This Instrument was originally written in a format inconsistent with that commonly used in B.C. legislation. As of February 8, 2011, it was reformatted to the current style, without any change in wording other than changes enacted by amending legislation.
Section 1.1 (c) to (e) and (i) BEFORE repealed by BC Reg 380/2010, effective December 30, 2010.
(c) "CICA" means The Canadian Institute of Chartered Accountants;
(d) "CICA Accounting Guideline 16" means Accounting Guideline AcG-16 "Oil and gas accounting — full cost" included in the CICA Handbook, as amended from time to time;
(e) "CICA Handbook" means the Handbook of the CICA, as amended from time to time;
(i) "FAS 19" means United States Financial Accounting Standards Board Statement of Financial Accounting Standards No. 19 "Financial Accounting and Reporting by Oil and Gas Producing Companies", as amended from time to time;
Section 1.1 (n.1) was added by BC Reg 380/2010, effective December 30, 2010.
Section 1.1 (s) (B) and (C) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(B) the acquisition of property rights or properties for the purpose of further exploring for or removing oil or gas from reservoirs on those properties;
(C) the construction, drilling and production activities necessary to retrieve oil and gas from their natural reservoirs, and the acquisition, construction, installation and maintenance of field gathering and storage systems including lifting the oil and gas to the surface and gathering, treating, field processing and field storage; and
Section 1.1 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
Definitions
1.1 In this Instrument:
(a) "annual information form" has the same meaning as "AIF" in NI 51-102;
(a.1) "analogous information" means information about an area outside the area in which the reporting issuer has an interest or intends to acquire an interest, which is referenced by the reporting issuer for the purpose of drawing a comparison or conclusion to an area in which the reporting issuer has an interest or intends to acquire an interest, which comparison or conclusion is reasonable, and includes:
(i) historical information concerning reserves;
(ii) estimates of the volume or value of reserves;
(iii) historical information concerning resources;
(iv) estimates of the volume or value of resources;
(v) historical production amounts;
(vii) information concerning a field, well, basin or reservoir;
(a.2) "anticipated results" means information that may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the reporting issuer's resources or a portion of its resources and includes:
(b) "BOEs" means barrels of oil equivalent;
(c) to (e) Repealed. [B.C. Reg. 380/2010, Sch. B, s. 2.]
(f) "COGE Handbook" means the "Canadian Oil and Gas Evaluation Handbook" prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society), as amended from time to time;
(g) Repealed. [B.C. Reg. 412/2007, App. A, s. 2 (d).]
(h) "effective date", in respect of information, means the date as at which, or for the period ended on which, the information is provided;
(i) Repealed. [B.C. Reg. 380/2010, Sch. B, s. 2.]
(j) "forecast prices and costs" means future prices and costs that are:
(i) generally accepted as being a reasonable outlook of the future;
(ii) if, and only to the extent that, there are fixed or presently determinable future prices or costs to which the reporting issuer is legally bound by a contractual or other obligation to supply a physical product, including those for an extension period of a contract that is likely to be extended, those prices or costs rather than the prices and costs referred to in subparagraph (i);
(k) "foreign geographic area" means a geographic area outside North America within one country or including all or portions of a number of countries;
(l) "Form 51-101F1" means Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information;
(m) "Form 51-101F2" means Form 51-101F2 Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor;
(n) "Form 51-101F3" means Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure;
(n.1) "Form 51-101F4" means Form 51-101F4 Notice of Filing of 51-101F1 Information;
(o) "independent", in respect of the relationship between a reporting issuer and a person or company, means a relationship between the reporting issuer and that person or company in which there is no circumstance that could, in the opinion of a reasonable person aware of all relevant facts, interfere with that person's or company's exercise of judgment regarding the preparation of information which is used by the reporting issuer;
(p) "McfGEs" means thousand cubic feet of gas equivalent;
(q) "NI 14-101" means National Instrument 14-101 Definitions;
(r) Repealed. [B.C. Reg. 369/2005, s. 5 (b).]
(r.1) "NI 51-102" means National Instrument 51-102 Continuous Disclosure Obligations;
(A) the search for crude oil or natural gas in their natural states and original locations;
(B) the acquisition of property rights or properties for the purpose of exploring for or removing oil or gas from their natural locations;
(C) the construction, drilling and production activities necessary to retrieve oil and gas from their natural locations, and the acquisition, construction, installation and maintenance of field gathering and storage systems including lifting the oil and gas to the surface and gathering, treating, field processing and field storage; and
(D) the extraction of hydrocarbons from oil sands, shale, coal or other non-conventional sources and activities similar to those referred to in clauses (A), (B) and (C) undertaken with a view to such extraction; but
(A) transporting, refining or marketing oil or gas;
(B) activities relating to the extraction of natural resources other than oil and gas and their by-products; or
(C) the extraction of geothermal steam or of hydrocarbons as a by-product of the extraction of geothermal steam or associated geothermal resources;
(t) "preparation date", in respect of written disclosure, means the most recent date to which information relating to the period ending on the effective date was considered in the preparation of the disclosure;
(u) "production group" means one of the following together, in each case, with associated by-products:
(i) light and medium crude oil (combined);
(iii) associated gas and non-associated gas (combined); and
(iv) bitumen, synthetic oil or other products from non-conventional oil and gas activities.
