-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PwpVsv2/eaZyOw4Im1e8LQxtXmug818n4cx7jzxzG/3B8r14eSCL8+pNQGmBrhTL AZ3V6+vAeOd+6wLPIvuYlw== 0001130319-03-000510.txt : 20030609 0001130319-03-000510.hdr.sgml : 20030609 20030606194454 ACCESSION NUMBER: 0001130319-03-000510 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20030604 FILED AS OF DATE: 20030609 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWKER RESOURCES INC CENTRAL INDEX KEY: 0001025863 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29224 FILM NUMBER: 03736560 BUSINESS ADDRESS: STREET 1: STE 410 STREET 2: 1167 KENINGTON CRESCENT NW CITY: CALGARY ALBERTA CANA STATE: A0 ZIP: T2N 1X7 BUSINESS PHONE: 4032835900 FORMER COMPANY: FORMER CONFORMED NAME: SYNSORB BIOTECH INC DATE OF NAME CHANGE: 19961025 6-K 1 o10068e6vk.txt FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------- FORM 6-K Report of Foreign Issuer PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 June 4, 2003 HAWKER RESOURCES, INC. (FORMERLY NAMED SYNSORB BIOTECH INC.) Commission File No. 0-29214 (Translation of registrant's name into English) 411-19th Street SE Calgary, Alberta, Canada T2E 6J7 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F ______ Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Act of 1034. Yes _____ No X If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-N/A
- -------------------------------------------------------------------------------------------- EXHIBIT NUMBER EXHIBIT 1. Material Change Report dated April 14, 2003 2. Annual Information Form 3. Engineering Report and Certificate of Qualification 4. Material Change Report dated May 23, 2003 5. Press Release dated May 29, 2003 6. Press Release dated May 30, 2003 - --------------------------------------------------------------------------------------------
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. HAWKER RESOURCES, INC. (formerly named SYNSORB Biotech Inc.) Dated: June 4, 2003 By: /s/ Barry Herring ---------------------------------------- Name: Barry Herring Title: Chief Financial Officer
- -------------------------------------------------------------------------------------------------------- EXHIBIT INDEX EXHIBIT NUMBER EXHIBIT PAGE 1. Material Change Report dated April 14, 2003 1 2. Annual Information Form 3. Engineering Report and Certificate of Qualification 4. Material Change Report dated May 23, 2003 5. Press Release dated May 29, 2003 6. Press Release dated May 30, 2003 - --------------------------------------------------------------------------------------------------------
EX-1 3 o10068exv1.txt MATERIAL CHANGE REPORT DATED APRIL 14, 2003 EXHIBIT 1 HAWKER RESOURCES INC. MATERIAL CHANGE REPORT UNDER SECTION 146(1) OF THE SECURITIES ACT (ALBERTA) (FORM 27) AND UNDER COMPARABLE PROVISIONS OF OTHER PROVINCIAL SECURITIES LEGISLATION 1. REPORTING ISSUER: Hawker Resources Inc. 3200, 350 - 7th Avenue SW Calgary, AB T2P 3N9 2. DATE OF MATERIAL CHANGE: April 3, 2003 3. PRESS RELEASE: News releases disclosing the details outlined in this Material Change Report were issued by Hawker Resources Inc. ("Hawker") on April 3, 2003 and on April 4, 2003, were disseminated through the facilities of Canada Newswire Limited and would have been received by the securities commissions where Hawker is a "reporting issuer" and the stock exchange on which the securities of Hawker are listed and posted for trading in the normal course of their dissemination. 4. SUMMARY OF MATERIAL CHANGE: On April 3, 2003, shareholders approved the planned conversion of the company into an oil and gas enterprise, changed the company's name and elected a new board of directors. In addition, Hawker announced that it had acquired all of the shares of 1022971 Alberta Ltd., the private company that has agreed to acquire all of the shares of Southward Energy Ltd. and an option to acquire certain assets of Southward Energy Ltd. On April 4, 2003 Hawker announced the closing, on April 3, 2003, of its previously announced financing. Proceeds of approximately $3.6 million were received on issuance of 498,798 common shares and 430,493 units consisting of debentures, warrants and special shares. 5. FULL DESCRIPTION OF MATERIAL CHANGE: On April 3, 2003, shareholders approved the planned conversion of the company into an oil and gas enterprise and changed the company's name to Hawker Resources Inc. The shareholders approved a new board of directors comprised of David Tuer, Bruce Kenway, Ronald P. Mathison, Martin A. Lambert, Paul M. Farion and Keith T. Smith. In addition, shareholders approved a previously announced (March 11, 2003) financing in connection with the conversion. Also on April 3, 2003, Hawker announced that it had secured, for nominal consideration, all of the shares of 1022971 Alberta Ltd. and an option expiring on or about July 29, 2 2003 to acquire up to 50% of the assets of Southward Energy Ltd. other than those which lie west of the 5th meridian. 1022971 Alberta Ltd. is the corporation which has agreed to acquire all of the shares of Southward Energy Ltd. pursuant to a proposed arrangement to be completed on or about April 30, 2003 and to cause Southward Energy Ltd. to sell all or substantially all of its resource assets in connection therewith. The option itself is conditional upon the proposed arrangement and related transactions having been successfully completed and the exercise of the option is conditional upon various matters including Hawker obtaining the necessary financing. On April 4, 2003 Hawker announced the closing, on April 3, 2003, of its previously announced financing. Proceeds of approximately $3.6 million were received on issuance of 498,798 common shares and 430,493 units consisting of debentures, warrants and special shares. All of the in-the-money options of Hawker were exercised upon closing of the financing. Approximately 56,000 options remain outstanding at exercise prices in excess of $9.40. The board of directors of Hawker ratified the previously announced acquisition of all of the shares of 1022971 Alberta Ltd. and the conditional option to acquire certain oil and gas assets currently owned by Southward Energy Ltd. 6 RELIANCE ON SUBSECTION 146(2) OF SECURITIES ACT (ALBERTA) OR EQUIVALENT SECTION: Not Applicable. 7. OMITTED INFORMATION: No information has been omitted. 8. SENIOR OFFICERS: David Tuer, Chief Executive Officer of Hawker may be contacted at (403) 294-0067 for further information. 9. STATEMENT OF SENIOR OFFICER: The foregoing accurately discloses the material change referred to in this report. DATED at Calgary, Alberta this 14th day of April, 2003. HAWKER RESOURCES INC. Per: ____________________________ (signed) David Tuer Chief Executive Officer cc: Toronto Stock Exchange EX-2 4 o10068exv2.txt ANNUAL INFORMATION FORM EXHIBIT 2 HAWKER RESOURCES INC. RENEWAL ANNUAL INFORMATION FORM FOR THE YEAR ENDED DECEMBER 31, 2002 MAY 20, 2003 TABLE OF CONTENTS GLOSSARY OF TERMS......................................................................................... 1 ABBREVIATIONS............................................................................................. 3 CONVERSION................................................................................................ 3 FORWARD-LOOKING STATEMENTS................................................................................ 3 ITEM 1: CORPORATE STRUCTURE............................................................................... 5 1.1 Name and Incorporation........................................................................... 5 1.2 Intercorporate Relationships..................................................................... 5 ITEM 2: GENERAL DEVELOPMENT OF THE BUSINESS............................................................... 5 2.1 History.......................................................................................... 5 2.2 Significant Acquisitions and Significant Dispositions............................................ 7 2.3 Trends........................................................................................... 8 ITEM 3: NARRATIVE DESCRIPTION OF THE BUSINESS............................................................. 10 3.1 General.......................................................................................... 10 3.2 Corporate Strategy............................................................................... 12 3.3 Business Strengths............................................................................... 12 3.4 Drilling Activity................................................................................ 13 3.5 Location of Production........................................................................... 13 3.6 Location of Wells................................................................................ 14 3.7 Land Holdings.................................................................................... 15 3.8 Reserve Estimates................................................................................ 15 3.9 Reconciliation of Reserves....................................................................... 17 3.10 Production History............................................................................... 18 3.11 Netback History.................................................................................. 18 3.12 Capital Expenditures............................................................................. 18 3.13 Future Commitments............................................................................... 19 ITEM 4: SELECTED CONSOLIDATED FINANCIAL INFORMATION....................................................... 20 4.1 Annual Information............................................................................... 20 4.2 Quarterly Information............................................................................ 21 4.3 Dividend Policy.................................................................................. 21 ITEM 5: MANAGEMENT'S DISCUSSION AND ANALYSIS.............................................................. 21 ITEM 6: MARKET FOR SECURITIES............................................................................. 26 ITEM 7: DIRECTORS AND OFFICERS............................................................................ 26 ITEM 8: ADDITIONAL INFORMATION............................................................................ 27
GLOSSARY OF TERMS In this document, unless the context otherwise requires, the following words and phrases shall have the meanings set forth below: "2% DEBENTURE" means a debenture of the Corporation issued as part of the Financing on April 3, 2003 in the principal amount of $8.40, bearing interest at the rate of 2% per annum from the date of issue payable on the earlier of the maturity date of December 31, 2003 and the date of surrender; "ARRANGEMENT" means the arrangement involving BidCo and Southward pursuant to section 193 of the Business Corporations Act (Alberta) completed on April 30, 2003; "ARTC" means Alberta Royalty Tax Credit; "BIDCO" means 1022971 Alberta Ltd., all of the outstanding shares of which were acquired by the Corporation for an aggregate consideration of $1.00 on March 31, 2003; "CLASS A SHARE" means a class A share in the capital of the Corporation; "COMMON SHARE" means a common share in the capital of the Corporation; "CONVERSION" means the deemed exercise of all of the Warrants which will occur immediately after the issuance of a receipt for a prospectus of the Corporation qualifying the issuance of up to $45,000,000 of Common Shares and pursuant to which the former holders of the Warrants will be issued, for each Warrant, 5 Common Shares and 9 Class A Shares upon the surrender of 5 Series V Shares, 9 Series W Shares and one 2% Debenture; "CORPORATION" OR "HAWKER" means Hawker Resources Inc.; "EQUITY SHARES" means Common Shares and Class A Shares; "ESTABLISHED RESERVES" means proved reserves plus risked probable reserves; "FINANCECO" means 970183 Alberta Ltd., a wholly owned subsidiary of Matco; "FINANCING" means the financing completed by the Corporation on April 3, 2003 pursuant to which the Corporation issued 223,798 Common Shares and 430,493 Units for aggregate gross proceeds of approximately $3.7 million (which Units will be converted to 6,026,902 Equity Shares pursuant to the Conversion); "GROSS" means Hawker's working interest or royalty interest share of reserves or production, as the case may be, before the deduction of royalties and, with respect to land and wells, means the total number of acres or wells, as the case may be, in which Hawker has a working interest or a royalty interest; "MATCO" means Matco Investments Ltd.; "MATCO CAPITAL" means Matco Capital Ltd., a corporation controlled by Matco; "McDANIEL" means McDaniel and Associates Consultants Ltd., independent oil and natural gas reservoir engineers; "McDANIEL REPORT" means the engineering report prepared by McDaniel evaluating the crude oil, natural gas liquids and natural gas reserves attributable to a 50% undivided interest in the Optioned Properties effective as of May 1, 2003 based upon detailed engineering evaluations made by McDaniel effective as of January 1, 2003, adjusted to take into account actual and estimated production from January 1, 2003 to May 1, 2003 and based on an engineering evaluation of wells drilled from January 1, 2003 to May 1, 2003, and which was prepared on the basis of both constant and escalating price and cost assumptions as detailed in the notes under "Narrative Description of the Business - Reserve Estimates"; - 2 - "NET" means Hawker's working interest share of production or reserves, as the case may be, after the deduction of royalties, and, with respect to land and wells, means Hawker's working interest share therein; "OPTIONED PROPERTIES" means all of the petroleum and natural gas rights and related assets of Southward other than those which are both west of the fifth meridian and in the Province of Alberta, as described under the heading" Narrative Description of the Business - Location of Production"; "PROBABLE ADDITIONAL RESERVES" means those reserves which an analysis of drilling, geological, geophysical and engineering data does not demonstrate to be proved under current technology and existing economic conditions, but where such analysis suggests the likelihood of their existence and future recovery. Probable additional reserves to be obtained by the application of enhanced recovery processes will be the increased recovery over and above that estimated in the proved category which can be realistically estimated for the pool on the basis of enhanced recovery processes which can be reasonably expected to be instituted in the future; "PROVED RESERVES" means those reserves estimated as recoverable under current technology and existing economic conditions from that portion of a reservoir which can be reasonably evaluated as economically productive on the basis of analysis of drilling, geological, geophysical and engineering data, including the reserves to be obtained by enhanced recovery processes demonstrated to be economic and technically successful in the subject reservoir; "PURCHASE OPTION" means the option in favour of the Corporation to purchase an undivided interest of up to 49% in the Optioned Properties at a purchase price based on an ascribed price, as at May 1, 2003 and subject to adjustment, of $136,900,000 for a 100% interest in the Optioned Properties; "RISKED PROBABLE RESERVES" means probable additional reserves discounted by one-half to account for the additional risk of recovery for probable reserves; "ROYALTY INTEREST" means an interest in an oil and gas property consisting of a royalty granted in respect of production from the property; "SERIES V SHARE" means a series V voting preferred share in the capital of the Corporation; "SERIES W SHARE" means a series W non-voting preferred share in the capital of the Corporation; "SOUTHWARD" means Southward Energy Ltd.; "STATEMENTS OF REVENUES AND OPERATING EXPENSES" means the statements of revenues and operating expenses relating to the proposed acquisition by the Corporation of an aggregate 50% undivided interest in the Optioned Properties audited by Deloitte & Touche LLP. "TSX" means the Toronto Stock Exchange; "TAX ACT" means the Income Tax Act (Canada); "UNIT" means a Unit issued by the Corporation on April 3, 2003 pursuant to the Financing for a subscription price of $8.46787851 per Unit consisting of: (i) a 2% Debenture; (ii) a Warrant; (iii) 5 Series V Shares; and (iv) 9 Series W Shares; "WARRANT" means a series A warrant of the Corporation which entitles the holder thereof to purchase 5 Common Shares and 9 Class A Shares upon the surrender of 5 Series V Shares and 9 Series W Shares and either the surrender of a 2% Debenture or the payment of $8.40. Pursuant to the Conversion, all of the Warrants will be deemed to be exercised immediately after a receipt is issued for a prospectus of the Corporation qualifying the issuance of up to $45,000,000 of Common Shares and upon such deemed exercise, the holders thereof will be deemed to have surrendered one 2% Debenture to the Corporation; - 3 - "WORKING INTEREST" means the percentage undivided interest held by a party in an oil and gas property; and UNLESS OTHERWISE INDICATED, REFERENCES HEREIN TO "$" OR "DOLLARS" ARE TO CANADIAN DOLLARS. ABBREVIATIONS
CRUDE OIL AND NATURAL GAS LIQUIDS NATURAL GAS - --------------------------------- ----------- bbls barrels mcf thousand cubic feet bbls/d barrels per day mmcf million cubic feet mbbls thousand barrels bcf billion cubic feet boe barrels of oil equivalent of natural gas mcf/d thousand cubic feet per day and crude oil on the basis of 1 bbl of mmcf/d million cubic feet per day crude oil for 6 mcf of natural gas GJ gigajoules boe/d barrels of oil equivalent per day GJ/d gigajoules per day mboe thousand boe NGLs natural gas liquids mmbtu million British thermal units stb standard stock tank barrel
CONVERSION The following table sets forth certain standard conversions from Standard Imperial units to the International System of Units (or metric units).
