Annual Highlights

⁽¹⁾ Cash dividend payments per share are based on payments made in respect of production months as opposed to month paid.

⁽²⁾ Funds flow is not a recognized measure under GAAP. For these purposes, the Company defines funds flow as funds provided by operations before changes in non-cash operating working capital items but including gain on sale of property and investments, adjustments of investment tax credit receivable, and excluding restricted cash and asset retirement obligations settled.

⁽³⁾ Net earnings includes gains from the sale of preoperties and investments and recognition of investment tax credits before tax effect as follows: (2010 - $10,820,000; 2009 - 51,868,000; and 2008 - $Nil).

⁽⁴⁾ Barrels of oil equivalent (BOE) are calculated using a conversion ratio of 6 MCF to 1 barrel of oil. The conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation.

⁽⁵⁾ Gross reserve figures represent Bonterra's ownership interest before royalties and before consideration of the Company's royalty interest. 

Quarterly Comparisons

⁽¹⁾ Funds flow is not a recognized measure under IFRS. For these purposes, the Company defines funds flow as funds provided by operations including proceeds from sale of investments and investment income received excluding the effects of changes in non-cash operating working capital items, restricted cash and decommissioning expenditures settled.

⁽²⁾ Cash dividends per share are based on payments made in respect of production months within the period ended.

⁽³⁾ BOE is calculated using a conversion ratio of 6MCF to 1 barrel of oil. The conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation. 

⁽¹⁾ Cash payments per share are based on payments made in respect of production months as opposed to the month paid.
⁽²⁾ Funds flow is not a recognized measure under GAAP. For these purposes, the Company defines funds flow as funds provided by operations before changes in non-cash operating working capital items but including gain on sale of property and investments, adjustments of investment tax credit receivable, and excluding restricted cash recoveries and asset retirement expenditures.
⁽³⁾ Barrels of oil equivalent (BOE) are calculated using a conversion ratio of 6 MCF to 1 barrel of oil. The conversion is based on an energy equivalency method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation.                                                          

⁽¹⁾ Cash dividend/disbursement payments per share are based on payments made in respect of production months as opposed to the month paid.
⁽²⁾ Funds flow is not a recognized measure under GAAP. For these purposes, the Company defines funds flow as funds provided by operations before changes in non-cash operating working capital items but including gain on sale of property, adjustments of investment tax credit receivable, and excluding restricted cash and asset retirement obligations settled.
⁽³⁾ Barrels of oil equivalent (BOE) are calculated using a conversion ratio of 6 MCF to 1 barrel of oil. The conversion is based on an energy equivalency method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation.                                                          

⁽¹⁾ Cash payments per share/unit are based on payments made in respect of production months within the quarter.
⁽²⁾ 2009 and 2008 quarterly volumes have been adjusted for prior period adjustments related to various 13th month reviews and joint venture audits that were completed during the thir quarter of 2009.
⁽³⁾ BOE is calculated using a conversion ratio of 6 MCF to 1 barrel of oil. The conversion is based on an energy equivalency method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation.                                                                              

⁽¹⁾ Adjusted distribution base (formally funds flow from operations) is not a recognized measure under GAAP. Management believes that in addition to cash flow from operations, adjusted distribution base is a useful supplemental measure as it demonstrates the Trust’s ability to generate the funds necessary to make trust distributions, repay debt or fund future growth through capital investment. Investors are cautioned, however, that this measure should not be construed as an indication of the Trust’s performance. The Trust’s method of calculating this measure may differ from other issuers and accordingly, it may not be comparable to that used by other issuers. For these purposes, the Trust defines adjusted distribution base as funds provided by operations before changes in non-cash operating working capital items excluding gain on sale of property and asset retirement expenditures.

The Canadian Institute of Chartered Accountants (CICA) published recommendations regarding disclosure of a measure called Standardized Distributable Cash. Please refer to page 9 of this report for the reconciliation between adjusted distribution base and standardized distributable cash.

⁽²⁾ All four quarters of 2007 have been amended to remove the use of hedge accounting as of the beginning of the year. Net earnings for the year 2007 have not changed.