(v) "product type" means one of the following:
(i) in respect of conventional oil and gas activities:
(A) light and medium crude oil (combined);
(C) natural gas excluding natural gas liquids; or
(ii) in respect of non-conventional oil and gas activities:
(w) "professional organization" means a self-regulatory organization of engineers, geologists, other geoscientists or other professionals whose professional practice includes reserves evaluations or reserves audits, that:
(i) admits members primarily on the basis of their educational qualifications;
(ii) requires its members to comply with the professional standards of competence and ethics prescribed by the organization that are relevant to the estimation, evaluation, review or audit of reserves data;
(iii) has disciplinary powers, including the power to suspend or expel a member; and
(A) given authority or recognition by statute in a Canadian jurisdiction; or
(B) accepted for this purpose by the securities regulatory authority or the regulator;
(x) "qualified reserves auditor" means an individual who:
(i) in respect of particular reserves data, resources or related information, possesses professional qualifications and experience appropriate for the estimation, evaluation, review and audit of the reserves data, resources and related information; and
(ii) is a member in good standing of a professional organization;
(y) "qualified reserves evaluator" means an individual who:
(i) in respect of particular reserves data, resources or related information, possesses professional qualifications and experience appropriate for the estimation, evaluation and review of the reserves data, resources and related information; and
(ii) is a member in good standing of a professional organization;
(z) "qualified reserves evaluator or auditor" means a qualified reserves auditor or a qualified reserves evaluator;
(z.1) "reserves" means proved, probable or possible reserves;
(aa) "reserves data" means an estimate of proved reserves and probable reserves and related future net revenue, estimated using forecast prices and costs; and
(bb) "supporting filing" means a document filed by a reporting issuer with a securities regulatory authority.
[am. B.C. Regs. 369/2005, s. 5; 412/2007, App. A, s. 2 (a) to (k); 380/2010, Sch. B, ss. 2 and 3.]
Section 1.1 definitions of "abandonment and reclamation costs", "alternate reference point", "bitumen", "by-product", "coal bed methane", "contingent resources data", "conventional natural gas", "first point of sale", "Form 51-101F5", "future net revenue", "gas hydrate", "heavy crude oil", "hydrocarbon", "light crude oil", "medium crude oil", "natural gas", "natural gas liquids", "oil and gas metric", "prospective resources data", "risked", "shale gas", "synthetic crude oil", "synthetic gas" and "tight oil" were added by BC Reg 122/2015, effective July 1, 2015.
Section 2.1, item 3 (e) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(e) is executed by two senior officers and two directors of the reporting issuer.
Section 2.1, item 2, paragraph (b) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(b) executed by one or more qualified reserves evaluators or auditors each of whom is independent of the reporting issuer, who must in the aggregate have:
(i) evaluated or audited at least 75 percent of the future net revenue (calculated using a discount rate of 10 percent) attributable to proved plus probable reserves, as reported in the statement filed or to be filed under item 1; and
(ii) reviewed the balance of such future net revenue; and
Section 2.1, item 3(e) (ii) (B) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(B) if the issuer has only three directors, two of whom are the persons referred to in subparagraph (i), all of the directors of the reporting issuer.
Section 2.2 BEFORE repealed by BC Reg 380/2010, effective December 30, 2010.
News release to announce filing
2.2 A reporting issuer must, concurrently with filing a statement and reports under section 2.1, disseminate a news release announcing that filing and indicating where a copy of the filed information can be found for viewing by electronic means.
[am. B.C. Reg. 412/2007, App. A, s.7.]
Section 2.3 BEFORE renumbered as 2.3 (1) by BC Reg 380/2010, effective December 30, 2010.
Inclusion in annual information form
2.3 The requirements of section 2.1 may be satisfied by including the information specified in section 2.1 in an annual information form filed within the time specified in section 2.1.
Section 2.3 (2) was added by BC Reg 380/2010, effective December 30, 2010.
Section 2.4 (1) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(1) If a qualified reserves evaluator or auditor cannot report on reserves data without reservation, the reporting issuer must ensure that the report of the qualified reserves evaluator or auditor prepared for the purpose of item 2 of section 2.1 sets out the cause of the reservation and the effect, if known to the qualified reserves evaluator or auditor, on the reserves data.
Section 3.2 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
Reporting issuer to appoint independent qualified reserves evaluator or auditor
3.2 A reporting issuer must appoint one or more qualified reserves evaluators or auditors, each of whom is independent of the reporting issuer, to report to the board of directors of the reporting issuer on its reserves data.
[am. B.C. Reg. 412/2007, App. A, s.7.]
Section 3.4 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
Certain responsibilities of board of directors
3.4 The board of directors of a reporting issuer must
(a) review, with reasonable frequency, the reporting issuer's procedures relating to the disclosure of information with respect to oil and gas activities, including its procedures for complying with the disclosure requirements and restrictions of this Instrument;
(b) review each appointment under section 3.2 and, in the case of any proposed change in such appointment, determine the reasons for the proposal and whether there have been disputes between the appointed qualified reserves evaluator or auditor and management of the reporting issuer;
(c) review, with reasonable frequency, the reporting issuer's procedures for providing information to the qualified reserves evaluators or auditors who report on reserves data for the purposes of this Instrument;
(d) before approving the filing of reserves data and the report of the qualified reserves evaluators or auditors thereon referred to in section 2.1, meet with management and each qualified reserves evaluator or auditor appointed under section 3.2, to
(i) determine whether any restrictions affect the ability of the qualified reserves evaluator or auditor to report on reserves data without reservation; and
(ii) review the reserves data and the report of the qualified reserves evaluator or auditor thereon; and
(i) the content and filing, under section 2.1, of the statement referred to in item 1 of section 2.1;
(ii) the filing, under section 2.1, of the report referred to in item 2 of section 2.1; and
(iii) the content and filing, under section 2.1, of the report referred to in item 3 of section 2.1.
