Reserves Highlights -2016

  • Proved Developed Producing reserves increased to 40.9 mmboe from 38.1 mmboe at year-end 2016, representing growth of 7%;
  • Proved reserves increased to 64.4 mmboe from 59.9 mmboe at year-end 2016, representing growth of 8%;
  • Proved plus Probable reserves increased to 99.6 mmboe from 90.5 mmboe at year-end 2016, representing growth of 10%;
  • Proved plus probable reserve life index increased from 13.7 years to 13.9 years at year-end 2016; and
  • Generated a Proved plus Probable reserve replacement ratio on production of approximately 135%, excluding the effects of acquisitions.

Reserves Summary

Light and
Medium
Crude Oil
(mbbl)

Conventional
Natural Gas
(mmcf)

NGLs

(mbbl)

Total Oil
Equivalent

(mboe)

Proved

Developed Producing

32,852

35,354

2,115

40,859

Developed Non-Producing

1,132

2,192

112

1,609

Undeveloped

16,663

25,096

1,060

21,905

Total Proved

50,646

62,641

3,286

64,373

Probable

27,073

38,111

1,777

35,202

Total Proved plus Probable

77,719

100,753

5,063

99,574

Net Present Value of Future Net Revenue

Before Future Income Tax Expenses and Discounted at

0%

5%

10%

15%

20%

($mm)

($mm)

($mm)

($mm)

($mm)

Proved

Developed Producing

1,219.0

969.0

803.0

688.0

604.0

Developed Non-Producing

36.4

28.7

23.2

19.2

16.1

Undeveloped

502.6

343.2

241.0

172.5

125.0

Total Proved

1,758.0

1,341.0

1,067.0

879.4

745.0

Probable

1,190.0

725.3

492.0

358.4

274.5

Total Proved plus Probable

2,948.0

2,066.2

1,559.0

1,238.0

1,019.4

Future Development Costs

Proved
Reserves
($mm)

Proved Plus Probable
Reserves
($mm)

2017

109.7

150.8

2018

127.2

173.4

2019

132.0

183.7

2020

39.5

109.7

Total Undiscounted

408.6

617.7

Capital Expenditures and Finding, Development, and Acquisition Costs

Reserves Additions

F&D and FD&A

Excluding Change in
Future Development Costs

Capital
Expenditures
($mm)

Proved
Developed
Producing
(mmboe)

Total
Proved
(mmboe)

Proved
Plus
Probable
(mmboe)

Proved
Developed
Producing
($/boe)

Total
Proved
($/boe)

Proved Plus
Probable
($/boe)

Exploration & Development(1)

76.2

5.7

6.2

8.9

13.29

12.39

8.59

Acquisitions (net)(2)

101.1

3.8

5.2

7.0

26.58

19.57

14.36

Total

177.3

9.5

11.3

15.9

18.59

15.67

11.14

Capital Expenditures

Reserves Additions

F&D and FD&A

Including Change in
Future Development Costs

Total Proved
($mm)

Proved Plus
Probable
($mm)

Total
Proved
(mmboe)

Proved Plus
Probable
(mmboe)

Total
Proved
($/boe)

Proved Plus
Probable
($/boe)

Exploration & Development(1)

110.7

136.6

6.2

8.9

18.00

15.40

Acquisitions (net)(2)

124.2

128.4

5.2

7.0

24.04

18.23

Total

234.9

265.0

11.3

15.9

20.75

16.65

  1. Excludes Capitalized G&A of $4.1mm; excludes capital of $6.1mm spent on acquired properties.
  2. Includes $6.1mm of capital spent on acquired properties from the date of acquisition to period end.

Net Asset Value per Share as at December 31, 2016

($millions except share and per share amounts)

Proved Plus Probable Reserve Value NPV10 BT

1,559

Undeveloped Land and Seismic (1)

118

Net Debt

(271)

Total Net Assets (basic)

1,405

Basic Common Share Outstanding (mm)

183.1

Estimated NAV per Basic Common Share

$7.68

  1. Includes management estimates of $91.2mm of the value of approximately 350,000 net acres of undeveloped land and $26.3mm to seismic.

RESERVES ADVISORIES

All references to reserves presented above are to gross Company reserves, meaning TORC’s working interest reserves before deductions of royalties and before consideration of TORC’s royalty interests.  The reserves were evaluated by Sproule in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) effective December 31, 2016.  TORC’s annual information form for the year ended December 31, 2016 (the “AIF”) will contain TORC’s reserves data and other oil and natural gas information as mandated by NI 51-101.  TORC expects to file the AIF on SEDAR by March 31, 2017.

The tables presented are a summary of TORC’s petroleum and natural gas reserves, as evaluated by Sproule, effective December 31, 2016, using Sproule’s forecast prices and costs.  It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  It is important to note that the recovery and reserves estimates provided herein are estimates only.  Actual reserves may be greater or less than the estimates provided herein.  Reserves information may not add due to rounding.