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We believe that long-term success comes from sustainable production, reserves, cash flow and distributions. The effectiveness of our efforts to achieve sustainability can be measured by the consistency of our reserves per unit, production per unit, reserve life index and recycle ratio.

Both reserves and production per debt-adjusted trust unit were essentially maintained year-over-year. Our relatively low base decline, an attractive inventory of internally generated development projects and attractive acquisitions allows us to achieve these results. We ended the year with a record level of proved plus probable reserves of 449 MMBOE after replacing 247% of production. Positive changes to existing assets of 25 MMBOE and a reserve increase due to economic factors (mainly due to increased commodity price forecasts) of 13 MMBOE more than replaced production of 29 MMBOE. In addition, we added 34 MMBOE of net reserves from our acquisitions activity, for total aggregate reserve additions of 72 MMBOE. Our reserve life index decreased slightly year-over-year to 13.5 years based on a strong 2006 production outlook.

Our 2005 recycle ratio was 1.7x which is in line with our three year average of 1.8x on a proved plus probable basis. This measure accounts for the quality of reserves, operating costs and attractiveness of acquisitions and internal development capital. Recycle ratio is determined by dividing the operating income per BOE by the finding, development and acquisition cost ('FD&A') per BOE including future development capital and is indicative of the value created for each dollar invested. Our 2005 recycle ratio has decreased compared to the previous two years, mainly due to higher cost acquisitions for high quality properties combined with inflationary pressures on FD&A costs. Additional detail on recycle ratio and FD&A costs can be found on pages 46-47.

Looking forward into 2006, we expect strong results in these areas as a result of:

• Increasing production year-over-year from our existing assets.
• Attractive netbacks as our U.S. operations will be producing for a full year.
• Significant reserve adds from our existing conventional assets combined with the expected recognition of the Joslyn mining project.
• Competitive FD&A costs driven by the reserve adds noted above.
• An attractive recycle ratio because of improving netbacks and attractive FD&A costs.

These expected results are dependent upon a continued strong commodity price environment, a successful capital program and recognition of the mining reserves in 2006.