[am. B.C. Reg. 412/2007, App. A, s.7.]
Section 4.1 BEFORE repealed by BC Reg 380/2010, effective December 30, 2010.
Accounting methods
4.1 A reporting issuer engaged in oil and gas activities that discloses financial statements prepared in accordance with Canadian GAAP must use
(a) the full cost method of accounting, applying CICA Accounting Guideline 16; or
(b) the successful efforts method of accounting, applying FAS 19.
[am. B.C. Reg. 412/2007, App. A, ss. 3 (a) and 7.]
Section 5.2 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
Disclosure of reserves and other information
5.2 If a reporting issuer makes disclosure of reserves or other information of a type that is specified in Form 51-101F1, the reporting issuer must ensure that the disclosure satisfies the following requirements:
(a) estimates of reserves or future net revenue must
(i) disclose the effective date of the estimate;
(ii) have been prepared or audited by a qualified reserves evaluator or auditor;
(iii) have been prepared or audited in accordance with the COGE Handbook;
(iv) have been made assuming that development of each property in respect of which the estimate is made will occur, without regard to the likely availability to the reporting issuer of funding required for that development; and
(v) in the case of estimates of possible reserves or related future net revenue disclosed in writing, also include a cautionary statement that is proximate to the estimate to the following effect:
"Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.";
(b) for the purpose of determining whether reserves should be attributed to a particular undrilled property, reasonably estimated future abandonment and reclamation costs related to the property must have been taken into account;
(c) in disclosing aggregate future net revenue the disclosure must comply with the requirements for the determination of future net revenue specified in Form 51-101F1; and
(d) the disclosure must be consistent with the corresponding information, if any, contained in the statement most recently filed by the reporting issuer with the securities regulatory authority under item 1 of section 2.1, except to the extent that the statement has been supplemented or superseded by a report of a material change filed by the reporting issuer with the securities regulatory authority.
[en. B.C. Reg. 412/2007, App. A, s. 4 (a).]
Section 5.3 BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
Reserves and resources classification
5.3 Disclosure of reserves or resources must apply the reserves and resources terminology and categories set out in the COGE Handbook and must relate to the most specific category of reserves or resources in which the reserves or resources can be classified.
[am. B.C. Reg. 412/2007, App. A, ss. 4 (b) and 7.]
Section 5.3 (1) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(1) Reserves or resources other than reserves must be disclosed using the applicable terminology and categories set out in the COGE Handbook and must be classified in the most specific category of reserves or resources other than reserves in which the reserves or resources other than reserves can be classified.
Section 5.4 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
Oil and gas reserves and sales
5.4 Disclosure of reserves or of sales of oil, gas or associated by-products must be made only in respect of marketable quantities, reflecting the quantities and prices for the product in the condition (upgraded or not upgraded, processed or unprocessed) in which it is to be, or was, sold.
[am. B.C. Reg. 412/2007, App. A, ss. 4 (c) and 7.]
Section 5.7 BEFORE repealed by BC Reg 122/2015, effective July 1, 2015.
Consent of qualified reserves evaluator or auditor
5.7 (1) A reporting issuer must not disclose a report referred to in item 2 of section 2.1 that has been delivered to the board of directors of the reporting issuer by a qualified reserves evaluator or auditor pursuant to an appointment under section 3.2, or disclose information derived from the report or the identity of the qualified reserves evaluator or auditor, without the written consent of that qualified reserves evaluator or auditor.
(2) Subsection (1) does not apply to
(a) the filing of that report by a reporting issuer under section 2.1;
(b) the use of or reference to that report in another document filed by the reporting issuer under section 2.1; or
(c) the identification of the report or of the qualified reserves evaluator or auditor in a news release referred to in section 2.2.
[am. B.C. Reg. 412/2007, App. A, s. 7.]
Section 5.9 BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
Disclosure of resources
5.9 (1) If a reporting issuer discloses anticipated results from resources which are not currently classified as reserves, the reporting issuer must also disclose in writing, in the same document or in a supporting filing:
(a) the reporting issuer's interest in the resources;
(b) the location of the resources;
(c) the product types reasonably expected;
(d) risks and the level of uncertainty associated with recovery of the resources; and
(e) in the case of unproved property, if its value is disclosed,
(i) the basis of the calculation of its value; and
(ii) whether the value was prepared by an independent party.
(2) If disclosure referred to in subsection (1) includes an estimate of a quantity of resources in which the reporting issuer has an interest or intends to acquire an interest, or an estimated value attributable to an estimated quantity, the estimate must
(a) have been prepared or audited by a qualified reserves evaluator or auditor;
(b) relate to the most specific category of resources in which the resources can be classified, as set out in the COGE Handbook, and must identify what portion of the estimate is attributable to each category; and
(c) be accompanied by the following information:
(i) a definition of the resources category used for the estimate;
(ii) the effective date of the estimate;
(iii) the significant positive and negative factors relevant to the estimate;
(iv) in respect of contingent resources, the specific contingencies which prevent the classification of the resources as reserves; and
(v) a cautionary statement that is proximate to the estimate to the effect that:
(A) in the case of discovered resources or a subcategory of discovered resources other than reserves:
"There is no certainty that it will be commercially viable to produce any portion of the resources."; or
(B) in the case of undiscovered resources or a subcategory of undiscovered resources:
"There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources."