TO CONVERT FROM TO MULTIPLY BY - ----------------------------------------------------------------------------- mcf Thousand cubic metres ("10(3)m(3)") 0.0282 Thousand cubic metres mcf 35.494 bbls Cubic metres ("m(3)") 0.159 Cubic metres bbls 6.290 Feet Metres 0.305 Metres Feet 3.281 Miles Kilometres 1.609 Kilometres Miles 0.621 Acres Hectares 0.405 Hectares Acres 2.471
FORWARD-LOOKING STATEMENTS Certain statements contained in this document constitute forward-looking statements. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Corporation, are intended to identify forward-looking statements. Such statements reflect the Corporation's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, those described in this Annual Information Form under the headings "Narrative Description of the Business", "Selected Consolidated Financial Information" and "Management's Discussion and Analysis". In particular, this document contains forward-looking statements pertaining to the following: - the quantity of the Corporation's reserves; - oil and natural gas production levels; - capital expenditure programs; - projections of market prices and costs; - supply and demand for oil and natural gas; - 4 - - expectations regarding the Corporation's ability to raise capital and to continually add to reserves through acquisitions and development; and - treatment under governmental regulatory regimes. The Corporation's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below and elsewhere in this document: - volatility in market prices for oil and natural gas; - liabilities and risks inherent in oil and gas operations; - uncertainties for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; - incorrect assessments of the value of acquisitions; and - geological, technical, drilling and processing problems. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Although the Corporation believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this document are made as of the date of this document, and the Corporation undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. - 5 - ITEM 1: CORPORATE STRUCTURE 1.1 NAME AND INCORPORATION Hawker was incorporated as 599386 Alberta Ltd. under the Business Corporations Act (Alberta) on February 14, 1994 and changed its name to SYNSORB Biotech Inc. by Articles of Amendment filed on March 31, 1994. Effective May 8, 2002: (i) each former holder of common shares received one new common share for each eight cancelled common shares they previously held; (ii) the stated capital of the Corporation was reduced in respect of the common shares of the Corporation by $59,896,000; and (iii) 4,000,235 common shares of Oncolytics Biotech Inc. held by the Corporation were distributed to its shareholders. By Articles of Amendment filed on April 3, 2003, the name of the Corporation was changed to Hawker Resources Inc. and a new class of non-voting equity shares was created. The Common Shares of Hawker are listed for trading on the Toronto Stock Exchange under the symbol "HKR". The head office of the Corporation is located at 3200, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9, and the registered office is located at 4500, 855 - 2nd Street S.W., Calgary, Alberta, T2P 4K7. 1.2 INTERCORPORATE RELATIONSHIPS Hawker owns, directly or indirectly, all of the issued and outstanding securities of BidCo and Southward, both companies incorporated under the Business Corporations Act (Alberta) and registered to carry on business in Alberta. Hawker also owns, directly or indirectly, all interests of Southward Energy Partnership, a partnership formed under the laws of Alberta. ITEM 2: GENERAL DEVELOPMENT OF THE BUSINESS 2.1 HISTORY Prior to December 10, 2001, the Corporation was a biotechnology company focusing primarily on the discovery and development of pharmaceutical products for gastroenteric diseases. On that date, the Corporation announced that it was terminating the clinical trials of its remaining product and would consider future strategic alternatives. Over the course of the fiscal year ended December 31, 2002, the Corporation divested itself of its position in Oncolytics Biotech Inc. by distributing 4,000,235 of such shares to its shareholders and by selling 2,255,565 of such shares through the TSX for aggregate gross proceeds of $6,898,000. During that period, the Corporation completed staff reductions and the winding-down of its clinical trials and continued to evaluate strategic alternatives. The Corporation held discussions with several industry parties in an attempt to reach a transaction with another pharmaceutical entity that would make use of the Corporation's technology and its specialized manufacturing plant and equipment. These discussions did not lead to the Corporation receiving any acceptable proposal for such a transaction. On October 30, 2002, the Corporation retained Network Capital Inc. as its financial advisor to seek a transaction to maximize value for shareholders, including pursuing transactions that would substantially reorganize the business of the Corporation. - 6 - On November 26, 2002, Southward announced a shareholder value maximization process, established an independent committee to oversee the process and retained a financial advisor. The process initiated by Southward required that binding offers be submitted by interested parties on or prior to March 3, 2003. In late December 2002, the Corporation approached an investor group led by David Tuer with respect to the transformation of the Corporation from a pharmaceutical research company into an oil and gas enterprise and the completion of the Financing. On January 6, 2003, the transformation of the Corporation to an oil and gas enterprise and the proposed Financing were announced, subject to obtaining shareholder approval, which was to be sought at the annual and special meeting of the Corporation on April 3, 2003. In January 2003, the Corporation sold its manufacturing equipment for approximately $900,000 in net proceeds and in February 2003, the Corporation granted a third party an exclusive license to certain of its patents relating to toxin binding sugars for net proceeds of US $240,000. The Corporation is continuing to attempt to sell its manufacturing facility and related land. In early March 2003, BidCo entered into an agreement with a third party which provided, as amended, that in the event that BidCo was successful in purchasing all of the common shares of Southward, the third party would purchase all of the petroleum and natural gas rights and related assets of Southward, except for a 1% interest in the Optioned Properties and 100% of the seismic data relating to the Optioned Properties, for a purchase price of $164,631,000, of which $135,531,000 was allocated for internal purposes to a 99% interest in the Optioned Properties. In mid-March 2003, the Purchase Option was granted which provided the right to purchase an undivided interest of up to 49% in the Optioned Properties at a purchase price, subject to adjustment, equal to $1,369,000 for each 1% undivided interest in the Optioned Properties acquired pursuant to the Purchase Option. The right to exercise the Purchase Option was conditional upon the completion of the sale of the Southward assets to the grantor of the option, which condition was satisfied on April 30, 2003. The Purchase Option provided that it could be assigned to the Corporation, but that it could not be assigned to any other party without the prior written consent of the grantor of the option. On March 16, 2003, BidCo entered into an arrangement agreement with Southward which contemplated that, subject to the terms and conditions of the agreement, BidCo and Southward would implement the Arrangement. The Arrangement provided that: (i) shareholders of Southward would transfer all of the outstanding common shares to BidCo in consideration for $4.77 per share; and (ii) all of the outstanding options to acquire common shares of Southward would be terminated, and in consideration for such termination the former holders of the options would receive the difference between the exercise price of each of their options and $4.77, provided that if such amount was less than $0.10 in respect of any option, the former holder thereof would receive $0.10. On March 31, 2003, the Corporation acquired the Purchase Option and all of the shares of BidCo for an aggregate consideration of $1.00. At the annual and special meeting of the shareholders of the Corporation held on April 3, 2003 a new board of directors was elected, including the appointment of Mr. Tuer, an experienced oil and gas senior executive, as the new Chairman of the Board and Chief Executive Officer of the Corporation, and the shareholders approved, among other things: (i) the Financing; (ii) the creation of the Class A Shares; and (iii) the name change to Hawker Resources Inc. On April 3, 2003, the Corporation completed the Financing and issued 223,798 Common Shares and 430,493 Units for aggregate proceeds of approximately $3.7 million. Pursuant to the Conversion, the - 7 - securities which comprise the Units will be converted into an aggregate of 6,026,902 Equity Shares immediately after a receipt is issued for a prospectus of the Corporation qualifying the issuance of up to $45,000,000 of Common Shares. Pursuant to the Financing, Matco Capital and Mr. Tuer beneficially acquired 28.8% and 14.4%, respectively, of the outstanding Equity Shares, after giving effect to the Conversion. During the period of March 13, 2003 to April 3, 2003, all outstanding in-the-money stock options were exercised, resulting in the issuance of an additional 275,000 Common Shares for aggregate proceeds of $192,250. On April 28, 2003 the Arrangement was approved by the shareholders and optionholders of Southward and was also approved by the Court of Queen's Bench of Alberta. On April 30, 2003, the Arrangement was completed by Southward and BidCo in accordance with the arrangement agreement. Pursuant to the Arrangement, BidCo paid an aggregate of approximately $120 million to the shareholders and optionholders of Southward and Southward became a wholly owned subsidiary of BidCo. Concurrent with the completion of the Arrangement, Southward completed the sale of all of its oil and gas assets, with the exception of: (i) a 1% interest in the Optioned Properties; and (ii) 100% of the seismic data relating to the Optioned Properties, which were retained by Southward. Gross proceeds from the sale were $164,631,000, which were used by Southward as follows: (i) $46 million was used by Southward to repay existing bank indebtedness, including bank indebtedness incurred in connection with the termination of options and satisfaction of various employee obligations and transaction expenses; (ii) $117 million was advanced to BidCo to repay indebtedness incurred to acquire the common shares of Southward and compensate the holders of terminated options pursuant to the Arrangement; and (iii) the remaining proceeds of approximately $1.6 million were retained by Southward. Prior to the completion of the Arrangement, the Corporation granted a call option which gives the purchaser of the oil and gas assets of Southward the right to acquire from the Corporation a 99% interest in the seismic data in respect of the Optioned Properties, for a purchase price of $3,710,000. If this call option is exercised, and the Corporation exercises the Purchase Option, in whole or in part, the Corporation will be required to purchase an equivalent proportion of the seismic data in respect of the Optioned Properties at a purchase price based on an ascribed price of $4 million for a 100% interest in the seismic data. 2.2 SIGNIFICANT ACQUISITIONS AND SIGNIFICANT DISPOSITIONS As discussed above, the Corporation has indirectly acquired all of the issued and outstanding securities of Southward pursuant to the Arrangement and, in conjunction therewith, was granted the Purchase Option. The Purchase Option gives the Corporation the right to purchase an undivided interest of up to 49% in the Optioned Properties, which together with the 1% undivided interest held by the Corporation in the Optioned Properties will give the Corporation an aggregate 50% undivided interest in the Optioned Properties upon the full exercise of the option. The Optioned Properties are located east of Edmonton in the Lavoy and Cold Lake/Bonnyville areas of Alberta. The McDaniel Report estimates production for the last 8 months of 2003 from a 50% undivided interest in the Optioned Properties to be held by the Corporation to be an average of 19.0 mmcf/d, before royalties. Production from the Optioned Properties consists of sweet dry gas, with drilling depths typically less than 850 metres. The Optioned Properties include interests in 164.0 producing gas wells (141.2 wells net), related facilities and gathering systems, associated seismic and 284,325 acres (140,523 acres net) of undeveloped land. The Purchase Option provides that the purchase price for the undivided interest in the Optioned Properties to be acquired by the Corporation will be based on an ascribed price, as at May 1, 2003 and subject to adjustment, of $136,900,000 for 100% of the Optioned Properties. The Purchase Option gives the Corporation the right to purchase an undivided interest of up to 49% in the Optioned Properties for a - 8 - maximum purchase price of $67,081,000. The Corporation intends to fully exercise the Purchase Option and thereby own an aggregate 50% undivided interest in the Optioned Properties. The Purchase Option provides that the closing of the acquisition of the Optioned Properties must occur on or prior to July 29, 2003 with an effective date of May 1, 2003. Accordingly, the Corporation will be entitled to the revenues attributable to the undivided interest acquired in the Optioned Properties from May 1, 2003, and will be obligated to pay interest on the purchase price from May 1, 2003 until closing at an interest rate equal to the prime rate of a designated Canadian chartered bank plus 1%. The Corporation currently intends to exercise the Purchase Option on or before June 30, 2003. The McDaniel Report estimates that the cash flows attributable to the 49% interest in the Optioned Properties the Corporation intends to acquire on the exercise of the Purchase Option, net of royalties and capital expenditures and before income taxes, would be an aggregate of $5.3 million from May 1, 2003 to June 30, 2003. Interest on the purchase price under the Purchase Option as of June 30, 2003 would be approximately $670,810. Accordingly, the Corporation anticipates a favourable purchase price adjustment, based upon an anticipated June 30, 2003 closing of the purchase of the 49% interest in the Optioned Properties pursuant to the exercise of the Purchase Option, of approximately $4.63 million thereby effectively reducing the purchase price from approximately $67.1 million to approximately $62.5 million. The Purchase Option provides that if the Corporation acquires an undivided interest in the Optioned Properties equal to or greater than 33 1/3%, it will be entitled to operate the Optioned Properties located in the Cold Lake/Bonnyville area. As the Corporation will hold an aggregate 50% interest in the Optioned Properties upon the closing of this offering, the Corporation intends to assume operatorship of the Optioned Properties in the Cold Lake/Bonnyville area. The Corporation believes that the Optioned Properties have undeveloped potential and accordingly the Corporation intends to pursue exploration and development activities in the area with a view to developing additional reserves. There can be no assurance that such activities will be economically successful. 2.3 TRENDS Commodity Price Volatility Crude oil and natural gas prices are volatile and subject to a number of external factors. Prices are cyclical and fluctuate as a result of shifts in the balance between supply and demand for crude oil and natural gas, world and North American market forces, inventory and storage levels, OPEC policy, weather patterns and other factors. In early 2002, the industry initially saw a general weakening of prices for both oil and natural gas. However, through the second half of the year, commodity prices rebounded above historical averages. Currently, tight supply/demand balance has kept prices high for both crude oil and natural gas. Crude oil is influenced by a world economy and OPEC's ability to adjust supply to world demand. Recent success by OPEC and low North American crude stocks have kept crude oil prices high. However, the Corporation expects world prices of crude oil to decrease to historical average levels of approximately US $24 per barrel (WTI), but also expect continued global political factors to hold prices at those levels. Natural gas prices are greatly influenced by market forces in North America. It is generally believed that natural gas has greater stability than crude oil in terms of short-term pricing as there is a shortage of natural gas production and natural gas storage levels are low. The Corporation expects natural gas prices to moderate somewhat through 2003, but expect the supply of North American natural gas to continue to be constrained by North American production decline rates. - 9 - Industry Consolidation and Competition Over the past few years, consolidation within the Canadian oil and gas industry has resulted in a significant reduction of the number of junior to intermediate-sized exploration and production companies. American companies have also been acquiring companies and assets in Canada. The strong demand for natural gas production and reserves is expected to result in a continued high level of corporate and asset transactions as buyers strive to increase their natural gas assets and sellers take advantage of high transaction prices. Along with this merger and acquisition activity, a number of traditional exploration and production companies have recently converted into income or royalty trusts. This trend, which has increased competition for investment dollars and property acquisitions, is expected to continue in the short-term. As occurred in 2000 and early 2001, the strength of commodity prices resulted in significantly increased operating cash flows and has led to increased drilling activity. The Canadian Association of Oilwell Drilling Contractors forecasts an 11% increase in industry drilling in 2003, approaching the number of wells drilled in 2001, which was a record year. This industry activity will increase competition for oilfield goods and services and may cause drilling and operating costs to increase. Provincial Royalties and Incentives For crude oil, natural gas and related product production from federal or provincial Crown lands, the royalty regime is a significant factor in the profitability of such production operations. Royalties payable on production from lands other than Crown lands are determined by negotiations between the freehold mineral owner and the lessee, although production from such lands is also subject to certain provincial taxes and royalties. Crown royalties are determined by governmental regulation and are generally calculated as a percentage of the value of the gross production. The rate of royalties payable generally depends in part on the type of product being produced, well productivity, geographical location and field discovery date. From time to time the various provincial governments in western Canada have established incentive programs which have included royalty rate reductions, royalty holidays and tax credits for the purpose of encouraging oil and gas exploration and development. The trend in recent years has been for provincial governments to allow such programs to expire without renewal, and consequently few such programs are currently operative. Crude oil and natural gas royalty holidays for specific wells and royalty reduction reduce the amount of Crown royalties paid by the Corporation to the provincial governments. In Alberta, the Alberta royalty tax credit program also provides a rebate, to certain eligible producers, on Alberta Crown royalties paid in respect of eligible producing properties. These incentives result in increased profitability from operations of the Corporation. Government Regulation The oil and natural gas industry is subject to extensive controls and regulation imposed by various levels of government. In western Canada, the various provincial governments have legislation and regulations, which govern land tenure, royalties, production rates, environmental protection, the prevention of waste and other matters. It is not expected that these controls and regulation will affect the operations of the Corporation in a manner materially different than they would affect other oil and gas companies of similar size. All current legislation is a matter of public record and the Corporation is unable to predict what additional legislation or amendments may be enacted. - 10 - Environmental The Corporation believes that it is reasonably likely that the trend in environmental legislation and regulation will continue toward stricter standards. The Corporation is committed to meeting its responsibilities to protect the environment wherever it operates and anticipates making increased expenditures of both a capital and expense nature as a result of increasingly stringent laws relating to the protection of the environment. Kyoto Protocol In December 2002, Canada became a signatory to the Kyoto Protocol. This international treaty establishes commitments to reduce emissions of greenhouse gases that are believed to be responsible for increasing the surface temperatures of the Earth and affecting the global climate. The U.S. Government's decision to withdraw from the Kyoto Protocol may have serious implications for Canada in the context of a continental or hemispheric energy market, but the U.S. is expected to develop a strategy to reduce greenhouse gases, perhaps using the NAFTA model. Early indications from the Government of Canada's policy commitments are that Canada's ratification will not significantly penalize the oil and gas industry. Some uncertainly will remain until the Federal government provides its detailed implementation plan and it becomes clearer what the effect will be on business economics, primarily on the cost site. However, the Corporation does not expect ratification of the Kyoto Protocol to have a material effect on its performance in 2003. ITEM 3: NARRATIVE DESCRIPTION OF THE BUSINESS 3.1 GENERAL The Corporation is a publicly traded Canadian company listed on the TSX that has recently transformed itself from a pharmaceutical research company into an oil and gas enterprise. The Corporation intends to report the financial results of its oil and gas activities as one industry segment. For operational purposes, the Corporation intends to manage all of its oil and gas activities as one integrated unit. Competitive Conditions The oil and gas industry is highly competitive. The Corporation will compete for reserve acquisitions, exploration leases, licences and concessions and skilled industry personnel with a substantial number of other oil and gas companies, many of which have significantly greater financial resources than the Corporation. The Corporation's competitors include major integrated oil and natural gas companies and numerous other independent oil and natural gas companies and individual producers and operators. The Corporation's ability to increase reserves in the future will depend not only on its ability to explore and develop its properties, but also on its ability to select and acquire suitable producing properties or prospects for exploratory drilling. Competitive factors in the distribution and marketing of oil and natural gas include price and methods and reliability of delivery. The Corporation's ability to successfully bid on and acquire additional property rights, to discover reserves, to participate in drilling opportunities and to identify and enter into commercial arrangements with customers will be dependent upon developing and maintaining close working relationships with its future industry partners and joint operators and its ability to select and evaluate suitable properties and to consummate transactions in a highly competitive environment. Seasonally The Corporation expects to have seasonal impacts with regard to its exploration and development program. The Corporation expects to experience reduced activity in the second quarter of the fiscal year - 11 - as limitations on the transportation of heavy equipment on municipal roads curtails the ability of drilling rigs and other oilfield equipment to get to and from well sites. Government Regulation The oil and natural gas industry is subject to extensive controls and regulation imposed by various levels of government. In western Canada, the various provincial governments have legislation and regulations, which govern land tenure, royalties, production rates, environmental protection and the prevention of waste. The oil and natural gas industry is also subject to regulation and intervention by governments in such matters as the award of exploration and production rights, the imposition of specific drilling obligations, environmental protection controls, control over the development and abandonment of fields (including restrictions on production) and, possibly, expropriation or cancellation of contract rights. It is not expected that these controls and regulation will affect the operations of the Corporation in a manner materially different than they would affect other oil and gas companies of similar size. All current legislation is a matter of public record and the Corporation is unable to predict what additional legislation or amendments may be enacted. Environmental Regulation The oil and natural gas industry is currently subject to environmental regulation pursuant to provincial and federal legislation. Environmental legislation provides for restrictions and prohibitions on releases or emissions of various substances produced or utilized in association with certain oil and gas industry operations. In addition, legislation requires that well and facility sites be abandoned and reclaimed to the satisfaction of provincial authorities. Compliance with such legislation can require significant expenditures. A breach of such legislation may result in the imposition of material fines and penalties, the revocation of necessary licenses and authorizations and civil liability for pollution damage. In 1994, the United Nations' Framework Convention on Climate Change came into force and three years later led to the Kyoto Protocol which will require, upon ratification, nations to reduce their emissions of carbon dioxide and other greenhouse gases. As a result of Canada's ratification of the Kyoto Protocol reductions in greenhouse gases from the Corporation's operations may be required which could result in increased capital expenditures and reductions in production of oil and gas. The Corporation does not face any environmental issues or impacts that are unique to the Corporation. However, like all participants in the Canadian oil and gas industry, reclamation and restoration of abandoned wells and facilities is recognized as a corporate responsibility. The expenses associated with meeting this responsibility are provided for on a unit of production basis. Oil and Natural Gas Prices Oil prices are subject to international supply and demand. Political developments, especially in the Middle East, can affect world oil supply and oil prices. Natural gas prices are primarily affected by supply and demand in North America and, to a lesser extent, by prices of alternate sources of energy. The Corporation expects continued volatility and uncertainty in oil and natural gas prices. Employees As at December 31, 2002, the Corporation did not have any full-time employees and as of May 20, 2003, the Corporation had 11 full-time employees. - 12 - 3.2 CORPORATE STRATEGY Vision - The Corporation's primary ongoing business objective is to become a full cycle oil and gas company with a dual focus on exploration and development activities and on an aggressive acquisition strategy, with a particular emphasis on natural gas opportunities. Drilling Program - Management intends to employ a "cheap deep" approach to exploration by implementing a high density drilling program with low cost options to look at deeper horizons, while continuing to seek out additional opportunities to add to the Corporation's land base. Responsible Fiscal Management - Approximately 50% of the Corporation's anticipated cash flow will be directed towards the replacement of existing reserves, leaving a significant amount of cash flow available for a focused exploration program or to pay down debt. The Corporation intends to prudently add value through its drilling and exploration activities and carefully manage its costs, thereby positioning itself to add to its inventory of opportunities and undeveloped land holdings. Prudent Use of Equity - Management recognizes that, at this early stage of development, equity must be used sparingly, and it intends to rely heavily on operational revenues and debt financing to satisfy liquidity requirements. The Corporation will attempt to minimize the dilution that would be caused to existing shareholders if large amounts of equity were issued. 3.3 BUSINESS STRENGTHS Strength of Management - Mr. Tuer has over 28 years of petroleum engineering and management experience in Canada and internationally, including experience as President and Chief Executive Officer of one of Canada's largest energy companies. Mr. Terry Schmidtke has over 24 years of operational experience in the areas of reservoir engineering, field operations, strategic planning and acquisitions and divestitures. Mr. Herring has over 22 years of accounting and oil and gas experience. Experienced, Interested Board - The Corporation's board of directors is comprised of individuals with broad backgrounds and demonstrated experience in creating shareholder value. In particular, Mr. Tuer, Mr. Ronald Mathison, Mr. Martin Lambert and Mr. Stan Grad have extensive industry and transactional experience. Several of the directors have significant financial stakes in the Corporation. Focused Production Areas - Following its acquisition of the Optioned Properties, Hawker will commence its energy business with high quality, tightly focused properties that management believes can be exploited through additional developmental drilling. The Optioned Properties contain close to 100 geophysically and geologically defined locations, and include over 140,000 net acres of undeveloped land. Emphasis on Gas - Hawker's initial production will be 100% natural gas. As the Corporation expands, its portfolio of oil producing properties will increase, but the emphasis on natural gas will remain part of Hawker's business plan. Price Certainty Through Hedging - An integral part of the Corporation's strategy in acquiring an interest in the Optioned Properties was the prior negotiation of the right to secure certain hedging arrangements in respect of a portion of the production from the properties. These forward sales contracts reduce the economic uncertainty of the acquisition of an interest in the Optioned Properties by providing certainty to the price for a material portion of Hawker's 2003 and first quarter 2004 gas production. - 13 - Advantageous Tax Position - The Corporation has non-capital losses and unclaimed expenditures of $37 million and $41 million, respectively, that are available for application against future taxable income. The Corporation also has $4.9 million of unclaimed investment tax credits available to reduce future year's income tax. The acquisition by Hawker of an additional 49% undivided interest in the Optioned Properties will add to the Corporation's tax pools by an amount equal to the purchase price of $67 million. 3.4 DRILLING ACTIVITY The following table sets forth the number of gross and net exploratory and development wells included in the Optioned Properties and which were completed, capped or abandoned during the periods indicated.
