EX-99 5 ex-4form40f_2004.txt EXHIBIT 4 EXHIBIT 4 --------- SUPPLEMENTARY OIL & GAS INFORMATION 2004 ANNUAL REPORT Supplementary Oil & Gas Information (unaudited) This supplementary oil and natural gas information is provided in accordance with the United States FAS 69, "Disclosures about Oil and Gas Producing Activities", and where applicable is reconciled to the US GAAP financial information. Net proved oil and natural gas reserves The Company retains qualified independent reserves evaluators to evaluate the Company's proved oil and natural gas reserves. o For the year ended December 31, 2004, the reports by Sproule Associates Limited ("Sproule") and Ryder Scott Company covered 100% of the Company's reserves; o For the year ended December 31, 2003, the reports by Sproule covered 100% of the Company's reserves; and o For the year ended December 31, 2002, the reports by Sproule covered 89% of the Company's reserves. Proved oil and natural gas reserves are the estimated quantities of oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are reserves that can be expected to be recovered from existing wells with existing equipment and operating methods. Estimates of oil and natural gas reserves are subject to uncertainty and will change as additional information regarding producing fields and technology becomes available and as future economic and operating conditions change. The following table summarizes the Company's proved and proved developed oil and natural gas reserves, net of royalties, as at December 31, 2004, 2003 and 2002:
Offshore Oil and natural gas liquids (mmbbl) North America North Sea West Africa Total ----------------------------------- ------------- --------- ----------- ----- Net proved reserves Reserves, December 31, 2001 583 78 60 721 Extensions and discoveries 26 1 14 41 Purchases of reserves in place 44 114 - 158 Sales of reserves in place (1) (18) - (19) Production (55) (13) (2) (70) Revisions of previous estimates (26) 40 3 17 ----- ----- ----- ----- Reserves, December 31, 2002 571 202 75 848 Extensions and discoveries 55 - 13 68 Improved recovery 9 - - 9 Purchases of reserves in place 7 27 - 34 Sales of reserves in place - - - - Production (56) (21) (4) (81) Revisions of previous estimates 2 14 1 17 ----- ----- ----- ----- Reserves, December 31, 2003 588 222 85 895 Extensions and discoveries 41 35 - 76 Improved recovery 1 10 - 11 Purchases of reserves in place 36 38 - 74 Sales of reserves in place - - - - Production (66) (24) (4) (94) Revisions of previous estimates 48 22 34 104 ----- ----- ----- ----- Reserves, December 31, 2004 648 303 115 1,066 ===== ===== ===== ===== Net proved developed reserves: December 31, 2001 344 51 20 415 December 31, 2002 340 107 27 474 December 31, 2003 348 138 23 509 December 31, 2004 367 218 20 605 ----- ----- ----- -----
91 SUPPLEMENTARY OIL & GAS INFORMATION 2004 ANNUAL REPORT
Offshore NATURAL GAS (bcf) North America North Sea West Africa Total ----------------- ------------- --------- ----------- ----- Net proved reserves RESERVES, DECEMBER 31, 2001 2,064 94 67 2,225 Extensions and discoveries 106 -- 4 110 Purchases of reserves in place 699 18 -- 717 Sales of reserves in place (3) (56) -- (59) Production (346) (10) (1) (357) Revisions of previous estimates (74) 25 1 (48) ------ ------ ------ ------ RESERVES, DECEMBER 31, 2002 2,446 71 71 2,588 Extensions and discoveries 301 -- 6 307 Improved recovery 8 -- -- 8 Purchases of reserves in place 50 19 -- 69 Sales of reserves in place (3) -- -- (3) Production (355) (17) (3) (375) Revision of previous estimates (21) (11) (10) (42) ------ ------ ------ ------ RESERVES, DECEMBER 31, 2003 2,426 62 64 2,552 Extensions and discoveries 408 -- -- 408 Improved recovery 6 -- -- 6 Purchases of reserves in place 182 10 -- 192 Sales of reserves in place (8) -- -- (8) Production (383) (18) (3) (404) Revision of previous estimates (40) (27) 11 (56) ------ ------ ------ ------ RESERVES, DECEMBER 31, 2004 2,591 27 72 2,690 ====== ====== ====== ====== Net proved developed reserves: December 31, 2001 1,845 19 16 1,880 December 31, 2002 2,185 57 27 2,269 December 31, 2003 2,140 46 12 2,198 DECEMBER 31, 2004 2,213 12 5 2,230 ====== ====== ====== ======
CAPITALIZED COSTS RELATED TO OIL AND NATURAL GAS ACTIVITIES
2004 ------------------------------------------------------------ OFFSHORE (millions of Canadian dollars) NORTH AMERICA NORTH SEA WEST AFRICA TOTAL ------------------------------ ------------- --------- ----------- ----- Proved properties $ 18,749 $ 2,518 $ 565 $ 21,832 Unproved properties 1,028 44 536 1,608 19,777 2,562 1,101 23,440 Less: accumulated depletion and depreciation (6,410) (739) (192) (7,341) -------- -------- -------- -------- Net capitalized costs $ 13,367 $ 1,823 $ 909 $ 16,099 ======== ======== ======== ========