(3) Paragraphs 5.9 (1) (d) and (e) and subparagraphs 5.9 (2) (c) (iii) and (iv) do not apply if:
(a) the reporting issuer includes in the written disclosure a reference to the title and date of a previously filed document that complies with those requirements; and
(b) the resources in the written disclosure, taking into account the specific properties and interests reflected in the resources estimate or other anticipated result, are materially the same resources addressed in the previously filed document.
[en. B.C. Reg. 412/2007, App. A, s. 4 (e).]
Section 5.9 (2) (d) (iii.1) was added by BC Reg 122/2015, effective July 1, 2015.
Section 5.9 (2) (d) (v) (A) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(A) in the case of discovered resources or a subcategory of discovered resources other than reserves:
"There is no certainty that it will be commercially viable to produce any portion of the resources."; or
Section 5.9 (3) (part) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(3) Paragraphs (1) (d) and (e) and subparagraphs (2) (d) (iii) and (iv) do not apply if:
Section 5.9 (4) was added by BC Reg 122/2015, effective July 1, 2015.
Section 5.10 (1) (part) and (2) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(1) Sections 5.2, 5.3 and 5.9 do not apply to the disclosure of analogous information provided that the reporting issuer discloses the following:
(2) For greater certainty, if a reporting issuer discloses information that is an anticipated result, an estimate of a quantity of reserves or resources, or an estimate of value attributable to an estimated quantity of reserves or resources for an area in which it has an interest or intends to acquire an interest, that is based on an extrapolation from analogous information, sections 5.2, 5.3 and 5.9 apply to the disclosure of the information.
Section 5.14 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
BOEs and McfGEs
5.14 If written disclosure includes information expressed in BOEs, McfGEs or other units of equivalency between oil and gas
(a) the information must be presented
(i) in the case of BOEs, using BOEs derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf:1 bbl);
(ii) in the case of McfGEs, using McfGEs derived by converting oil to gas in the ratio of one barrel of oil to six thousand cubic feet of gas (1 bbl:6 Mcf); and
(iii) with the conversion ratio stated;
(b) if the information is also presented using BOEs or McfGEs derived using a conversion ratio other than a ratio specified in paragraph (a), the disclosure must state that other conversion ratio and explain why it has been chosen;
(c) if the information is presented using a unit of equivalency other than BOEs or McfGEs, the disclosure must identify the unit, state the conversion ratio used and explain why it has been chosen; and
(d) the disclosure must include a cautionary statement to the effect that:
"BOEs [or McfGEs or other applicable units of equivalency] may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl [or An McfGE conversion ratio of 1 bbl:6 Mcf] is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead".
[am. B.C. Reg. 412/2007, App. A, s. 7.]
Section 5.15 BEFORE repealed by BC Reg 122/2015, effective July 1, 2015.
Finding and development costs
5.15 If written disclosure is made of finding and development costs
(a) those costs must be calculated using the following two methods, in each case after eliminating the effects of acquisitions and dispositions:
| a + b + c |
| x |
Method 2:
| a + b + d |
| y |
where a = exploration costs incurred in the most recent financial year
b = development costs incurred in the most recent financial year
c = the change during the most recent financial year in estimated future development costs relating to proved reserves
d = the change during the most recent financial year in estimated future development costs relating to proved reserves and probable reserves
x = additions to proved reserves during the most recent financial year, expressed in BOEs or other unit of equivalency
y = additions to proved reserves and probable reserves during the most recent financial year, expressed in BOEs or other unit of equivalency
(b) the disclosure must include
(i) the results of both methods of calculation under paragraph (a) and a description of those methods;
(ii) if the disclosure also includes a result derived using any other method of calculation, a description of that method and the reason for its use;
(iii) for each result, comparative information for the most recent financial year, the second most recent financial year and the averages for the three most recent financial years;
(iv) a cautionary statement to the effect that:
"The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year"; and
(v) the cautionary statement required under paragraph 5.14 (d).
[am. B.C. Reg. 412/2007, App. A, s. 7.]
Section 5.18 (2) (c) (part) BEFORE amended by BC Reg 139/2023, effective June 9, 2023.
(c) include a reference to the location on the SEDAR website of the estimate prepared
Section 6.1 (1) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(1) This Part applies in respect of a material change that, had it occurred on or before the effective date of information included in the statement most recently filed by a reporting issuer under item 1 of section 2.1, would have resulted in a significant change in the information contained in the statement.
Section 8.2 (2) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(2) For the purposes of subsection (1), the reference to "continuous disclosure documents" in clause 13.3 (2) (d) (ii) (A) of NI 51-102 includes documents filed in accordance with this Instrument.
Section 9.2 BEFORE repealed by BC Reg 380/2010, effective December 30, 2010.
Transition
9.2 Despite section 9.1, this Instrument does not apply to a reporting issuer until the earlier of:
(a) the date by which the reporting issuer is required under securities legislation to file audited annual financial statements for its financial year that includes or ends on December 31, 2003; and
(b) the first date on which the reporting issuer files with the securities regulatory authority the statement referred to in item 1 of section 2.1.
