Oil and Gas Reserves

Netherland, Sewell & Associates Inc. (“NSAI”), independent reserve evaluators, have completed an evaluation of 96% of Compton’s petroleum and natural gas reserves in accordance with National Instrument 51-101.  The remaining four percent of the Company’s reserves have been evaluated internally.

 

As required by National Instrument 51-101 “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”), Compton filed Form 51-101 F1 as part of its Annual Information Form (“AIF”).  The AIF is considered comprehensive.  Certain information has been summarized below regarding the Company’s operations.  All such information is consistent with the Form NI 51-101 F1 filing.  Compton’s extended disclosure contained in the AIF is available on both the SEDAR website and Compton’s website. 

 

 

Summary of Estimated Reserve Volumes - Forecast Prices and Costs (1)
		Crude Oil			Natural Gas			NGLs			Sulphur			Total
As at December 31, 2007		Gross (Mbbl)	Net (Mbbl)		Gross (Bcf)	Net (Bcf)		Gross (Mbbl)	Net (Mbbl)		Gross (Mlt)	Net (Mlt)		Gross (Mboe)	Net (Mboe)
Proved     Developed producing     Developed non-producing     Undeveloped		9,015 222 1,695	8,501 197 1,502		502 55 188	411 45 154		9,182 1,079 2,100	6,498 749 1,432		1,968 66 149	1,674 55 124		103,884 10,464 35,216	85,205 8,559 28,710
Total proved		10,933	10,199		745	610		12,362	8,679		2,183	1,853		149,564	122,474
Probable		6,495	5,842		625	510		9,820	6,879		839	711		121,255	98,391
Total proved plus probable		17,427	16,042		1,369	1,120		22,182	15,558		3,022	2,563		270,819	220,865
2006 total proved
plus probable		29,233	26,213		1,189	984		19,068	13,761		2,271	1,975		248,755	205,895

(1) Numbers may not add due to rounding.

 

In 2007, we added 22 MMboe, after production and asset divestitures, to our proved plus probable reserves primarily through the drill bit.  Total proved plus probable reserves increased nine percent from the prior year to 271 MMboe.  Year end 2007 reserves do not include any reserves associated with our light oil asset at Worsley, which was sold at the end of the third quarter of 2007.

 

Our total proved reserve base is comprised of 84% natural gas and 16% liquids.  Proved producing reserves comprise 69% of total proved reserves, while total proved reserves account for 55% of the proved plus probable reserves.  We have a 13 year proved and a 23 year proved plus probable reserve life index.

 

Net Present Value of Reserves - Forecast Prices and Costs (1)
	Future net revenue before income taxes(1) discounted at a rate of
($millions)		0%		8%		10%
Proved     Producing     Non-producing     Undeveloped	$	2,872 383 1,020	$	1,453 183 416	$	1,304 160 345
Total proved	$	4,275		2,051		1,809
Probable		3,800		1,356		1,109
Total proved plus probable	$	8,075	$	3,406	$	2,919
2006 total plus probable	$	7,633		3,312		2,845

(1) Pricing assumptions are the average of four major Canadian oil and gas evaluation firms. Numbers may not add due to rounding.

 

Future net revenues are calculated based upon estimated revenue less royalties, operating costs, future development costs, and well abandonment costs.  Estimated income taxes have not been deducted.  The net present value should not be considered the current market value of our reserves or the costs that would be incurred to obtain equivalent reserves.

 

Reserve Reconciliation (before royalties) - Forecast Prices and Costs (1)
Crude Oil, NGLs & Sulphur Natural Gas Total
	Proved (Mbbl)	Probable (Mbbl)		Proved (Bcf)	Probable Bcf)		Proved (MMcf)	Probable (Mboe)	Proved + Probable (Mboe)
December 31, 2006 Extensions, improved recovery & discoveries Technical revisions Acquisitions Dispositions Production	32,745 1,460 2,254 1,386 -9,753 -2,616	17,827 1,770 -3,377 948 -14 0		687 60 14 49 -13 -53	502 113 -39 50 -1 0		147,218 11,511 4,627 9,583 -11,940 -11,434	101,537 20,549 -9,848 9,269 -252 0	248,755 32,059 -5,221 18,851 -12,192 -11,434
December 31, 2006	25,477	17,154		745	625		149,564	121,255	270,819

(1) Numbers may not add due to rounding.