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Canada / 2016 / Reserves Certification

500 million barrels of recoverable bitumen and heavy oil

Complex In Situ thermal and EOR flood recovery schemes

Future value predicated on contingent resource volumes

Required COGEH Resources Other Than Reserves expertise

Challenge

  • Multiple contingencies prevented the company from classifying large portions of their asset base as reserves under The Canadian Oil and Gas Evaluation Handbook (COGEH) and National Instrument 51-101 (NI 51-101) guidance
  • Contingent resource volumes accounted for a significant portion of the company’s future value proposition to stakeholders
  • Recoverable volumes were associated with technically complex In Situ thermal and chemical flooding Enhanced Oil Recovery (EOR) techniques.

Solution

  • Sproule identified applicable contingencies under COGEH Resources Other Than Reserves (ROTR) guidelines and provided guidance to the company as to how and when the contingencies could be addressed and lifted
  • Sproule geoscience and engineering experts assessed and quantified the full extent of the company’s resource base using advanced evaluation techniques, including static geomodelling and dynamic reservoir simulation

Value

  • Sproule’s independent resource evaluation helped substantiate the company’s extensive undeveloped asset base and articulate the significant upside potential to investors
  • Sproule’s expertise with NI 51-101 and COGEH regulations provided the insight required to deliver a well-defined plan to stakeholders as to how and when contingent resource volumes were likely to be reclassified as reserves