Form 51-101F1, General Instructions (7) and (8) were added by BC Reg 380/2010, effective December 30, 2010.
Form 51-101F1, item 1.1 Instructions (1) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(1) For the purpose of Part 2 of NI 51-101, and consistent with the definition of reserves data and General Instruction (2) of this Form 51-101F1, the effective date to be disclosed under section 2 of Item 1.1 is the last day of the reporting issuer's most recent financial year. It is the date of the balance sheet for the reporting issuer's most recent financial year (for example, "as at December 31, 20xx") and the ending date of the reporting issuer's most recent annual statement of income (for example, "for the year ended December 31, 20xx").
Form 51-101F1, item 2.2 BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
Item 2.2 Supplemental Disclosure of Reserves Data (Constant Prices and Costs)
The reporting issuer may supplement its disclosure of reserves data under Item 2.1 by also disclosing the components of Item 2.1 in respect of its proved reserves or its proved and probable reserves, using constant prices and costs as at the last day of the reporting issuer's most recent financial year.
Form 51-101F1, item 2.2 instruction was added by BC Reg 380/2010, effective December 30, 2010.
Form 51-101F1, item 2.3 (a) (ii) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(ii) if a significant portion of reserves referred to in clause (i) is attributable to a consolidated subsidiary in which there is a significant minority interest, disclose that fact and the approximate portion of such reserves attributable to the minority interest;
Form 51-101F1, item 2.4, 1. BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
1. Consolidated Financial Disclosure — If the reporting issuer files consolidated financial statements, and if a significant portion of the reporting issuer's economic interest in future net revenue is attributable to a consolidated subsidiary in which there is a significant minority interest, disclose that fact and the approximate portion of the economic interest in future net revenue attributable to the minority interest.
Form 51-101F1, item 2.4, Instruction (3) BEFORE repealed by BC Reg 380/2010, effective December 30, 2010.
(3) Constant prices and costs are prices and costs used in an estimate that are:
(a) the reporting issuer's prices and costs as at the effective date of the estimation, held constant throughout the estimated lives of the properties to which the estimate applies;
(b) if, and only to the extent that, there are fixed or presently determinable future prices or costs to which the reporting issuer is legally bound by a contractual or other obligation to supply a physical product, including those for an extension period of a contract that is likely to be extended, those prices or costs rather than the prices and costs referred to in paragraph (a).
For the purpose of paragraph (a), the reporting issuer's prices will be the posted price for oil and the spot price for gas, after historical adjustments for transportation, gravity and other factors.
Form 51-101F1, item 3.1 BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
Item 3.1 Constant Prices Used in Supplemental Estimates
If supplemental disclosure under Item 2.2 is made, then disclose, for each product type, the benchmark reference prices for the countries or regions in which the reporting issuer operates, as at the last day of the reporting issuer's most recent financial year, reflected in the reserves data disclosed in response to Item 2.2.
Form 51-101F1, item 3.2, instruction (2) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(2) The term "constant prices and costs" and the defined term "forecast prices and costs" include any fixed or presently determinable future prices or costs to which the reporting issuer is legally bound by a contractual or other obligation to supply a physical product, including those for an extension period of a contract that is likely to be extended. In effect, such contractually committed prices override benchmark reference prices for the purpose of estimating reserves data. To ensure that disclosure under this Part is not misleading, the disclosure should reflect such contractually committed prices.
Form 51-101F1, item 4.1, instruction (5) was added by BC Reg 380/2010, effective December 30, 2010.
Form 51-101F1, item 5.2 BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
Item 5.2 Significant Factors or Uncertainties
1. Identify and discuss important economic factors or significant uncertainties that affect particular components of the reserves data.
2. Section 1 does not apply if the information is disclosed in the reporting issuer's financial statements for the financial year ended on the effective date.
INSTRUCTION
Examples of information that could warrant disclosure under this Item 5.2 include unusually high expected development costs or operating costs, the need to build a major pipeline or other major facility before production of reserves can begin, or contractual obligations to produce and sell a significant portion of production at prices substantially below those which could be realized but for those contractual obligations.
Form 51-101F1, item 6.2 instruction was added by BC Reg 380/2010, effective December 30, 2010.
Form 51-101F1, item 6.2.1 was added by BC Reg 380/2010, effective December 30, 2010.
Form 51-101F1, item 6.3, 2. BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
2. Section 1 does not apply to agreements disclosed by the reporting issuer
(a) as financial instruments, in accordance with Section 3861 of the CICA Handbook; or
(b) as contractual obligations or commitments, in accordance with Section 3280 of the CICA Handbook.
Form 51-101F1, item 6.7, 1. (b) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(b) for each category of wells for which information is disclosed under paragraph (a), the number completed as oil wells, gas wells and service wells and the number that were dry holes.
Form 51-101F1, item 6.9, 1. (a) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
(a) the reporting issuer's share of average daily production volume, before deduction of royalties; and
Form 51-101F1, General Instruction (2) and (5) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(2) Unless otherwise specified in this Form 51-101F1, information under item 1 of section 2.1 of NI 51-101 must be provided as at the last day of the reporting issuer's most recent financial year or for its financial year then ended.
(5) This Form 51-101F1 sets out minimum requirements. A reporting issuer may provide additional information not required in this Form 51-101F1 provided that it is not misleading and not inconsistent with the requirements of NI 51-101, and provided that material information required to be disclosed is not omitted.
