Our ultimate goal is to deliver maximum shareholder value. We will use our oil sands knowledge and business experience to realize the potential of our significant oil sands land positions.
Tremendous upside potential
After completion of the 2012 second-half drilling and seismic programs related to construction at the West Ells Commercial SAGD project and completion and continued progress at the Thickwood and Legend Commercial SAGD projects, the reserves and resource evaluation completed by independent evaluators, effective Dec. 31, 2012, resulted in approximately 70 billion barrels of best estimate PIIP (Petroleum Initially In Place); approximately 5.1 billion barrels best estimate contingent resource with an aggregate pre-tax PV10% value of $10.3 billion (an increase of $3.4 billion); 80 million barrels of 1P (proven) reserves with an aggregate pre-tax PV10% value of $363 million (an increase of $49 million); 446 million barrels of 2P (proven plus probable) reserves with an aggregate pre-tax PV10% value of $990 million (an increase of $72 million); and 605 million barrels of 3P (proven plus probable plus possible) reserves with an aggregate pre-tax PV10% of $1.66 billion.
Long term production growth
Management currently estimates production capacity potential of 1,000,000 bbl/d from its cretaceous sandstone areas and carbonate formations. The Company is currently producing conventional heavy oil from its Muskwa property and Management estimates that production will increase with further development of the Muskwa property.