CALGARY, March 3, 2014 /CNW/ - Vermilion Energy Inc. ("Vermilion", the
"Company", "We" or "Our") (TSX, NYSE: VET) is pleased to announce
summary 2013 year-end reserves and resource information. The estimates
of reserves and resources and other oil and gas information contained
in this news release has been estimated by GLJ Petroleum Consultants
Ltd. ("GLJ") and prepared in accordance with National Instrument 51-101
"Standards of Disclosure for Oil and Gas Activities" of the Canadian
Securities Administrators ("NI 51-101") and the Canadian Oil and Gas
Evaluation Handbook ("COGEH"). For additional information about
Vermilion, including Vermilion's statement of reserves data and other
information in Form 51-101F1, report on reserves data by independent
qualified reserves evaluator or auditor in Form 51-101F2 and report of
management and directors on oil and gas disclosure in Form 51-101F3,
please review the Company's Annual Information Form for the year ended
December 31, 2013, to be filed and available on SEDAR at www.sedar.com and on the SEC's EDGAR system at www.sec.gov.
HIGHLIGHTS
-
Total proved ("1P") reserves increased 23% to 129.0 mmboe, while total
proved plus probable ("2P") reserves increased 20% to 198.6 mmboe.
-
In 2013, we added 48.7 mmboe of 2P reserves with 46.3 mmboe (95%) of 2P
reserves additions coming from exploration and development ("E&D")
activities and 2.4 mmboe (5%) of 2P reserves additions through
acquisitions.
-
At the 2P level, we replaced 309% of 2013 production through E&D
activities (excluding acquisitions). Excluding Corrib-related
expenditures and reserves additions, Vermilion reinvested 68% of fund
flows from operations(1) to achieve a finding and development ("F&D") cost of $16.48/boe for E&D
related 2P reserves additions (including future development costs
"FDC") and a recycle ratio of 3.7 times. Including Corrib-related
development expenditures and reserves additions, Vermilion reinvested
81% of fund flows from operations to achieve an F&D cost of $16.59/boe
for E&D related 2P reserves additions (including FDC costs) and a
recycle ratio of 3.6 times.
-
At the 2P level, we replaced 325% of 2013 production through all
activities (including both E&D activities and acquisitions), at a
finding, development and acquisition ("FD&A") cost of $17.02/boe
(including future development costs) and a recycle ratio of 3.6 times.
Our 2P FD&A cost for 2013 represents a 27% reduction from our FD&A cost
in 2012.
-
The GLJ 2013 Resources Assessment (as defined below) estimated
contingent resources of 74.4 mmboe (low estimate) to 351.7 mmboe (high
estimate), with a best estimate of 233.5 mmboe, and prospective
resources of 59.4 mmboe (low estimate) to 818.8 mmboe (high estimate),
with a best estimate of 498.7 mmboe.
-
At year-end 2013, 2P reserves were comprised of 36% Brent-based light
crude, 16% Canadian-based light crude, 7% natural gas liquids, 20%
European natural gas and 21% Canadian natural gas.
-
Reserve life index increased to 13.3 years for 2P reserves and 8.6 years
for 1P reserves based on year-end 2013 reserves and annualized fourth
quarter 2013 production of 40,960 boe/d, as compared to 12.5 years for
2P reserves and 8.0 years for 1P reserves at year-end 2012.
-
Based on a successful six-well program in 2013, an additional 40 (28.4
net) undeveloped wells were added at the 2P level in the Mannville
liquids-rich gas play in Alberta, with average reserves of 650
mboe/well.
-
A successful five-well infill and extension drilling program in the
Champotran field in the Paris Basin in France added 5.5 mmbbl of 2P
reserves.
-
The continued strong performance of our existing wells in combination
with the results of our successful 2013 two-well drilling program
resulted in the addition of 4.7 mmbbl of 2P reserves in Australia in
2013.
(1)
|
Additional GAAP Financial Measure. Please see the "Advisories" section
of this 2013 Year-end Summary Reserves and Resource Information news
release.
|
DISCLAIMER
Certain statements included or incorporated by reference in this
document may constitute forward looking statements or financial
outlooks under applicable securities legislation. Such forward looking
statements or information typically contain statements with words such
as "anticipate", "believe", "expect", "plan", "intend", "estimate",
"propose", or similar words suggesting future outcomes or statements
regarding an outlook. Forward looking statements or information in
this document may include, but are not limited to: capital
expenditures; business strategies and objectives; estimated reserve
quantities and the discounted present value of future net cash flows
from such reserves; petroleum and natural gas sales; future production
levels (including the timing thereof) and rates of average annual
production growth; estimated contingent resources and prospective
resources; exploration and development plans; acquisition and
disposition plans and the timing thereof; operating and other expenses,
including the payment and amount of future dividends; royalty and
income tax rates; the timing of regulatory proceedings and approvals;
and the timing of first commercial natural gas and the estimate of
Vermilion's share of the expected natural gas production from the
Corrib field.
Such forward looking statements or information are based on a number of
assumptions all or any of which may prove to be incorrect. In addition
to any other assumptions identified in this document, assumptions have
been made regarding, among other things: the ability of Vermilion to
obtain equipment, services and supplies in a timely manner to carry out
its activities in Canada and internationally; the ability of Vermilion
to market crude oil, natural gas liquids and natural gas successfully
to current and new customers; the timing and costs of pipeline and
storage facility construction and expansion and the ability to secure
adequate product transportation; the timely receipt of required
regulatory approvals; the ability of Vermilion to obtain financing on
acceptable terms; foreign currency exchange rates and interest rates;
future crude oil, natural gas liquids and natural gas prices; and
management's expectations relating to the timing and results of
exploration and development activities.
Although Vermilion believes that the expectations reflected in such
forward looking statements and information are reasonable, undue
reliance should not be placed on forward looking statements because
Vermilion can give no assurance that such expectations will prove to be
correct. Financial outlooks are provided for the purpose of
understanding Vermilion's financial strength and business objectives
and the information may not be appropriate for other purposes. Forward
looking statements or information are based on current expectations,
estimates and projections that involve a number of risks and
uncertainties which could cause actual results to differ materially
from those anticipated by Vermilion and described in the forward
looking statements or information. These risks and uncertainties
include but are not limited to: the ability of management to execute
its business plan; the risks of the oil and gas industry, both
domestically and internationally, such as operational risks in
exploring for, developing and producing crude oil, natural gas liquids
and natural gas; risks and uncertainties involving geology of crude
oil, natural gas liquids and natural gas deposits; risks inherent in
Vermilion's marketing operations, including credit risk; the
uncertainty of reserves estimates and reserves life and estimates of
resources and associated expenditures; the uncertainty of estimates and
projections relating to production and associated expenditures;
potential delays or changes in plans with respect to exploration or
development projects; Vermilion's ability to enter into or renew leases
on acceptable terms; fluctuations in crude oil, natural gas liquids and
natural gas prices, foreign currency exchange rates and interest rates;
health, safety and environmental risks; uncertainties as to the
availability and cost of financing; the ability of Vermilion to add
production and reserves through exploration and development activities;
the possibility that government policies or laws may change or
governmental approvals may be delayed or withheld; uncertainty in
amounts and timing of royalty payments; risks associated with existing
and potential future law suits and regulatory actions against
Vermilion; and other risks and uncertainties described elsewhere in
this document or in Vermilion's other filings with Canadian securities
regulatory authorities.
The forward looking statements or information contained in this document
are made as of the date hereof and Vermilion undertakes no obligation
to update publicly or revise any forward looking statements or
information, whether as a result of new information, future events or
otherwise, unless required by applicable securities laws.
All oil and natural gas reserve information contained in this document
has been prepared and presented in accordance with National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities. The actual
oil and natural gas reserves and future production will be greater than
or less than the estimates provided in this document. The estimated
future net revenue from the production of the disclosed oil and natural
gas reserves does not represent the fair market value of these
reserves. Natural gas volumes have been converted on the basis of six
thousand cubic feet of natural gas to one barrel of oil equivalent.
Barrels of oil equivalent (boe) may be misleading, particularly if used
in isolation. A boe conversion ratio of six thousand cubic feet to one
barrel of oil is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Financial data contained within this document are reported in Canadian
dollars, unless otherwise stated.
Abbreviations
Oil and Natural Gas Liquids
|
bbl
|
Barrel
|
Mbbl
|
thousand barrels
|
MMbbl
|
million barrels
|
bbl/d
|
barrels per day
|
NGLs
|
natural gas liquids
|
Natural Gas
|
Mcf
|
thousand cubic feet
|
MMcf
|
million cubic feet
|
Mcf/d
|
thousand cubic feet per day
|
MMcf/d
|
million cubic feet per day
|
MMBtu
|
million British Thermal Units
|
Other
|
API
|
American Petroleum Institute
|
°API
|
An indication of the specific gravity of crude oil measured on the API
gravity scale.
|
|
Liquid petroleum with a specified gravity of 28 °API or higher is
generally referred to as light crude oil.
|
boe
|
barrel of oil equivalent
|
M$
|
thousand dollars
|
MM$
|
million dollars
|
Mboe
|
1,000 barrels of oil equivalent
|
MMboe
|
million barrels of oil equivalent
|
WTI
|
West Texas Intermediate, the reference price paid in U.S. dollars at
Cushing, Oklahoma for crude oil of
|
|
standard grade
|
RESERVES, FUTURE NET REVENUE AND OTHER OIL AND GAS INFORMATION
The following is a summary of the oil and natural gas reserves and the
value of future net revenue of Vermilion as evaluated by GLJ,
independent petroleum engineering consultants in Calgary in a report
dated February 4, 2014 with an effective date of December 31, 2013 (the
"GLJ 2013 Reserves Evaluation"). The GLJ 2013 Reserves Evaluation was
prepared in accordance with National Instrument 51-101 and COGEH.
Reserves and other oil and gas information in this news release is
effective December 31, 2013 unless otherwise stated.