Form 51-101F1, item 1.1, instruction (4) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(4) Because of the interrelationship between certain of the reporting issuer's reserves data and other information referred to in this Form 51-101F1 and certain of the information included in its financial statements, the reporting issuer should ensure that its financial auditor and its qualified reserves evaluators or auditors are kept apprised of relevant events and transactions, and should facilitate communication between them.
Form 51-101F1, item 2.1, 3 (c) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(c) Disclose, by production group and on a unit value basis for each production group (e.g., $/Mcf or $/bbl using net reserves), the net present value of future net revenue (before deducting future income tax expenses) estimated using forecast prices and costs and calculated using a discount rate of 10 percent.
Form 51-101F1, item 2.1, Instructions added by BC Reg 122/2015, effective July 1, 2015.
Form 51-101F1, items 2.3 and 2.4 BEFORE repealed by BC Reg 122/2015, effective July 1, 2015.
Item 2.3 Reserves Disclosure Varies with Accounting
In determining reserves to be disclosed:
(a) Consolidated Financial Disclosure — if the reporting issuer files consolidated financial statements:
(i) include 100 percent of reserves attributable to the parent company and 100 percent of the reserves attributable to its consolidated subsidiaries (whether or not wholly-owned); and
(ii) if a significant portion of reserves referred to in clause (i) is attributable to a consolidated subsidiary in which there is a significant non-controlling interest, disclose that fact and the approximate portion of such reserves attributable to the non-controllling interest;
(b) Proportionate Consolidation — if the reporting issuer files financial statements in which investments are proportionately consolidated, the reporting issuer's disclosed reserves must include the reporting issuer's proportionate share of investees' oil and gas reserves; and
(c) Equity Accounting — if the reporting issuer files financial statements in which investments are accounted for by the equity method, do not include investees' oil and gas reserves in disclosed reserves of the reporting issuer, but disclose the reporting issuer's share of investees' oil and gas reserves separately.
Item 2.4 Future Net Revenue Disclosure Varies with Accounting
1. Consolidated Financial Disclosure — If the reporting issuer files consolidated financial statements, and if a significant portion of the reporting issuer's economic interest in future net revenue is attributable to a consolidated subsidiary in which there is a significant non-controlling interest, disclose that fact and the approximate portion of the economic interest in future net revenue attributable to the non-controllling interest.
2. Equity Accounting — If the reporting issuer files financial statements in which investments are accounted for by the equity method, do not include investees' future net revenue in disclosed future net revenue of the reporting issuer, but disclose the reporting issuer's share of investees' future net revenue separately, by country and in the aggregate.
INSTRUCTIONS
(1) Do not include, in reserves, oil or gas that is subject to purchase under a long-term supply, purchase or similar agreement. However, if the reporting issuer is a party to such an agreement with a government or governmental authority, and participates in the operation of the properties in which the oil or gas is situated or otherwise serves as "producer" of the reserves (in contrast to being an independent purchaser, broker, dealer or importer), disclose separately the reporting issuer's interest in the reserves that are subject to such agreements at the effective date and the net quantity of oil or gas received by the reporting issuer under the agreement during the year ended on the effective date.
(2) Future net revenue includes the portion attributable to the reporting issuer's interest under an agreement referred to in Instruction (1).
(3) Repealed. [B.C. Reg. 380/2010, Sch. B, s. 18.]
Form 51-101F1, item 3.2 Instruction (3) BEFORE repealed by BC Reg 122/2015, effective July 1, 2015.
(3) Under subsection 5.7 (1) of NI 51-101, the reporting issuer must obtain the written consent of the qualified reserves evaluator or auditor to disclose his or her identity in response to section 3 of this Item.
Form 51-101F1, item 4.1, 2 (b) and (c) BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
(b) for each of the following:
(i) light and medium crude oil (combined);
(ii) heavy oil;
(iii) associated gas and non-associated gas (combined);
(iv) synthetic oil;
(v) bitumen;
(vi) coal bed methane;
(vii) hydrates;
(viii) shale oil; and
(ix) shale gas;
(c) separately identifying and explaining:
(i) extensions and improved recovery;
(ii) technical revisions;
(iii) discoveries;
(iv) acquisitions;
(v) dispositions;
(vi) economic factors; and
(vii) production.
Form 51-101F1, item 5.1, 1 and 2 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
1. For proved undeveloped reserves:
(a) disclose for each product type the volumes of proved undeveloped reserves that were first attributed in each of the most recent three financial years and, in the aggregate, before that time; or
(b) discuss generally the basis on which the reporting issuer attributes proved undeveloped reserves, its plans (including timing) for developing the proved undeveloped reserves and, if applicable, its reasons for not planning to develop particular proved undeveloped reserves during the following two years.
2. For probable undeveloped reserves:
(a) disclose for each product type the volumes of probable undeveloped reserves that were first attributed in each of the most recent three financial years and, in the aggregate, before that time; and
(b) discuss generally the basis on which the reporting issuer attributes probable undeveloped reserves, its plans (including timing) for developing the probable undeveloped reserves and, if applicable, its reasons for not planning to develop particular probable undeveloped reserves during the following two years.
Form 51-101F1, item 5.1, Instructions were added by BC Reg 122/2015, effective July 1, 2015.
