
Company
0
0
0
0
0
0
0
0
694
543
216,189
216,732
229,736
277
971
37,093
Oil Equivalents
Oil Eq.
Factor
Net
628
491
197,067
197,558
209,412
252
880
33,807
Company
Mboe
1.000
6.000
6.000
6.000
0.000
1.000
1.000
1.000

% of
Total
694
90
36,032
36,122
0
277
971
37,093
Reserve
Life
2
0
97
97
0
1
3
100
Life
Index
22.0
22.0
50.0
50.0
50.0
50.0
50.0
50.0
Half
Life
10.3
10.3
60.8
60.9
60.9
60.9
213.9
62.1
4.1
4.1
10.5
10.4
10.4
10.4
5.1
10.3

Product
Units
Light/Med Oil
Solution Gas
Residue Gas
Total: Gas
Condensate
Total: Oil+NGL
Total: Oil Eq.
$/bbl
$/Mcf
$/Mcf
$/Mcf
$/bbl
$/bbl
$/boe
0.00
0.00
3.29
3.29
107.14
107.14
20.42
Wellhead
Price
0.00
0.00
0.21
0.21
-20.64
-20.64
1.08
Net Burdens
0.00
0.00
3.50
3.50
86.50
86.50
21.50
Operating
Expenses
0.00
0.00
0.19
0.19
4.76
4.76
1.18
Other
Expenses
0.00
0.00
0.97
0.97
0.00
0.00
5.76
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Prod'n
Revenue
Undisc
M$
0.00
0.00
2.34
2.34
81.75
81.75
14.55
% of
Total
62,934
2,831
1,498,698
1,501,529
25,991
88,925
1,590,454
10% Disc
M$
4
0
94
94
2
6
100
% of
Total
39,050
1,682
476,361
478,043
8,532
47,582
525,625
7
0
91
91
2
9
100

Revenue Burdens (%)
Initial
Crown Royalty
Non-crown Royalty
Mineral Tax
Average
5.5000
0.0000
0.0000
9.0276
0.0000
0.0000
Disc.
Rate
%
0.0
5.0
8.0
10.0
12.0
15.0
20.0
Prod'n
Revenue
M$
1,376,240
725,658
547,735
466,126
402,912
331,245
249,991
Operating
Income
M$
1,427,443
766,830
581,604
496,016
429,477
353,809
267,750
Capital
Invest.
M$
210,435
173,116
155,092
144,528
134,965
122,243
104,598
Cash Flow
M$
1,217,007
593,714
426,512
351,488
294,512
231,566
163,152
$/boe
32.81
16.01
11.50
9.48
7.94
6.24
4.40
Operating
Income
M$
1,140,925
639,896
495,070
427,044
373,534
311,876
240,441
Capital
Invest.
M$
210,435
173,116
155,092
144,528
134,965
122,243
104,598
Cash Flow
M$
930,490
466,780
339,978
282,516
238,570
189,632
135,843
$/boe
25.09
12.58
9.17
7.62
6.43
5.11
3.66