2003 ----------------------------------------------------------- Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Proved properties $ 15,125 $ 1,917 $ 568 $ 17,610 Unproved properties 789 56 237 1,082 15,914 1,973 805 18,692 Less: accumulated depletion and depreciation (4,984) (534) (140) (5,658) -------- -------- -------- -------- Net capitalized costs $ 10,930 $ 1,439 $ 665 $ 13,034 ======== ======== ======== ========
2002 ----------------------------------------------------------- Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Proved properties $ 13,197 $ 1,559 $ 480 $ 15,236 Unproved properties 667 62 132 861 13,864 1,621 612 16,097 Less: accumulated depletion and depreciation (3,679) (344) (94) (4,117) -------- -------- -------- -------- Net capitalized costs $ 10,185 $ 1,277 $ 518 $ 11,980 ======== ======== ======== ========
92 SUPPLEMENTARY OIL & GAS INFORMATION 2004 ANNUAL REPORT COSTS INCURRED IN OIL AND NATURAL GAS ACTIVITIES
2004 -------------------------------------------------------- OFFSHORE (millions of Canadian dollars) NORTH AMERICA NORTH SEA WEST AFRICA TOTAL ------------------------------ ------------- --------- ----------- ----- Property acquisitions Proved $ 1,748 $ 302 $ -- $ 2,050 Unproved 298 4 -- 302 Exploration 290 11 37 338 Development 1,403 308 259 1,970 ------- ------- ------- ------- Finding and development costs 3,739 625 296 4,660 Asset retirement costs 98 165 (10) 253 Actual retirement expenditures (32) -- -- (32) ------- ------- ------- ------- Costs incurred $ 3,805 $ 790 $ 286 $ 4,881 ======= ======= ======= =======
2003 --------------------------------------------------------- Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Property acquisitions Proved $ 236 $ 100 $ -- $ 336 Unproved 116 23 -- 139 Exploration 190 47 28 265 Development 1,227 193 148 1,568 ------- ------- ------- ------- Finding and development costs 1,769 363 176 2,308 Asset retirement costs 80 59 9 148 Actual retirement expenditures (30) (1) (9) (40) ------- ------- ------- ------- Costs incurred $ 1,819 $ 421 $ 176 $ 2,416 ======= ======= ======= =======
2002 ---------------------------------------------------- Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Property acquisitions Proved $3,367 $ 373 $ -- $3,740 Unproved 369 28 30 427 Exploration 96 10 81 187 Development 607 145 74 826 ------ ------ ------ ------ Costs incurred $4,439 $ 556 $ 185 $5,180 ====== ====== ====== ======
93 SUPPLEMENTARY OIL & GAS INFORMATION 2004 ANNUAL REPORT RESULTS OF OPERATIONS FROM OIL AND NATURAL GAS PRODUCING ACTIVITIES The Company's results of operations from oil and natural gas producing activities for the years ended December 31, 2004, 2003 and 2002 are summarized in the following tables:
2004 ------------------------------------------------- OFFSHORE (millions of Canadian dollars) NORTH AMERICA NORTH SEA WEST AFRICA TOTAL ------------------------------ ------------- --------- ----------- ----- Oil and natural gas revenue, net of royalties $ 4,579 $ 1,203 $ 216 $ 5,998 Production (976) (370) (36) (1,382) Transportation (256) (32) - (288) Depletion, depreciation and amortization (1,438) (265) (53) (1,756) Asset retirement obligation accretion (28) (22) (1) (51) Petroleum revenue tax - (145) - (145) Income tax (690) (148) (44) (882) ------------- --------- ----------- ------- Results of operations $ 1,191 $ 221 $ 82 $ 1,494 ============= ========= =========== =======
2003 ------------------------------------------------- Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Oil and natural gas revenue, net of royalties $ 3,961 $ 962 $ 150 $ 5,073 Production (845) (314) (38) (1,197) Transportation (263) (30) (1) (294) Depletion, depreciation and amortization (1,203) (250) (42) (1,495) Asset retirement obligation accretion (23) (39) (1) (63) Petroleum revenue tax - (97) - (97) Income tax (673) (93) (24) (790) ------------- -------- ---------- ------- Results of operations $ 954 $ 139 $ 44 $ 1,137 ============= ======== ========== =======
2002 ------------------------------------------------- Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Oil and natural gas revenue, net of royalties $ 3,045 $ 579 $ 99 $ 3,723 Production (656) (229) (35) (920) Transportation (273) (20) - (293) Depletion, depreciation and amortization (1,024) (193) (80) (1,297) Petroleum revenue tax - (51) - (51) Income tax (431) (34) 11 (454) ------------- --------- ---------- -------- Results of operations $ 661 $ 52 $ (5)$ 708 ============= ========= ========== ========