Form 51-101F1, item 5.2 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
Item 5.2 Significant Factors or Uncertainties Affecting Reserves Data
1. Identify and discuss significant economic factors or significant uncertainties that affect particular components of the reserves data.
2. Section 1 does not apply if the information is disclosed in the reporting issuer's financial statements for the financial year ended on the effective date.
INSTRUCTION
Examples of information that could warrant disclosure under this Item 5.2 include unusually high expected development costs or operating costs, or contractual obligations to produce and sell a significant portion of production at prices substantially below those which could be realized but for those contractual obligations.
Form 51-101F1, item 6.2.1 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
Item 6.2.1 Significant Factors or Uncertainties Relevant to Properties With No Attributed Reserves
1. Identify and discuss significant economic factors or significant uncertainties that affect the anticipated development or production activities on properties with no attributed reserves.
2. Section 1 does not apply if the information is disclosed in the reporting issuer's financial statements for the financial year ended on the effective date.
EXAMPLES
Examples of information that could warrant disclosure under this Item include unusually high expected development costs or operating costs, or the need to build a major pipeline or other major facility before production can begin.
Form 51-101F1, item 6.4 BEFORE repealed by BC Reg 122/2015, effective July 1, 2015.
Item 6.4 Additional Information Concerning Abandonment and Reclamation Costs
In respect of abandonment and reclamation costs for surface leases, wells, facilities and pipelines, disclose:
(a) how the reporting issuer estimates such costs;
(b) the number of net wells for which the reporting issuer expects to incur such costs;
(c) the total amount of such costs, net of estimated salvage value, expected to be incurred, calculated without discount and using a discount rate of 10 percent;
(d) the portion, if any, of the amounts disclosed under paragraph (c) of this Item 6.4 that was not deducted as abandonment and reclamation costs in estimating the future net revenue disclosed under Part 2; and
(e) the portion, if any, of the amounts disclosed under paragraph (c) of this Item 6.4 that the reporting issuer expects to pay in the next three financial years, in total.
INSTRUCTION
Item 6.4 supplements the information disclosed in response to clause 3 (b) (v) of Item 2.1. The response to paragraph (d) of Item 6.4 should enable a reader of this statement and of the reporting issuer's financial statements for the financial year ending on the effective date to understand both the reporting issuer's estimated total abandonment and reclamation costs, and what portions of that total are, and are not, reflected in the disclosed reserves data.
Form 51-101F1, item 6.6 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
1. Disclose each of the following, by country, for the most recent financial year (irrespective of whether such costs were capitalized or charged to expense when incurred):
(a) property acquisition costs, separately for proved properties and unproved properties;
(b) exploration costs; and
(c) development costs.
2. For the purpose of this Item 6.6, if the reporting issuer files financial statements in which investments are accounted for by the equity method, disclose by country the reporting issuer's share of investees' (i) property acquisition costs, (ii) exploration costs and (iii) development costs incurred in the most recent financial year.
Form 51-101F1, item 6.9, 1 BEFORE amended by BC Reg 122/2015, effective July 1, 2015.
1. To the extent not previously disclosed in financial statements filed by the reporting issuer, disclose, for each quarter of its most recent financial year, by country for each product type:
Form 51-101F1, Part 7 was added by BC Reg 122/2015, effective July 1, 2015.
Form 51-101F2, items 5 and 7 BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
5. In our opinion, the reserves data respectively [audited] [evaluated] by us have, in all material respects, been determined and are in accordance with the COGE Handbook. We express no opinion on the reserves data that we reviewed but did not audit or evaluate.
7. Because the reserves data are based on judgements regarding future events, actual results will vary and the variations may be material. However, any variations should be consistent with the fact that reserves are categorized according to the probability of their recovery.
Form 51-101F2 BEFORE re-enacted by BC Reg 122/2015, effective July 1, 2015.
[en. B.C. Reg. 412/2007, s. (c); am. B.C. Reg. 380/2010, Sch. B, ss. 28 and 29.]
REPORT ON RESERVES DATA BY INDEPENDENT QUALIFIED RESERVES EVALUATOR OR AUDITOR
This is the form referred to in item 2 of section 2.1 of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
1. Terms to which a meaning is ascribed in NI 51-101 have the same meaning in this form.
2. The report on reserves data referred to in item 2 of section 2.1 of NI 51-101, to be executed by one or more qualified reserves evaluators or auditors independent of the reporting issuer, must in all material respects be as follows:
Report on Reserves Data
To the board of directors of [name of reporting issuer] (the "Company"):
1. We have [audited] [evaluated] [and reviewed] the Company's reserves data as at [last day of the reporting issuer's most recently completed financial year]. The reserves data are estimates of proved reserves and probable reserves and related future net revenue as at [last day of the reporting issuer's most recently completed financial year], estimated using forecast prices and costs.
2. The reserves data are the responsibility of the Company's management. Our responsibility is to express an opinion on the reserves data based on our [audit] [evaluation] [and review].
We carried out our [audit] [evaluation] [and review] in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") prepared jointly by the Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society).
3. Those standards require that we plan and perform an [audit] [evaluation] [and review] to obtain reasonable assurance as to whether the reserves data are free of material misstatement. An [audit] [evaluation] [and review] also includes assessing whether the reserves data are in accordance with principles and definitions presented in the COGE Handbook.