YEARS ENDED DECEMBER 31 ---------------------------------------------------------------------- 2002 2001 ------------------------------------ ------------------------------- GROSS WELLS(1) NET WELLS(2) GROSS WELLS(1) NET WELLS(2) -------------- ------------ -------------- ------------ Exploratory Gas 8.0 4.0 - - Dry(3) 3.0 1.5 - - ---- ---- ---- ---- Total Exploratory 11.0 5.5 - - ==== ==== ==== ==== Development Gas 15.0 7.0 31.0 15.4 Dry(3) 3.0 1.5 21.0 10.5 ---- ---- ---- ---- Total Development 18.0 8.5 52.0 25.9 ==== ==== ==== ==== Total Drilling Activity 29.0 14.0 52.0 25.9 ==== ==== ==== ====
NOTES: (1) "Gross Wells" means the total wells in which the Corporation will acquire an interest. (2) "Net Wells" means the total wells in which the Corporation will acquire an interest, multiplied by the working interest therein that relates to a 50% interest in the Optioned Properties. (3) "Dry Well" means a well which is not a productive well or a service well. A productive well is a well which is capable of producing oil and gas in commercial quantities or in quantities considered by the operator to be sufficient to justify the costs required to complete, equip and produce the well. A service well means a well such as a water or gas-injection, water-source or water-disposal well. Such wells do not have marketable reserves of crude oil or natural gas attributed to them but are essential to the production of the crude oil and natural gas reserves. 3.5 LOCATION OF PRODUCTION The following description of the Optioned Properties describes an undivided 50% interest in the properties. LAVOY AREA The Lavoy area is located approximately 100 kilometres east of Edmonton, Alberta near the town of Vegreville, Alberta. The Corporation will acquire an interest in 140.0 producing gas wells (122.4 net wells) and 10 facilities, all of which are non-operated. These facilities have a combined working interest capacity of approximately 40 mmcf/d of sweet dry gas and are comprised of compressors and dehydration equipment. Gross production in 2002 from the Lavoy area averaged 29 mmcf/d of sweet dry gas. The sweet dry gas produced in the Lavoy area contains no liquids, and does not require hydrocarbon dewpoint control at the transportation stage. The majority of the wells in the Lavoy area are controlled through SCADA, an electronic system for natural gas processing and control, using a data acquisition system that is controlled and sourced real-time from Calgary. The Lavoy area is characterized by multi-zone potential from 14 producing horizons from the Paleozoic to the Upper Cretaceous. Zonal rights in the Lavoy area are typically 100% working interest from surface - 14 - to basement. Drilling depths in the Lavoy area are typically less than 850 metres. In 2002, 29 wells (14 net wells) were drilled in Lavoy with a 79% success rate. In 2002, each successful well in the Lavoy area averaged approximately 520 mmcf of reserves, illustrating that the property is not mature from the perspective of development drilling. Access to these properties is available year round, and the area lends itself to seismic acquisition, fracture technology, air drilling and coil tubing advancements. Two central dehydration and compression facilities were established in 2002 at East Warwick and West Lavoy. These facilities process 6.4 mmcf/d net of the Corporation's production. The Corporation owns various working interests in a non-operated extensive gathering system that is closely accessible to all lands in the area, and there is ample gas transportation out of the area. COLD LAKE/BONNYVILLE The Cold Lake/Bonnyville area is located approximately 250 kilometres northeast of Edmonton. The Corporation will acquire an interest in 24.0 producing gas wells (18.9 net wells) and one facility in the Cold Lake/Bonnyville area. The Cold Lake/Bonnyville area is characterized by a large reserve potential at shallow depths, with multi-zone potential from four producing Cretaceous zones and drilling depths that are typically less than 500 metres. Gross production in 2002 from the Cold Lake/Bonnyville area averaged 4.9 mmcf/d of sweet dry gas. As with the Lavoy area, the sweet dry gas produced in the Cold Lake/Bonnyville area contains no liquids, and does not require hydrocarbon dewpoint control at the transportation stage. No wells were drilled on this property in 2002. The Corporation currently anticipates exploring two low risk locations into the Clearwater B pool, and is evaluating the project inventory in the area with a view to exploiting potential upside in the Colony McLaren and Clearwater zones. The Corporation intends to assume operatorship of this property. Production from the Cold Lake/Bonnyville area is processed at a non-operated facility. Two field compressors were installed during 2002. 3.6 LOCATION OF WELLS The following table sets forth the producing wells and wells capable of producing included in the Optioned Properties as at December 31, 2002.
GAS WELLS -------------------------------------------------------- PRODUCING SHUT-IN(3) ---------------------- ----------------------- GROSS(1) NET(2) GROSS(1) NET(2) -------- ------ -------- ------ Lavoy 140.0 61.7 36.0 17.3 Cold Lake/Bonnyville 28.0 11.0 8.0 3.3 ----- ---- ---- ---- TOTAL 168.0 72.7 44.0 20.6 ===== ==== ==== ====
NOTES: (1) "Gross Wells" means all wells in which the Corporation will acquire a working interest. (2) "Net Wells" means the total wells in which the Corporation will acquire an interest, multiplied by the working interest therein that relates to a 50% interest in the Optioned Properties. - 15 - (3) "Shut-in Wells" are wells which are capable of economic production or which the Corporation considers capable of production but which, for a variety of reasons, including but not limited to lack of markets or development, are not currently on production. 3.7 LAND HOLDINGS The following table summarizes the undeveloped land included in the Optioned Properties as at March 31, 2003.
PROPERTY GROSS ACRES(1) NET ACRES(2) - -------- -------------- ------------ Lavoy 273,295 135,852 Cold Lake/Bonnyville 10,240 4,564 Manitoba 80 18 British Columbia 710 89 ------- ------- TOTAL 284,325 140,523 ======= =======
NOTES: (1) "Gross Acres" means the total acres in which the Corporation will acquire an interest. (2) "Net Acres" means the total acres in which the Corporation will acquire an interest, multiplied by the working interest therein that relates to a 50% interest in the Optioned Properties. The undeveloped land holdings of the Corporation have been evaluated by Antelope Land Services Ltd. which ascribed a value of $10,590,389 to a 50% undivided interest in the undeveloped lands included in the Optioned Properties. The Corporation has retained 100% of the seismic data relating to the Optioned Properties, which consists of approximately 6,234 kilometres of 2-D and 33.4 square kilometres of 3-D seismic data. Of this data, 3,337 kilometres of 2-D and 28 square kilometres of 3-D is purchased trade data in which the Corporation does not own any proprietary rights and will earn no revenue. The remaining 2,897 kilometres of 2-D and 5.4 square kilometres of 3-D seismic data constitutes proprietary seismic data. This seismic data will be used as a technological database to interpret and generate exploration and development prospects. The Corporation has granted a call option in respect of this seismic data which gives the grantee the right to acquire an undivided 99% in this seismic data for a purchase price of $3,710,000. If this call option is exercised, and the Corporation exercises the Purchase Option, in whole or in part, the Corporation will be required to purchase an equivalent proportion of this seismic data at a purchase price based on an ascribed price of $4 million for a 100% interest in the seismic data. 3.8 RESERVE ESTIMATES McDaniel has prepared the McDaniel Report in which it evaluated the crude oil, natural gas liquids and natural gas reserves attributable to an undivided 50% interest in the Optioned Properties, effective May 1, 2003, and estimated the net present worth value of such reserves. The information used to prepare the McDaniel Report was made available to McDaniel by Southward or was obtained from public sources or McDaniel's own files. The following tables summarize the reserve determinations contained in the McDaniel Report and the estimated future net present worth values therefrom. THE RESERVE DETERMINATIONS AND ESTIMATED NET PRESENT WORTH VALUES INCLUDED IN THE TABLES BELOW DO NOT INCLUDE THE ARTC AND ARE STATED PRIOR TO PROVISION FOR INCOME TAXES AND INDIRECT COSTS, SUCH AS GENERAL AND ADMINISTRATIVE EXPENSES AND FACILITY SITE RESTORATION, AND MAY NOT NECESSARILY BE REPRESENTATIVE OF THE FAIR MARKET VALUE OF THE RESERVES. THE PROBABLE RESERVES AND THE PRESENT WORTH VALUE OF SUCH RESERVES AS SET FORTH IN THE TABLES BELOW HAVE BEEN REDUCED BY 50% TO REFLECT THE DEGREE OF RISK ASSOCIATED WITH RECOVERY OF SUCH RESERVES. OTHER ASSUMPTIONS AND QUALIFICATIONS - 16 - RELATING TO COSTS, PRICES FOR FUTURE PRODUCTION AND OTHER MATTERS ARE SUMMARIZED IN THE NOTES FOLLOWING THE TABLES. THE RESERVE DETERMINATIONS AND ESTIMATED NET PRESENT WORTH VALUES INCLUDED IN THE TABLES BELOW REPRESENT A 50% UNDIVIDED INTEREST IN THE OPTIONED PROPERTIES. OPTIONED PROPERTIES (50% INTEREST) PETROLEUM AND NATURAL GAS RESERVES AND PRE-TAX ESTIMATED NET PRESENT WORTH ESCALATING PRICES AND COSTS
NATURAL GAS PRE-TAX ESTIMATED NET PRESENT WORTH (MMCF) (THOUSANDS OF DOLLARS) --------------- ----------------------------------- Discounted at ----------------------------------- Gross Net 0% 10% 15% 20% ------ ------ ------- ------ ------ ------- Proved Reserves Producing .......... 18,607 14,450 65,104 52,721 48,523 45,124 Non-Producing ...... 3,592 2,629 11,983 9,628 8,897 8,314 ------ ------ ------ ------ ------ ------ Total Proved Reserves .... 22,199 17,079 77,087 62,349 57,420 53,438 Risked Probable Reserves.. 4,195 3,181 13,502 8,678 7,332 6,341 ------ ------ ------ ------ ------ ------ Established Reserves ..... 26,394 20,260 90,589 71,027 64,752 59,779
OPTIONED PROPERTIES (50% INTEREST) PETROLEUM AND NATURAL GAS RESERVES AND PRE-TAX ESTIMATED NET PRESENT WORTH CONSTANT PRICES AND COSTS
NATURAL GAS PRE-TAX ESTIMATED NET PRESENT WORTH (MMCF) (THOUSANDS OF DOLLARS) ---------------- ------------------------------------- Discounted at ------------------------------------- Gross Net 0% 10% 15% 20% ------ ------ ------- ------ ------ ------ Proved Reserves Producing ............... 18,607 14,450 87,183 68,053 61,720 56,662 Non-Producing ........... 3,592 2,629 15,154 11,778 10,734 9,910 ------ ------ ------- ------ ------ ------ Total Proved Reserves ......... 22,199 17,079 102,337 79,831 72,454 66,572 Risked Probable Reserves ...... 4,195 3,181 19,516 12,243 10,224 8,742 ------ ------ ------- ------ ------ ------ Established Reserves .......... 26,394 20,260 121,853 92,074 82,678 75,314
NOTES TO RESERVE DETERMINATIONS The following notes provide important information relating to the preceding reserve determinations. (1) "Gross Reserves" are defined as the total of the Corporation's working interests and/or royalty interests share of reserves before deducting royalties owned by others. (2) "Net Reserves" are defined as the total of the Corporation's working interests and/or royalty interests share of reserves after deducting the amounts attributable to the royalties owned by others. (3) "Net Present Worth" values are based on net reserves and are expressed after giving effect to estimated operating expenses and capital expenditures but before provision for income taxes, overhead and general administrative expenses, and for the escalating price assumptions case, the operating expenses and capital expenditures have been escalated at 2.0% per year. (4) "Proved Reserves" are defined as those reserves estimated as recoverable under current technology and existing economic conditions, from that portion of a reservoir which can be reasonably evaluated as economically productive on the basis of analysis of drilling, geological, geophysical and engineering data, including the reserves to be obtained by enhanced recovery processes demonstrated to be economic and technically successful in the subject reservoir. (5) "Proved Producing Reserves" are defined to include both those proved reserves that are actually on production, or if not producing, that could be recovered from existing wells or facilities and where the reasons for the current non-producing status is the choice of the owner. An illustration of such a situation is where a well or zone is capable of production but is shut-in because its deliverability is not required to meet contract commitments. (6) "Proved Non-Producing Reserves" are defined as those reserves estimated as recoverable from existing wells that require relatively minor capital expenditures to produce. - 17 - (7) "Proved Undeveloped Reserves" are defined as those reserves expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major capital expenditure will be required. (8) "Probable Additional Reserves" are defined as those reserves which an analysis of drilling, geological, geophysical and engineering data does not demonstrate to be proved under current technology and existing economic conditions, but where such analysis suggests the likelihood of their existence and future recovery. Probable additional reserves to be obtained by the application of enhanced recovery processes will be the increased recovery over and above that estimated in the proved category which can be realistically estimated for the pool on the basis of enhanced recovery processes which can be reasonably expected to be instituted in the future. (9) "Risked Probable Reserves" means probable additional reserves discounted by one-half to account for the additional risk of recovery for probable reserves; (10) "Established Reserves" means proved reserves plus risked probable reserves; (11) The constant price assumptions table is based on the following prices and held constant over the life of the reserves (West Texas Intermediate ("WTI") - $US 30.00/bbl; Edmonton Light $Cdn. 43.10/bbl; Alberta Average Natural Gas $Cdn. 6.90/mmbtu). (12) The escalating price assumptions table is based on the McDaniel price forecast (March 1, 2003) and escalating over the life of the reserves. An excerpt of the price forecast from the McDaniel Report, being the WTI oil price at Cushing, Oklahoma, the Edmonton Oil Price for 40 API, 0.5% sulphur crude, and the Alberta Average field price for gas, appears below.
CRUDE OIL NATURAL GAS -------------------------- --------------- WTI EDMONTON LIGHT ALBERTA AVERAGE YEAR ($US/BBL) ($CDN/BBL) ($CDN/MMBTU) - ---- --------- -------------- --------------- 2003 30.00 43.10 6.90 2004 26.00 37.20 5.65 2005 24.00 34.30 5.05 2006 23.00 32.80 4.80 2007 23.30 33.20 4.65 2008 23.80 33.90 4.70 2009 24.30 34.60 4.80 2010 24.80 35.30 4.90 2011 25.30 36.00 5.00 2012 25.80 36.70 5.10 2013 26.30 37.50 5.20 2014 26.80 38.20 5.30 2015 27.30 38.90 5.40 2016 27.80 39.60 5.50 2017 28.40 40.40 5.60 2018 29.00 41.30 5.70 2019 29.60 42.20 5.85 2020 30.20 43.00 5.95 2021 30.80 43.90 6.10 2022 31.40 44.70 6.20
(13) The value of the ARTC has not been included in the Net Present Worth values. (14) The McDaniel Report estimates that capital expenditures to be incurred in 2003, 2004 and 2005 and thereafter and in total, net to the Corporation, necessary to achieve the estimated net present worth values from proved plus probable additional reserves are as follows:
ESCALATING PRICE ASSUMPTIONS CONSTANT PRICE ASSUMPTIONS - ---------------------------- -------------------------- 2003 $ 1,117,000 2003 $ 1,110,300 2004 175,600 2004 168,800 2005+ 287,300 2005+ 262,300 ------------ ------------ Total $ 1,579,900 $ 1,541,400 ============ ============
(15) All of the proved producing reserves in the Optioned Properties are currently on production. (16) The McDaniel Report estimates future abandonment costs of $20,000 for each well that has been assigned reserves. Actual abandonment costs may exceed this estimate. No allowance was included for future abandonment costs of any facilities. 3.9 RECONCILIATION OF RESERVES The following table summarizes the changes to the proved reserves (before royalties) associated with a 50% undivided interest in the Optioned Properties from December 31, 2001 to December 31,2002. - 18 -
NATURAL GAS (MMCF) ------------------------------- PROVED PROBABLE TOTAL ------ -------- ----- January 1, 2002 22,920 4,889 27,809 Production (6,310) - (6,310) Acquisitions - - - New Development 5,920 2,060 7,980 Dispositions (269) (9) (278) Revisions (1,319) (531) (1,850) ------ ----- ------ January 1, 2003 20,942 6,409 27,351 ====== ===== ======
3.10 PRODUCTION HISTORY The following table shows the average daily production volumes from an undivided 50% interest in the Optioned Properties, before the deduction of royalties, for each of the fiscal quarters of 2001 and 2002.
2002 2001 ------------------------------------------------------ ------------------------------------------------------ THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ----------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Natural Gas (mcf/d) 16,714 16,071 16,460 19,258 16,071 16,534 18,096 18,190
3.11 NETBACK HISTORY The following table summarizes the average netbacks ($ per mcf) received for natural gas production from an undivided 50% interest in the Optioned Properties for each of the fiscal quarters of 2001 and 2002.
2002 2001 ------------------------------------------------------ ------------------------------------------------------ (UNAUDITED) (UNAUDITED) THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Sales Price $3.10 $3.10 $3.37 $4.72 $9.26 $6.07 $3.99 $3.55 Processing and Other - - - - - - - - Income Royalties 0.83 0.93 0.97 1.12 2.46 1.60 0.84 0.75 Operating Costs 0.55 0.66 0.51 0.56 0.39 0.42 0.50 0.41 ----- ----- ----- ----- ----- ----- ----- ----- Netback 1.72 1.51 1.89 3.04 6.41 4.05 2.65 2.39 ===== ===== ===== ===== ===== ===== ===== =====
3.12 CAPITAL EXPENDITURES The following table summarizes the capital expenditures in respect of an undivided 50% interest in the Optioned Properties in the categories indicated for each of the fiscal quarters of 2001 and 2002.
