Reserve Reconciliation

Reserves Reconciliation

	Oil and Liquids (mmbbl)			Natural Gas (bcf)			Equivalents (mmboe)
	Proved	Probable	Proved & Probable	Proved	Probable	Proved & Probable	Proved	Probable	Proved & Probable
December 31, 2009	14.69	5.38	20.07	48.24	24.78	73.02	22.73	9.51	32.24
Discoveries and extensions	1.61	1.07	2.68	1.30	1.02	2.32	1.83	1.24	3.07
Revisions	0.24	(0.57)	(0.33)	0.90	(3.96)	(3.06)	0.39	(1.23)	(0.84)
Acquisitions and dispositions	0.67	0.27	0.94	3.09	0.43	3.52	1.19	0.34	1.53
Production	(2.06)	–	(2.06)	(9.27)	–	(9.27)	(3.61)	–	(3.61)
December 31, 2010	15.15	6.15	21.30	44.26	22.27	66.53	22.53	9.86	32.39

Proved reserves at December 31, 2010 decreased one percent from the prior year. Proved 2010 reserve additions were 3.41 million barrels of oil equivalent (after revisions), or 3.02 million barrels of oil equivalent (before revisions). Positive technical proved reserve revisions were 0.39 million barrels of oil equivalent, or two percent of the 2010 proved reserves opening balance. This increase reflects probable reserves being converted to proved reserves through positive results from 2010 capital programs within the core areas.

On a proved and probable basis, Zargon's reserves were essentially unchanged in 2010. Zargon replaced 104 percent (127 percent before revisions) of 2010 production through the addition of 3.76 million barrels of oil equivalent (after revisions), or 4.60 million barrels of oil equivalent (before revisions). Oil reserves accounted for 88 percent (after revisions) of the proved and probable reserve additions. Field capital exploration and development programs provided 3.07 million barrels of oil equivalent of new additions. The corporate acquisition of Oakmont and the net property acquisitions for 2010 added 0.85 and 0.68 million barrels of oil equivalent, respectively. Overall technical reserve revisions were a negative 0.84 million barrels of oil equivalent. During the year, positive technical revisions pertaining to Alberta Plains South oil properties were offset by reserve adjustments related to negative performance and economic factors impacting gas production in Alberta, and at the Haas oil property in North Dakota.

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