All evaluations of future net production revenue set forth in the tables
below are stated after overriding and lessor royalties, Crown
royalties, freehold royalties, mineral taxes, direct lifting costs,
normal allocated overhead and future capital investments, including
abandonment and reclamation obligations. Future net production revenues estimated by the GLJ 2013 Reserves
Evaluation do not represent the fair market value of the reserves. Other
assumptions relating to the costs, prices for future production and
other matters are included in the GLJ 2013 Reserves Evaluation. There
is no assurance that the future price and cost assumptions used in the
GLJ 2013 Reserves Evaluation will prove accurate and variances could be
material.
Reserves for Australia, Canada, France, Ireland and the Netherlands are
established using deterministic methodology. Total proved reserves are
established at the 90 percent probability (P90) level. There is a 90
percent probability that the actual reserves recovered will be equal to
or greater than the P90 reserves. Total proved plus probable reserves
are established at the 50 percent probability (P50) level. There is a
50 percent probability that the actual reserves recovered will be equal
to or greater than the P50 reserves.
Estimates of reserves have been made assuming that development of each
property, in respect of which estimates have been made, will occur
without regard to the availability of funding required for that
development.
With respect to finding and development costs, the aggregate of the
exploration and development costs incurred in the most recent financial
year and the change during that year in estimated future development
costs generally will not reflect total finding and development costs
related to reserve additions for that year.
Pricing used in the forecast price estimates is set forth in the table
below and referenced in the notes to subsequent tables.
Table 1: Forecast Prices used in Estimates (1)
|
|
|
|
|
|
|
|
|
|
Natural Gas
|
|
Natural Gas
|
|
Natural Gas
|
|
Inflation
|
|
Exchange
|
|
Exchange
|
|
|
Light and Medium Crude Oil
|
|
Crude Oil
|
|
Canada
|
|
France/Netherlands
|
|
Liquids
|
|
Rate
|
|
Rate
|
|
Rate
|
|
|
WTI
|
|
Edmonton
|
|
Cromer
|
|
Brent Blend
|
|
|
|
National
|
|
|
|
|
|
|
|
|
|
|
Cushing
|
|
Par Price
|
|
Medium
|
|
FOB
|
|
AECO
|
|
Balancing
|
|
FOB
|
|
|
|
|
|
|
|
|
Oklahoma
|
|
40˚ API
|
|
29.3˚ API
|
|
North Sea
|
|
Gas Price
|
|
Point
|
|
Field Gate
|
|
Percent
|
|
|
|
|
Year
|
|
($US/bbl)
|
|
($Cdn/bbl)
|
|
($Cdn/bbl)
|
|
($US/bbl)
|
|
($Cdn/MMBtu)
|
|
(UK)
|
|
($Cdn/bbl)
|
|
Per Year
|
|
($US/$Cdn)
|
|
(EUR/$Cdn)
|
2013
|
|
97.88
|
|
93.33
|
|
88.05
|
|
108.76
|
|
3.24
|
|
10.83
|
|
68.65
|
|
1.0
|
|
1.000
|
|
1.369
|
Forecast
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
97.50
|
|
92.76
|
|
86.27
|
|
107.50
|
|
4.03
|
|
11.32
|
|
66.66
|
|
2.0
|
|
0.950
|
|
1.420
|
2015
|
|
97.50
|
|
97.37
|
|
90.55
|
|
107.50
|
|
4.26
|
|
11.32
|
|
69.12
|
|
2.0
|
|
0.950
|
|
1.420
|
2016
|
|
97.50
|
|
100.00
|
|
93.00
|
|
105.00
|
|
4.50
|
|
11.05
|
|
70.45
|
|
2.0
|
|
0.950
|
|
1.420
|
2017
|
|
97.50
|
|
100.00
|
|
93.00
|
|
102.50
|
|
4.74
|
|
10.79
|
|
69.83
|
|
2.0
|
|
0.950
|
|
1.420
|
2018
|
|
97.50
|
|
100.00
|
|
93.00
|
|
102.50
|
|
4.97
|
|
10.79
|
|
69.19
|
|
2.0
|
|
0.950
|
|
1.420
|
Thereafter
|
|
2.0%
|
|
2.0%
|
|
2.0%
|
|
2.0%
|
|
2.0%
|
|
2.0%
|
|
2.0%
|
|
2.0%
|
|
0.950
|
|
1.420
|
Note:
|
(1)
|
The pricing assumptions used in the GLJ 2013 Reserves Evaluation with
respect to net values of future net revenue (forecast) as well as the
inflation rates used for operating and capital costs are set forth
above. The NGL price is an aggregate of the individual natural gas
liquids prices used in the Total Proved plus Probable evaluation. GLJ
is an independent qualified reserves evaluator appointed pursuant to
NI 51-101.
|
All forecast prices in the table above are provided by GLJ. For 2013,
the price of Vermilion's natural gas in the Netherlands was based on
the TTF day-ahead index, as determined on the Title Transfer Facility
Virtual Trading Point operated by Dutch TSO Gas Transport Services,
plus various fees. GasTerra, a state owned entity purchases all natural
gas produced by Vermilion in the Netherlands. Prior to 2013, the
natural gas price received by Vermilion in the Netherlands was
calculated using a formula based on the trailing average of Dated Brent
and natural gas prices from European trading hubs. France natural gas
production was benchmarked to National Balancing Point (UK). The
benchmark price for Australia and France crude oil was Dated Brent. The
benchmark price for Canadian crude oil was Edmonton Par and Canadian
natural gas was priced against AECO. For the year ended December 31,
2013, the average realized sales prices before hedging were $119.38 per
bbl (Australia), $10.61 per Mcf (Netherlands), $108.55 per bbl (France)
for Brent-based crude oil, $89.78 per bbl for Canadian-based crude oil
and NGLs and $3.40 per Mcf for Canadian natural gas.
The following table summarizes the capital expenditures made by
Vermilion on oil and natural gas properties for the year ended December
31, 2013:
Table 2: Capital Costs Incurred
|
Acquisition Costs
|
|
|
|
|
Proved
|
|
|
Unproved
|
|
|
Exploration
|
|
|
Development
|
|
|
Total
|
(M$)
|
|
|
Properties (1)
|
|
|
Properties
|
|
|
Costs (1)
|
|
|
Costs
|
|
|
Costs
|
Australia
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
77,931
|
|
|
77,931
|
Canada
|
|
|
-
|
|
|
-
|
|
|
19,079
|
|
|
235,086
|
|
|
254,165
|
France
|
|
|
-
|
|
|
-
|
|
|
3,899
|
|
|
96,479
|
|
|
100,378
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
90,898
|
|
|
90,898
|
Netherlands
|
|
|
24,124
|
|
|
-
|
|
|
-
|
|
|
28,543
|
|
|
52,667
|
Total
|
|
|
24,124
|
|
|
-
|
|
|
22,978
|
|
|
528,937
|
|
|
576,039
|
Note:
|
(1) Includes costs of acquiring undeveloped properties.
|
The following table sets forth the reserve life index based on total
proved and proved plus probable reserve and fourth quarter 2013
production of 40,960 boe/d.
Table 3: Reserve Life Index
Commodity
|
Production
|
|
Reserve Life Index (years)
|
|
Fourth Quarter
2013
|
|
Total
Proved
|
|
Proved Plus
Probable
|
Oil and natural gas liquids (bbl/d)
|
27,800
|
|
7.6
|
|
11.6
|
Natural gas (mmcf/d)
|
78.96
|
|
10.7
|
|
16.9
|
Oil Equivalent (boe/d)
|
40,960
|
|
8.6
|
|
13.3
|
The following tables provide reserves data and a breakdown of future net
revenue by component and production group using forecast prices and
costs. For Canada, the tables following include Alberta gas cost
allowance.
The following tables may not total due to rounding.
