CENTAURUS ENERGY INC. STATEMENT OF RESERVES DATA AND OTHER OIL & GAS INFORMATION
Year Ended December 31, 2021
October 14, 2022
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REPORT ON RESERVES DATA BY INDEPENDENT QUALIFIED RESERVES EVALUATOR OR AUDITOR
The statement of reserves data and other oil and gas information (the "Statement") set forth below is dated March 31, 2022. The effective date of the Statement is December 31, 2021. The preparation date is October 14, 2022.
Disclosure of Reserves Data
The Corporation engaged J@R Consultora to provide an evaluation, as at December 31, 2021, of the Corporation's oil and natural gas reserves attributable to all of Centaurus´ properties, which are located exclusively in Argentina. The J@R CONSULTORA Report also presents the estimated net present value of future net revenue of Centaurus´ properties before and after taxes, at various discount rates.
The reserves data set forth below (the "Reserves Data") is based upon the J@R CONSULTORA Report. The J@R CONSULTORA Report has been prepared in accordance with the standards contained in Resolution No. 324/2006 of the Secretariat of Energy of Argentina. . The report in the form of Form 51-101F2Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor as provided by J@R CONSULTORA is attached as Schedule "A" hereto. The report in the form of Form 51-101F3Report of Management and Directors on Oil and Gas Disclosure as provided by the management of the Corporation is attached hereto as Schedule "B".
The J@R CONSULTORA Report is based on certain factual data supplied by the Corporation and the opinion of J@R CONSULTORA based on reasonable practices in the industry. The extent and character of ownership and all factual data pertaining to the Corporation's petroleum properties and contracts (except for certain information residing in the public domain) were supplied by the Corporation to J@R CONSULTORA and accepted without any further investigation. J@R CONSULTORA accepted this data as presented and neither title searches nor field inspections were conducted.
The evaluation of future revenue is stated after royalties, development costs, and production costs but before consideration of the deduction of future income tax expenses (unless otherwise noted in the tables), indirect costs such as administrative, overhead, and other miscellaneous expenses. The estimated future net revenue contained in the following tables does not necessarily represent the fair market value of the reserves associated with Centaurus´ assets and properties. There is no assurance that the forecast price and cost assumptions will be attained, and variances could be material. Other assumptions and qualifications relating to costs and other matters are summarized in the notes to the following tables. The recovery and reserves estimates for Centaurus´ assets and properties described herein are estimates only and there is no guarantee that the estimated reserves will be recovered. The actual reserves for Centaurus´ assets and properties may be greater or inferior to those calculated herein.
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Reserves Data (Forecast Prices and Costs)
The following tables provide a summary of the Corporation's oil and gas reserves and net present value of future net revenue at December 31, 2021 using forecast prices and costs. Amounts shown are in USD.
Summary of Oil and Gas Reserves
and Net Present Values of Future Net Revenue
at December 31, 2021
Forecast Prices and Costs USD
Reserves | |||||||||||||||||||||||||||||||||||
Light/Medium | Conventional | ||||||||||||||||||||||||||||||||||
Crude Oil | Tight Oil(1) | Natural Gas | Shale Gas(1) | Total Reserves | |||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||
(Mm3) | (Mm3) | (Mm3) | (Mm3) | (MMm3) | (MMm3) | MMm3) | (MMm3) | (Mboe) | (Mboe) | ||||||||||||||||||||||||||
Proved | 82 | 74 | - | - | 50 | 49 | - | - | 810 | 754 | |||||||||||||||||||||||||
Developed Producing | |||||||||||||||||||||||||||||||||||
60 | 60 | - | - | 119 | 119 | - | - | 1,078 | 1,078 | ||||||||||||||||||||||||||