2002 2001 ------------------------------------------------------ ------------------------------------------------------ (UNAUDITED) (UNAUDITED) THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Land acquisitions $ 197,314 $ 67,739 $ 320,420 $ 126,603 $ 839,101 $ 1,354,036 $ 1,727,559 $ 487,130 Exploration (including drilling) 1,128,209 1,273,520 913,588 328,622 1,873,729 3,465,651 1,162,818 1,745,135
- 19 -
2002 ------------------------------------------------------ (UNAUDITED) THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS ENDED ENDED ENDED ENDED MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ------------ ------------ ------------ ------------ Development (including facilities) 266,080 592,692 1,363,206 389,783 ------------ ------------ ------------ ------------ Total 1,591,603 1,933,951 2,597,214 845,008 ============ ============ ============ ============
2001 ------------------------------------------------------- (UNAUDITED) THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS ENDED ENDED ENDED ENDED MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ------------ ------------ ------------ ------------- Development (including facilities) 890,289 1,537,726 1,169,140 888,443 ------------ ------------ ------------ ------------- Total 3,603,119 6,357,413 4,059,517 3,120,708 ============ ============ ============ =============
3.13 FUTURE COMMITMENTS As a pre-condition to BidCo entering into the arrangement agreement, Southward agreed that at the direction of BidCo it would enter into fixed price forward sales contracts in respect of up to 12,875 GJ/d of gas production from the Optioned Properties. At BidCo's direction, on March 17, 2003, Southward entered into four forward sales contracts in respect of an aggregate of 12,880 GJ/d for 2003 and the first quarter of 2004, of which the Corporation will retain an interest in contracts in respect of 6,440 GJ/d, representing 36% of gas production attributable to a 50% undivided interest in the Optioned Properties for the last 8 months of 2003 (based on the McDaniel Report) at prices ranging from $6.24 to $7.15 per GJ. These forward sales contracts reduce the economic uncertainty of the acquisition of an interest in the Optioned Properties by providing certainty to the prices for a portion of the production from the properties. In addition to the forward sales contracts noted above, pursuant to the Purchase Option, the Corporation will acquire an interest in forward sales contracts and financial hedging contracts with respect to production from the Optioned Properties as follows:
VOLUME CONTRACT PRICE(1) TRANSACTION TYPE (GJ/d) (GJ/d) EXPIRY - ------------------------ --------- ----------------- ----------------- Fixed Summer 1,658 $4.10 October 31,2003 Fixed Summer 3,220 $6.64 October 31,2003 Costless Collar Summer 3,220 $6.24 - $7.00 October 31,2003 Costless Collar Winter 4,830 $6.36 - $7.15 March 31,2004 Fixed Winter 1,610 $ 6.76 March 31,2004 Fixed Summer 1,450 $ 5.06 October 31,2003 Cogeneration Fuel Supply 263 $1.959(2) October 31,2008 Daily Declining Profile 977(3) netback(4) October 31,2011 Reserve Based 101(5) netback(6) life of reserves
NOTES: (1) The contract price net of costs is obtained by subtracting costs of $0.20 from the contract price. (2) The contract price increases over the term of the contract, with the price for each of the 12 month periods remaining in the term as follows:
DATE PRICE - --------------- ------ November 1,2003 $2.008 November 1,2004 $2.058 November 1,2005 $2.110 November 1,2006 $2.163 November 1,2007 $2.217
- 20 - (3) The Corporation's obligations under this contract will, on November 1 of this year and each succeeding year, decline to the following:
DATE OBLIGATION (GJ/d) - ------------------------------ ----------------- November 1,2003 841 November 1,2004 724 November 1,2005 623 November 1,2006 and thereafter 568
(4) TransCanada Pipelines Limited netback pricing. (5) Reserve based with respect to production from Mannville 2-19 well. (6) Progas Limited netback pricing. Hawker's aggregate future commitments represent an aggregate of 50% of its estimated 2003 production from total proved reserves at a weighted average price of $5.98 per GJ and 44% of its estimated first quarter 2004 production from total proved reserves at a weighted average price of $6.57 per GJ. ITEM 4: SELECTED CONSOLIDATED FINANCIAL INFORMATION 4.1 ANNUAL INFORMATION The following table sets forth selected consolidated financial information of the Corporation for each of the last three years ended December 31. This financial information reflects the Corporation's operations as a pharmaceutical research company prior to its transformation into an oil and gas enterprise.
YEARS ENDED DECEMBER 31 ----------------------- (000s except per share amounts) 2002 2001 2000 ---- ---- ---- Revenue $ 139 $ 729 $ 1,513 Net earnings (loss) $3,766 ($ 22,988) ($ 7,889) Basic and diluted net earnings (loss) per $ 0.76 ($ 4.64) ($ 1.63) share Total assets $4,015 $ 22,584 $46,326 Total cash and cash equivalents $ 289 $ 5,841 $18,821 Total long-term debt - - $ 9,163 Cash dividends declared per Common Nil Nil Nil Share
- 21 - 4.2 QUARTERLY INFORMATION The following table sets forth certain financial information for the last eight financial quarters ended December 31, 2002. This financial information reflects the Corporation's operations as a pharmaceutical research company prior to its transformation into an oil and gas enterprise. QUARTER ENDED (000s except per share amounts)
DEC. 31 SEPT. 30 JUNE 30 MAR. 31 DEC. 31 SEPT. 30 JUNE 30 MAR. 31 2002 2002 2002 2002 2001 2001 2001 2001 -------- -------- ------- ------- -------- -------- ------- ------- Revenue - - - - - - - $ 214 Other income $ 1 $ 2 $ 4 $ 132 $ 50 $ 93 $147 $ 50 Net earnings ($ 1,241) ($ 6,567) $8,056 $3,518 ($ 13,621) ($ 1,612) ($ 3,687) ($ 4,068) (loss) Basic earnings ($ 0.25) ($ 1.32) $ 1.61 $ 0.71 ($ 2.75) ($ 0.33) ($ 0.72) ($ 0.82) (loss) per share
4.3 DIVIDEND POLICY To date, the Corporation has not paid any dividends on its outstanding Common Shares. The future payment of dividends will be dependent upon the financial requirements of the Corporation to fund future growth, the financial condition of the Corporation and other factors which the board of directors of the Corporation may consider appropriate in the circumstances. It is unlikely that dividends will be paid in the foreseeable future. ITEM 5: MANAGEMENT'S DISCUSSION AND ANALYSIS THIS DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION OF THE CORPORATION AND THE RESULTS OF OPERATIONS SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS AND THE RELATED NOTES. OVERVIEW Prior to December 10, 2001, the Corporation was a biotechnology company focusing primarily on the discovery and development of pharmaceutical products for gastroenteric diseases or conditions which could benefit from new or additional therapies. On December 10, 2001, the Corporation terminated development of SYNSORB Cd(R), its sole development drug. Subsequent to that date, the Corporation has had no drug under active development and has no regular source of operating revenue or cash flow. After that date, the Corporation reduced its spending and terminated all contracts and commitments that were considered not critical to an orderly wind down of the clinical trials and the preservation of its asset base. During 2002, the employees of the Corporation were reduced to one full-time and one part-time employee. PROVISION FOR SYNSORB Cd(R) WIND-DOWN COSTS A provision for the future wind-down costs of clinical trials, reduction in staff and elimination of their costs associated with the development of the SYNSORB Cd(R) totalling $3,830,000 was included in the results for the year ended December 31,2001. Of this amount, approximately $946,000 related directly to - 22 - the wind down of clinical activity, $1,339,000 related to staff reductions and $1,545,000 related to other costs associated with halting SYNSORB Cd(R) related activity. An additional provision amount of $50,000 was included for the period ended June 30, 2002. As at December 31, 2002, the entire provision amount had been utilized. No further windup costs are anticipated. WRITE-DOWNS OF CAPITAL ASSETS The decision to halt clinical trials led to a write-down of certain capital assets. In 2001, the Corporation wrote down its patents associated with SYNSORB related technology to nil, and the charge of $2,060,000 was included in amortization expense. In 2000, the Corporation wrote down its patents associated with SYNSORB Pk(R) to nil, and the charge of $602,000 was included in amortization expense. As part of its drug development activity, in 1998 SYNSORB built a cGMP-compliant manufacturing facility. In 2001, the Corporation determined that continued ownership of this facility was unnecessary and wrote-down the value of the facility and associated equipment on December 31, 2001 to the estimated net realizable value based on its potential sale as a cGMP-compliant manufacturing facility. In 2001, this resulted in the Corporation writing-down the value of its building and land to $8,600,000 and writing-down the value of its manufacturing equipment to $2,000,000, and the total associated charge of $5,876,000 was included in amortization expense. Efforts to market the facility as a manufacturing facility were unsuccessful and the Corporation now expects to realize commercial value for the building and land. Accordingly, the Corporation wrote-down the value of the building and land to $2,500,000 and the associated charge of $6,100,000 is included in amortization expense. While the Corporation feels that these write-downs are appropriate, the book value of the building and land may not reflect the ultimate realizations which may be achieved on their disposition. The manufacturing equipment was auctioned subsequent to December 31, 2002, the value of the manufacturing equipment as at December 31, 2002 was written down to $1,000,000 and the associated charge of $997,000 is included in amortization expense. For the year ended December 31, 2001 the Corporation wrote off leasehold improvements, computer equipment and office furniture and equipment and the total charge of $267,000 was included in amortization expense. DISTRIBUTION OF SHARES OF ONCOLYTICS BIOTECH INC. At December 31, 2001 the Corporation owned 6,255,800 common shares of Oncolytics Biotech Inc. ("Oncolytics"). Effective May 15, 2002 the Corporation distributed to its shareholders 4,000,235 common shares of Oncolytics which was accounted for as a return of capital. The deemed value of these shares, net of expenses, was $11,600,000 resulting in a gain on distribution of $8,325,000. As part of this transaction, the Corporation's holding of 1,500,000 shares in BCY Life Science's Inc. was transferred to Oncolytics. No gain or loss was recorded as a result of that transfer. During the year ended December 31, 2002 the Corporation sold 2,255,565 common shares of Oncolytics for net proceeds of $6,898,000 resulting in a gain on sale of $4,899,000. As at December 31, 2002 the Corporation did not hold any common shares of Oncolytics. - 23 - YEAR ENDED DECEMBER 31, 2002 COMPARED WITH YEAR ENDED DECEMBER 31, 2001 Liquidity and Capital Resources At December 31, 2002 the Corporation's cash and working capital positions were $289,000 and $412,000, respectively, compared at December 31, 2001 balances of $5,841,000 and ($4,725,000) respectively. As at December 21, 2002 the Corporation had no long term or short term debt. At December 31, 2001 the current portion of long term debt of the Corporation was $5,910,000, all of which was repaid during 2002. The Corporation's primary source of liquidity during 2002 was the liquidation of its assets. In 2002 the Corporation sold 2,255,565 common shares of Oncolytics for net proceeds of $6,898,000 resulting in a gain on sale of $4,899,000. As at December 31, 2002 the Corporation did not hold any common shares of Oncolytics. During 2002 the Corporation attempted to dispose of both its manufacturing equipment and its manufacturing facility. Subsequent to December 31, 2002 the Corporation disposed of most of its manufacturing equipment through auction realizing proceeds, net of expenses, of approximately $900,000 and has listed its manufacturing building and related land for sale as commercial premises. The Corporation also holds miscellaneous intellectual property rights with respect to certain drug technologies, which it may license, dispose of or abandon. In February 2003 the Corporation received U.S.$230,000 for an exclusive license of certain of its patents regarding toxin binding sugars. No assurance can be given as to whether any assets can be disposed of or what, if any, proceeds can or will be received with respect thereto. In addition to the liquidation of assets, the Corporation may receive milestone payments and royalties with respect to the previous sale of its INH subsidiary or may choose to sell these rights. The Corporation cannot predict the likelihood, timing or amount of any milestone or royalty receipts. Results of Operations For the year ended December 31, 2002, the Corporation had total revenue of $139,000 compared to $729,000 for the year ended December 31, 2001. Interest income for the 12 months ended December 31, 2002 decreased significantly compared to the same period in 2001 as a result of lower average cash balances on hand and lower interest rates in 2002. Expenses for the year ended December 31, 2002 of $9,126,000 were less than the expenses of $26,803,000 for the comparable period in 2001. Because the Corporation had terminated research and development in late 2001 and made a provision in that year for future wind down costs associated with drug development, research development expenses in 2002 were nil. Operating expenses for the 2002 period were $1,596,000, a significant reduction from $7,106,000 for 2001. The reduction is due to the termination of almost all employees, the termination of certain office space effective April 11, 2002 and the consolidation of all activity at the manufacturing facility. Interest on long term debt in 2002 was $71,000, a significant reduction from $787,000 in 2001 due to the payment by the Corporation during 2002 of all of its long and short-term debt. Amortization in 2002 was $7,216,000 compared to $9,655,000 in 2001. Included in the 2001 amortization amounts was property and other capital asset write-downs of $8,203,000 arising from the termination of the Corporation's drug development program. The amortization in 2002 included additional write-downs of the Corporation's equipment and manufacturing facility based on the Corporation's determination that those assets could only be sold on the basis of general commercial conditions and not their drug specific attributes. - 24 - YEAR ENDED DECEMBER 31, 2001 COMPARED WITH YEAR ENDED DECEMBER 31, 2000 Liquidity and Capital Resources The Corporation's cash and working capital position at December 31, 2001 were $5,841,000 and ($4,725,000) respectively, compared to December 31, 2000 balances of $18,821,000 and $14,942,000 respectively. The working capital deficiency of ($4,725,000) included $5,910,000 as the current portion of long term debt, all of which was repaid subsequent to year-end. On December 10, 2001, when it announced its decision to halt development of SYNSORB Cd(R), the Corporation had cash of approximately $7,000,000 and long term debt, including current portion, totalling $6,383,625. During 2001 the Corporation entered into a Common Share Purchase Agreement (CSPA) allowing the Corporation to access funds through the sale of a maximum of 1,000,000 Oncolytics common shares pursuant to a common share equity line. Under this agreement the Corporation was able, at its option, to sell the Oncolytics common shares over a period of 12 months commencing on June 19, 2001 at a discount from the average daily price of the common shares. During the year ended December 31, 2001 the Corporation sold 494,200 Oncolytics common shares, representing 7% of the Corporation's total holdings in Oncolytics, for net proceeds of $3,481,070 under the terms of the CSPA. Subsequent to year-end the Corporation terminated the CSPA with no penalty. On April 20, 2001 the Corporation issued 126,000 common shares on the exercise of options for proceeds of $126,000. No other equity was issued during 2001. During the year the Corporation repaid $2,866,000 of the principal outstanding with respect to its long-term debt and a further $5,910,000 was outstanding at December 31, 2001. Effective December 31, 2001, the Corporation agreed to a revised repayment schedule for its $5,000,000 credit facility drawn down during construction of the manufacturing facility. Therefore, all of the amount outstanding at December 31, 2001 was repayable within one year. Interest paid in 2001 with respect to these debt facilities was $787,000 compared to $1,176,000 for 2000. On February 5, 2002 the Corporation prepaid the remaining $838,586 owing under a loan bearing an interest rate of 13.73% per annum, with certain intellectual property pledged as collateral. On March 1, 2002 the Corporation repaid the remaining principal of $4,000,000 outstanding on its floating rate debt. Results of Operations For the year ended December 31, 2001, the Corporation recorded total revenue of $729,000 compared to $1,513,000 for the year ended December 31, 2000. Milestone payments totalled $214,000 for the year ended December 31, 2001 compared to $106,000 for the same period in 2000. A payment of $94,000 was also received from a partnering agreement in 2000. Interest income for the twelve months ended December 31, 2001 decreased by 61% compared to the same period in 2000 as a result of a lower average cash on hand balance and lower interest rates in 2001. Expenses for the years ended December 31,2001 and 2000 of $9,255,000 and $7,889,000 respectively for research and development and clinical trials represented approximately 35% and 56% respectively of the Corporation's total expenses. Included in 2001 research and development expenses were $1,384,000 of future wind down costs since further development of SYNSORB Cd(R) was terminated in December 2001. Of this amount $946,000 relates directly to the wind down of the clinical trial and $438,000 relates to other costs associated with halting development of SYNSORB Cd(R). There were minimal expenses associated with SYNSORB Pk(R) during 2001 as active development of the drug was suspended in December 2000. - 25 - During 2001, the Corporation spent $974,000 for research programs and other expenses to develop and broaden the SYNSORB technology, primarily in the field of carbohybrids. Ongoing research and development has been suspended since the termination of development of SYNSORB Cd(R). Operating expenses totalled $7,106,000 and $3,648,000 for the years ended December 31, 2001 and 2000 respectively. The increase of $3,458,000 primarily reflects $2,446,000 in future wind down costs and $507,000 in December 2001 staff termination costs. Included in the future wind down costs are $1,339,000 related to future staff terminations and $1,107,000 in other administrative costs relating to the termination of development of SYNSORB Cd(R) such as legal and audit fees, insurance, rent and other office costs. Capital Expenditures Capital expenditures for the year ended December 31, 2001 totalled $944,000, including $720,000 in patent costs incurred for the Corporation's intellectual property, $92,000 in leasehold improvements, $127,000 in office and computer equipment, and $25,000 in manufacturing equipment. All capital expenditures, except those deemed necessary to maintain intellectual property, were suspended subsequent to the decision on December 10, 2001 to halt development of SYNSORB Cd(R). The Corporation has offered its manufacturing facility for sale. Capital expenditures for the year ended December 31, 2000 totalled $980,000. At year-end 2001, the Corporation had no commitments for future capital spending. Annual amortization of capital investments totalled $9,655,000 or approximately 36% of the Corporation's total expenses for the year 2001 compared to $1,404,000 or 10% for 2000. Included in the 2001 amortization amount are property and other capital assets write downs of $8,203,000 arising as a result of the termination of development of SYNSORB Cd(R). Depreciation of the manufacturing facility commenced on January 1, 2001 at the rate of 5% per annum on a declining balance. INCOME TAXES As at December 31, 2002 the Corporation had non-capital losses of approximately $37,314,000 available to reduce future taxable income. These losses will expire in the years 2005 through 2008. In addition, the Corporation had unclaimed expenditures of approximately $41,000,000 available to reduce future taxable income and $4,939,000 of unclaimed investment tax credits available to reduce future income tax payable. As at December 31, 2002 the Corporation had non-capital losses of approximately $37,314,000 available to reduce future taxable income. These losses will expire in the years 2005 through 2008. In addition, the Corporation had unclaimed expenditures of approximately $41,000,000 available to reduce future taxable income and $4,939,000 of unclaimed investment tax credits available to reduce future income tax payable. The acquisition by Hawker of an additional 49% undivided interest in the Optioned Properties will add to the Corporation's tax pools by an amount equal to the purchase price of $67 million, subject to adjustment. TREATMENT OF RESEARCH AND DEVELOPMENT COSTS During 2001 and the previous two years, the research and development costs of the Corporation were expensed as incurred. Under Canadian generally accepted accounting principles (GAAP), development costs should be capitalized if certain criteria are met. Companies with major products in clinical trials do not necessarily meet these criteria. In the United States all research and development costs are expensed in accordance with US GAAP. The Corporation's development costs in 2001, and the previous two years, did not meet the following two capitalization criteria: (i) the technical feasibility of the product or process must have been established; and (ii) the future market for the product or process must be clearly defined. - 26 - With regard to (i), the Corporation was conducting clinical trials for SYNSORB Cd(R) and SYNSORB Pk(R) and the technical feasibility of these products was not known. With regard to (ii), the future market for these products was not clearly defined. For these reasons, the Corporation's development costs were expensed and not capitalized. RISKS AND UNCERTAINTIES Throughout the conduct of its clinical trials, the Corporation has maintained product liability insurance at levels consist with the current industry practice. No assurance can be given that this coverage will provide full protection against all risks. ITEM 6: MARKET FOR SECURITIES The Corporation's Common Shares are listed for trading on the TSX under the trading symbol "HKR". ITEM 7: DIRECTORS AND OFFICERS The following table sets out the names and municipalities of residence of each of the current directors and officers of the Corporation, their current positions and offices with the Corporation and their principal occupations and positions held during the last five years.