Table 4: Oil and Gas Reserves - Based on Forecast Prices and Costs (1)
|
|
|
Light and Medium Oil
|
|
Heavy Oil
|
|
Natural Gas
|
|
Natural Gas Liquids
|
|
|
BOE
|
|
|
BOE
|
|
|
|
Gross (2)
|
|
|
Net (2)
|
|
|
Gross (2)
|
|
|
Net (2)
|
|
|
Gross (2)
|
|
|
Net (2)
|
|
|
Gross (2)
|
|
|
Net (2)
|
|
|
Gross
|
|
|
Net
|
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
Proved Developed Producing (3) (5) (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
12,824
|
|
|
12,824
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12,824
|
|
|
12,824
|
Canada
|
|
|
11,394
|
|
|
9,323
|
|
|
13
|
|
|
12
|
|
|
64,246
|
|
|
58,142
|
|
|
2,804
|
|
|
1,920
|
|
|
24,919
|
|
|
20,945
|
France
|
|
|
30,895
|
|
|
28,741
|
|
|
-
|
|
|
-
|
|
|
7,561
|
|
|
7,554
|
|
|
-
|
|
|
-
|
|
|
32,155
|
|
|
30,000
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Netherlands
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
22,794
|
|
|
22,794
|
|
|
44
|
|
|
44
|
|
|
3,843
|
|
|
3,843
|
Total Proved Developed Producing
|
|
|
55,113
|
|
|
50,888
|
|
|
13
|
|
|
12
|
|
|
94,601
|
|
|
88,490
|
|
|
2,848
|
|
|
1,964
|
|
|
73,741
|
|
|
67,612
|
Proved Developed Non-Producing (3) (5) (7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Canada
|
|
|
459
|
|
|
392
|
|
|
-
|
|
|
-
|
|
|
16,330
|
|
|
14,633
|
|
|
629
|
|
|
408
|
|
|
3,810
|
|
|
3,239
|
France
|
|
|
686
|
|
|
635
|
|
|
-
|
|
|
-
|
|
|
3,470
|
|
|
3,457
|
|
|
-
|
|
|
-
|
|
|
1,264
|
|
|
1,211
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Netherlands
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
13,956
|
|
|
13,956
|
|
|
17
|
|
|
17
|
|
|
2,343
|
|
|
2,343
|
Total Proved Developed Non-Producing
|
|
|
1,145
|
|
|
1,027
|
|
|
-
|
|
|
-
|
|
|
33,756
|
|
|
32,046
|
|
|
646
|
|
|
425
|
|
|
7,417
|
|
|
6,793
|
Proved Undeveloped (3) (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
1,200
|
|
|
1,200
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,200
|
|
|
1,200
|
Canada
|
|
|
8,997
|
|
|
7,768
|
|
|
-
|
|
|
-
|
|
|
74,385
|
|
|
68,950
|
|
|
4,734
|
|
|
3,671
|
|
|
26,129
|
|
|
22,931
|
France
|
|
|
2,810
|
|
|
2,665
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,810
|
|
|
2,665
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
105,931
|
|
|
105,931
|
|
|
-
|
|
|
-
|
|
|
17,655
|
|
|
17,655
|
Netherlands
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Total Proved Undeveloped
|
|
|
13,007
|
|
|
11,633
|
|
|
-
|
|
|
-
|
|
|
180,316
|
|
|
174,881
|
|
|
4,734
|
|
|
3,671
|
|
|
47,794
|
|
|
44,451
|
Proved (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
14,024
|
|
|
14,024
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
14,024
|
|
|
14,024
|
Canada
|
|
|
20,850
|
|
|
17,483
|
|
|
13
|
|
|
12
|
|
|
154,961
|
|
|
141,725
|
|
|
8,167
|
|
|
5,999
|
|
|
54,857
|
|
|
47,115
|
France
|
|
|
34,391
|
|
|
32,041
|
|
|
-
|
|
|
-
|
|
|
11,031
|
|
|
11,011
|
|
|
-
|
|
|
-
|
|
|
36,230
|
|
|
33,876
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
105,931
|
|
|
105,931
|
|
|
-
|
|
|
-
|
|
|
17,655
|
|
|
17,655
|
Netherlands
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
36,750
|
|
|
36,750
|
|
|
61
|
|
|
61
|
|
|
6,186
|
|
|
6,186
|
Total Proved
|
|
|
69,265
|
|
|
63,548
|
|
|
13
|
|
|
12
|
|
|
308,673
|
|
|
295,417
|
|
|
8,228
|
|
|
6,060
|
|
|
128,952
|
|
|
118,856
|
Probable (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
5,439
|
|
|
5,439
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,439
|
|
|
5,439
|
Canada
|
|
|
10,450
|
|
|
8,645
|
|
|
3
|
|
|
3
|
|
|
90,663
|
|
|
81,662
|
|
|
5,685
|
|
|
3,942
|
|
|
31,249
|
|
|
26,200
|
France
|
|
|
18,394
|
|
|
17,178
|
|
|
-
|
|
|
-
|
|
|
3,269
|
|
|
3,266
|
|
|
-
|
|
|
-
|
|
|
18,939
|
|
|
17,722
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
38,707
|
|
|
38,707
|
|
|
-
|
|
|
-
|
|
|
6,451
|
|
|
6,451
|
Netherlands
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
44,592
|
|
|
44,592
|
|
|
99
|
|
|
99
|
|
|
7,531
|
|
|
7,531
|
Total Probable
|
|
|
34,283
|
|
|
31,262
|
|
|
3
|
|
|
3
|
|
|
177,231
|
|
|
168,227
|
|
|
5,784
|
|
|
4,041
|
|
|
69,609
|
|
|
63,344
|
Proved Plus Probable (3) (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
19,463
|
|
|
19,463
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
19,463
|
|
|
19,463
|
Canada
|
|
|
31,300
|
|
|
26,128
|
|
|
16
|
|
|
15
|
|
|
245,624
|
|
|
223,387
|
|
|
13,852
|
|
|
9,941
|
|
|
86,105
|
|
|
73,315
|
France
|
|
|
52,785
|
|
|
49,219
|
|
|
-
|
|
|
-
|
|
|
14,300
|
|
|
14,277
|
|
|
-
|
|
|
-
|
|
|
55,168
|
|
|
51,599
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
144,638
|
|
|
144,638
|
|
|
-
|
|
|
-
|
|
|
24,107
|
|
|
24,106
|
Netherlands
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
81,342
|
|
|
81,342
|
|
|
160
|
|
|
160
|
|
|
13,717
|
|
|
13,717
|
Total Proved Plus Probable
|
|
|
103,548
|
|
|
94,810
|
|
|
16
|
|
|
15
|
|
|
485,904
|
|
|
463,644
|
|
|
14,012
|
|
|
10,101
|
|
|
198,560
|
|
|
182,200
|
Notes:
|
(1)
|
The pricing assumptions used in the GLJ 2013 Reserves Evaluation with
respect to net values of future net revenue (forecast) as well as the
inflation rates used for operating and capital costs are set forth
above. See "Forecast Prices used in Estimates". The NGL price is an
aggregate of the individual natural gas liquids prices used in the
Total Proved plus Probable evaluation. GLJ is an independent qualified
reserves evaluator appointed pursuant to NI 51-101.
|
(2)
|
"Gross Reserves" are Vermilion's working interest (operating or
non-operating) share before deduction of royalties and without
including any royalty interests of Vermilion. "Net Reserves" are
Vermilion's working interest (operating or non-operating) share after
deduction of royalty obligations, plus Vermilion's royalty interests in
reserves.
|
(3)
|
"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.
|
(4)
|
"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.
|
(5)
|
"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.
|
(6)
|
"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.
|
(7)
|
"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.
|
(8)
|
"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 classification (proved, probable, possible) to which they are
assigned.
|
Table 5: Net Present Values of Future Net Revenue - Based on Forecast
Prices and Costs (1)
|
|
|
Before Deducting Future Income Taxes Discounted At
|
After Deducting Future Income Taxes Discounted At
|
(M$)
|
|
|
0%
|
|
|
5%
|
|
|
10%
|
|
|
15%
|
|
|
20%
|
|
|
0%
|
|
|
5%
|
|
|
10%
|
|
|
15%
|
|
|
20%
|
Proved Developed Producing (2) (4) (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
652,521
|
|
|
585,705
|
|
|
531,671
|
|
|
487,436
|
|
|
450,743
|
|
|
441,525
|
|
|
389,286
|
|
|
347,679
|
|
|
314,159
|
|
|
286,801
|
Canada
|
|
|
917,542
|
|
|
732,428
|
|
|
611,019
|
|
|
526,184
|
|
|
463,924
|
|
|
917,542
|
|
|
732,428
|
|
|
611,019
|
|
|
526,184
|
|
|
463,924
|
France
|
|
|
1,922,512
|
|
|
1,441,270
|
|
|
1,169,507
|
|
|
995,695
|
|
|
874,106
|
|
|
1,515,215
|
|
|
1,143,202
|
|
|
924,201
|
|
|
781,406
|
|
|
680,775
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Netherlands
|
|
|
171,171
|
|
|
166,503
|
|
|
160,726
|
|
|
154,867
|
|
|
149,274
|
|
|
127,777
|
|
|
124,483
|
|
|
119,963
|
|
|
115,260
|
|
|
110,734
|
Total Proved Developed Producing
|
|
|
3,663,746
|
|
|
2,925,906
|
|
|
2,472,923
|
|
|
2,164,182
|
|
|
1,938,047
|
|
|
3,002,059
|
|
|
2,389,399
|
|
|
2,002,862
|
|
|
1,737,009
|
|
|
1,542,234
|
Proved Developed Non-Producing (2) (4) (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Canada
|
|
|
70,195
|
|
|
55,001
|
|
|
45,425
|
|
|
38,749
|
|
|
33,807
|
|
|
70,195
|
|
|
55,001
|
|
|
45,425
|
|
|
38,749
|
|
|
33,807
|
France
|
|
|
58,478
|
|
|
44,933
|
|
|
36,291
|
|
|
30,396
|
|
|
26,117
|
|
|
37,859
|
|
|
28,837
|
|
|
22,976
|
|
|
18,988
|
|
|
16,109
|
Ireland
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Netherlands