1121357
February 16, 2012 12:53:41
GLJ
Page: 98 of 102
APPENDIX I
CERTIFICATES OF QUALIFICATION
Jodi L. Anhorn
T. Mark Jobin
James P. Werth
Roger J. Mahoney
GLJ
Page: 99 of 102
CERTIFICATION OF QUALIFICATION
I, Jodi L. Anhorn, Professional Engineer, 4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada
hereby certify:
1.
That I am an employee of GLJ Petroleum Consultants Ltd., which company did prepare a
detailed analysis of Canadian oil and gas properties of Corridor Resources Inc (the
Company). The effective date of this evaluation is December 31, 2011.
2.
That I do not have, nor do I expect to receive any direct or indirect interest in the securities of
the Company or its affiliated companies.
3.
That I attended the University of Calgary and that I graduated with a Master of Science
Degree in Chemical and Petroleum Engineering in 1992; that I am a Registered Professional
Engineer in the Province of Alberta; and that I have in excess of nineteen years experience in
engineering studies relating to Canadian and International oil and gas fields.
4.
That a personal field inspection of the properties was not made; however, such an inspection
was not considered necessary in view of the information available from public information
and records, the files of the Company, and the appropriate provincial regulatory authorities.
Jodi L. Anhorn, M.Sc., P. Eng.
GLJ
Page: 100 of 102
I, T. Mark Jobin, Professional Geologist, 4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada
hereby certify:
1.
detailed analysis of Canadian oil and gas properties of Corridor Resources Inc. (the
2.
3.
That I attended the University of Calgary and that I graduated in 1984 with a Bachelor of
Science Degree in Geology; that I am a Registered Professional Geologist in the Province of
Alberta; and, that I have in excess of twenty-seven years experience in geological studies
relating to Canadian and International oil and gas fields.
4.
T. Mark Jobin, P. Geol.
GLJ
Page: 101 of 102
I, James P. Werth, Professional Engineer, 4100, 400 - 3rd Avenue S.W., Calgary, Alberta, Canada
hereby certify:
1.
2.
3.
That I attended the University of Manitoba and that I graduated with a Bachelor of Science
Degree in Civil Engineering in 1979; that I am a Registered Professional Engineer in the
Province of Alberta; and, that I have in excess of thirty-two years experience in engineering
studies relating to Canadian and International oil and gas fields.
4.
James P. Werth, P. Eng.
GLJ
Page: 102 of 102
I, Roger J. Mahoney, Professional Geophysicist, 230 - 38th Avenue S.W., Calgary, Alberta, Canada
hereby certify:
1.
That I have been retained by GLJ Petroleum Consultants Ltd., which company did prepare a
2.
3.
That I attended the University of Manchester and that I graduated with a Bachelor of Science
Degree in Physics with Honours in 1964; that I am a Registered Professional Geophysicist in
the Province of Alberta; and, that I have in excess of forty-five years experience in
geophysical studies relating to Canadian and International oil and gas fields.
4.
Roger J. Mahoney, P. Geoph.
GLJ

Corridor Resources 2011 Reserve Report

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Page: 1 of 102

CORRIDOR RESOURCES INC.

Effective December 31, 2011

INDEPENDENT PETROLEUM CONSULTANTS' CONSENT

PRODUCT PRICE AND MARKET FORECASTS

AFTER TAX ANALYSIS

March 13, 2012 15:51:05

Keith M. Braaten, P. Eng.

February 17, 2012

Terry L. Aarsby, P. Eng.

Chairman of the Reserves Committee

Corridor Resources Inc.

INDEPENDENT PETROLEUM CONSULTANTS CONSENT

February 17, 2012

PERMIT NUMBER: P 2066

processing income has been included as Other Income,

in accordance with NI 51-101, the effect on projected revenues of the Companys

undeveloped land values have not been included.

PROBABLE AND PROVED PLUS PROBABLE RESERVES

POSSIBLE AND PROVED PLUS PROBABLE PLUS POSSIBLE RESERVES

March 13, 2012 15:51:06

Corridor Resources Inc.

Summary of Reserves and Values

FIRST 6 YEARS BEFORE TAX CASH FLOW (M$)

HVY OIL 1.0

BEFORE TAX PRESENT VALUE (M$)

RES GAS 6.0

Run Date: February 16, 2012 11:30:22

Class (A,B1,B2,C,F,I,R), GLJ (2012-01), psum

February 16, 2012 12:52:00

Corridor Resources Inc.

Company Production, Reserves and Present Value Summary

Company Interest Reserves

Net After Royalty Reserves

Sulphur Oil Eq.

Before Income Tax

Poss UDev (48 %)

Natural Gas (97 %)

Class (A,B1,B2,C,D,E1,E2,F,G,H1,H2,I,O,R), GLJ (2012-01), crv

February 16, 2012 12:52:02

Historical and Forecast Production

Corridor Resources Inc.

Company Interest Oil Equivalent

Company Interest Oil Equivalent - Total PPP

Light Medium Oil

Company Interest Oil Equivalent

Historical and Forecast Production

Corridor Resources Inc.

Company Interest Oil

Company Interest Sales Gas

Company Interest NGL

Company Interest Oil

COMPANY PRODUCTION, RESERVES AND PRESENT VALUE SUMMARY

March 13, 2012 15:51:06

Corridor Resources Inc.

Summary of Reserves and Values

HVY OIL 1.0

FIRST 6 YEARS BEFORE TAX CASH FLOW (M$)

RES GAS 6.0

Run Date: February 16, 2012 11:30:21

Class (A,B1,B2,B,C), GLJ (2012-01), psum

February 16, 2012 12:52:04

Corridor Resources Inc.

Company Production, Reserves and Present Value Summary