NAME AND MUNICIPALITY OF POSITION WITH THE DIRECTOR OR OFFICER PRESENT OCCUPATION AND POSITIONS HELD DURING RESIDENCE CORPORATION SINCE THE LAST FIVE YEARS - ------------------------ ----------------- ------------------- -------------------------------------------- David A. Tuer Chief Executive January 6, 2003 Chief Executive Officer and a Director of Hawker Calgary, Alberta Officer and a and Chairman, Calgary Health Region. Prior to Director October 2001, President, Chief Executive Officer and a Director of PanCanadian Petroleum Limited Ronald P. Mathison(1)(2)(3) Chairman and a April 3, 2003 President and Director of Matco Investments Ltd. Calgary, Alberta Director Stan G.P. Grad(3) Director April 21, 2003 Independent Businessman Calgary, Alberta Bruce J. Kenway, C.A.(1) Director March 31, 1994 Partner, Kenway Mack Slusarchuk Stewart LLP, Calgary, Alberta Chartered Accountants Martin A. Lambert(1)(2) Director April 3, 2003 Partner, Bennett Jones LLP Calgary, Alberta Keith T. Smith(3) Director April 3, 2003 President and Chief Executive Officer of zed.i Calgary, Alberta solutions inc. from April 2001. Prior thereto, Vice President, Corporate Development with zed.i solutions inc. since April 2000 and Executive Vice President of Acanthus Resources Ltd., a private oil and gas company, from August 1998 to April 2000. Prior thereto, Executive Vice President of WestCastle Energy Corp., the Manager of WestCastle Energy Trust, and a Director of WestCastle Acquisition Corp., the operating company of WestCastle Energy Trust from February 1997 to August 1998
- 27 -
NAME AND MUNICIPALITY OF POSITION WITH THE DIRECTOR OR OFFICER PRESENT OCCUPATION AND POSITIONS HELD DURING RESIDENCE CORPORATION SINCE THE LAST FIVE YEARS - ----------------------- ----------------- ------------------- --------------------------------------------- Barry Herring Chief Financial May 6, 2003 Chief Financial Officer of the Corporation since Calgary, Alberta Officer May 6, 2003. Prior thereto, Vice President, Finance and Chief Financial Officer of Southward Energy Ltd. from January 2002 to April 2003, Senior Vice President of Calpine Canada from June 2000 to September 2000, Vice President, Finance and Operations of Quintana Minerals Canada Corp. from May 1999 to June 2000 and Vice President, Finance and Operations of Ocean Energy Inc. from 1997 to 1999. Terry C. Schmidtke Chief Operating April 21, 2003 Chief Operating Officer of the Corporation since Calgary, Alberta Officer April 21, 2003. Prior thereto, Senior Vice President, Central Plains Region for EnCana Corporation from April 2002 to March 2003, and General Manager of various business units of PanCanadian Petroleum Limited since 1994. Darrell R. Peterson Corporate April 3, 2003 Partner, Bennett Jones LLP since March 2003. Calgary, Alberta Secretary Prior thereto, Associate of Bennett Jones LLP.
NOTES: (1) Member of Audit Committee. (2) Member of Corporate Governance Committee. (3) Member of Reserves Committee. The officers and directors of the Corporation, as a group, beneficially own, directly or indirectly, 5,230,767 Equity Shares or approximately 46% of the outstanding Equity Shares (calculated as though the Conversion had occurred). ITEM 8: ADDITIONAL INFORMATION Additional information, including information as to directors' and officers' remuneration and indebtedness, principal holders of the Corporation's securities, options to purchase securities and interests of insiders in material transactions is contained in the Information Circular of the Corporation for the Annual and Special Meeting of Shareholders of the Corporation held on April 3,2003. Additional financial information is provided in the Corporation's audited consolidated financial statements for the year ended December 31,2002. When the Corporation's securities are in the course of a distribution pursuant to a short form prospectus or when a preliminary short form prospectus has been filed in respect of a distribution of the Corporation's securities, upon request to the Chief Financial Officer, the Corporation will provide to any person: 1) one copy of this Annual Information Form together with one copy of any document, or the pertinent pages of any document, incorporated by reference in this annual information form; 2) one copy of the Corporation's audited consolidated financial statement for the year ended December 31, 2002, together with the report of the auditors thereon, and one copy of any of the Corporation's interim consolidated financial statements subsequent to such audited financial statements; and - 28 - 3) one copy of the Corporation's Information Circular for the Annual and Special Meeting of the Shareholders of the Corporation held on April 3, 2003. At any other time, one copy of each of the documents referred to in 1, 2 and 3 above may be obtained upon request to Chief Financial Officer for the Corporation, provided that the Corporation may require the payment of a reasonable charge if the request is made by a person who is not a shareholder of the Corporation. Any request for any documents referred to above should be made to the Chief Financial Officer, Hawker Resources Inc., 3200, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9 and fax (403) 266-1814. EX-3 5 o10068exv3.txt ENGINEERING REPORT EXHIBIT 3 HAWKER RESOURCES INC. MECHANICAL UPDATE ------------------------------------------------- EVALUATION OF GAS RESERVES BASED ON MARCH CONSTANT PRICE ASSUMPTIONS AS OF MAY 1, 2003 McDANIEL & ASSOCIATES CONSULTANTS LTD. ----------------------------------------- Oil and Gas Reservoir Engineering HAWKER RESOURCES INC. MECHANICAL UPDATE ----------------------------------------------- EVALUATION OF GAS RESERVES BASED ON MARCH CONSTANT PRICE ASSUMPTIONS AS OF MAY 1, 2003 PREPARED FOR: HAWKER RESOURCES INC. C/O ROSS SMITH ENERGY GROUP 400, 407 - 8TH AVENUE S.W. CALGARY, ALBERTA T2P 1E5 PREPARED BY: McDANIEL & ASSOCIATES CONSULTANTS LTD. 2200, 255 - 5TH AVENUE S.W. CALGARY, ALBERTA T2P 3G6 APRIL 2003 McDANIEL & ASSOCIATES consultants ltd. HAWKER RESOURCES INC. MECHANICAL UPDATE TABLE OF CONTENTS COVERING LETTER CERTIFICATES OF QUALIFICATION SUMMARY TOTAL COMPANY RESERVES AND PRESENT WORTH VALUES Table A FIGURES Location of Major Properties Natural Gas Production Profile Before Tax Net Operating Income Profile Reserve Distribution by Reserve Class and Product Reserve and Present Worth Value Distribution for Major Properties PRICE SCHEDULES EVALUATION METHODOLOGY APPENDIX 1 TOTAL PROVED RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 Reserves and Present Worth Values by Area Table 3 Total Proved Reserves Sorted by Company Gas Reserves Sorted by Company BOE Reserves Sorted by 10% Present Worth Values First Year Production, Revenues and Expenses by Area Table 4 Ten Year Production, Revenues and Expenses by Area Table 5
McDANIEL & ASSOCIATES consultants ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 2 MARCH CONSTANT PRICE ASSUMPTIONS TABLE OF CONTENTS APPENDIX 2 TOTAL PROVED AND PROBABLE RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 Reserves and Present Worth Values by Area Table 3 Total Proved & Probable Reserves Sorted by Company Gas Reserves Sorted by Company BOE Reserves Sorted by 10% Present Worth Values First Year Production, Revenues and Expenses by Area Table 4 Ten Year Production, Revenues and Expenses by Area Table 5 APPENDIX 3 PROBABLE RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 APPENDIX 4 PROVED PRODUCING RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 APPENDIX 5 PROVED NON-PRODUCING RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 APPENDIX 6 SUMMARY OF RESERVE ESTIMATES Summary of Crude Oil Reserve Estimates Table 1 Summary of Natural Gas Reserve Estimates Table 1 APPENDIX 7 COMPANY INTEREST DATA Lists of Interests and Encumbrances Table 1
McDANIEL & ASSOCIATES consultants ltd. [McDANIEL LOGO] April 22, 2003 HAWKER RESOURCES INC. C/O ROSS SMITH ENERGY GROUP 400, 407 - 8TH AVENUE S.W. CALGARY, ALBERTA T2P 1E5 Attention: Mr. Jim Jarrell, Vice President Reference: HAWKER RESOURCES INC. MECHANICAL UPDATE EVALUATION OF GAS RESERVES MARCH CONSTANT PRICE ASSUMPTIONS Dear Sir: Pursuant to your request we have prepared an update of the natural gas reserves and the present worth values of these reserves for the natural gas interests of Hawker Resources Inc., hereinafter referred to as the "Company", as of May 1, 2003. The future net revenues and present worth values presented in this report were calculated using "March Constant Price" assumptions with no inflation of operating costs or capital costs and were presented in Canadian dollars. No allowances were made for income tax or for the Alberta Royalty Tax Credit. THIS UPDATE IS BASED ON THE REPORT ENTITLED "SOUTHWARD ENERGY LTD., EVALUATION OF GAS RESERVES, BASED ON CONSTANT PRICE ASSUMPTIONS, AS OF JANUARY 1, 2003", DATED FEBRUARY 18, 2003. FOR THIS UPDATE THE REFERENCE DATE WAS MECHANICALLY UPDATED TO MAY 1, 2003 BY REMOVING THE ESTIMATED PRODUCTION FROM JANUARY 1, 2003 TO MAY 1, 2003. IT SHOULD BE NOTED THAT THERE HAS BEEN NO REVIEW OF RECENT WELL PERFORMANCE DATA OR OPERATING COST DATA SINCE THE PREPARATION OF THE JANUARY 1, 2003 REPORT. SEVERAL OTHER CHANGES AND ADDITIONS WERE INCLUDED WITH THIS UPDATE AS SUMMARIZED BELOW: - ALL W5 WELLS WERE REMOVED. - A HEDGE RUN WAS INCLUDED FOR THE INDICATED NATURAL GAS HEDGE. - THE EVALUATION OF 17 NEW WELLS DRILLED IN 2003 WERE INCLUDED. - THE EVALUATION OF APPROXIMATELY 15 WORKOVERS IN 2003 WERE INCLUDED. The properties evaluated in this report were indicated to include essentially all of the Company's conventional natural gas interests in Canada. The principle natural gas properties are located in the Lavoy and West Lavoy areas in the province of Alberta. Suite 2200, Bow Valley Square 3, 255-5th Avenue S.W., Calgary, Alberta T2P 3G6 Tel: (403) 262-5506 Fax:(403)233-2744 Email: mcdaniel@mcdan.com Website: www.mcdan.com HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 2 MARCH CONSTANT PRICE ASSUMPTIONS APRIL 22, 2003 The Company's share of proved remaining and probable additional natural gas reserves as of May 1, 2003 and the respective present worth values assigned to these reserves based on "March Constant Price" assumptions were estimated to be as follows: ESTIMATED COMPANY SHARE OF REMAINING RESERVES AS OF MAY 1, 2003 MMCF, MBBL
PROVED PROVED TOTAL PROBABLE PRODUCING NON-PRODUCING PROVED ADDITIONAL TOTAL - ------------------------------------------------------------------------ Natural Gas Gross (1) 18,607 3,592 22,199 8,389 30,588 Net (2) 14,450 2,629 17,079 6,362 23,441
ESTIMATED COMPANY SHARE OF PRESENT WORTH VALUES BEFORE INCOME TAX AS OF MAY 1, 2003 $1000 (3) (4)
DISCOUNTED AT 0% 10% 12% 15% 20% - -------------------------------------------------------------------------------------------------- Proved Developed Producing Reserves 87,183 68,053 65,337 61,720 56,662 Proved Developed Non-Producing Reserves 15,154 11,778 11,328 10,734 9,910 Total Proved Reserves 102,337 79,831 76,665 72,454 66,572 Probable Additional Reserves-Unrisked 39,031 24,486 22,708 20,447 17,484 Total Proved & Probable Reserves-Unrisked 141,368 104,317 99,373 92,901 84,056 Probable Additional Reserves-Risked (5) 19,516 12,243 11,354 10,224 8,742 Total Proved & Probable Reserves-Risked (5) 121,853 92,074 88,019 82,678 75,314
(1) Gross reserves are defined as the aggregate of the Company's working interest and royalty interest reserves before deductions of royalties payable to others. (2) Net reserves are gross reserves less all royalties payable to others. (3) Financial matters such as prepayments, take or pay payments, general obligations, etc. were not included. (4) Based on "March Constant Price" assumptions at March 1, 2003 (see Price Schedules). (5) Includes a 50 percent reduction in the probable present worth values to account for the risk associated with the probable additional reserves. The Company's share of remaining reserves and present worth values are presented on a total Company basis in the summary section of this report. The location of the Company's major properties and a graphical summary of the forecast production, net income and reserve distributions are also presented in this section. Tables summarizing the reserves, production and revenues for the various reserve classes are presented in Appendices 1 to 6. A summary of the Company's interests and encumbrances in each property is presented in Appendix 7. Discussions of the assumptions and methodology employed to prepare the reserve estimates and revenue forecasts are also contained in the "Evaluation Methodology" section. McDANIEL & ASSOCIATES consultants ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 3 MARCH CONSTANT PRICE ASSUMPTIONS APRIL 22, 2003 The extent and character of all factual information supplied by the Company including ownership, well data, production, prices, revenues, operating costs, contracts, and other relevant data were relied upon by us in preparing this report and has been accepted as represented without independent verification. In view of the generality of the assignment the opinions expressed are not intended to provide a stand alone analysis of any specific property but to relate to an overall evaluation of the reserves of the Company. This update was prepared by McDaniel & Associates Consultants Ltd. for the exclusive use of Hawker Resources Inc. and is not to be reproduced, distributed or made available, in whole or in part, to any person, company or organization other than Hawker Resources Inc. without the knowledge and consent of McDaniel & Associates Consultants Ltd. We reserve the right to revise any estimates provided herein if any relevant data existing prior to preparation of this update was not made available or if any data provided was found to be erroneous. Sincerely, McDANIEL & ASSOCIATES CONSULTANTS LTD. "signed by P. A. Welch" "signed by B.J. Wurster" - ----------------------- ------------------------ P. A. Welch, P. Eng. B. J. Wurster, E.I.T. "signed by R. Ott" - ----------------------- R. Ott, P. Geol. ------------------------------------------ PERMIT TO PRACTICE McDANIEL & ASSOCIATES CONSULTANTS LTD. Signature "signed by B. H. Emslie" --------------------------- Date Tuesday, April 22, 2003 ----------------------------------- PERMIT NUMBER: P 3145 The Association of Professional Engineers, Geologists and Geophysicists of Alberta ------------------------------------------ McDANIEL & ASSOCIATES consultants ltd. CERTIFICATE OF QUALIFICATION I, Philip Arthur Welch, Petroleum Engineer of 2200,255 - 5th Avenue, S.W., Calgary, Alberta, Canada hereby certify: 1. That I am the Executive Vice President of McDaniel & Associates Consultants Ltd. which Company did prepare, at the request of Hawker Resources Inc., the report entitled "Hawker Resources Inc., Evaluation of Gas Reserves, Based on March Constant Price Assumptions, As of May 1, 2003", dated April 22, 2003, and that I was involved in the preparation of this report. 2. That I attended the University of British Columbia in the years 1980 to 1987 and that I graduated with Bachelor of Applied Science and Master of Applied Science degrees in Mechanical Engineering, that I am a registered Professional Engineer of the Association of Professional Engineers, Geologists & Geophysicists of Alberta; that I am a member of the Canadian Institute of Mining and Metallurgy and that I have in excess of thirteen years experience in oil and gas reservoir studies and evaluations. 3. That McDaniel & Associates Consultants Ltd., its officers or employees, have no direct or indirect interest, nor do they expect to receive any direct or indirect interest in any properties or securities of Hawker Resources Inc., any associate or affiliate thereof. 4. That the aforementioned report was not based on a personal field examination of the properties in question, however, such an examination was not deemed necessary in view of the extent and accuracy of the information available on the properties in question. "signed by P. A. Welch" - ------------------------------ P. A. Welch, P. Eng. Calgary, Alberta Dated: April 22,2003 CERTIFICATE OF QUALIFICATION I, Bryan J. Wurster, Engineer In Training of 2200, 255 - 5th Avenue, S.W., Calgary, Alberta, Canada hereby certify: 1. That I am an Engineer hi Training of McDaniel & Associates Consultants Ltd. which Company did prepare, at the request of Hawker Resources Inc., the report entitled "Hawker Resources Inc., Evaluation of Gas Reserves, Based on March Constant Price Assumptions, As of May 1, 2003", dated April 22, 2003, and that I was involved in the preparation of this report. 