Reserves

Bonterra's year-end 2018 reserves were evaluated by independent reserves evaluator Sproule Associates Limited (“Sproule”) in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), with an effective date of December 31, 2018.

Summary of Oil and Gas Reserves as of December 31, 2018


Light &
Medium Oil
(MBbl)
Solution
Gas
(MMcf)
Natural
Gas
(MMcf)
Natural
Gas Liquids
(MBbl)
Oil
Equivalent(4)
(MBoe)
Future
Development
Capital
($000s)
Proved





- Developed Producing 23,864 70,337 5,935 3,275 39,851 4
- Developed Non-Producing 684 1,516 191 57 1,025 996
- Undeveloped 23,338 64,444 11,550 3,755 39,758 615,035
Total Proved 47,885 136,297 17,676 7,086 80,634 616,035
- Probable 12,182 34,573 4,833 1,842 20,591 10,027
Total P+P(1)(2)(3) 60,067 170,870 22,510 8,928 101,225 626,061

(1) Reserves have been presented on gross basis which are the Company’s total working interest share before the deduction of any royalties and without including any royalty interests of the Company
(2) Totals may not add due to rounding
(3) Based on Sproule’s December 31, 2018 escalated price deck
(4) Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil

Summary of Net Present Values of Future Net Revenue as of December 31, 2018

($ M)
Net present value before income taxes discounted at (% per year)
Reserve Category 0% 5% 10% 15%
Proved



Developed producing 1,289,010 922,928 715,586 586,073
Developed non-producing 27,205 18,002 13,070 10,095
Undeveloped 1,024,361 601,316 379,722 251,837
Total Proved 2,340,576 1,542,246 1,108,378 848,005
Probable 858,345 455,488 293,005 212,010
Total Proved plus Probable 3,198,921 1,997,734 1,401,383 1,060,014

(1) Evaluated by Sproule as at December 31, 2018. Net present value of future net revenue does not represent fair value of the reserves
(2) Net present values equals net present value before income taxes based on Sproule’s forecast prices and costs as of December 31, 2018. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material
(3) Includes abandonment and reclamation costs as defined in NI 51-101