2012 HighlightsOperations

 

For the eleventh year in a row, we delivered growth in reserves, cash flow and production. We are proud of our track record and believe it demonstrates the strength of our business strategy. In total, we spent $1.5 billion in 2012, including the drilling of 369 net wells with a 99 percent success rate. We grew production by 34 percent through development drilling and completions, exceeding both our annual average and exit production targets. For the eleventh year in a row, we achieved positive technical and development reserve additions. We also replaced 609 percent of production through development and technical reserve additions and increased our year-end proved plus probable reserves by 43 percent to 608.8 million barrels of oil equivalent (boe) and our proved reserves by 42 percent to 400.4 million boe, including acquisitions.


2012 HighlightsOperations

In 2012, we continued to pursue multiple applications of new technologies across our asset base and we continue to strive to maximize recoveries and improve efficiencies. In the Saskatchewan Bakken, for example, we re-entered existing wells that were originally completed with 8-stage and 16-stage cemented liners and increased them to 25-stage and 30-stage cemented liner completions. Because we have such large Original Oil In Place, as defined in the Strategy section, even small improvements in the technologies we use are leveraged to create greater value for our shareholders.

Another way we’re actively working towards increasing recovery factors is through the expansion and development of our waterflood programs in the Bakken, Shaunavon and Viking resource plays. We see ongoing positive results from these programs and plan on growing them in the years to come. We also expect to initiate waterflood programs in Beaverhill Lake and the Uinta Basin.


2012 HighlightsResults

Production (boe/d) *

* Barrels of oil equivalent ("boes") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


2012 HighlightsResults

Reserves (mmboe) *

* There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGL reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil, natural gas and NGL reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For these reasons, estimates of the economically recoverable crude oil, NGL and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. Our actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.