2. That I attended the University of Manitoba in the years 1993 to 1997 and that I graduated with Bachelor of Science degree in Mechanical Engineering, that I am a registered Engineer hi Training of the Association of Professional Engineers, Geologists & Geophysicists of Alberta; that I am a member of the Canadian Institute of Mining and Metallurgy and that I have in excess of four years of experience in oil and gas reservoir studies and evaluations. 3. That McDaniel & Associates Consultants Ltd., its officers or employees, have no direct or indirect interest, nor do they expect to receive any direct or indirect interest in any properties or securities of Hawker Resources Inc., any associate or affiliate thereof. 4. That the aforementioned report was not based on a personal field examination of the properties in question, however, such an examination was not deemed necessary in view of the extent and accuracy of the information available on the properties in question. "signed by B.J. Wurster" - ----------------------------- B. J. Wurster, E.I.T. Calgary, Alberta Dated: April 22,2003 CERTIFICATE OF QUALIFICATION I, Ronald Ott, Petroleum Geologist of 2200, 255 - 5th Avenue, S.W., Calgary, Alberta, Canada hereby certify: 1. That I am the Manager of Geology for McDaniel & Associates Consultants Ltd. which Company did prepare, at the request of Hawker Resources Inc., the report entitled "Hawker Resources Inc., Evaluation of Gas Reserves, Based on March Constant Price Assumptions, As of May 1, 2003", dated April 22, 2003, and that I was involved in the preparation of this report. 2. That I attended University of Calgary in the years 1984 to 1988, graduating with a Bachelor of Science degree in Geology; that I am a member of the Canadian Society of Petroleum Geologists; that I am a registered Professional Geologist of the Association of Professional Engineers, Geologists & Geophysicists of Alberta and that I have in excess of nine years experience in oil and gas reservoir studies and evaluations. 3. That McDaniel & Associates Consultants Ltd., its officers or employees, have no direct or indirect interest, nor do they expect to receive any direct or indirect interest in any properties or securities of Hawker Resources Inc., any associate or affiliate thereof. 4. That the aforementioned report was not based on a personal field examination of the properties in question, however, such an examination was not deemed necessary in view of the extent and accuracy of the information available on the properties in question. "signed by R. Ott" - ------------------------ R. Ott, P. Geol. Calgary, Alberta Dated: April 22, 2003 HAWKER RESOURCES INC. - MECHANICAL UPDATE Table A TOTAL COMPANY RESERVES AND PRESENT WORTH VALUES MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED & PROBABLE RESERVES - UNRISKED TOTAL OF ALL AREAS
COMPANY SHARE OF COMPANY SHARE OF PRESENT WORTH VALUES REMAINING RESERVES BEFORE INCOME TAX (4)(5)(6) (MBBL,MMCF,MLT) (M$) ------------------- ----------------------------------------------------------- GROSS (1) NET (2) @0.0% @10.0% @12.0% @15.0% @20.0% - ----------------------------------------------------------------------------------------------------------------------- PROVED PRODUCING RESERVES Natural Gas 18,607.0 14,450.2 87,182.7 68,053.3 65,337.0 61,720.0 56,662.4 ----------------------------------------------------------- TOTAL 87,182.7 68,053.3 65,337.0 61,720.0 56,662.4 PROVED NON-PRODUCING RESERVES Crude Oil -20.0 -13.4 -12.5 -11.2 -9.3 Natural Gas 3,592.1 2,628.8 15,174.1 11,791.4 11,340.3 10,745.4 9,919.4 ----------------------------------------------------------- TOTAL 15,154.1 11,778.0 11,327.9 10,734.2 9,910.1 TOTAL PROVED RESERVES Crude Oil -20.0 -13.4 -12.5 -11.2 -9.3 Natural Gas 22,199.1 17,079.0 102,356.8 79,844.7 76,677.3 72,465.4 66,581.8 ----------------------------------------------------------- TOTAL 102,336.8 79,831.3 76,664.9 72,454.3 66,572.4 TOTAL PROBABLE RESERVES Natural Gas 8,388.6 6,361.5 39,031.5 24,486.3 22,708.4 20,446.7 17,484.1 ----------------------------------------------------------- TOTAL 39,031.5 24,486.3 22,708.4 20,446.7 17,484.1 TOTAL PROVED & PROBABLE RESERVES Crude Oil -20.0 -13.4 -12.5 -11.2 -9.3 Natural Gas 30,587.7 23,440.6 141,388.3 104,330.8 99,385.8 92,912.3 84,065.9 ----------------------------------------------------------- TOTAL 141,368.3 104,317.4 99,373.3 92,901.1 84,056.6 BOE RESERVES & PWV/BOE (3) Proved Producing 3,101.2 2,408.4 28.11 21.94 21.07 19.90 18.27 Proved Non-Producing 598.7 438.1 25.31 19.67 18.92 17.93 16.55 Total Proved 3,699.8 2,846.5 27.66 21.58 20.72 19.58 17.99 Total Probable 1,398.1 1,060.3 27.92 17.51 16.24 14.62 12.51 Total Proved & Probable 5,098.0 3,906.8 27.73 20.46 19.49 18.22 16.49
(1) Before royalty deductions. (2) After royalty deductions. (3) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE based on Gross BOE reserves. (4) No allowance was made for the degree of risk associated with any of the reserve categories. (5) Before allowance for Alberta Royalty Tax Credit (6) Costs associated with extraction of natural gas products have in most cases been deducted from the natural gas revenues. McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE LOCATION OF MAJOR PROPERTIES [ALBERTA MAP] [McDANIEL & ASSOCIATES CONSULTANTS LTD. LOGO] HAWKER RESOURCES INC. - MECHANICAL UPDATE MARCH CONSTANT PRICES TOTAL COMPANY COMPANY SHARE [NATURAL GAS PRODUCTION PROFILE GRAPH] [BEFORE TAX NET OPERATING INCOME PROFILE BAR CHART] McDaniel & Associates Consultants Ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE MARCH CONSTANT PRICES RESERVE DISTRIBUTION BY RESERVE CLASS AND PRODUCT RESERVE DISTRIBUTION BY RESERVE CLASS [PIE CHART] PA 27% PNP 12% PP 61%
RESERVE AND PRESENT WORTH VALUE DISTRIBUTION FOR MAJOR PROPERTIES TOTAL PROVED RESERVES TOP 5 PROPERTIES BY 10% PWV [PIE CHART] WARWICK EAST 7% RANFURLY 8% BIRCH 9% WEST LAVOY 11% LAVOY 19% OTHER 46%
McDaniel & Associates Consultants Ltd. McDANIEL & ASSOCIATES CONSULTANTS LTD. MARCH 2003 CONSTANT PRICE SCHEDULE CRUDE OIL PRICES West Texas Intermediate ($U.S./bbl) 30.00 Edmonton Light Crude ($Cdn./bbl) 43.10 Bow River Medium Crude ($Cdn./bbl) 36.10 Hardisty Heavy ($Cdn./bbl) 31.10 NATURAL GAS (@ FIELD GATE $CDN./MMBTU) Alberta Average 6.90 Transcanada Gas Services Ltd. 6.90 Pan Alberta Gas Ltd. 6.90 Progas 6.90 Spot Sales 6.90 Saskatchewan Average 7.05 CanWest Plant Gate (British Columbia) 6.65 NATURAL GAS LIQUIDS (EDMONTON REFERENCE PRICE $CDN./BBL) Propane 28.80 Field Butane 28.40 NGL Mix 31.50 Natural Gasolines & Condensate 43.10 SULPHUR (ALBERTA AVERAGE @ PLANT GATE $CDN./LT) 0.00
All prices correspond to the forecast prices for the March - December 2003 from the McDaniel March 1, 2003 escalating price forecast. SC030404 McDANIEL & ASSOCIATES Consultants Ltd. HAWKER RESOURCES INC. MECHANICAL UPDATE EVALUATION OF GAS RESERVES BASED ON MARCH CONSTANT PRICE ASSUMPTIONS AS OF MAY 1,2003 EVALUATION METHODOLOGY INTRODUCTION Estimates of the natural gas reserves and the associated present worth values before income taxes attributable to the Canadian properties of the Company have been presented in this report as of May 1, 2003. Reserve estimates were prepared for approximately 250 individual properties in which the Company was indicated to have an interest in Western Canada based on detailed studies of the reservoir and performance characteristics as well as historical revenues and costs. The basic information employed in the preparation of this report was obtained from the Company's files, published sources and from our own files. The effective date of this report is May 1, 2003. The reserve estimates presented herein were based on the operating and economic conditions and development status as of that date except for changes planned for the immediate future or in the process of implementation. The assumptions and methodology employed in the preparation of this report conform with generally accepted petroleum engineering and evaluation principles and are consistent with those used in our previous evaluations of the Company. A brief review of the methodology employed in arriving at the reserves and present worth value estimates is presented in this section. RESERVE ESTIMATES NATURAL GAS The natural gas reserve estimates were based on a study of the volumetric data and performance characteristics of the individual wells and reservoirs in question. Volumetric estimates of the gas-in-place were based on individual well pore volume interpretations, geological studies of the pools and areas and on unitization studies and published estimates. Material balance estimates of the gas-in-place were employed where such information was available. The reserves recoverable from the currently producing properties were estimated from studies of performance characteristics and/or reservoir pressure histories. In cases of competitive drainage in multi-well pools the reserves were based on an analysis of McDANIEL & ASSOCIATES Consultants Ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 2 MARCH CONSTANT PRICE ASSUMPTIONS APRIL 22, 2003 the relevant factors relating to the future pool depletion by existing and possible future wells. The recovery factors for the non-producing properties were estimated from a consideration of test rates, reservoir pressures and by analogy with similar wells or reservoirs. RESERVE CLASSIFICATION The natural gas reserves of the Company were classified into proved and probable additional categories. The proved reserves were considered to be those reserves estimated as recoverable under current technology and existing economic conditions, from that portion of a reservoir which can be reasonably evaluated as economically productive on the basis of analysis of drilling, geological, geophysical and engineering data, including the reserves to be obtained by enhanced recovery processes demonstrated to be economic and technically successful in the subject reservoir. Probable reserves are those reserves which analysis of drilling, geological, geophysical and engineering data does not demonstrate to be proved under current technology and existing economic conditions, but where such analysis suggests the likelihood of their existence and future recovery. Probable additional reserves to be obtained by the application of enhanced recovery processes will be the increased recovery over and above that estimated in the proved category which can be realistically estimated for the pool on the basis of enhanced recovery processes which can be reasonably expected to be instituted in the future. A more detailed description of the factors considered in making these reserve assignments is presented in the "Reserve Definitions" at the end of this section. The proved reserves have been further subdivided into proved producing and proved non-producing categories. Reserves were considered to be producing if these reserves are currently being produced or if definitive steps are being taken to begin production of these reserves in the immediate future. Reserves assigned to non-producing zones in producing wells were classified as producing if the reserve quantities were estimated to be minor relative to the Company's reserves in the area. Non-producing reserves recoverable from existing wells that require relatively minor capital expenditures to produce were classified as proved non-producing. The natural gas reserves were presented in thousands of standard cubic feet (MCF) and calculated at a base pressure of 14.65 psia and a base temperature of 60 degrees Fahrenheit. COMPANY SHARE OF RESERVES The Company's net share of reserves was obtained by employing the Company's indicated gross working and royalty interests in the various properties in question less all royalties owned by others. In estimating net reserves the applicable Crown royalties were based on the regulations in effect as of May 1, 2003. McDANIEL & ASSOCIATES consultants Ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 3 MARCH CONSTANT PRICE ASSUMPTIONS APRIL 22, 2003 PRESENT WORTH VALUE ESTIMATES The present worth values of the natural gas reserves were obtained by employing future production and revenue analyses. The future natural gas production was predicated on the provisions of the natural gas purchase contracts where such contracts were available with consideration to the historical producing rates and the estimated deliverability. In those areas where shut-in natural gas reserves exist commencement of production was based on the proximity to a pipeline connection and the relevant factors relating to the future marketing of the reserves. The indicated natural gas prices with an adjustment for the heating value of the gas were employed to calculate the gross share of future natural gas revenues. Royalties and mineral taxes payable to the Crown were estimated based on the methods in effect as of May 1, 2003. Freehold and overriding royalties payable to others were estimated based on the indicated applicable rates. In those cases where a proportionate share of the natural gas gathering and processing charges were indicated to be payable by the Crown or royalties owned by others, these charges have been deducted in determining the net royalties payable. In all cases, estimates of the applicable capital expenditures and operating costs with no allowance for inflation were deducted in arriving at the Company's share of future net revenues. An allowance for future well abandonment costs was made for all of the Company's working interest wells, however, no allowance was made for the abandonment of any facilities. The present worth values were then obtained by employing 10, 12, 15 and 20 percent nominal annual discount rates compounded annually. No allowances were made for income tax or for the Alberta Royalty Tax Credit. The estimated present worth values of the proved plus probable additional reserves were obtained by employing future production and revenue analyses on a total proved plus probable reserve basis. All additional costs required to recover the probable additional reserves were included in the revenue forecasts. It should be pointed out that no allowance was made for any risk associated with the probable reserves in this report other than in the present worth value summary in the covering letter. Summaries of the Company's share of remaining reserves together with forecast future revenues, royalties, taxes, operating and capital costs, cash flow and present worth values are presented in detailed tabulations in Appendices 1 to 6. McDANIEL & ASSOCIATES consultants Ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 4 MARCH CONSTANT PRICE ASSUMPTIONS APRIL 22, 2003 RESERVE DEFINITIONS CRUDE OIL A mixture, consisting mainly of pentanes and heavier hydrocarbons that may contain sulphur compounds, that is liquid at the conditions under which its volume is measured or estimated, but excluding such liquids obtained from the processing of natural gas. SYNTHETIC OIL Oil derived from the upgrading of crude bitumen or by chemical modification of coal or other materials and which is largely interchangeable with conventional crude oil as a refinery feedstock. NATURAL GAS The lighter hydrocarbons and associated non-hydrocarbon substances occurring naturally in an underground reservoir, which under atmospheric conditions is essentially a gas, but which may contain liquids. The natural gas reserve estimates are reported on a marketable basis, that is the gas which is available to a transmission line after removal of certain hydrocarbons and non-hydrocarbon compounds present in the raw natural gas and which meets specifications for use as a domestic, commercial or industrial fuel. NATURAL GAS LIQUIDS Those hydrocarbon components recovered from raw natural gas as liquids by processing through extraction plants or recovered from field separators, scrubbers or other gathering facilities. These liquids include the hydrocarbon components ethane, propane, butanes and pentanes plus, or a combination thereof. SULPHUR Elemental sulphur removed from the produced natural gas by processing through an extraction plant. REMAINING RESERVES Remaining reserves are those quantities of crude oil, natural gas, natural gas liquids and sulphur remaining after deducting those quantities produced up to the reference date of the study. GROSS RESERVES The total of the Company's working interests and/or royalty interests share of reserves before deducting royalties owned by others. NET RESERVES The total of the Company's working interests and/or royalty interests share of reserves after deducting the amounts attributable to the royalties owned by others. McDANIEL & ASSOCIATES consultants Ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 5 MARCH CONSTANT PRICE ASSUMPTIONS APRIL 22, 2003 ROYALTIES The term royalties, as used in this report, refers to royalties paid to others. The royalties deducted from the reserves are based on the royalty percentage calculated by applying the applicable royalty rate or formula. In the case of Crown sliding scale royalties which are dependent on selling price the price forecasts for the individual properties in question has been employed. PROVED RESERVES Those reserves estimated as recoverable under current technology and existing economic conditions, from that portion of a reservoir which can be reasonably evaluated as economically productive on the basis of analysis of drilling, geological, geophysical and engineering data, including the reserves to be obtained by enhanced recovery processes demonstrated to be economic and technically successful in the subject reservoir. Reserves assigned to non-producing zones in producing wells were classified as producing if the reserve quantities were estimated to be minor relative to the Company's reserves in the area. COMMENTS: 1. Where reserves are clearly known to exist in a reservoir and would be physically recoverable but cannot be termed "proved reserves" because they are not commercially recoverable due to their remote location (i.e. frontier reserves), these reserves are itemized separately in the report and their special circumstances fully explained. 