|
|
|
58,744
|
|
|
42,746
|
|
|
32,922
|
|
|
26,583
|
|
|
22,305
|
|
|
48,215
|
|
|
32,962
|
|
|
23,789
|
|
|
18,026
|
|
|
14,260
|
Total Proved Developed Non-Producing
|
|
|
187,417
|
|
|
142,680
|
|
|
114,638
|
|
|
95,728
|
|
|
82,229
|
|
|
156,269
|
|
|
116,800
|
|
|
92,190
|
|
|
75,763
|
|
|
64,176
|
Proved Undeveloped (2) (7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
60,146
|
|
|
46,820
|
|
|
36,877
|
|
|
29,331
|
|
|
23,516
|
|
|
27,883
|
|
|
19,651
|
|
|
13,726
|
|
|
9,397
|
|
|
6,192
|
Canada
|
|
|
746,436
|
|
|
530,852
|
|
|
394,101
|
|
|
302,160
|
|
|
237,346
|
|
|
448,077
|
|
|
321,004
|
|
|
240,489
|
|
|
185,988
|
|
|
147,108
|
France
|
|
|
186,477
|
|
|
149,805
|
|
|
119,575
|
|
|
96,365
|
|
|
78,740
|
|
|
124,123
|
|
|
93,815
|
|
|
71,553
|
|
|
55,102
|
|
|
42,883
|
Ireland
|
|
|
716,287
|
|
|
559,569
|
|
|
435,502
|
|
|
341,954
|
|
|
271,427
|
|
|
716,287
|
|
|
559,569
|
|
|
435,502
|
|
|
341,954
|
|
|
271,427
|
Netherlands
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Total Proved Undeveloped
|
|
|
1,709,346
|
|
|
1,287,046
|
|
|
986,055
|
|
|
769,810
|
|
|
611,029
|
|
|
1,316,370
|
|
|
994,039
|
|
|
761,270
|
|
|
592,441
|
|
|
467,610
|
Proved (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
712,667
|
|
|
632,525
|
|
|
568,548
|
|
|
516,767
|
|
|
474,259
|
|
|
469,408
|
|
|
408,937
|
|
|
361,405
|
|
|
323,556
|
|
|
292,993
|
Canada
|
|
|
1,734,173
|
|
|
1,318,281
|
|
|
1,050,545
|
|
|
867,093
|
|
|
735,077
|
|
|
1,435,814
|
|
|
1,108,433
|
|
|
896,933
|
|
|
750,921
|
|
|
644,839
|
France
|
|
|
2,167,467
|
|
|
1,636,008
|
|
|
1,325,373
|
|
|
1,122,456
|
|
|
978,963
|
|
|
1,677,197
|
|
|
1,265,854
|
|
|
1,018,730
|
|
|
855,496
|
|
|
739,767
|
Ireland
|
|
|
716,287
|
|
|
559,569
|
|
|
435,502
|
|
|
341,954
|
|
|
271,427
|
|
|
716,287
|
|
|
559,569
|
|
|
435,502
|
|
|
341,954
|
|
|
271,427
|
Netherlands
|
|
|
229,915
|
|
|
209,249
|
|
|
193,648
|
|
|
181,450
|
|
|
171,579
|
|
|
175,992
|
|
|
157,445
|
|
|
143,752
|
|
|
133,286
|
|
|
124,994
|
Total Proved
|
|
|
5,560,509
|
|
|
4,355,632
|
|
|
3,573,616
|
|
|
3,029,720
|
|
|
2,631,305
|
|
|
4,474,698
|
|
|
3,500,238
|
|
|
2,856,322
|
|
|
2,405,213
|
|
|
2,074,020
|
Probable (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
342,887
|
|
|
268,934
|
|
|
216,210
|
|
|
177,749
|
|
|
149,013
|
|
|
191,359
|
|
|
143,212
|
|
|
109,895
|
|
|
86,417
|
|
|
69,505
|
Canada
|
|
|
1,066,302
|
|
|
679,218
|
|
|
473,035
|
|
|
351,453
|
|
|
273,764
|
|
|
805,234
|
|
|
505,288
|
|
|
346,615
|
|
|
253,689
|
|
|
194,789
|
France
|
|
|
1,328,916
|
|
|
752,046
|
|
|
490,337
|
|
|
346,386
|
|
|
257,336
|
|
|
867,907
|
|
|
479,851
|
|
|
302,221
|
|
|
204,717
|
|
|
144,824
|
Ireland
|
|
|
413,592
|
|
|
250,341
|
|
|
164,931
|
|
|
116,333
|
|
|
86,526
|
|
|
413,592
|
|
|
250,341
|
|
|
164,931
|
|
|
116,333
|
|
|
86,526
|
Netherlands
|
|
|
379,491
|
|
|
280,351
|
|
|
220,037
|
|
|
180,195
|
|
|
152,184
|
|
|
281,161
|
|
|
204,108
|
|
|
156,473
|
|
|
124,925
|
|
|
102,879
|
Total Probable
|
|
|
3,531,188
|
|
|
2,230,890
|
|
|
1,564,550
|
|
|
1,172,116
|
|
|
918,823
|
|
|
2,559,253
|
|
|
1,582,800
|
|
|
1,080,135
|
|
|
786,081
|
|
|
598,523
|
Proved Plus Probable (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
1,055,554
|
|
|
901,459
|
|
|
784,758
|
|
|
694,516
|
|
|
623,272
|
|
|
660,767
|
|
|
552,149
|
|
|
471,300
|
|
|
409,973
|
|
|
362,498
|
Canada
|
|
|
2,800,475
|
|
|
1,997,499
|
|
|
1,523,580
|
|
|
1,218,546
|
|
|
1,008,841
|
|
|
2,241,048
|
|
|
1,613,721
|
|
|
1,243,548
|
|
|
1,004,610
|
|
|
839,628
|
France
|
|
|
3,496,383
|
|
|
2,388,054
|
|
|
1,815,710
|
|
|
1,468,842
|
|
|
1,236,299
|
|
|
2,545,104
|
|
|
1,745,705
|
|
|
1,320,951
|
|
|
1,060,213
|
|
|
884,591
|
Ireland
|
|
|
1,129,879
|
|
|
809,910
|
|
|
600,433
|
|
|
458,287
|
|
|
357,953
|
|
|
1,129,879
|
|
|
809,910
|
|
|
600,433
|
|
|
458,287
|
|
|
357,953
|
Netherlands
|
|
|
609,406
|
|
|
489,600
|
|
|
413,685
|
|
|
361,645
|
|
|
323,763
|
|
|
457,153
|
|
|
361,553
|
|
|
300,225
|
|
|
258,211
|
|
|
227,873
|
Total Proved Plus Probable
|
|
|
9,091,697
|
|
|
6,586,522
|
|
|
5,138,166
|
|
|
4,201,836
|
|
|
3,550,128
|
|
|
7,033,951
|
|
|
5,083,038
|
|
|
3,936,457
|
|
|
3,191,294
|
|
|
2,672,543
|
Notes:
|
(1)
|
The pricing assumptions used in the GLJ 2013 Reserves Evaluation with
respect to net values of future net revenue (forecast) as well as the
inflation rates used for operating and capital costs are set forth
above. See "Forecast Prices used in Estimates". The NGL price is an
aggregate of the individual natural gas liquids prices used in the
Total Proved plus Probable evaluation. GLJ is an independent qualified
reserves evaluator appointed pursuant to NI 51-101.
|
(2)
|
"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.
|
(3)
|
"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.
|
(4)
|
"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.
|
(5)
|
"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.
|
(6)
|
"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.
|
(7)
|
"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 classification (proved, probable, possible) to which they are
assigned.
|
Table 6: Total Future Net Revenue (Undiscounted) Based on Forecast
Prices and Costs (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future Net
|
|
|
|
|
|
Future Net
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
Abandonment and
|
|
|
Revenue
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
Development
|
|
|
Reclamation
|
|
|
Before
|
|
|
Future
|
|
|
After
|
(M$)
|
|
|
Revenue
|
|
|
Royalties
|
|
|
Costs
|
|
|
Costs
|
|
|
Costs
|
|
|
Income Taxes
|
|
|
Income Taxes
|
|
|
Income Taxes
|
Proved (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
1,646,523
|
|
|
-
|
|
|
694,410
|
|
|
201,855
|
|
|
37,591
|
|
|
712,667
|
|
|
243,259
|
|
|
469,408
|
Canada
|
|
|
3,566,032
|
|
|
523,536
|
|
|
823,146
|
|
|
444,584
|
|
|
40,594
|
|
|
1,734,172
|
|
|
298,358
|
|
|
1,435,814
|
France
|
|
|
3,825,846
|
|
|
255,263
|
|
|
1,070,681
|
|
|
149,246
|
|
|
183,193
|
|
|
2,167,463
|
|
|
490,266
|
|
|
1,677,197
|
Ireland
|
|
|
1,186,463
|
|
|
-
|
|
|
217,845
|
|
|
184,480
|
|
|
67,851
|
|
|
716,287
|
|
|
-
|
|
|
716,287
|
Netherlands
|
|
|
447,859
|
|
|
-
|
|
|
136,074
|
|
|
40,558
|
|
|
41,311
|
|
|
229,916
|
|
|
53,924
|
|
|
175,992
|
Total Proved
|
|
|
10,672,723
|
|
|
778,799
|
|
|
2,942,156
|
|
|
1,020,723
|
|
|
370,540
|
|
|
5,560,505
|
|
|
1,085,807
|
|
|
4,474,698
|
Proved Plus Probable (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
|
2,312,683
|
|
|
-
|
|
|
970,836
|
|
|
243,471
|
|
|
42,822
|
|
|
1,055,554
|
|
|
394,787
|
|
|
660,767
|
Canada
|
|
|
5,666,550
|
|
|
874,308
|
|
|
1,256,300
|
|
|
685,624
|
|
|
49,843
|
|
|
2,800,475
|
|
|
559,427
|
|
|
2,241,048
|
France
|
|
|
5,992,965
|
|
|
398,363
|
|
|
1,522,445
|
|
|
346,678
|
|
|
229,097
|
|
|
3,496,382
|
|
|
951,278
|
|
|
2,545,104
|
Ireland
|
|
|
1,676,002
|
|
|
-
|
|
|
293,792
|
|
|
184,480
|
|
|
67,851
|
|
|
1,129,879
|
|
|
-
|
|
|
1,129,879
|
Netherlands
|
|
|
1,004,424
|
|
|
-
|
|
|
257,731
|
|
|
85,689
|
|
|
51,599
|
|
|
609,405
|
|
|
152,252
|
|
|
457,153
|
Total Proved Plus Probable
|
|
|
16,652,624
|
|
|
1,272,671
|
|
|
4,301,104
|
|
|
1,545,942
|
|
|
441,212
|
|
|
9,091,695
|
|
|
2,057,744
|
|
|
7,033,951
|
Notes:
|
(1)
|
The pricing assumptions used in the GLJ 2013 Reserves Evaluation with
respect to net values of future net revenue (forecast) as well as the
inflation rates used for operating and capital costs are set forth
above. See "Forecast Prices used in Estimates". The NGL price is an
aggregate of the individual natural gas liquids prices used in the
Total Proved plus Probable evaluation. GLJ is an independent qualified
reserves evaluator appointed pursuant to NI 51-101.
|
(2)
|
"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.
|
(3)
|
"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.