Developed Non-Producing | |||||||||||||||||||||||||||||||||||
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Undeveloped | |||||||||||||||||||||||||||||||||||
Total Proved | 141 | 133 | - | - | 170 | 169 | - | - | 1,889 | 1,832 | |||||||||||||||||||||||||
85 | 77 | - | - | 58 | 57 | - | - | 880 | 818 | ||||||||||||||||||||||||||
Probable | |||||||||||||||||||||||||||||||||||
Total Proved Plus Probable | 227 | 210 | - | - | 228 | 225 | - | - | 2,768 | 2,650 | |||||||||||||||||||||||||
85 | 85 | - | - | 167 | 167 | - | - | 1,517 | 1,517 | ||||||||||||||||||||||||||
Possible(3) | |||||||||||||||||||||||||||||||||||
Total Proved Plus Probable | 312 | 295 | - | - | 395 | 392 | - | - | 4,286 | 4,168 | |||||||||||||||||||||||||
Plus Possible(3) | |||||||||||||||||||||||||||||||||||
Net Present Values of Future Net Revenue USD | |||||||||||||||||||||||||||||||||||
Before Income Taxes | After Income Taxes | Unit Value | |||||||||||||||||||||||||||||||||
Discounted at (%/year) | Discounted at (%/year) | Before tax | |||||||||||||||||||||||||||||||||
Discounted at | |||||||||||||||||||||||||||||||||||
Reserves Category | 10%(2) | ||||||||||||||||||||||||||||||||||
0% | 5% | 10% | 15% | 20% | 0% | 5% | 10% | 15% | 20% | $/BOE | |||||||||||||||||||||||||
MM | MM | MM | MM | MM | MM | MM | MM | MM | MM | ||||||||||||||||||||||||||
Proved | |||||||||||||||||||||||||||||||||||
Developed Producing | 6.1 | 5.1 | 4.4 | 3.9 | 3.5 | 4.0 | 3.3 | 2.9 | 2.5 | 2.3 | 5.8 | ||||||||||||||||||||||||
Developed Non-Producing | |||||||||||||||||||||||||||||||||||
Undeveloped | 5.7 | 4.9 | 4.2 | 3.7 | 3.2 | 3.7 | 3.2 | 2.7 | 2.4 | 2.1 | 3.9 | ||||||||||||||||||||||||
Total Proved | 11.8 | 10.0 | 8.6 | 7.6 | 6.7 | 7.7 | 6.5 | 5.6 | 4.9 | 4.4 | 4.7 | ||||||||||||||||||||||||
Probable | 11.5 | 9.9 | 8.5 | 7.4 | 6.5 | 7.5 | 6.4 | 5.5 | 4.8 | 4.2 | 10.4 | ||||||||||||||||||||||||
Total Proved Plus Probable | 23.3 | 19.9 | 17.1 | 15.0 | 13.2 | 15.1 | 12.9 | 11.1 | 9.8 | 8.6 | 6.5 | ||||||||||||||||||||||||
Possible(3) | 10.1 | 7.8 | 6.1 | 4.8 | 3.9 | 6.6 | 5.1 | 4.0 | 3.1 | 2.5 | 4.0 | ||||||||||||||||||||||||
Total Proved Plus Probable | 33.4 | 27.7 | 23.2 | 19.8 | 17.1 | 21.7 | 18.0 | 15.1 | 12.9 | 11.1 | 5.6 | ||||||||||||||||||||||||
Plus Possible(3) | |||||||||||||||||||||||||||||||||||
Notes:
- There are no unconventional Vaca Muerta Shale reserves because Centaurus has sold its remaining working interest (29%) in the CASE block (the Company previously sold 6% of its interest to PAE), with an effective date of January 1, 2021. The costs incurred to December 31, 2021 are included in Property, plant and equipment in the Corporation's consolidated financial statements.
- Unit values are based on Corporation Net Reserves.
- 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.
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Total Future Net Revenue
(Undiscounted)
at December 31, 2021
Forecast Prices and Costs USD
Future | Future | |||||||
Well | Net | Net | ||||||
Abandonment | Revenue | Revenue | ||||||
and | Before | After | ||||||
Operating | Developmen | Reclamation | Income | Income | Income | |||
Revenue | Royalties | Costs | t Costs | Costs | Taxes | Taxes | Taxes | |
Reserves Category | MM | MM | MM | MM | MM | MM | MM | MM |
Total Proved Reserves | 61.6 | 11.1 | 38.7 | 0 | 0 | 11.8 | 4.1 | 7.7 |
Total Proved Plus Probable | ||||||||
Reserves | 94.7 | 16.6 | 49.2 | 5.6 | 0 | 23.3 | 8.2 | 15.1 |
Total Proved Plus Probable Plus | ||||||||
Possible Reserves(1) | 128.4 | 22.2 | 60.2 | 12.6 | 0 | 33.4 | 11.7 | 21.7 |
Note:
- 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.
Pricing Assumptions
The forecast cost and price assumptions relating to the Argentine reserves assume no increases in wellhead selling prices of 2021 and don't take into account inflation with respect to future operating and capital costs.
J@R CONSULTORA employed the following pricing, exchange rate and inflation rate assumptions as of December 31, 2021 in the J@R CONSULTORA Report in estimating reserves data using forecast prices and costs. J@R CONSULTORA is independent of the Corporation.
