Reserves and Resources - Operations - Birchcliff Energy

Reserves and Resources

Birchcliff Plant

2018 Independent Reserves Evaluation

We retained two independent qualified reserves evaluators, Deloitte LLP (“Deloitte”) and McDaniel & Associates Consultants Ltd. (“McDaniel”), to evaluate and prepare reports on 100% of our light crude oil and medium crude oil (combined), conventional natural gas, shale gas and NGLs reserves.

The reserves data set forth below at December 31, 2018 is based upon the evaluation by Deloitte with an effective date of December 31, 2018 as contained in the report of Deloitte dated February 13, 2019 (the “2018 Deloitte Reserves Report”) and the evaluation by McDaniel with an effective date of December 31, 2018 as contained in the report of McDaniel dated February 13, 2019 (the “2018 McDaniel Reserves Report”), which are contained in the consolidated report of Deloitte with an effective date of December 31, 2018 (the “2018 Consolidated Reserves Report”). Deloitte prepared the 2018 Consolidated Reserves Report by consolidating the properties evaluated by Deloitte in the 2018 Deloitte Reserves Report with the properties evaluated by McDaniel in the 2018 McDaniel Reserves Report, in each case using Deloitte’s forecast price and cost assumptions effective December 31, 2018 (the “2018 Deloitte Price Forecast”). Hedging gains and losses have been incorporated into the 2018 Consolidated Reserves Report.

At December 31, 2018, Birchcliff's reserves evaluators estimated that Birchcliff had 1,002 MMboe of proved plus probable reserves and 689.7 MMboe of proved reserves.