|
Table 7: Future Net Revenue by Production Group Based on Forecast Prices
and Costs (1)
|
|
|
|
Future Net Revenue
|
|
|
|
|
|
|
|
Before Income Taxes (2)
|
|
|
|
|
|
|
|
(Discounted at 10% Per Year)
|
|
|
Unit Value
|
Proved Developed Producing
|
|
|
|
(M$)
|
|
|
($/boe)
|
Light and medium oil (3)
|
|
|
|
2,142,591
|
|
|
39.70
|
Natural gas (4)
|
|
|
|
328,991
|
|
|
26.45
|
Non-conventional oil and gas activities
|
|
|
|
1,341
|
|
|
1.11
|
Total Proved Developed Producing
|
|
|
|
2,472,923
|
|
|
36.57
|
Proved Developed Non-Producing
|
|
|
|
|
|
|
|
Light and medium oil (3)
|
|
|
|
32,403
|
|
|
28.38
|
Natural gas (4)
|
|
|
|
80,346
|
|
|
15.83
|
Non-conventional oil and gas activities
|
|
|
|
1,889
|
|
|
3.29
|
Total Proved Developed Non-Producing
|
|
|
|
114,638
|
|
|
16.88
|
Proved Undeveloped
|
|
|
|
|
|
|
|
Light and medium oil (3)
|
|
|
|
457,303
|
|
|
30.83
|
Natural gas (4)
|
|
|
|
524,088
|
|
|
18.93
|
Non-conventional oil and gas activities
|
|
|
|
4,664
|
|
|
2.42
|
Total Proved Undeveloped
|
|
|
|
986,055
|
|
|
22.18
|
Proved
|
|
|
|
|
|
|
|
Light and medium oil (3)
|
|
|
|
2,632,297
|
|
|
37.64
|
Natural gas (4)
|
|
|
|
933,425
|
|
|
20.64
|
Non-conventional oil and gas activities
|
|
|
|
7,894
|
|
|
2.12
|
Total Proved
|
|
|
|
3,573,616
|
|
|
30.07
|
Probable
|
|
|
|
|
|
|
|
Light and medium oil (3)
|
|
|
|
1,009,856
|
|
|
29.05
|
Natural gas (4)
|
|
|
|
547,769
|
|
|
20.29
|
Non-conventional oil and gas activities
|
|
|
|
6,925
|
|
|
4.38
|
Total Probable
|
|
|
|
1,564,550
|
|
|
24.70
|
Proved Plus Probable
|
|
|
|
|
|
|
|
Light and medium oil (3)
|
|
|
|
3,642,153
|
|
|
34.79
|
Natural gas (4)
|
|
|
|
1,481,194
|
|
|
20.51
|
Non-conventional oil and gas activities
|
|
|
|
14,819
|
|
|
2.80
|
Total Proved Plus Probable
|
|
|
|
5,138,166
|
|
|
28.20
|
Notes:
|
(1)
|
The pricing assumptions used in the GLJ 2013 Reserves Evaluation with
respect to net values of future net revenue (forecast) as well as the
inflation rates used for operating and capital costs are set forth
above. See "Forecast Prices used in Estimates". The NGL price is an
aggregate of the individual natural gas liquids prices used in the
Total Proved plus Probable evaluation. GLJ is an independent qualified
reserves evaluator appointed pursuant to NI 51-101.
|
(2)
|
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. Net present values of
reserves categories are an approximation based on major products.
|
(3)
|
Including solution gas and other by-products.
|
(4)
|
Including by-products but excluding solution gas.
|
Reconciliations of Changes in Reserves
The following tables set forth a reconciliation of the changes in
Vermilion's gross light and medium crude oil, heavy oil and associated
and non-associated gas (combined) reserves as at December 31, 2013
compared to such reserves as at December 31, 2012 based on the forecast
price and cost assumptions set forth in note 3.
Table 8: Reconciliation of Company Gross Reserves by Principal Product
Type - Based on Forecast Prices and Costs
AUSTRALIA
|
|
Total Oil
|
|
Light and Medium Oil
|
|
Heavy Oil
|
|
Natural Gas Liquids
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
At December 31, 2012
|
|
|
10,327
|
|
|
6,816
|
|
|
17,143
|
|
|
10,327
|
|
|
6,816
|
|
|
17,143
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
3,300
|
|
|
(650)
|
|
|
2,650
|
|
|
3,300
|
|
|
(650)
|
|
|
2,650
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Technical Revisions
|
|
|
2,763
|
|
|
(727)
|
|
|
2,036
|
|
|
2,763
|
|
|
(727)
|
|
|
2,036
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(2,366)
|
|
|
-
|
|
|
(2,366)
|
|
|
(2,366)
|
|
|
-
|
|
|
(2,366)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
At December 31, 2013
|
|
|
14,024
|
|
|
5,439
|
|
|
19,463
|
|
|
14,024
|
|
|
5,439
|
|
|
19,463
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gas
|
|
Conventional Natural Gas
|
|
Coal Bed Methane
|
|
BOE
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
At December 31, 2012
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10,327
|
|
|
6,816
|
|
|
17,143
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,300
|
|
|
(650)
|
|
|
2,650
|
Technical Revisions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,763
|
|
|
(727)
|
|
|
2,036
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,366)
|
|
|
-
|
|
|
(2,366)
|
At December 31, 2013
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
14,024
|
|
|
5,439
|
|
|
19,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CANADA
|
|
Total Oil
|
|
Light and Medium Oil
|
|
Heavy Oil
|
|
Natural Gas Liquids
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
At December 31, 2012
|
|
|
18,132
|
|
|
14,102
|
|
|
32,234
|
|
|
18,115
|
|
|
14,099
|
|
|
32,214
|
|
|
17
|
|
|
3
|
|
|
20
|
|
|
3,565
|
|
|
2,026
|
|
|
5,591
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
1,056
|
|
|
1,487
|
|
|
2,543
|
|
|
1,056
|
|
|
1,487
|
|
|
2,543
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,839
|
|
|
3,256
|
|
|
7,095
|
Technical Revisions
|
|
|
4,736
|
|
|
(5,136)
|
|
|
(400)
|
|
|
4,736
|
|
|
(5,136)
|
|
|
(400)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,371
|
|
|
403
|
|
|
1,774
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(3,061)
|
|
|
-
|
|
|
(3,061)
|
|
|
(3,057)
|
|
|
-
|
|
|
(3,057)
|
|
|
(4)
|
|
|
-
|
|
|
(4)
|
|
|
(608)
|
|
|
-
|
|
|
(608)
|
At December 31, 2013
|
|
|
20,863
|
|
|
10,453
|
|
|
31,316
|
|
|
20,850
|
|
|
10,450
|
|
|
31,300
|
|
|
13
|
|
|
3
|
|
|
16
|
|
|
8,167
|
|
|
5,685
|
|
|
13,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gas
|
|
Conventional Natural Gas
|
|
Coal Bed Methane
|
|
BOE
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
At December 31, 2012
|
|
|
114,014
|
|
|
65,654
|
|
|
179,668
|
|
|
91,978
|
|
|
53,713
|
|
|
145,691
|
|
|
22,036
|
|
|
11,941
|
|
|
33,977
|
|
|
40,700
|
|
|
27,070
|
|
|
67,770
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
41,210
|
|
|
35,959
|
|
|
77,169
|
|
|
41,210
|
|
|
35,959
|
|
|
77,169
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
11,763
|
|
|
10,736
|
|
|
22,500
|
Technical Revisions
|
|
|
15,209
|
|
|
(10,950)
|
|
|
4,259
|
|
|
11,942
|
|
|
(9,136)
|
|
|
2,806
|
|
|
3,267
|
|
|
(1,814)
|
|
|
1,453
|
|
|
8,641
|
|
|
(6,558)
|
|
|
2,083
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(15,472)
|
|
|
-
|
|
|
(15,472)
|
|
|
(14,072)
|
|
|
-
|
|
|
(14,072)
|
|
|
(1,400)
|
|
|
-
|
|
|
(1,400)
|
|
|
(6,248)
|
|
|
-
|
|
|
(6,248)
|
At December 31, 2013
|
|
|
154,961
|
|
|
90,663
|
|
|
245,624
|
|
|
131,058
|
|
|
80,536
|
|
|
211,594
|
|
|
23,903
|
|
|
10,127
|
|
|
34,030
|
|
|
54,857
|
|
|
31,249
|
|
|
86,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FRANCE
|
|
Total Oil
|
|
Light and Medium Oil
|
|
Heavy Oil
|
|
Natural Gas Liquids
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
At December 31, 2012
|
|
|
32,516
|
|
|
14,263
|
|
|
46,779
|
|
|
32,516
|
|
|
14,263
|
|
|
46,779
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
3,194
|
|
|
3,910
|
|
|
7,104
|
|
|
3,194
|
|
|
3,910
|
|
|
7,104
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Technical Revisions
|
|
|
2,650
|
|
|
221
|
|
|
2,871
|
|
|
2,650
|
|
|
221
|
|
|
2,871
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(3,969)
|
|
|
-
|
|
|
(3,969)
|
|
|
(3,969)
|
|
|
-
|
|
|
(3,969)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
At December 31, 2013
|
|
|
34,391
|
|
|
18,394
|
|
|
52,785
|
|
|
34,391
|
|
|
18,394
|
|
|
52,785
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gas
|
|
Conventional Natural Gas
|
|
Coal Bed Methane
|
BOE
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
At December 31, 2012
|
|
|
1,377
|
|
|
24
|
|
|
1,401
|
|
|
1,377
|
|
|
24
|
|
|
1,401
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
32,746
|
|
|
14,266
|
|
|
47,012
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
3,470
|
|
|
1,290
|
|
|
4,760
|
|
|
3,470
|
|
|
1,290
|
|
|
4,760
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,772
|
|
|
4,125
|
|
|
7,897
|
Technical Revisions
|
|
|
7,425
|
|
|
1,955
|
|
|
9,380
|
|
|
7,425
|
|
|
1,955
|
|
|
9,380
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,888
|
|
|
548
|
|
|
4,435
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(1,241)
|
|
|
-
|
|
|
(1,241)
|
|
|
(1,241)
|
|
|
-
|
|
|
(1,241)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(4,176)
|
|
|
-
|
|
|
(4,176)
|
At December 31, 2013
|
|
|
11,031
|
|
|
3,269
|
|
|
14,300
|
|
|
11,031
|
|
|
3,269
|
|
|
14,300
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
36,230
|
|
|
18,939
|
|
|
55,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IRELAND
|
|
Total Oil
|
|
Light and Medium Oil
|
|
Heavy Oil
|
|
Natural Gas Liquids
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
At December 31, 2012
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Technical Revisions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
At December 31, 2013
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gas
|
|
Conventional Natural Gas
|
|
Coal Bed Methane
|
|
BOE
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
At December 31, 2012
|
|
|
91,954
|
|
|
35,079
|
|
|
127,033
|
|
|
91,954
|
|
|
35,079
|
|
|