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS FROM PROVED OIL AND NATURAL GAS RESERVES AND CHANGES THEREIN The following standardized measure of discounted future net cash flows from proved oil and natural gas reserves has been computed using year-end sales prices and costs and year-end statutory income tax rates. A discount factor of 10% has been applied in determining the standardized measure of discounted future net cash flows. The Company does not believe that the standardized measure of discounted future net cash flows will be representative of actual future net cash flows and should not be considered to represent the fair value of the oil and natural gas properties. Actual net cash flows will differ from the presented estimated future net cash flows due to several factors including: o Future production will include production not only from proved properties, but may also include production from probable and potential reserves; o Future production of oil and natural gas from proved properties will differ from reserves estimated; o Future production rates will vary from those estimated; o Future rather than year-end sales prices and costs will apply; o Economic factors such as interest rates, income tax rates, regulatory and fiscal environments and operating conditions will change; o Future estimated income taxes do not take into account the effects of future exploration expenditures; and o Future development and site restoration costs will differ from those estimated. Future net revenues, development, production and restoration costs have been based upon the estimates referred to above. 94 SUPPLEMENTARY OIL & GAS INFORMATION 2004 ANNUAL REPORT The following tables summarize the Company's future net cash flows relating to proved oil and natural gas reserves based on the standardized measure as prescribed in FAS 69:
2004 ------------------------------------------------------------- OFFSHORE (millions of Canadian dollars) NORTH AMERICA NORTH SEA WEST AFRICA TOTAL ------------------------------ ------------- --------- ----------- ----- Future cash inflows $ 31,727 $ 15,526 $ 5,249 $ 52,502 Future production costs (10,995) (6,302) (1,137) (18,434) Future development and site restoration costs (2,944) (2,832) (631) (6,407) Future income taxes (6,438) (3,783) (1,242) (11,463) ------------- --------- ----------- -------- Future net cash flows 11,350 2,609 2,239 16,198 10% annual discount for timing of future cash flows (4,385) (691) (634) (5,710) ------------- --------- ----------- -------- Standardized measure of future net cash flows $ 6,965 $ 1,918 $ 1,605 $ 10,488 ============= ========= =========== ========
2003 ----------------------------------------------------------- Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Future cash inflows $ 32,720 $ 9,099 $ 3,192 $ 45,011 Future production costs (9,480) (3,015) (1,179) (13,674) Future development and site restoration costs (2,393) (1,749) (697) (4,839) Future income taxes (7,295) (2,801) -- (10,096) ------------- --------- ---------- -------- Future net cash flows 13,552 1,534 1,316 16,402 10% annual discount for timing of future cash flows (6,203) (336) (432) (6,971) ------------- --------- ---------- -------- Standardized measure of future net cash flows $ 7,349 $ 1,198 $ 884 $ 9,431 ============= ========= ========== ========
2002 ------------------------------------------------------------ Offshore (millions of Canadian dollars) North America North Sea West Africa Total ------------------------------ ------------- --------- ----------- ----- Future cash inflows $ 34,980 $ 9,682 $ 3,206 $ 47,868 Future production costs (7,238) (3,250) (911) (11,399) Future development and site restoration costs (1,770) (1,691) (616) (4,077) Future income taxes (8,046) (2,991) -- (11,037) ------------- --------- ----------- -------- Future net cash flows 17,926 1,750 1,679 21,355 10% annual discount for timing of future cash flows (7,361) (434) (556) (8,351) ------------- --------- ----------- -------- Standardized measure of future net cash flows $ 10,565 $ 1,316 $ 1,123 $ 13,004 ============= ========= =========== ========
The principal sources of change in the standardized measure of discounted future net cash flows are summarized in the following table:
(millions of Canadian dollars) 2004 2003 2002 ------------------------------ ---- ---- ---- Sales of oil and natural gas produced, net of production costs $ (4,331) $ (3,582) $ (2,510) Net changes in sales prices and production costs (553) (2,750) 8,453 Extensions, discoveries and improved recovery 2,120 1,360 972 Changes in estimated future development costs (894) (346) (1,284) Purchases of proved reserves in place 1,386 594 4,973 Sales of proved reserves in place (20) (8) (494) Revisions of previous reserve estimates 1,431 144 360 Accretion of discount 1,558 2,000 794 Changes in production timing and other 1,357 (1,411) 502 Net change in income taxes (997) 426 (4,723) -------- -------- -------- Net change 1,057 (3,573) 7,043 Balance - beginning of year 9,431 13,004 5,961 -------- -------- -------- Balance - end of year $ 10,488 $ 9,431 $ 13,004 ======== ======== ========
95