Reserves

Bonterra's year-end 2017 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, 2017.

Summary of Oil and Gas Reserves as of December 31, 2017


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 25,760 66,598 7,152 3,147 41,199 -
- Developed Non-Producing 617 1,468 244 69 971 $1,136
- Undeveloped 22,369 52,022 13,893 3,068 36,423 $605,140
Total proved 48,746 120,088 21,288 6,284 78,592 $606,275
- Probable 13,148 31,894 6,604 1,684 21,248 $9,651
Total P+P(1)(2)(3) 61,894 151,982 27,893 7,968 99,840 $615,926

(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, 2017 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, 2017

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



Developed producing 1,379,164 935,526 706,099 569,452
Developed non-producing 20,761 18,112 14,854 12,272
Undeveloped 930,643 514,685 306,474 190,432
Total Proved 2,330,568 1,468,324 1,027,427 772,156
Probable 946,292 492,725 317,563 231,218
Total Proved plus Probable 3,276,860 1,961,049 1,344,990 1,003,374

(1) Evaluated by Sproule as at December 31, 2017. 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, 2017. 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