127,033
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
15,326
|
|
|
5,846
|
|
|
21,172
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
3,578
|
|
|
929
|
|
|
4,507
|
|
|
3,578
|
|
|
929
|
|
|
4,507
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
596
|
|
|
155
|
|
|
751
|
Technical Revisions
|
|
|
10,399
|
|
|
2,699
|
|
|
13,098
|
|
|
10,399
|
|
|
2,699
|
|
|
13,098
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,733
|
|
|
450
|
|
|
2,183
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
At December 31, 2013
|
|
|
105,931
|
|
|
38,707
|
|
|
144,638
|
|
|
105,931
|
|
|
38,707
|
|
|
144,638
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17,655
|
|
|
6,451
|
|
|
24,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETHERLANDS
|
|
Total Oil
|
|
Light and Medium Oil
|
|
Heavy Oil
|
|
Natural Gas Liquids
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
At December 31, 2012
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
62
|
|
|
61
|
|
|
123
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6
|
|
|
3
|
|
|
9
|
Technical Revisions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
(20)
|
|
|
(13)
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
|
55
|
|
|
64
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(23)
|
|
|
-
|
|
|
(23)
|
At December 31, 2013
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
61
|
|
|
99
|
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gas
|
|
Conventional Natural Gas
|
|
Coal Bed Methane
|
|
BOE
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
At December 31, 2012
|
|
|
36,606
|
|
|
33,277
|
|
|
69,883
|
|
|
36,606
|
|
|
33,277
|
|
|
69,883
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6,163
|
|
|
5,607
|
|
|
11,770
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
1,445
|
|
|
2,799
|
|
|
4,244
|
|
|
1,445
|
|
|
2,799
|
|
|
4,244
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
247
|
|
|
470
|
|
|
716
|
Technical Revisions
|
|
|
7,906
|
|
|
(1,602)
|
|
|
6,304
|
|
|
7,906
|
|
|
(1,602)
|
|
|
6,304
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,325
|
|
|
(287)
|
|
|
1,038
|
Acquisitions
|
|
|
3,721
|
|
|
10,118
|
|
|
13,839
|
|
|
3,721
|
|
|
10,118
|
|
|
13,839
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
629
|
|
|
1,741
|
|
|
2,371
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(12,928)
|
|
|
-
|
|
|
(12,928)
|
|
|
(12,928)
|
|
|
-
|
|
|
(12,928)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,178)
|
|
|
-
|
|
|
(2,178)
|
At December 31, 2013
|
|
|
36,750
|
|
|
44,592
|
|
|
81,342
|
|
|
36,750
|
|
|
44,592
|
|
|
81,342
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6,186
|
|
|
7,531
|
|
|
13,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPANY
|
|
Total Oil
|
|
Light and Medium Oil
|
|
Heavy Oil
|
|
Natural Gas Liquids
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
|
|
(Mbbl)
|
At December 31, 2012
|
|
|
60,975
|
|
|
35,181
|
|
|
96,156
|
|
|
60,958
|
|
|
35,178
|
|
|
96,136
|
|
|
17
|
|
|
3
|
|
|
20
|
|
|
3,627
|
|
|
2,086
|
|
|
5,714
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
7,550
|
|
|
4,747
|
|
|
12,297
|
|
|
7,550
|
|
|
4,747
|
|
|
12,297
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,845
|
|
|
3,259
|
|
|
7,104
|
Technical Revisions
|
|
|
10,149
|
|
|
(5,642)
|
|
|
4,507
|
|
|
10,149
|
|
|
(5,642)
|
|
|
4,507
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,378
|
|
|
383
|
|
|
1,761
|
Acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
|
56
|
|
|
64
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(9,396)
|
|
|
-
|
|
|
(9,396)
|
|
|
(9,392)
|
|
|
-
|
|
|
(9,392)
|
|
|
(4)
|
|
|
-
|
|
|
(4)
|
|
|
(631)
|
|
|
-
|
|
|
(631)
|
At December 31, 2013
|
|
|
69,278
|
|
|
34,286
|
|
|
103,564
|
|
|
69,265
|
|
|
34,283
|
|
|
103,548
|
|
|
13
|
|
|
3
|
|
|
16
|
|
|
8,228
|
|
|
5,784
|
|
|
14,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gas
|
|
Conventional Natural Gas
|
|
Coal Bed Methane
|
|
BOE
|
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
|
|
|
|
|
|
|
|
Proved +
|
Proved Probable P+P (1) (2)
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
|
|
Proved
|
|
|
Probable
|
|
|
Probable
|
Factors
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(MMcf)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
|
|
(Mboe)
|
At December 31, 2012
|
|
|
243,951
|
|
|
134,034
|
|
|
377,985
|
|
|
221,915
|
|
|
122,093
|
|
|
344,008
|
|
|
22,036
|
|
|
11,941
|
|
|
33,977
|
|
|
105,262
|
|
|
59,605
|
|
|
164,867
|
Discoveries
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Extensions & Improved Recovery
|
|
|
49,703
|
|
|
40,977
|
|
|
90,680
|
|
|
49,703
|
|
|
40,977
|
|
|
90,680
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
19,679
|
|
|
14,836
|
|
|
34,514
|
Technical Revisions
|
|
|
40,939
|
|
|
(7,898)
|
|
|
33,041
|
|
|
37,672
|
|
|
(6,084)
|
|
|
31,588
|
|
|
3,267
|
|
|
(1,814)
|
|
|
1,453
|
|
|
18,350
|
|
|
(6,574)
|
|
|
11,775
|
Acquisitions
|
|
|
3,721
|
|
|
10,118
|
|
|
13,839
|
|
|
3,721
|
|
|
10,118
|
|
|
13,839
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
629
|
|
|
1,742
|
|
|
2,371
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Economic Factors
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Production
|
|
|
(29,641)
|
|
|
-
|
|
|
(29,641)
|
|
|
(28,241)
|
|
|
-
|
|
|
(28,241)
|
|
|
(1,400)
|
|
|
-
|
|
|
(1,400)
|
|
|
(14,967)
|
|
|
-
|
|
|
(14,967)
|
At December 31, 2013
|
|
|
308,673
|
|
|
177,231
|
|
|
485,904
|
|
|
284,770
|
|
|
167,104
|
|
|
451,874
|
|
|
23,903
|
|
|
10,127
|
|
|
34,030
|
|
|
128,952
|
|
|
69,609
|
|
|
198,560
|
Notes:
|
(1)
|
"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.
|
(2)
|
"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.
|
(3)
|
The pricing assumptions used in the GLJ 2013 Reserves Evaluation with
respect to net values of future net revenue (forecast) as well as the
inflation rates used for operating and capital costs are set forth
above. See "Forecast Prices used in Estimates". The NGL price is an
aggregate of the individual natural gas liquids prices used in the
Total Proved plus Probable evaluation. GLJ is an independent qualified
reserves evaluator appointed pursuant to NI 51-101.
|
The table below sets out the future development costs deducted in the
estimation of future net revenue attributable to total proved reserves
and total proved plus probable reserves (using forecast prices and
costs).
Table 9: Future Development Costs (1)
|
Total Proved
|
Total Proved Plus Probable
|
(M$)
|
Estimated Using Forecast Prices and Costs
|
Estimated Using Forecast Prices and Costs
|
Australia
|
|
|
2014
|
22,500
|
22,500
|
2015
|
68,646
|
110,262
|
2016
|
2,913
|
2,913
|
2017
|
40,963
|
40,963
|
2018
|
64,405
|
64,405
|
Remainder
|
2,428
|
2,428
|
Total for all years undiscounted
|
201,855
|
243,471
|
Canada
|
|
|
2014
|
188,687
|
196,593
|
2015
|
179,314
|
250,776
|
2016
|
55,508
|
156,334
|
2017
|
5,636
|
65,039
|
2018
|
541
|
541
|
Remainder
|
14,899
|
16,341
|
Total for all years undiscounted
|
444,585
|
685,624
|
France
|
|
|
2014
|
38,884
|
77,422
|
2015
|
44,609
|
126,820
|
2016
|
22,923
|
54,801
|
2017
|
7,861
|
46,171
|
2018
|
9,272
|
15,767
|
Remainder
|
25,699
|
25,697
|
Total for all years undiscounted
|
149,248
|
346,678
|
Ireland
|
|
|
2014
|
107,703
|
107,703
|
2015
|
50,832
|
50,832
|
2016
|
3,288
|
3,288
|
2017
|
-
|
-
|
2018
|
-
|
-
|
Remainder
|
22,657
|
22,657
|
Total for all years undiscounted
|
184,480
|
184,480
|
Netherlands
|
|
|
2014
|
1,245
|
9,236
|
2015
|
2,818
|
5,586
|
2016
|
416
|
2,757
|
2017
|
29,072
|
45,187
|
2018
|
433
|
16,350
|
Remainder
|
6,574
|
6,573
|
Total for all years undiscounted
|
40,558
|
85,689
|
Total Company
|
|
|
2014
|
359,020
|
413,454
|
2015
|
346,219
|
544,277
|
2016
|
85,046
|
220,093
|
2017
|
83,532
|
197,361
|
2018
|
74,653
|
97,064
|
Remainder
|
72,253
|
73,693
|
Total for all years undiscounted
|
1,020,723
|
1,545,942
|
Note:
|
(1)
|
The pricing assumptions used in the GLJ 2013 Reserves Evaluation with
respect to net values of future net revenue (forecast) as well as the
inflation rates used for operating and capital costs are set forth
above. See "Forecast Prices used in Estimates". The NGL price is an
aggregate of the individual natural gas liquids prices used in the
Total Proved plus Probable evaluation. GLJ is an independent qualified
reserves evaluator appointed pursuant to NI 51-101.
|
Vermilion expects to source its capital expenditure requirements from
internally generated cash flow and, as appropriate, from the existing
credit facility, equity or debt financing. It is anticipated that
costs of funding the future development costs will not impact
development of its properties or Vermilion's reserves or future net
revenue.
CONTINGENT AND PROSPECTIVE RESOURCES
Vermilion retained GLJ to conduct an independent resource evaluation to
assess contingent and prospective resources across all of the Company's
key operating regions with an effective date of December 31, 2013 (the
"GLJ 2013 Resources Assessment"). All contingent and prospective
resources evaluated in the GLJ 2013 Resources Assessment were deemed
economic at the effective date of December 31, 2013.