2. Zones which have not been completed but which are interpreted to be productive from well logs (or core analyses) and which have conclusive drill stem tests or other production tests indicating economic producing rates are considered to be proved providing there is a high degree of certainty that these reserves will be produced. 3. Zones interpreted to be productive from well logs (or core analyses) either completed or behind pipe but which have not been tested or have inconclusive tests are considered proved only if offsetting wells indicate favorable tests or productive characteristics from this zone and there is a high degree of certainty that these reserves will be produced because of favorable reservoir characteristics. 4. The proved recovery efficiencies for presently shut-in reserves are estimated from heoretical considerations or by analogy to the nearest similar zone or area. In all cases the productive capacities of the individual wells or reservoirs in question are taken into account. 5. The proved natural gas reserves may be based on the assumption that additional compressor horsepower will be installed to achieve lower abandonment pressures providing there is a high degree of certainty that such action will be taken. 6. An allowance for increased recoveries in enhanced recovery (water-flood, solvent-flood, etc.) projects is made only on the basis of demonstrated more favorable performance from the project in question or from similar projects in like reservoirs. Increased proved recoveries may be assigned prior to the installation of the facilities if in our opinion there is a high degree of certainty that such facilities will be installed in the future. A gradual transfer of reserves from a probable additional to a proved category is usually made in such projects as more performance history is obtained. The assignment of higher recovery factors to these projects by regulatory authorities does not necessarily provide a basis for increased proved recoveries since such assignments must often be made prior to obtaining indicative performance history in order to provide sufficient incentives to institute such schemes. MCDANIEL & ASSOCIATES consultants Ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 6 MARCH CONSTANT PRICE ASSUMPTIONS APRIL 22, 2003 7. Natural gas liquids and sulphur reserves are based on the recoveries of these products from the proved natural gas reserves and are dependent on current plant efficiencies. In the case of shut-in wells the reserves are based on analyses of the raw natural gas and anticipated extraction efficiencies. PROVED PRODUCING RESERVES Those proved reserves that are actually on production, or if not producing, that could be recovered from existing wells or facilities and where the reasons for the current non-producing status is the choice of the owner. An illustration of such a situation is where a well or zone is capable but is shut-in because its deliverability is not required to meet contract commitments. Reserves assigned to non-producing zones in producing wells were classified as producing if the reserve quantities were estimated to be minor relative to the Company's reserves in the area. PROVED NON-PRODUCING RESERVES Those non-producing proved reserves recoverable from existing wells that require relatively minor capital expenditures to produce. PROVED UNDEVELOPED RESERVES Those reserves expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major capital expenditure will be required. PROBABLE ADDITIONAL RESERVES Those reserves which analysis of drilling, geological, geophysical and engineering data does not demonstrate to be proved under current technology and existing economic conditions, but where such analysis suggests the likelihood of their existence and future recovery. Probable additional reserves to be obtained by the application of enhanced recovery processes will be the increased recovery over and above that estimated in the proved category which can be realistically estimated for the pool on the basis of enhanced recovery processes which can be reasonably expected to be instituted in the future. COMMENTS: 1. The probable additional natural gas reserves are based on the potential productive areas of the natural gas reservoirs in question which could not be deemed proved at this time as well as those solution gas reserves commercially recoverable from the probable additional crude oil reserves. 2. The probable additional reserves of natural gas liquids and sulphur were considered to be those reserves recoverable from the probable additional natural gas reserves. 3. Portions of the zones which have questionable potential based on well log interpretations (or core analyses) and which have not been indicated productive by conclusive tests are considered to be probable additional. McDANIEL & ASSOCIATES consultants Ltd. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH CONSTANT PRICES AS OF MAY 1,2003 TOTAL PROVED RESERVES TOTAL OF ALL AREAS
NATURAL GAS ------------------------------- TOTAL ANNUAL SALES SALES OTHER GROSS NO. OF VOLUME PRICE REVENUE REVENUES REVENUE YEAR WELLS MMCF $/MCF M$ M$ M$ - --------------------------------------------------------------------------------- 2003 69.7 4665.3 7.00 32657.5 -22.5 32635.0 2004 65.0 5144.7 7.00 36019.4 10.3 36029.8 2005 57.8 3535.1 7.00 24745.9 24745.9 2006 49.4 2460.0 7.00 17214.2 17214.2 2007 42.8 1767.6 7.00 12369.7 12369.7 2008 33.3 1214.1 7.00 8497.7 8497.7 2009 26.4 847.7 7.00 5930.8 5930.8 2010 19.8 601.8 6.99 4209.3 4209.3 2011 16.6 468.9 7.00 3280.7 3280.7 2012 15.0 384.4 7.00 2689.9 2689.9 2013 13.5 301.9 7.00 2113.8 2113.8 2014 10.0 206.5 7.00 1445.6 1445.6 2015 6.9 143.9 7.00 1006.8 1006.8 2016 6.1 121.0 7.00 846.3 846.3 2017 2.8 72.8 6.97 507.5 507.5 REM. 1.3 263.2 6.97 1833.8 1833.8 TOTAL 22198.8 7.00 155368.9 -12.2 155356.7 - ---------------------------------------------------------------------------------
CROWN ROYALTIES FREEHOLD ROYALTIES OVERRIDING ROYALTIES ----------------------------------- ----------------------------------- ----------------------------------- UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - ---------------------------------------------------------------------------------------------------------------------------------- 2003 6219.4 409.2 5810.2 1224.1 82.7 1141.4 1148.1 67.2 1080.9 2004 6277.0 405.7 5871.4 1374.9 93.3 1281.7 1440.8 83.8 1357.0 2005 3779.6 240.7 3538.9 979.2 66.9 912.2 1005.3 58.4 946.9 2006 2268.6 143.1 2125.5 686.0 47.5 638.5 701.9 40.7 661.1 2007 1421.9 88.1 1333.8 489.8 33.4 456.4 535.4 30.9 504.5 2008 890.4 52.4 837.9 357.1 21.5 335.5 436.5 23.5 413.1 2009 556.9 32.9 524.1 275.3 15.7 259.6 334.6 18.1 316.5 2010 378.6 22.6 356.0 197.5 11.3 186.2 213.1 11.5 201.6 2011 270.4 16.4 254.1 169.8 9.7 160.1 170.0 9.3 160.7 2012 206.8 12.6 194.2 145.8 8.3 137.5 146.0 8.0 138.0 2013 165.4 10.2 155.2 98.1 5.6 92.6 107.1 6.1 101.1 2014 119.4 7.4 112.0 53.8 3.1 50.7 84.0 4.8 79.2 2015 81.0 4.7 76.4 40.7 2.3 38.4 68.3 3.9 64.4 2016 66.8 3.9 63.0 35.7 2.0 33.7 57.5 3.3 54.3 2017 39.2 2.3 36.9 25.8 1.5 24.4 45.7 2.6 43.1 REM. 127.8 7.4 120.4 115.3 6.6 108.7 213.8 12.3 201.5 TOTAL 22869.3 1459.5 21409.8 6268.9 411.5 5857.5 6708.2 384.3 6323.8 - ----------------------------------------------------------------------------------------------------------------------------------
TOTAL TOTAL MINERAL ROYALTY ROYALTY NPI TAX & TAXES & TAXES PYMTS. YEAR M$ M$ % M$ - --------------------------------------------------------------- 2003 364.3 8396.8 25.71 21.6 2004 367.8 8877.9 24.65 24.8 2005 235.2 5633.3 22.76 18.3 2006 153.5 3578.7 20.79 14.1 2007 104.2 2399.0 19.39 11.1 2008 72.7 1659.3 19.53 10.6 2009 52.4 1152.6 19.43 9.3 2010 36.7 780.6 18.54 8.0 2011 29.2 604.1 18.41 7.0 2012 23.5 493.2 18.34 6.1 2013 15.9 364.8 17.26 5.2 2014 9.3 251.2 17.38 4.5 2015 7.2 186.3 18.50 2.7 2016 6.1 157.0 18.56 2.5 2017 4.7 109.1 21.49 1.6 REM. 19.5 450.1 24.54 6.8 TOTAL 1502.3 35093.7 22.59 154.3 - --------------------------------------------------------------
CAPITAL COSTS NET REVENUES AFTER COSTS --------------------------------- --------------------------------- OPERATING ABD. NET OP. DRILLING EQUIP & TOTAL PWV COSTS COSTS INCOME & COMPL FACILITY CAPITAL ANNUAL CUM @10.0% YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - ------------------------------------------------------------------------------------------------------------------------ 2003 2192.4 25.0 21999.1 743.6 743.6 21255.5 21255.5 20590.9 2004 2697.2 124.3 24305.6 18.8 150.0 168.8 24136.8 45392.3 21597.3 2005 2158.4 224.5 16711.4 16711.4 62103.8 13594.6 2006 1702.5 213.0 11705.8 11705.8 73809.5 8657.3 2007 1391.1 278.1 8290.7 8290.7 82100.2 5573.9 2008 1049.3 332.6 5445.9 12.4 12.4 5433.5 87533.8 3321.5 2009 805.3 226.0 3737.7 3737.7 91271.4 2077.0 2010 596.9 147.3 2676.6 2676.6 93948.0 1352.5 2011 484.6 85.9 2099.1 2099.1 96047.1 964.0 2012 429.3 52.6 1708.6 1708.6 97755.7 713.2 2013 377.4 40.0 1326.5 1326.5 99082.2 503.4 2014 273.0 130.9 785.9 785.9 99868.1 271.1 2015 181.9 10.0 626.0 626.0 100494.1 196.3 2016 157.3 30.0 499.4 499.4 100993.5 142.4 2017 73.4 88.9 234.6 234.6 101228.0 60.8 REM. 230.5 37.5 1108.9 1108.9 102336.9 215.2 TOTAL 14800.4 2046.6 103261.7 31.1 893.6 924.7 102336.9 79831.5 - ------------------------------------------------------------------------------------------------------------------------
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ -------------------- ------------------------------------------------- PRODUCT GROSS NET @10.0% @12.0% @15.0% @20.0% - ---------------------------------------------------------------------------------------------------------- Crude Oil (mbbl) -13.4 -12.5 -11.2 -9.3 Natural Gas (mmcf) 22199.1 17079.0 79844.7 76677.3 72465.4 66581.8 TOTAL 79831.3 76664.9 72454.3 66572.4 - -----------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES ---------------------------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR AREA AND PROPERTY INTEREST% ZONES CLASS MMCF MBBL MBBL MLT - ------------------------------------------------------------------------------------------------------------------------------------ ALBERTA BIRCH 00/06-32-050-10-W4 W- 50.000 B QTZ NRA - - - - 00/06-32-050-10-W4 W- 50.000 SPKY NRA - - - - 00/13-32-050-11-W4 W- 50.000 VIK - - - - - 02/10-07-050-12-W4 W- 50.000 GLAUC/CLY PP 43.1 - - - 02/01-14-050-12-W4 W- 50.000 SPKY L/CUMM PP 344.2 - - - 00/09-15-050-12-W4 W- 50.000 CUMM PP 115.6 - - - 00/09-16-050-12-W4 W- 50.000 LLOYD/CUMM /NIS PP 7.5 - - - 00/14-16-050-12-W4 W- 50.000 NIS PNP 95.0 - - - 00/15-17-050-12-W4 W- 50.000 NIS PP 82.4 - - - 00/07-21-050-12-W4 W- 50.000 GLAUC/B QTZ PP 200.4 - - - 00/02-22-050-12-W4 W- 50.000 SPKY/LLOYD /B Q PP 128.2 - - - 00/02-22-050-12-W4 W- 50.000 WAS NRA - - - - 00/08-22-050-12-W4 W- 50.000 ELL/CUMM PP 99.7 - - - 00/15-24-050-12-W4 WAS/SPKY/LLOYD NRA - - - - 00/02-04-051-10-W4 W- 50.000 SPKY/CUMM PNP 626.0 - - - 00/02-04-051-10-W4 W- 50.000 CLY/WAS/WABIS NRA - - - - 00/05-04-051-11-W4 W- 50.000 SPKY PP 23.5 - - - SUBTOTAL 1765.6 - - - BONNYVILLE Bonnyville Grand W- 50.000 GRD RP PP 907.2 - - - Rapids C Pool Group Run Ptn Fort Kent Colony W- 50.000 CLY PP 137.6 - - - C Pool-10-36 & 6-6 00/01-24-059-05-W4 W- 35.000 GRD RP NRA - - - - 00/11-19-060-04-W4 W- 50.000 CLY PP 73.2 - - - 00/10-22-061-06-W4 W- 50.000 CLY PP 75.2 - - - 00/07-34-061-06-W4 W- 25.000 CLY A PP 1.2 - - - NRA Wells NRA - - - - SUBTOTAL 1194.4 - - - COLD LAKE Clearwater A Pool W- 25.000 CLWTR PP 353.7 - - - Group Run Secs 27&28-62-3W4 00/11-34-062-03-W4 W- 25.000 CLY PP 72.1 - - - 02/11-34-062-03-W4 W- 25.000 LLOYD NRA - - - - 00/09-35-062-03-W4 W- 25.000 CLY A PP 77.3 - - - 00/05-36-062-03-W4 W- 25.000 LLOYD PP 136.0 - - - 02/14-23-063-03-W4 W- 25.000 CLWTR D PP 33.4 - - - 02/14-23-063-03-W4 W- 25.000 CLY B NRA - - - - 00/16-23-063-03-W4 W- 23.750 CLY A/LLOYD PP 169.2 - - - 00/07-25-063-03-W4 W- 23.750 CLY A NRA - - - - 00/10-25-063-03-W4 W- 23.750 LLOYD NRA - - - - 00/11-25-063-03-W4 W- 23.750 CLY B NRA - - - - 02/02-26-063-03-W4 W- 25.000 CLY B PNP 98.6 - - - 02/09-26-063-03-W4 W- 23.750 CLY A/LLOYD PP 131.9 - - - 00/08-36-063-03-W4 W- 23.750 CLY A/LLOYD PP 28.9 - - - 8 Gorr Wells R- 2.125 CLY PP 18.6 - - - SUBTOTAL 1119.6 - - - HAIRY HILL 00/10-18-053-14-W4 R- 4.167 GLAUC PP 7.0 - - - 00/06-21-055-14-W4 W- 50.000 CLY/GLAUC/NIS PP 62.7 - - - 02/10-21-055-14-W4 W- 50.000 B QTZ/CLY PP 41.2 - - - 00/11-30-055-14-W4 W- 50.000 GLAUC PP 31.0 - - - SUBTOTAL 141.9 - - - HEDGE Natural Gas Hedge P- 50.000 PNP - - - -
PRESENT WORTH VALUE --------------------------------- BEFORE TAX (M$) AREA AND PROPERTY @10.0% @12.0% @15.0% - --------------------------------------------------------------- ALBERTA BIRCH 00/06-32-050-10-W4 -6.7 -6.2 -5.6 00/06-32-050-10-W4 - - - 00/13-32-050-11-W4 -6.7 -6.2 -5.6 02/10-07-050-12-W4 187.7 183.9 178.4 02/01-14-050-12-W4 1402.4 1360.8 1303.3 00/09-15-050-12-W4 479.6 467.5 450.6 00/09-16-050-12-W4 33.9 34.3 34.7 00/14-16-050-12-W4 354.9 349.9 342.9 00/15-17-050-12-W4 364.6 356.6 345.4 00/07-21-050-12-W4 903.0 876.9 840.8 00/02-22-050-12-W4 568.4 557.1 541.0 00/02-22-050-12-W4 - - - 00/08-22-050-12-W4 369.0 359.0 345.0 00/15-24-050-12-W4 -7.4 -7.0 -6.4 00/02-04-051-10-W4 2563.5 2505.5 2424.4 00/02-04-051-10-W4 - - - 00/05-04-051-11-W4 111.1 110.2 108.8 SUBTOTAL 7317.2 7142.3 6897.7 BONNYVILLE Bonnyville Grand 3133.4 2975.5 2766.9 Rapids C Pool Group Run Ptn Fort Kent Colony 548.3 532.5 510.6 C Pool-10-36 & 6-6 00/01-24-059-05-W4 -5.7 -5.5 -5.2 00/11-19-060-04-W4 277.7 266.9 252.2 00/10-22-061-06-W4 279.6 268.9 254.4 00/07-34-061 -06-W4 0.4 0.6 0.9 NRA Wells -18.6 -17.5 -16.0 SUBTOTAL 4215.1 4021.5 3763.9 COLD LAKE Clearwater A Pool 1385.8 1345.5 1290.0 Group Run Secs 27&28-62-3W4 00/11-34-062-03-W4 234.2 225.8 214.3 02/11-34-062-03-W4 -4.5 -4.4 -4.2 00/09-35-062-03-W4 314.4 303.7 289.0 00/05-36-062-03-W4 525.0 506.4 480.8 02/14-23-063-03-W4 145.8 142.9 138.8 02/14-23-063-03-W4 - - - 00/16-23-063-03-W4 625.2 599.3 564.4 00/07-25-063-03-W4 -3.2 -3.0 -2.7 00/10-25-063-03-W4 -2.9 -2.6 -2.3 00/11-25-063-03-W4 -4.2 -4.2 -4.0 02/02-26-063-03-W4 345.0 327.8 305.3 02/09-26-063-03-W4 522.8 508.8 489.3 00/08-36-063-03-W4 118.7 115.4 110.9 8 Gorr Wells 95.2 91.3 86.0 SUBTOTAL 4297.2 4152.8 3955.6 HAIRY HILL 00/10-18-053-14-W4 38.4 37.1 35.4 00/06-21-055-14-W4 247.4 243.8 238.6 02/10-21-055-14-W4 156.6 154.1 150.6 00/11-30-055-14-W4 130.9 129.5 127.4 SUBTOTAL 573.3 564.5 552.0 HEDGE Natural Gas Hedge -12.6 -12.7 -12.8
