In accordance with Canadian
practice, production volumes, resource volumes and revenues are reported on a
gross basis, before deduction of Crown and other royalties, unless otherwise
stated. All reserve figures are calculated based upon company interest reserves
using forecast prices and costs. "Company interest" is not a term defined in
National Instrument 51-101 adopted by the Canadian Securities regulatory
authorities and does not have a standardized meaning under NI 51-101 and
therefore disclosure of our company interest reserves may not be comparable to
disclosure of reserves by other issuers. Where
applicable, natural gas has been converted to barrels of oil equivalent ("BOE")
based on 6 Mcf:1 BOE. The BOE rate is based on an energy equivalent conversion
method primarily applicable at the burner tip and does not represent a value
equivalent at the wellhead. Use of BOE in isolation may be misleading. Readers are also urged to review our Annual Information
Form for full NI 51-101 compliant reserve and resource disclosure.
| AECO |
A reference to
the physical storage and trading hub on the TransCanada Alberta Transmission
System (NOVA) which is the delivery point for the various benchmark Alberta
Index prices |
| AOCI |
accumulated
other comprehensive income |
| API |
American
Petroleum Institute |
| bbl(s)/day |
barrel(s)
per day, with each barrel representing 34.972 Imperial gallons or 42 U.S. gallons |
| Bcf |
billion
cubic feet |
| BOE(s)/day |
barrel
of oil equivalent per day (6 Mcf of gas:1 BOE) |
| CBM |
coalbed
methane, otherwise known as natural gas from coal - NGC |
| COGPE |
Canadian
oil and gas property expense |
| CAPP |
Canadian
Association of Petroleum Producers |
| CTA |
cumulative
translation adjustment |
| EDGAR |
Electronic Data
Gathering, Analysis and Retrieval system |
| F&D Costs |
finding
and development costs |
| FD&A Costs |
finding,
development and acquisition costs |
| FDC |
future
development capital |
| GLJ |
GLJ
Petroleum Consultants Ltd., an external, independent third party engineering
firm |
| GORR |
gross
overriding royalty |
| HH |
"Henry Hub"
A reference to the physical storage and trading hub in Louisiana which is the
delivery point for the NYMEX Natural Gas contract |
| M&A |
mergers
and acquisitions |
| Mbbls |
thousand
barrels |
| MBOE |
thousand
barrels of oil equivalent |
| Mcf/day |
thousand
cubic feet per day |
| MMbbl(s) |
million
barrels |
| MMBOE |
million
barrels of oil equivalent |
| MMBtu |
million
British Thermal Units |
| MMcf/day |
million
cubic feet per day |
| MWh |
megawatt
hour(s) of electricity |
| NGLs |
natural
gas liquids |
| NI 51-101 |
National
Instrument 51-101Oil and Gas Activities adopted by the Canadian Securities
regulatory authorities (pertaining to reserve reporting in Canada) |
| NYSE |
New York Stock Exchange |
| OCI |
other
comprehensive income |
| OOIP |
original
oil in place |
| P+P Reserves |
proved
plus probable reserves |
| PDP Reserves |
proved
developed producing reserves |
| RLI |
reserve
life index |
| SAGD |
steam
assisted gravity drainage |
| SEDAR |
System
for Electronic Document Analysis and Retrieval |
| Sproule |
Sproule
Associates Limited, an external, independent third party engineering firm |
| Total |
Total
E&P Canada Ltd., operator of the Joslyn oil sands lease |
| TSX |
Toronto Stock Exchange |
| WI |
percentage
working interest ownership |
| WTI |
West Texas
Intermediate oil at Cushing, Oklahoma, the benchmark for North American crude
oil pricing purposes |
| Bitumen/Oil Sands |
A highly viscous oil which is too
thick to flow in its native state and which cannot be produced without altering
its viscosity. The density of bitumen is generally less than 10 degrees API. |
| BOE |
Barrels
of oil equivalent converting 6 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 is a
commonly used industry benchmark. BOEs may be
misleading, particularly if used in isolation. A BOE conversion ratio of 6
Mcf:1 BOE is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. |
| F&D Costs |
Finding and
development costs. Calculated as total capital expenditures, exclusive of
acquisitions or divestments, and including changes in future development
capital, divided by the applicable reserve additions (proved and/or proved plus
probable). It is a measure of the effectiveness of a company's capital program. |
| FD&A Costs |
Finding,
development and acquisition costs. Calculated as total capital expenditures and
net acquisitions, including changes in future development capital, divided by
reserve additions (proved and/or proved plus probable). It is a measure of a
company's ability to add reserves in a cost effective manner. |
