Comment on ReservesToday, 2P reserves are not even part of the conversation from a buyers perspective.
On A&D deals, PDP reserves are the current measure, plus undev land value, plus infrastructure value (perhaps) less ARO obligations and less debt and other liabilities. Embedded in the reserve reports for resource (et al) plays (like the Montney) will be a material CAPEX/FDC spend to D&C&E additional wells to make the reserves real and convert to PDP reserves (aka cash flow) within a 1-3 year timeline.
If the Company doesn't spend the CAPEX to convert probable reserves to producing category, the probables may disappear. An annual excercise for all Co's, including CR. They would have a large FDC.
Opinion only.