2017 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. Deloitte evaluated all of our properties other than the Gordondale Assets, representing approximately 75% of the assigned total proved plus probable reserves, and McDaniel evaluated the reserves attributable to the Gordondale Assets, representing approximately 25% of the assigned total proved plus probable reserves.
The reserves data set forth below at December 31, 2017 is based upon the evaluation by Deloitte with an effective date of December 31, 2017 as contained in the report of Deloitte dated February 9, 2018 (the “2017 Deloitte Reserves Report”) and the evaluation by McDaniel with an effective date of December 31, 2017 as contained in the report of McDaniel dated February 14, 2018 (the “2017 McDaniel Reserves Report”), which are contained in the consolidated report of Deloitte with an effective date of December 31, 2017 (the “2017 Consolidated Reserves Report”). Deloitte prepared the 2017 Consolidated Reserves Report by consolidating the properties evaluated by Deloitte in the 2017 Deloitte Reserves Report with the properties evaluated by McDaniel in the 2017 McDaniel Reserves Report, in each case using Deloitte’s forecast price and cost assumptions effective December 31, 2017 (the “2017 Deloitte Price Forecast”). Hedging gains and losses have been incorporated into the 2017 Consolidated Reserves Report.
At December 31, 2017, Birchcliff's reserves evaluators estimated that Birchcliff had 972.5 MMboe of proved plus probable reserves and 664.5 MMboe of proved reserves. Birchcliff’s proved plus probable reserves are comprised of 81% shale gas, 2% conventional natural gas, 7% light crude oil and medium crude oil (combined) and 10% NGL.