4. The following table sets forth the estimated future net revenue (before deduction of income taxes) attributed to proved plus probable reserves, estimated using forecast prices and costs and calculated using a discount rate of 10 percent, included in the reserves data of the Company [audited] [evaluated] [and reviewed] by us for the year ended xxx xx, 20xx, and identifies the respective portions thereof that we have [audited] [evaluated] [and reviewed] and reported on to the Company's [management/board of directors]:
| Independent Qualified Reserves Evaluator or Auditor | Description and Preparation Date of [Audit/ Evaluation/ Review] Report | Location of Reserves (Country or Foreign Geographic Area) | Net Present Value of Future Net Revenue (before income taxes, 10% discount rate) | |||
| Audited | Evaluated | Reviewed | Total | |||
| Evaluator A | xxx xx, 20xx | xxxx | $xxx | $xxx | $xxx | $xxx |
| Evaluator B | xxx xx, 20xx | xxxx | xxx | xxx | xxx | xxx |
| Totals | $xxx | $xxx | $xxx | $xxx1 | ||
5. In our opinion, the reserves data respectively [audited] [evaluated] by us have, in all material respects, been determined and are in accordance with the COGE Handbook, consistently applied. We express no opinion on the reserves data that we reviewed but did not audit or evaluate.
6. We have no responsibility to update our reports referred to in paragraph 4 for events and circumstances occurring after their respective preparation dates.
7. Because the reserves data are based on judgements regarding future events, actual results will vary and the variations may be material.
Executed as to our report referred to above:
| Evaluator A, City, Province or State / Country, Execution Date | ....................................... [signed] | |
| Evaluator B, City, Province or State / Country, Execution Date | ....................................... [signed] |
Form 51-101F3 (part) BEFORE amended by BC Reg 380/2010, effective December 30, 2010.
Because the reserves data are based on judgements regarding future events, actual results will vary and the variations may be material. However, any variations should be consistent with the fact that reserves are categorized according to the probability of their recovery.
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[signature, name and title of chief executive officer]
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[signature, name and title of a senior officer other
than the chief executive officer]
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[signature, name of a director]
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[signature, name of a director]
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[Date]
Form 51-101F3 BEFORE re-enacted by BC Reg 122/2015, effective July 1, 2015.
[en. B.C. Reg. 412/2007, s. (d); am. B.C. Reg. 380/2010, Sch. B, s. 30.]
Report of Management and Directors on Oil and Gas Disclosure
This is the form referred to in item 3 of section 2.1 of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
1. Terms to which a meaning is ascribed in NI 51-101 have the same meaning in this form.
2. The report referred to in item 3 of section 2.1 of NI 51-101 shall in all material respects be as follows:
Report of Management and Directors on Reserves Data and Other Information
Management of [name of reporting issuer] (the "Company") are responsible for the preparation and disclosure of information with respect to the Company's oil and gas activities in accordance with securities regulatory requirements. This information includes reserves data which are estimates of proved reserves and probable reserves and related future net revenue as at [last day of the reporting issuer's most recently completed financial year], estimated using forecast prices and costs.
[An] independent [qualified reserves evaluator[s] or qualified reserves auditor[s]] [has/have] [audited] [evaluated] [and reviewed] the Company's reserves data. The report of the independent [qualified reserves evaluator[s] or qualified reserves auditor[s]] [is presented below/will be filed with securities regulatory authorities concurrently with this report].
The [Reserves Committee of the] board of directors of the Company has
(a) reviewed the Company's procedures for providing information to the independent [qualified reserves evaluator[s] or qualified reserves auditor[s]];
(b) met with the independent [qualified reserves evaluator[s] or qualified reserves auditor[s]] to determine whether any restrictions affected the ability of the independent [qualified reserves evaluator[s] or qualified reserves auditor[s]] to report without reservation [and, in the event of a proposal to change the independent [qualified reserves evaluator[s] or qualified reserves auditor[s]], to inquire whether there had been disputes between the previous independent [qualified reserves evaluator[s] or qualified reserves auditor[s] and management]; and
(c) reviewed the reserves data with management and the independent [qualified reserves evaluator[s] or qualified reserves auditor[s]].
The [Reserves Committee of the] board of directors has reviewed the Company's procedures for assembling and reporting other information associated with oil and gas activities and has reviewed that information with management. The board of directors has [, on the recommendation of the Reserves Committee,] approved
(a) the content and filing with securities regulatory authorities of Form 51-101F1 containing reserves data and other oil and gas information;
(b) the filing of Form 51-101F2 which is the report of the independent [qualified reserves evaluator[s] or qualified reserves auditor[s]] on the reserves data; and
(c) the content and filing of this report.
Because the reserves data are based on judgements regarding future events, actual results will vary and the variations may be material.
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[signature, name and title of chief executive officer]
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[signature, name and title of an officer other
than the chief executive officer]
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[signature, name of a director]
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[signature, name of a director]
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[Date]
Form 51-101F4 BEFORE amended by BC Reg 139/2023, effective June 9, 2023.
[en. B.C. Reg. 380/2010, Sch. B, s. 31.]
NOTICE OF FILING OF 51-101F1 INFORMATION
This is the form referred to in section 2.3 of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
On [date of SEDAR Filing], [name of reporting issuer] filed its reports under section 2.1 of NI 51-101, which can be found [describe where a copy of the filed information can be found for viewing by electronic means (for example, in the company's annual information form under the company's profile on SEDAR at www.sedar.com)].