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Reserves are a measure of the quantity of oil or gas that is estimated to be recoverable from the assets
an oil and gas producer owns. In Canada, we report our reserves on a proved plus probable basis at year
end in accordance with National Instrument 51-101 based on evaluations from third party reserve
engineers. As of December 31, 2008, our proved plus probable reserves totaled 432,385 MBOE. One
measure of the longevity of our reserves is the reserve life index ("RLI"), which is calculated by dividing
year-end reserves by expected annual production. We estimated our RLI to be 12.1 years. For a detailed
discussion of our reserves, finding and development costs, and future development capital, please see the
2008 year end press release.
A key measure of our operational sustainability is our ability to not only replace our reserves on an
annual basis, but to also grow our reserves as well. For the past five years, we have replaced on
average, over 176% of our reserves per year.
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