| Future Development Capital |
Future
Development Capital is defined as those costs which reflect the independent
evaluator's best estimate of what it will cost to bring the proved undeveloped
and probable reserves on production in the future. Changes to this figure
occur annually as a result of development activities, acquisition and
disposition activities, and capital cost estimate revisions. |
| NGLs |
Natural gas liquids -
hydrocarbon components that can be recovered from natural gas as liquids,
including, but not limited to, ethane, propane, butanes, pentanes plus,
condensate and small quantities of non-hydrocarbons. |
| Oil, heavy |
Oil with a
density between 10 to 22.3 degrees API or where a royalty regime exists
specific to heavy oil, it is defined based upon that royalty regime. |
| Oil, light & medium |
Oil that has a
density of 22.3 degrees API or higher. |
| Operating Income |
Calculated as revenues
from oil and gas sales less cash hedging costs, transportation costs, royalties
and operating costs. |
| Production, gross |
Our working interest (operated and non-operated)
share of production before the deduction of any
royalty interest production. Unless otherwise stated, all production
volumes utilized in any discussions or calculations are gross production
volumes. |
| Recycle Ratio |
Calculated as
operating income per BOE divided by FD&A costs per BOE. It is an indication
of the value creation of each dollar invested. |
| Reserve Life Index, Proved |
Calculated as proved
reserves at year-end divided by the following year's estimate proved
production volumes as determined by the independent reserve engineering report
for 2003 and forward, and management's estimate for all prior years. |
| Reserve Life Index, Proved plus Probable |
Calculated as proved
plus probable reserves at year-end (established reserves for years 2002 and prior) divided
by the following year's estimated proved plus probable production volumes as
determined by the independent reserve engineering report for 2003 and forward
and management's estimate for all prior years. |
| Reserves, Company Interest |
Our working interest (operated and non-operated) share of reserves before
the deduction of any royalty interest reserves, but
inclusive of any royalty interest reserves owned by Enerplus. Unless otherwise
stated, reserve volumes utilized in any discussions or calculations are company
interest reserves. "Company interest" is
not a term defined in National Instrument 51-101 adopted by the Canadian
Securities regulatory authorities and does not have a standardized meaning
under NI 51-101 and therefore disclosure of our company interest reserves may
not be comparable to disclosure of reserves by other issuers. |
| Reserves, Gross |
Our working
interest (operated and non-operated) share
of reserves before the deduction of any royalty
interest reserves but exclusive of royalty interest reserves owned
by Enerplus. |
| Reserves, Net |
Our
working interest (operated and
non-operated) share of reserves after the deduction
of royalty interest reserves but inclusive of any royalty interest reserves
owned by Enerplus. |
| Reserves, Probable |
Additional
reserves, calculated in accordance with NI 51-101, 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. |
| Reserves, Proved |
Reserves that can be
estimated with a high degree of certainty to be recoverable in accordance with
NI 51-101. It is likely that the actual remaining quantities recovered will
exceed the estimated proved reserves. |
| Reserves,
Proved Developed Non-Producing |
Reserves that have either not been on
production or have previously been on production, but are shut-in, and the date of resumption of
production is unknown. |
| Reserves,
Proved Developed Producing |
Reserves that are expected to be
recovered from completion intervals open at the time of the estimate.
These reserves may be currently producing or, if shut-in, they must have
previously been on production, and the date of resumption of production must be
known with reasonable certainty. |
| Reserves, Proved Undeveloped |
Reserves
expected to be recovered from known accumulations where a significant expenditure (for
example, when compared to the cost of drilling a well) is required to render
them capable of production. |
| SAGD |
Steam
assisted gravity drainage, an in situ production process used to recover
bitumen from oil sands. |
| Total Return |
Calculated using the change in the trust unit price from
the start of the period (including any capital appreciation or depreciation)
and the total cash distributions paid during the period divided by the starting
unit price. |