The estimates of volumes of, and the net present value of the future net
revenue attributable to, contingent resources and prospective resources
in this news release are derived from the GLJ 2013 Resources
Assessment. The GLJ 2013 Resources Assessment was prepared in
accordance with COGEH and NI 51-101 by GLJ, an independent qualified
reserve evaluator.
A range of contingent and prospective resources estimates (low, best and
high) were prepared by GLJ. See notes 5 to 8 of following Table 11 in
this section for a description of low estimate, best estimate and high
estimate.
Contingent Resources
"Contingent resources" are not, and should not be confused with,
petroleum and natural gas reserves. "Contingent resources" are defined
in COGEH as those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known accumulations using
established technology or technology under development, but which are
not currently considered to be commercially recoverable due to one or
more contingencies. Contingencies may include factors such as economic,
legal, environmental, political and regulatory matters or a lack of
markets. It is also appropriate to classify as contingent resource the
estimated discovered recoverable quantities associated with a project
in the early evaluation stage.
The primary contingencies which currently prevent the classification of
Vermilion's contingent resource as reserves include but are not limited
to:
-
preparation of firm development plans, including determination of the
specific scope and timing of projects;
-
project sanction;
-
access to capital markets;
-
shareholder and regulatory approvals;
-
access to required services and field development infrastructure;
-
oil and natural gas prices in Canada and internationally in
jurisdictions in which Vermilion operates;
-
demonstration of economic viability;
-
future drilling program and testing results;
-
further reservoir delineation and studies;
-
facility design work;
-
limitations to development based on adverse topography or other surface
restrictions; and
-
the uncertainty regarding marketing and transportation of petroleum from
development areas.
There is no certainty that it will be commercially viable to produce any
portion of the contingent resources or that Vermilion will produce any
portion of the volumes currently classified as contingent resources.
The estimates of contingent resources involve implied assessment, based
on certain estimates and assumptions, that the resources described
exists in the quantities predicted or estimated and that the resources
can be profitably produced in the future. The net present value of the future net revenue from the contingent
resources does not necessarily represent the fair market value of the
contingent resources. Actual contingent resources (and any volumes that may be reclassified
as reserves) and future production therefrom may be greater than or
less than the estimates provided herein.
Prospective Resources
Prospective resources are not, and should not be confused with,
petroleum and natural gas reserves. "Prospective resources" are defined
in COGEH as those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from undiscovered accumulations by
application of future development projects.
There is no certainty that any portion of the prospective resources will
be discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the prospective resources
or that Vermilion will produce any portion of the volumes currently
classified as prospective resources. The estimates of prospective
resources involve implied assessment, based on certain estimates and
assumptions, that the resources described exists in the quantities
predicted or estimated and that the resources can be profitably
produced in the future. The net present value of the future net revenue
from the prospective resources does not necessarily represent the fair
market value of the prospective resources. The recovery and resources
estimates provided herein are estimates only. Actual prospective
resources (and any volumes that may be reclassified as reserves or
contingent resources) and future production from such prospective
resources may be greater than or less than the estimates provided
herein.
Summary information regarding contingent and prospective resources and
net present values of future net revenues from contingent and
prospective resources are set forth below
Table 10: Company Gross and Net Contingent and Prospective Resources as
at December 31, 2013 (1) (2) - Forecast Prices and Costs (3) (4)
|
Gross
|
|
Gross
|
|
Net
|
|
Reserves
|
|
Contingent Resources
|
Prospective Resources
|
|
Contingent Resources
|
Prospective Resources
|
|
P+P
|
|
Low
|
Best
|
High
|
Low
|
Best
|
High
|
|
Low
|
Best
|
High
|
Low
|
Best
|
High
|
Oil and NGLs
|
(Mbbl)
|
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
(Mbbl)
|
Australia
|
19,463
|
|
1,250
|
3,900
|
6,200
|
-
|
1,207
|
3,046
|
|
1,250
|
3,900
|
6,200
|
-
|
1,207
|
3,046
|
Canada
|
45,168
|
|
28,377
|
84,022
|
128,092
|
4,607
|
157,571
|
295,063
|
|
21,140
|
61,487
|
92,143
|
3,711
|
121,446
|
222,692
|
France
|
52,785
|
|
8,463
|
21,203
|
33,879
|
289
|
3,782
|
13,584
|
|
7,744
|
19,489
|
31,364
|
271
|
3,171
|
12,637
|
Ireland
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Netherlands
|
160
|
|
13
|
41
|
1,112
|
112
|
199
|
389
|
|
13
|
41
|
1,112
|
112
|
199
|
389
|
Total
|
117,576
|
|
38,103
|
109,166
|
169,283
|
5,008
|
162,759
|
312,082
|
|
30,147
|
84,917
|
130,819
|
4,094
|
126,023
|
238,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
Gross
|
|
Net
|
|
Reserves
|
|
Contingent Resources
|
Prospective Resources
|
|
Contingent Resources
|
Prospective Resources
|
|
P+P
|
|
Low
|
Best
|
High
|
Low
|
Best
|
High
|
|
Low
|
Best
|
High
|
Low
|
Best
|
High
|
Natural Gas
|
(MMcf)
|
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
(MMcf)
|
Australia
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Canada
|
245,624
|
|
204,370
|
704,875
|
1,023,206
|
196,373
|
1,772,471
|
2,559,987
|
|
188,177
|
642,287
|
920,915
|
184,256
|
1,648,071
|
2,370,533
|
France
|
14,300
|
|
653
|
816
|
1,020
|
-
|
-
|
-
|
|
653
|
816
|
1,020
|
-
|
-
|
-
|
Ireland
|
144,638
|
|
5,807
|
18,780
|
29,587
|
-
|
-
|
-
|
|
5,807
|
18,780
|
29,587
|
-
|
-
|
-
|
Netherlands
|
81,342
|
|
6,874
|
21,627
|
40,864
|
130,038
|
242,939
|
480,613
|
|
6,874
|
21,627
|
40,864
|
130,038
|
242,939
|
480,613
|
Total
|
485,904
|
|
217,704
|
746,098
|
1,094,677
|
326,411
|
2,015,410
|
3,040,600
|
|
201,511
|
683,510
|
992,386
|
314,294
|
1,891,010
|
2,851,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
Gross
|
|
Net
|
|
Reserves
|
|
Contingent Resources
|
Prospective Resources
|
|
Contingent Resources
|
Prospective Resources
|
|
P+P
|
|
Low
|
Best
|
High
|
Low
|
Best
|
High
|
|
Low
|
Best
|
High
|
Low
|
Best
|
High
|
Total Oil Equivalent
|
(Mboe)
|
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
(Mboe)
|
Australia
|
19,463
|
|
1,250
|
3,900
|
6,200
|
-
|
1,207
|
3,046
|
|
1,250
|
3,900
|
6,200
|
-
|
1,207
|
3,046
|
Canada
|
86,105
|
|
62,439
|
201,502
|
298,626
|
37,336
|
452,983
|
721,727
|
|
52,503
|
168,534
|
245,629
|
34,421
|
396,125
|
617,781
|
France
|
55,168
|
|
8,571
|
21,339
|
34,049
|
289
|
3,782
|
13,584
|
|
7,853
|
19,625
|
31,534
|
271
|
3,171
|
12,637
|
Ireland
|
24,106
|
|
968
|
3,130
|
4,931
|
-
|
-
|
-
|
|
968
|
3,130
|
4,931
|
-
|
-
|
-
|
Netherlands
|
13,717
|
|
1,159
|
3,646
|
7,922
|
21,785
|
40,689
|
80,492
|
|
1,159
|
3,646
|
7,922
|
21,785
|
40,689
|
80,492
|
Total
|
198,560
|
|
74,387
|
233,517
|
351,728
|
59,410
|
498,661
|
818,849
|
|
63,733
|
198,835
|
296,216
|
56,477
|
441,192
|
713,956
|
Table 11: Summary of Net Present Value of Future Net Revenues as at
December 31, 2013 - Forecast Prices and Costs (3)
Contingent Resources
|
Before Income Taxes, Discounted at (5)
|
After Income Taxes, Discounted at (5)
|
(M$)
|
0%
|
5%
|
8%
|
10%
|
0%
|
5%
|
8%
|
10%
|
Low Estimate (C1) (6)
|
|
|
|
|
|
|
|
|
Australia
|
46,057
|
30,848
|
24,342
|
20,805
|
10,709
|
4,554
|
2,164
|
950
|
Canada
|
1,338,563
|
750,862
|
547,973
|
448,543
|
1,003,891
|
535,982
|
376,779
|
299,666
|
France
|
500,810
|
299,434
|
225,931
|
188,618
|
328,076
|
183,183
|
131,181
|
105,100
|
Ireland
|
23,215
|
7,833
|
3,793
|
2,180
|
17,411
|
5,360
|
2,280
|
1,081
|
Netherlands
|
24,785
|
13,825
|
9,362
|
6,996
|
13,325
|
5,213
|
1,997
|
325
|
Total Low Estimate
|
1,933,430
|
1,102,802
|
811,401
|
667,142
|
1,373,412
|
734,292
|
514,401
|
407,122
|
Best Estimate (C2) (7)
|
|
|
|
|
|
|
|
|
Australia
|
270,083
|
190,153
|
155,779
|
136,973
|
103,615
|
67,961
|
53,278
|
45,456
|
Canada
|
4,757,350
|
2,548,856
|
1,810,553
|
1,455,506
|
3,567,982
|
1,841,038
|
1,268,888
|
995,788
|
France
|
1,219,657
|
706,205
|
527,066
|
438,131
|
799,382
|
433,198
|
307,628
|
246,078
|
Ireland
|
142,895
|
49,811
|
25,559
|
15,511
|
107,171
|
35,501
|
16,748
|
8,965
|
Netherlands
|
105,017
|
65,145
|
49,059
|
40,535
|
57,271
|
30,298
|
19,610
|
14,023
|
Total Best Estimate
|
6,495,002
|
3,560,170
|
2,568,016
|
2,086,656
|
4,635,421
|
2,407,996
|
1,666,152
|
1,310,310
|
High Estimate (C3) (8)
|
|
|
|
|
|
|
|
|
Australia
|
533,218
|
375,068
|
307,885
|
271,318
|
216,856
|
146,938
|
118,024
|
102,536
|
Canada
|
8,520,437
|
4,598,611
|
3,337,210
|
2,738,201
|
6,390,285
|
3,371,269
|
2,405,989
|
1,949,949
|
France
|
2,268,722
|
1,266,202
|
939,778
|
782,450
|
1,487,408
|
794,121
|
570,941
|
464,372
|
Ireland
|
324,184
|
99,583
|
52,899
|
35,341
|
243,138
|
73,269
|
37,734
|
24,313
|
Netherlands
|
287,748
|
191,967
|
152,366
|
131,052
|
157,267
|
95,126
|
69,804
|
56,317
|
Total High Estimate
|
11,934,309
|
6,531,431
|
4,790,138
|
3,958,362
|
8,494,954
|
4,480,723
|
3,202,492
|
2,597,487
|
|
|
|
|
|
|
|
|
|
Prospective Resources
|
Before Income Taxes, Discounted at (5)
|
After Income Taxes, Discounted at (5)
|
(M$)
|
0%
|
5%
|
8%
|
10%
|
0%
|
5%
|
8%
|
10%
|
Low Estimate (Pr1) (6)
|
|
|
|
|
|
|
|
|
Australia
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Canada
|
492,575
|
236,916
|
154,804
|
116,698
|
369,217
|
167,763
