Glossary

Accretive: Growth on a per share basis.

Asset Value: For any property at any time, the present value of all of the estimated pre-tax, net cash flow from the net proved plus probable reserves shown in the most recent engineering report relating to such property, discounted at 10% and using forecast price and cost assumptions.

BOE: Barrel of oil equivalent, which, unless otherwise stated, is determined on the basis that six thousand cubic feet (6 mcf) of natural gas is equivalent to one barrel of oil.

Dilutive: Decreasing value on a per share basis.

Disposition: The exchange, sale or loss of an asset.

Enterprise Value: Market capitalization (equity) plus net debt.

Hedging: A method employed to minimize investment risk by guaranteeing a future price to either the buyer or the seller of a given commodity or product.

Net Debt: The total of all current liabilities and long-term debt le ss current assets.

Netbacks (cash flow): The amount received from the sale of oil and natural gas after deduction of all expenses except non-cash expenses. Expenses deducted include operating costs, royalty payments, current taxes and general and administrative expenses. Normally calculated on a per boe basis.

Netbacks (field): The amount received from the sale of oil and natural gas after deduction of royalty payments and operating costs. Normally calculated on a per boe basis.

NGLs: Natural gas liquids - marketable liquid hydrocarbons derived from natural gas.

Production: The amount of oil and natural gas that is retrieved from underground reserves and prepared for delivery to the market.

Reserve Life Index: An index reflecting the theoretical production life of a property if the remaining reserves were to be produced out at current rates. Normally calculated using the latest reported reserves (proved or established) divided by the latest reported daily production (annualized).

Reserves: Oil and natural gas in the ground that has yet to be produced.

Possible Reserves: Additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable reserves. There should be at least a 10% probability that the actual quantities recovered will equal or exceed the sum of the estimated proved plus probable plus possible reserves.

Probable Reserves: Are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

Proved Reserves:  Are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

NI 51-101: National Instrument 51-101. Standards of disclosure for oil and gas activities sets out requirements and standards for disclosure by reporting issuers engaged in oil and gas activities. The instrument was developed and is enforced by the Canadian Securities Administrators (CSA) in conjunction with the Alberta Securities Commission (ASC). NI 51-101 came into effect for year-end 2003 reporting of reserves.

Working Interest: The amount of interest held in a property that indicates the owners’ share of obligations, such as costs associated with the property, as well as the owners’ share of the benefits, such as the production or revenue, after royalties are deducted.

Working Capital: Current assets less current liabilities, normally excluding bank debt. If this is a negative number, it is referred to as a working capital deficiency.

Abbreviations

AECO	reference pricing point for natural gas located at a natural gas storage facility near the Alberta-Saskatchewan border
API	American Petroleum Institute
°API	the measure of the density of liquid petroleum products derived from a specific gravity
bbl and bbls	barrel and barrels, respectively, each barrel representing 34.972 imperial gallons or 42 U.S. gallons
bbls/d and bopd	barrels per day and barrels of oil per day, respectively
boe	barrels of oil equivalent converting six Mcf of natural gas to one barrel of oil equivalent and one barrel of natural gas liquids to one barrel of oil equivalent. The factor used to convert natural gas and natural gas liquids to oil equivalent is not based on either energy content or prices but on a commonly used industry benchmark. Sulphur volumes are not included.
boe/d	barrels of oil equivalent per day
Mbbls	one thousand barrels
Mboe	one thousand barrels of oil equivalent
MMbbls	one million barrels
MMboe	one million barrels of oil equivalent
MMBtu	one million British Thermal Units
Mcf	one thousand cubic feet
Mcf/d	one thousand cubic feet per day
MMcf	one million cubic feet
MMcf/d	one million cubic feet per day
NGL	natural gas liquids
WTI	West Texas Intermediate