Summary of Pricing Assumptions
at December 31, 2021
Forecast Prices and Costs
Argentina | Argentina | |||||
Medanito | Domestic | |||||
Oil Price | Gas Price USD/ | |||||
Year | USD/bbl | MCF | ||||
2022 ................................................ | 52.00 | 2.97 | ||||
2023 ................................................ | 52.00 | 2.97 | ||||
2024 ................................................ | 52.00 | 2.97 | ||||
2025 ................................................ | 52.00 | 2.97 | ||||
2026 ................................................ | 52.00 | 2.97 | ||||
2027 ................................................ | 52.00 | 2.97 | ||||
2028 ................................................ | 52.00 | 2.97 | ||||
2029 ................................................ | 52.00 | 2.97 | ||||
2030 ................................................ | 52.00 | 2.97 | ||||
2031 ................................................ | 52.00 | 2.97 | ||||
2032 ................................................ | 52.00 | 2.97 | ||||
2033 ................................................ | 52.00 | 2.97 | ||||
2034 ................................................ | 52.00 | 2.97 | ||||
2035 ................................................ | 52.00 | 2.97 |
Notes:
- The price forecast used for this evaluation is based on 2021 actual sales prices.
- J@R CONSULTORA has assumed that the Argentine crude oil and condensate price in different Basins will be correlated to Argentine Medanito prices, with adjustments for quality and transportation.
- Gas price represents industrial contract prices received. Weighted average historical prices realized by the Corporation for year ended December 31, 2021 from its oil and gas properties was $53.03/bbl for crude oil and $2.62/Mcf for natural gas.
- Well abandonment and reclamation costs for all existing wells and future wells associated with properties have not been included in this analysis.
- The extent and character of all factual data supplied to J@R CONSULTORA were accepted by J@R CONSULTORA as represented. No field inspection was conducted.
5
Reconciliation of Changes in Reserves
The following tables set out the reconciliation of the Corporation's gross reserves as at December 31, 2021 compared to December 31, 2020 based on forecast prices and costs by principal product type.
FACTORS | -------------- | Light and Medium Crude Oil -------------- | -------------------- Tight Crude Oil | ---------------------- | ||||
Proved Plus | Proved Plus | |||||||
Proved | Probable | Probable | Proved | Probable | Probable | |||
(Mm3) | (Mm3) | (Mm3) | (Mm3) | (Mm3) | (Mm3) | |||
December 31, 2020 | 134 | 530 | 663 | 705 | 2005 | 2710 | ||
Discoveries | - | - | - | - | - | - | ||
Extensions(1) | - | - | - | - | - | - | ||
Infill Drilling(1) | - | - | - | - | - | - | ||
Improved Recovery(1) | - | - | - | - | - | - | ||
Technical Revisions | 20 | 1 | 21 | - | - | - | ||
Acquisitions | - | - | - | - | - | - | ||
Dispositions (2) | - | - | - | (705) | (2005) | (2710) | ||
Economic Factors | (445) | (445) | - | - | - | |||
Production | (12) | - | (12) | - | - | - | ||
December 31, 2021 | 141 | 85 | 227 | - | - | - | ||
FACTORS | ---------------------------- | NGLs ---------------------------- | ------------- Conventional Natural Gas --------------- | |||||
Proved Plus | Proved Plus | |||||||
Proved | Probable | Probable | Proved | Probable | Probable | |||
(Mbbl) | (Mbbl) | (Mbbl) | (MMm3) | (MMm3) | (MMm3) | |||
December 31, 2020 | - | - | - | 21 | 135 | 4 | ||
Discoveries | - | - | - | - | - | - | ||
Extensions(1) | - | - | - | - | - | - | ||
Infill Drilling(1) | - | - | - | - | - | - | ||
Improved Recovery(1) | - | - | - | - | - | - | ||
Technical Revisions | - | - | - | 117 | (10) | 108 | ||
Acquisitions | - | - | - | - | - | - | ||
Dispositions (2) | - | - | - | - | - | - | ||
Economic Factors | - | - | - | 46 | (67) | 130 | ||
Production | - | - | - | (14) | - | (14) | ||
December 31, 2021 | - | - | - | 170 | 58 | 228 | ||
FACTORS | ------------------------------------------------------- | Shale Gas ------------------------------------------------------ | ||||||
Proved (MMm3) | Probable (MMm3) | Proved Plus Probable (MMm3) | ||||||
December 31, 2020 | 6 | 77 | 83 | |||||
Discoveries | - | - | - | |||||
Extensions(1) | - | - | - | |||||
Infill Drilling(1) | - | - | - | |||||
Improved Recovery(1) | - | - | - | |||||
Technical Revisions | - | - | - | |||||
Acquisitions | - | - | - | |||||
Dispositions (2) | (6) | (77) | (83) |
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Centaurus Energy Inc. published this content on 14 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2022 21:42:05 UTC.