|
104,048
|
74,831
|
France
|
10,422
|
8,547
|
7,634
|
7,097
|
5,484
|
4,069
|
3,398
|
3,011
|
Ireland
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Netherlands
|
848,414
|
416,721
|
294,433
|
239,170
|
460,342
|
208,317
|
135,776
|
103,074
|
Total Low Estimate
|
1,351,411
|
662,184
|
456,871
|
362,965
|
835,043
|
380,149
|
243,222
|
180,916
|
Best Estimate (Pr2) (7)
|
|
|
|
|
|
|
|
|
Australia
|
106,915
|
64,513
|
48,429
|
40,247
|
43,520
|
25,183
|
18,433
|
15,061
|
Canada
|
11,548,288
|
4,767,690
|
2,918,816
|
2,131,682
|
8,659,120
|
3,427,761
|
2,023,953
|
1,434,147
|
France
|
150,457
|
93,762
|
72,020
|
60,756
|
97,837
|
55,234
|
39,133
|
30,889
|
Ireland
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Netherlands
|
2,078,111
|
1,132,690
|
848,113
|
714,874
|
1,132,370
|
599,681
|
438,362
|
363,004
|
Total Best Estimate
|
13,883,771
|
6,058,655
|
3,887,378
|
2,947,559
|
9,932,847
|
4,107,859
|
2,519,881
|
1,843,101
|
High Estimate (Pr3) (8)
|
|
|
|
|
|
|
|
|
Australia
|
334,608
|
191,460
|
141,219
|
116,472
|
140,264
|
78,871
|
57,603
|
47,208
|
Canada
|
27,794,746
|
11,888,521
|
7,639,101
|
5,813,417
|
20,845,987
|
8,778,815
|
5,574,461
|
4,204,916
|
France
|
758,262
|
428,747
|
319,835
|
267,173
|
496,839
|
265,350
|
190,141
|
154,240
|
Ireland
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Netherlands
|
4,736,149
|
2,635,340
|
1,989,491
|
1,684,266
|
2,585,545
|
1,421,568
|
1,062,681
|
893,256
|
Total High Estimate
|
33,623,765
|
15,144,068
|
10,089,646
|
7,881,328
|
24,068,635
|
10,544,604
|
6,884,886
|
5,299,620
|
Notes:
|
(1)
|
The contingent and prospective resource assessments were prepared by GLJ
in accordance with the definitions, standards and procedures contained
in the COGEH and NI 51-101. Contingent resource is defined in the COGEH
as those quantities of petroleum estimated to be potentially
recoverable from known accumulations using established technology or
technology under development, but which do not currently qualify as
reserves or commercially recoverable due to one or more contingencies.
See "Presentation of Oil and Gas Reserves and Production Information -
Contingent Resources" for the primary contingencies which prevent the
classification of the resources as reserves. There is no certainty that
it will be commercially viable to produce any portion of the contingent
resources or that Vermilion will produce any portion of the volumes
currently classified as contingent resources. The estimates of
contingent resources involve implied assessment, based on certain
estimates and assumptions, that the resources described exists in the
quantities predicted or estimated, as at a given date, and that the
resources can be profitably produced in the future. The net present value of the future net revenue from the contingent
resources does not necessarily represent the fair market value of the
contingent resources. Actual contingent resources (and any volumes that may be reclassified
as reserves) and future production therefrom may be greater than or
less than the estimates provided herein. Prospective resource is
defined in the COGEH are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects. There is
no certainty that any portion of the prospective resources will be
discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the prospective resources
or that Vermilion will produce any portion of the volumes currently
classified as prospective resources. The estimates of prospective
resources involve implied assessment, based on certain estimates and
assumptions, that the resources described exists in the quantities
predicted or estimated and that the resources can be profitably
produced in the future. The net present value of the future net revenue from the prospective
resources does not necessarily represent the fair market value of the
prospective resources. The recovery and resources estimates provided herein are estimates
only. Actual prospective resources (and any volumes that may be
reclassified as reserves or contingent resources) and future production
from such prospective resources may be greater than or less than the
estimates provided herein.
|
(2)
|
GLJ prepared the estimates of contingent and prospective resources shown
for each property using deterministic principles and methods.
Probabilistic aggregation of the low and high property estimates shown
in the table might produce different total volumes than the arithmetic
sums shown in the table.
|
(3)
|
The forecast price and cost assumptions utilized in the year-end 2013
reserves report were also utilized by GLJ in preparing the contingent
resource and prospective resource assessments. See "GLJ December 31,
2013 Forecast Prices" in this Annual Information Form.
|
(4)
|
"Gross" Reserves or Contingent Resources or Prospective Resources are
Vermilion's working interest (operating or non-operating) share before
deduction of royalties and without including any royalty interests of
Vermilion. "Net" Reserves or Contingent Resources or Prospective
Resources are Vermilion's working interest (operating or non-operating)
share after deduction of royalty obligations, plus Vermilion's royalty
interests in Reserves or Contingent Resources or Prospective Resources.
|
(5)
|
The net present value of future net revenue attributable to the
contingent or prospective resources does not necessarily represent the
fair market value of the contingent or prospective resources. Estimated
abandonment and reclamation costs have been included in the evaluation.
|
(6)
|
Low estimate is considered to be a conservative estimate of the quantity
of contingent (C1) or prospective (Pr1) resources that will actually be
recovered. It is likely that the actual remaining quantities recovered
will exceed the low estimate. Those contingent or prospective
resources at the low end of the estimate range have the highest degree
of certainty - a 90% confidence level - that the actual quantities
recovered will be equal or exceed the estimate.
|
(7)
|
Best estimate is considered to be the best estimate of the quantity of
contingent (C2) or prospective (Pr2) resources that will actually be
recovered. It is equally likely that the actual remaining quantities
recovered will be greater or less than the best estimate. Those
contingent or prospective resources that fall within the best estimate
have a 50% confidence level that the actual quantities recovered will
be equal or exceed the estimate.
|
(8)
|
High estimate is considered to be an optimistic estimate of the quantity
of contingent (C3) or prospective (Pr3) resources that will actually be
recovered. It is unlikely that the actual remaining quantities of
contingent or prospective resources recovered will meet or exceed the
high estimate. Those contingent or prospective resources at the high
end of the estimate range have a lower degree of certainty - a 10%
confidence level - that the actual quantities recovered will equal or
exceed the estimate.
|
ABOUT VERMILION
Vermilion is an oil-leveraged producer that adheres to a value creation
strategy through the execution of full cycle exploration and production
programs focused on the acquisition, exploration, development and
optimization of producing properties in Western Canada, Europe and
Australia. Our business model targets annual organic production growth
of approximately 5% along with providing reliable and increasing
dividends to investors. Vermilion is targeting growth in production
primarily through the exploitation of conventional resource plays in
Western Canada, including Cardium light oil and liquids rich natural
gas, the exploration and development of high impact natural gas
opportunities in the Netherlands and through drilling and workover
programs in France and Australia. Vermilion also holds an 18.5% working
interest in the Corrib gas field in Ireland. In addition, Vermilion
pays a monthly dividend of Canadian $0.215 per share, which provides a
current yield in excess of 4%. Management and directors of Vermilion
hold approximately 8% of the outstanding shares and are dedicated to
consistently delivering superior rewards for all stakeholders,
featuring an 20-year history of market outperformance. Vermilion trades
on the Toronto Stock Exchange and the New York Stock Exchange under the
symbol VET.
ADVISORIES
Natural gas volumes have been converted on the basis of six thousand
cubic feet of natural gas to one barrel equivalent of oil. Barrels of
oil equivalent ("boe") may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet of
natural gas to one barrel of oil is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
Fund flows from operations is considered an additional GAAP financial
measure, recycle ratio and Netbacks are non-GAAP financial measures.
These are measures (as defined herein) that do not have standardized
meanings prescribed by International Financial Reporting Standards
("IFRS") and therefore are unlikely to be comparable with similar
measures for other issuers. We define fund flows from operations as
cash flows from operating activities before changes in non-cash
operating working capital and asset retirement obligations settled.
Management believes that by excluding the temporary impact of changes
in non-cash operating working capital, fund flows from operations
provides a measure of our ability to generate cash (that is not subject
to short-term movements in non-cash operating working capital)
necessary to pay dividends, repay debt, fund asset retirement
obligations and make capital investments. As we have presented fund
flows from operations in the "Segmented Information" note of our
audited consolidated financial statements for the year ended December
31, 2013, we consider fund flows from operations to be an additional
GAAP financial measure. "Recycle Ratio" means a measure of capital
efficiency calculated by dividing the operating netback of production
by the cost of adding reserves. "Netbacks" are per boe and per mcf
measures used in the analysis of operational activities.
SOURCE Vermilion Energy Inc.