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES ---------------------------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR AREA AND PROPERTY INTEREST% ZONES CLASS MMCF MBBL MBBL MLT - ------------------------------------------------------------------------------------------------------------------------------------ HOLDEN Holden Viking Gas W- 35.500 VIK PP 861.4 - - - Unit No. 3 JARROW 00/03-33-044-11-W4 W- 25.000 B QTZ/GLAUC PP 11.6 - - - 00/07-34-045-10-W4 W- 30.000 VIK PP 36.8 - - - 00/14-01-045-11-W4 W- 50.000 CLY PP 1.8 - - - 00/10-13-045-11-W4 W- 50.000 GLAUC PP 531.8 - - - 00/10-15-045-11-W4 F- 0.750 CLY/VIK PP 0.1 - - - 00/06-19-045-11-W4 R- 0.750 VIK PP 0.2 - - - 02/10-27-045-11-W4 W- 12.500 SPKY PP 1.4 - - - 00/04-29-045-11-W4 W- 12.500 VIK PP 3.7 - - - 00/06-30-045-11-W4 W- 12.500 VIK PP 13.5 - - - 00/11-31-045-11-W4 R- 0.750 VIK NRA - - - - 00/09-36-046-12-W4 W- 25.000 VIK A,B NRA - - - - SUBTOTAL 600.9 - - - LAVOY Capital to purchase P- 50.000 PP - - - - compressor 00/07-21-051-13-W4 W- 50.000 CLY/WAB PP 3.1 - - - 00/12-28-051-13-W4 W- 50.000 CLY/NIS PP 273.4 - - - 00/10-29-051-13-W4 W- 50.000 NIS/ELL PP 106.4 - - - 00/10-29-051-13-W4 W- 50.000 ELL/NIS PNP 695.5 - - - 00/02-31-051-13-W4 W- 50.000 ELL PP 107.2 - - - 00/14-31-051-13-W4 W- 50.000 WAS PP 41.5 - - - 00/01-32-051-13-W4 W- 50.000 NIS L/NIS U PP 299.0 - - - 00/01-32-051-13-W4 W- 50.000 SPKY L/LLOYD PP 234.5 - - - 00/11-32-051-13-W4 W- 50.000 NIS PP 151.6 - - - 00/10-33-051-13-W4 W- 50.000 CLY NRA - - - - 00/12-04-052-13-W4 W- 50.000 CLY/VIK NRA - - - - 00/11-05-052-13-W4 W- 50.000 VIK/CLY PP 160.2 - - - 00/13-18-052-13-W4 W- 24.750 CLY NRA - - - - 00/07-30-052-13-W4 W- 50.000 2 WS PNP 18.0 - - - 00/10-11-052-14-W4 W- 50.000 CLY/2 WS NRA - - - - 00/06-12-052-14-W4 W- 50.000 LLOYD/SPKY M PP 16.7 - - - 00/11-12-052-14-W4 W- 50.000 SPKY L/CUMM L NRA - - - - 00/15-12-052-14-W4 W- 50.000 GLAUC/CUMML/SPK PP 147.2 - - - 00/06-15-052-14-W4 W- 50.000 CLY PP 67.4 - - - 02/10-15-052-14-W4 W- 50.000 CLY PP 204.9 - - - 00/06-22-052-14-W4 W- 50.000 CLY PP 268.7 - - - 00/06-22-052-14-W4 W- 50.000 VIK NRA - - - - 00/08-22-052-14-W4 W- 50.000 LLOYD/SPKY L/SPK PP 59.0 - - - 00/08-22-052-14-W4 W- 50.000 VIK NRA - - - - 00/12-26-052-14-W4 W- 50.000 SPKY/GLAUC PP 166.3 - - - 00/06-27-052-14-W4 W- 50.000 VIK PP 78.0 - - - 00/12-27-052-14-W4 W- 50.000 GLAUC/NIS PP 65.9 - - - 02/12-27-052-14-W4 W- 50.000 LLOYD/SPKY NRA - - - - 00/15-27-052-14-W4 W- 50.000 ELL PP 568.7 - - - 02/06-28-052-14-W4 W- 50.000 SPKY/LLOYD /NIS PP 60.8 - - - 00/08-28-052-14-W4 W- 50.000 CLY/ELL PP 726.7 - - - 00/16-29-052-14-W4 W- 50.000 ELL PP 40.6 - - - 00/10-32-052-14-W4 W- 50.000 VIK/CLY PP 0.8 - - - 00/06-34-052-14-W4 W- 50.000 ELL/NIS NRA - - - - 02/07-34-052-14-W4 W- 50.000 GLAUC U PP 142.1 - - - 00/06-06-053-14-W4 W- 50.000 VIK NRA - - - - 00/10-07-053-14-W4 F- 2.917 GLAUC PP 26.4 - - - 00/07-29-053-14-W4 W- 50.000 2 WS PNP 58.9 - - - Lavoy NRA Wells ALL ZONES NRA - - - - SUBTOTAL 4789.7 - - - MANNVILLE 00/09-16-052-07-W4 W- 37.500 CLY PP 237.8 - - - MUNDARE 00/04-06-054-16-W4 W- 50.000 GLAUC L/GLAUC NRA - - - - 00/04-06-054-16-W4 W- 50.000 VIK/CLY/SPKY - - - - - 00/11-02-054-17-W4 W- 50.000 GLAUC PP 375.7 - - - 00/01-10-054-17-W4 W- 50.000 SPKY PP 82.3 - - - 00/10-10-054-17-W4 CLY NRA - - - - 00/01-13-054-17-W4 W- 50.000 GLAUC PNP 171.0 - - -
PRESENT WORTH VALUE --------------------------------- BEFORE TAX (M$) AREA AND PROPERTY @10.0% @12.0% @15.0% - --------------------------------------------------------------- HOLDEN Holden Viking Gas 2662.9 2488.5 2265.5 Unit No. 3 JARROW 00/03-33-044-11-W4 46.3 46.1 45.7 00/07-34-045-10-W4 102.1 97.1 90.4 00/14-01-045-11-W4 1.7 2.2 2.9 00/10-13-045-11-W4 1333.0 1221.6 1086.0 00/10-15-045-11-W4 0.3 0.3 0.3 00/06-19-045-11-W4 1.3 1.2 1.2 02/10-27-045-11-W4 2.4 2.5 2.6 00/04-29-045-11-W4 10.0 9.8 9.6 00/06-30-045-11-W4 56.7 54.9 52.5 00/11-31-045-11-W4 - - 00/09-36-046-12-W4 -3.1 -2.8 -2.4 SUBTOTAL 1550.7 1433.1 1288.9 LAVOY Capital to purchase -64.6 -64.2 -63.6 compressor 00/07-21-051-13-W4 0.1 0.3 0.7 00/12-28-051-13-W4 882.2 852.8 812.5 00/10-29-051-13-W4 413.6 395.6 371.4 00/10-29-051-13-W4 1423.4 1279.5 1108.3 00/02-31-051-13-W4 347.8 336.1 320.1 00/14-31-051-13-W4 190.5 187.8 183.8 00/01-32-051-13-W4 1240.5 1200.7 1145.9 00/01-32-051-13-W4 995.3 965.1 923.4 00/11-32-051-13-W4 536.8 506.2 466.3 00/10-33-051-13-W4 -6.1 -5.6 -4.9 00/12-04-052-13-W4 -7.4 -7.0 -6.4 00/11-05-052-13-W4 559.1 541.3 516.7 00/13-18-052-13-W4 -2.7 -2.5 -2.1 00/07-30-052-13-W4 60.6 59.6 58.1 00/10-11-052-14-W4 -8.1 -7.8 -7.4 00/06-12-052-14-W4 47.3 46.8 46.0 00/11-12-052-14-W4 -7.4 -7.0 -6.4 00/15-12-052-14-W4 644.9 626.5 601.1 00/06-15-052-14-W4 284.7 279.2 271.3 02/10-15-052-14-W4 710.2 687.4 656.0 00/06-22-052-14-W4 857.8 826.0 782.8 00/06-22-052-14-W4 - - - 00/08-22-052-14-W4 264.2 259.8 253.5 00/08-22-052-14-W4 - - - 00/12-26-052-14-W4 574.8 555.1 528.0 00/06-27-052-14-W4 285.4 272.6 255.5 00/12-27-052-14-W4 251.4 247.7 242.5 02/12-27-052-14-W4 -6.1 -5.6 -4.9 00/15-27-052-14-W4 1851.4 1764.8 1649.6 02/06-28-052-14-W4 225.8 222.5 217.7 00/08-28-052-14-W4 2024.2 1918.2 1779.3 00/16-29-052-14-W4 148.0 145.6 142.3 00/10-32-052-14-W4 -4.8 -4.3 -3.7 00/06-34-052-14-W4 -8.1 -7.8 -7.4 02/07-34-052-14-W4 593.8 574.6 548.4 00/06-06-053-14-W4 -6.7 -6.2 -5.6 00/10-07-053-14-W4 120.1 112.7 103.2 00/07-29-053-14-W4 239.4 232.4 222.7 Lavoy NRA Wells -163.5 -151.7 -136.2 SUBTOTAL 15487.7 14827.3 13958.4 MANNVILLE 00/09-16-052-07-W4 741.5 690.0 624.7 MUNDARE 00/04-06-054-16-W4 -6.7 -6.2 -5.6 00/04-06-054-16-W4 -6.7 -6.2 -5.6 00/11-02-054-17-W4 1252.9 1181.7 1088.9 00/01-10-054-17-W4 352.1 344.7 334.2 00/10-10-054-17-W4 -5.1 -4.4 -3.7 00/01-13-054-17-W4 632.1 617.1 596.0
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------ COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST% ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------ MUNDARE (CONT'D) 00/02-19-054-17-W4 W- 50.000 B QTZ/GLAUC L NRA - - - - -7.4 -7.0 -6.4 00/02-19-054-17-W4 W- 50.000 GLAUC PP 60.6 - - - 261.0 259.0 256.1 00/04-20-054-17-W4 W- 50.000 GLAUC L/B QTZ PP 93.9 - - - 401.9 396.4 388.6 00/04-20-054-17-W4 W- 50.000 GLAUC PNP 152.0 - - - 535.7 507.9 470.0 00/02-17-055-18-W4 W- 50.000 U MN NRA - - - - -5.6 -5.0 -4.2 SUBTOTAL 935.5 - - - 3404.2 3277.9 3108.3 PLAIN 00/12-34-052-10-W4 W- 50.000 CLY PP 274.0 - - - 1081.3 1048.8 1004.1 00/12-34-052-10-W4 W- 50.000 VIK NRA - - - - -6.7 -6.2 -5.6 00/10-14-052-12-W4 W- 50.000 CLY PNP 143.2 - - - 555.5 539.8 517.9 00/12-28-052-12-W4 W- 50.000 SPKY M/B QTZ PP 396.7 - - - 1483.3 1428.1 1353.2 00/15-32-052-12-W4 W- 50.000 WAS/SPKY U PP 34.0 - - - 151.8 149.9 147.2 00/12-09-052-13-W4 W- 50.000 VIK NRA - - - - -7.4 -7.0 -6.4 00/13-36-052-13-W4 W- 50.000 SPKY NRA - - - - -8.9 -8.8 -8.5 00/14-18-053-11-W4 W- 50.000 B QTZ NRA - - - - -6.7 -6.2 -5.6 00/07-04-053-12-W4 W- 50.000 SPKY PP 124.6 - - - 360.5 345.1 324.5 SUBTOTAL 972.5 - - - 3602.6 3483.6 3320.8 RANFURLY Ranfurly Gas Unit W- 13.542 ALL ZONES PP 10.5 - - - 41.0 41.2 41.4 02/09-35-050-13-W4 W- 50.000 CLY/MCLAR PP 13.4 - - - 61.3 60.8 60.1 02/09-35-050-13-W4 W- 50.000 VIK NRA - - - - - - - 00/06-36-050-13-W4 W- 50.000 MCLAR PP 8.0 - - - 35.2 35.4 35.6 02/09-36-050-13-W4 W- 50.000 B QTZ U PP 22.2 - - - 109.0 108.1 106.9 00/11-30-050-14-W4 R- 6.900 VIK L PP 10.9 - - - 56.9 54.5 51.2 00/03-32-050-14-W4 W- 50.000 B QTZ/DET PP 277.3 - - - 1185.5 1153.0 1108.0 00/16-23-050-15-W4 W- 50.000 CLY PP 149.9 - - - 655.4 636.9 611.2 00/03-34-050-15-W4 W- 50.000 B QTZ/CLY PP 258.0 - - - 1098.2 1065.8 1020.9 00/05-18-051-07-W4 W- 25.000 WAS/SPKY PNP 167.6 - - - 668.8 646.6 616.3 00/16-20-051-12-W4 W- 50.000 SPKY PP 37.9 - - - 180.7 177.5 173.0 00/06-29-051-12-W4 W- 50.000 CLY/SPKY PP 2.8 - - - 7.3 7.7 8.3 00/11-34-051-12-W4 W- 50.000 GLAUC L/B QTZ PNP 340.5 - - - 924.8 883.0 826.1 00/12-01-051-13-W4 W- 12.500 SPKY U NRA - - - - -2.2 -2.2 -2.1 02/08-04-051-13-W4 W- 50.000 CLY PP 54.6 - - - 237.9 230.3 219.7 00/15-06-051-13-W4 W- 50.000 WAS U PP 40.7 - - - 195.5 191.9 186.8 00/04-11-051-13-W4 W- 13.542 GLAUC/WAB PP 31.6 - - - 145.1 141.1 135.6 00/06-22-051-13-W4 W- 22.500 VIK PP 3.5 - - - 9.7 9.7 9.6 00/15-04-051-14-W4 W- 50.000 CUMM L/CUMM PP 317.7 - - - 937.6 859.7 764.7 00/02-09-051-14-W4 F- 1.343 BR PP 0.5 - - - 3.0 2.9 2.8 00/06-10-051-14-W4 R- 9.943 BR PP 5.6 - - - 33.3 32.6 31.7 00/16-12-051-14-W4 W- 50.000 WAB NRA - - - - -8.9 -8.8 -8.5 SUBTOTAL 1753.3 - - - 6574.9 6327.8 5999.2 ST. PAUL 00/05-03-058-09-W4 W- 37.500 MN PP 13.5 - - - 45.4 44.3 42.7 00/12-03-058-09-W4 W- 37.500 VIK PP 6.8 - - - 22.3 22.3 22.1 SUBTOTAL 20.2 - - - 67.8 66.6 64.8 VEGREVILLE 00/06-07-052-13-W4 W- 50.000 CLY/GLAUC PP 78.2 - - - 308.0 303.5 296.9 02/06-07-052-13-W4 W- 50.000 SPKY L/WAS PP 174.0 - - - 654.1 638.6 616.8 00/01-18-052-13-W4 W- 24.750 GLAUC PP 61.3 - - - 179.5 174.4 167.1 00/01-18-052-13-W4 W- 24.750 SPKY L PNP 57.6 - - - 97.6 87.0 73.6 00/06-19-052-13-W4 W- 10.026 GLAUC PP 1.6 - - - 5.0 5.0 5.0 00/01-13-052-14-W4 W- 50.000 LLOYD/GLAUC PP 41.1 - - - 159.4 156.7 152.9 00/06-13-052-14-W4 W- 50.000 NIS/SPKY L PP 651.3 - - - 2401.2 2290.1 2142.5 00/12-13-052-14-W4 W- 50.000 LLOYD/SPKY PP 27.2 - - - 126.1 125.2 123.9 00/03-24-052-14-W4 W- 50.000 DET/NIS/LLOYD/SP PP 153.1 - - - 651.6 628.6 597.1 00/09-24-052-14-W4 W- 50.000 SPKY M/LLOYD/GLA PP 24.8 - - - 111.9 110.4 108.3 00/10-09-053-14-W4 W- 37.500 NIS PP 4.1 - - - 20.5 20.4 20.2 00/10-09-053-14-W4 W- 37.500 SPKY PNP 64.1 - - - 262.5 254.5 243.3 SUBTOTAL 1338.3 - - - 4977.5 4794.4 4547.6 VIKING 00/16-14-048-12-W4 W- 50.000 SPKY PP 125.5 - - - 552.6 539.6 521.3 00/03-12-049-11-W4 W- 50.000 SPKY L PP 153.7 - - - 678.2 661.0 637.0 00/03-12-049-11-W4 W- 50.000 CAM/B QTZ/SPKY NRA - - - - - - - 00/04-22-049-12-W4 W- 47.500 B QTZ U/B QTZ L PP 26.6 - - - 121.6 120.6 119.1
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 4 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------ COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST% ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------ VIKING (CONT'D) 00/08-31-049-12-W4 W- 50.000 LLOYD/WAS NRA - - - - -6.7 -6.2 -5.6 00/09-32-049-12-W4 W- 50.000 LLOYD PP 40.6 - - - 182.1 179.1 174.7 00/06-28-049-13-W4 W- 50.000 CLY PP 1.1 - - - -5.1 -5.0 -5.0 00/16-34-049-13-W4 W- 50.000 SPKY PP 121.2 - - - 332.9 306.3 273.0 00/10-36-049-13-W4 W- 50.000 WAB PP 4.5 - - - 7.5 7.9 8.5 00/02-24-049-14-W4 W- 50.000 WAB NRA - - - - -6.1 -5.6 -4.9 00/08-04-050-12-W4 W- 42.500 B QTZ U/B QTZ L PP 40.1 - - - 170.5 166.6 161.1 00/11-13-050-13-W4 W- 34.375 VIK PP 10.1 - - - 24.4 24.0 23.3 R- 0.625 SUBTOTAL 523.4 - - - 2052.0 1988.3 1902.6 WARWICK 02/06-16-053-15-W4 W- 50.000 SPKY/B QTZ/CUMM PP 39.6 - - - 172.4 169.6 165.7 02/06-35-053-15-W4 W- 50.000 CLY PP 166.3 - - - 718.9 703.8 682.5 00/11-36-053-15-W4 W- 50.000 VIK PNP 101.2 - - - 402.3 396.5 388.2 00/07-19-054-15-W4 W- 50.000 WAS PNP 171.5 - - - 640.6 620.9 593.5 00/14-34-054-15-W4 W- 50.000 WAS PP 127.6 - - - 525.6 510.9 490.5 00/14-34-054-15-W4 W- 50.000 NIS/CLY PP 163.8 - - - 662.7 646.7 624.3 02/06-14-054-16-W4 W- 50.000 WAS NRA - - - - -7.4 -7.0 -6.4 00/13-06-055-14-W4 W- 50.000 CLY/NIS NRA - - - - -7.4 -7.0 -6.4 00/07-01-055-15-W4 GLAUC/NIS NRA - - - - -5.5 -5.2 -4.8 00/01-02-055-15-W4 W- 50.000 NIS NRA - - - - -8.9 -8.8 -8.5 SUBTOTAL 769.9 - - - 3093.3 3020.5 2918.6 WARWICK EAST 00/16-30-052-14-W4 W- 50.000 SPKY L/SPKY U PP 219.7 - - - 942.3 918.3 884.9 00/08-32-052-14-W4 W- 50.000 NIS/SPKY PP 291.2 - - - 1134.3 1086.7 1022.7 00/06-33-052-14-W4 W- 48.360 NIS PP 382.9 - - - 1306.1 1221.1 1111.6 00/09-33-052-14-W4 W- 48.360 CLY/GLAUC/ELL PP 256.9 - - - 1058.4 1019.4 966.2 00/14-34-052-14-W4 W- 50.000 CUMM L/ELL/GLAUC PP 189.6 - - - 645.8 625.7 597.9 00/06-35-052-14-W4 W- 12.500 GLAUC PP 25.1 - - - 97.5 93.4 87.8 00/04-04-053-14-W4 W- 50.000 LLOYD/ELL PP 44.3 - - - 143.0 139.7 135.0 00/03-05-053-14-W4 W- 50.000 SPKY U/GLAUC PP 29.3 - - - 92.9 91.6 89.6 00/08-06-053-14-W4 W- 50.000 GLAUC/CLY PP 58.5 - - - 214.7 211.0 205.7 00/06-07-056-14-W4 W- 25.000 SPKY PP 62.0 - - - 268.9 262.5 253.4 SUBTOTAL 1559.5 - - - 5903.8 5669.4 5354.7 WEST LAVOY 00/11-19-051-13-W4 W- 50.000 VIK PP 321.9 - - - 1180.7 1117.3 1034.5 00/15-15-051-14-W4 W- 50.000 CLY PP 51.5 - - - 226.0 221.6 215.5 00/11-21-051-14-W4 W- 50.000 CLY/WAS PP 7.3 - - - 22.1 21.9 21.8 00/11-22-051-14-W4 W- 50.000 VIK PP 109.8 - - - 398.7 377.5 349.5 00/10-24-051-14-W4 W- 50.000 CLY/GLAUC PP 408.6 - - - 1162.6 1091.7 1000.6 00/14-29-051-14-W4 W- 50.000 CLY PP 159.4 - - - 675.1 652.5 621.4 00/08-31-051-14-W4 W- 50.000 CLY PNP 63.2 - - - 165.2 161.8 157.0 00/07-34-051-14-W4 W- 50.000 VIK PP 3.9 - - - 5.4 5.7 6.2 00/16-10-051-15-W4 R- 6.250 BR PP 11.5 - - - 61.9 59.7 56.6 00/09-11-051-15-W4 R- 6.250 BR PP 9.4 - - - 49.1 47.0 44.3 00/10-14-051-15-W4 W- 13.184 B BR PP 28.6 - - - 98.5 93.3 86.4 R- 3.105 00/07-15-051-15-W4 W- 12.500 CLY NRA - - - - -2.2 -2.2 -2.1 02/07-15-051-15-W4 W- 12.500 B BR M PP 52.4 - - - 220.2 211.8 200.5 00/12-15-051-15-W4 W- 12.500 CLY PNP 126.6 - - - 522.4 498.8 467.3 00/09-16-051-15-W4 W- 50.000 CLY PP 446.3 - - - 1678.4 1599.4 1494.6 00/10-21-051-15-W4 W- 37.500 CLY PP 52.6 - - - 216.1 209.7 200.9 02/10-21-051-15-W4 W- 37.500 B BR M NRA - - - - -6.1 -5.9 -5.5 00/16-21-051-15-W4 W- 37.500 B BR M PP 276.6 - - - 1119.0 1065.8 995.3 02/10-22-051-15-W4 W- 18.809 BR PP 96.1 - - - 356.8 337.8 313.0 00/07-26-051-15-W4 W- 22.500 VIK A PP 8.4 - - - 22.5 21.9 21.2 00/14-29-051-15-W4 W- 50.000 CLY NRA - - - - -4.6 -4.0 -3.2 00/11-19-052-15-W4 R- 0.388 UMN PP 1.0 - - - 5.4 5.1 4.8 00/14-14-054-15-W4 W- 50.000 MCLAR/VIK PNP 229.3 - - - 899.0 872.9 836.8 SUBTOTAL 2464.5 - - - 9072.0 8661.4 8117.2 WILLINGDON 02/10-24-054-16-W4 W- 50.000 WAS/CLY PP 425.7 - - - 1627.4 1561.6 1473.2 00/13-23-056-16-W4 W- 25.000 SPKY/CLY PP 297.1 - - - 939.2 868.9 780.3 02/13-23-056-16-W4 W- 25.000 GLAUC/B QTZ PP 127.9 - - - 530.2 512.6 488.5 00/10-29-056-16-W4 W- 50.000 GLAUC PNP 212.3 - - - 868.4 846.0 814.7 00/10-29-056-16-W4 W- 50.000 CLY NRA - - - - - - -
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 5 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1 ,2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE -------------------------------- ------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX(M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MMBL MMBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------- WILLINGDON(CONT'D) 02/12-29-056-16-W4 W-50.000 CLY NRA - - - - -8.9 -8.8 -8.5 00/12-03-057-16-W4 W-50.000 GLAUC PP 88.0 - - - 298.5 291.5 281.7 00/12-03-057-16-W4 W-50.000 CLY/WAS NRA - - - - - - - 00/07-15-057-16-W4 W-50.000 WAS/SPKY/LSPKY/C - - - - - -5.1 -4.4 -3.7 SUBTOTAL 1150.9 - - - 4249.7 4067.3 3826.2 SUBTOTAL ALBERTA 22199.2 - - - 79830.8 76664.4 72453.9 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL 22199.2 - - - 79830.8 76664.4 72453.9 - -----------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 1 SUMMARY OF RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1 ,2003 TOTAL PROVED RESERVES
COMPANY INTEREST RESERVES NET RESERVES AFTER ROYALTY PRESENT WORTH VALUE ------------------------------- ------------------------------- --------------------------------------- GAS OIL NGL SULPHUR GAS OIL NGL SULPHUR BEFORE TAX(M$) AREA BCF MMBL MMBL MLT BCF MMBL MMBL MLT @10.0% @12.0% @15.0% @20.0% - --------------------------------------------------------------------------------------------------------------------------------- ALBERTA Birch 1.77 - - - 1.34 - - - 7317.2 7142.3 6897.7 6531.8 Bonnyville 1.19 - - - 1.04 - - - 4215.1 4021.5 3763.9 3405.1 Cold Lake 1.12 - - - 0.87 - - - 4297.2 4152.8 3955.6 3670.2 Hairy Hill 0.14 - - - 0.12 - - - 573.3 564.5 552.0 532.7 Hedge - - - - - - - - -12.6 -12.7 -12.8 -12.9 Holden 0.86 - - - 0.76 - - - 2662.9 2488.5 2265.5 1972.2 Jarrow 0.60 - - - 0.45 - - - 1550.7 1433.1 1288.9 1108.9 Lavoy 4.79 - - - 3.37 - - - 15487.7 14827.3 13958.4 12760.5 Mannville 0.24 - - - 0.20 - - - 741.5 690.0 624.7 540.1 Mundare 0.94 - - - 0.74 - - - 3404.2 3277.9 3108.3 2868.3 Plain 0.97 - - - 0.74 - - - 3602.6 3483.6 3320.8 3085.0 Ranfurly 1.75 - - - 1.34 - - - 6574.9 6327.8 5999.2 5538.5 St. Paul 0.02 - - - 0.02 - - - 67.8 66.6 64.8 62.0 Vegreville 1.34 - - - 1.01 - - - 4977.5 4794.4 4547.6 4197.3 Viking 0.52 - - - 0.44 - - - 2052.0 1988.3 1902.6 1780.8 Warwick 0.77 - - - 0.63 - - - 3093.3 3020.5 2918.6 2765.6 Warwick East 1.56 - - - 1.20 - - - 5903.8 5669.4 5354.7 4910.8 West Lavoy 2.46 - - - 1.95 - - - 9072.0 8661.4 8117.2 7362.6 Willingdon 1.15 - - - 0.87 - - - 4249.7 4067.3 3826.2 3492.4 SUBTOTAL ALBERTA 22.20 - - - 17.08 - - - 79830.8 76664.4 72453.9 66572.0 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL 22.20 - - - 17.08 - - - 79830.8 76664.4 72453.9 66572.0 - ---------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 3 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH CONSTANT PRICES AS OF MAY 1 ,2003 TOTAL PROVED RESERVES SORTED BY COMPANY GAS RESERVES
COMPANY INTEREST RESERVES PRESENT WORTH VALUE COMPANY GAS RESERVES ------------------------------------------------ ----------------------------- -------------------- RANK GAS OIL NGL SULPHUR BOE (1) BEFORE TAX (M$) %OF CUMULATIVE BCF MBBL MBBL MLT MBBL @10.0 % @12.0 % @15.0% TOTAL % - ---------------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 4.79 - - - 798.3 15487.7 14827.3 13958.4 21.58 21.58 2 West Lavoy 2.46 - - - 410.7 9072.0 8661.4 8117.2 11.10 32.68 3 Birch 1.77 - - - 294.3 7317.2 7142.3 6897.7 7.95 40.63 4 Ranfurly 1.75 - - - 292.2 6574.9 6327.8 5999.2 7.90 48.53 5 Warwick East 1.56 - - - 259.9 5903.8 5669.4 5354.7 7.03 55.55 6 Vegreville 1.34 - - - 223.1 4977.5 4794.4 4547.6 6.03 61.58 7 Bonnyville 1.19 - - - 199.1 4215.1 4021.5 3763.9 5.38 66.96 8 Willingdon 1.15 - - - 191.8 4249.7 4067.3 3826.2 5.18 72.15 9 Cold Lake 1.12 - - - 186.6 4297.2 4152.8 3955.6 5.04 77.19 10 Plain 0.97 - - - 162.1 3602.6 3483.6 3320.8 4.38 81.57 11 Mundare 0.94 - - - 155.9 3404.2 3277.9 3108.3 4.21 85.79 12 Holden 0.86 - - - 143.6 2662.9 2488.5 2265.5 3.88 89.67 13 Warwick 0.77 - - - 128.3 3093.3 3020.5 2918.6 3.47 93.13 14 Jarrow 0.60 - - - 100.1 1550.7 1433.1 1288.9 2.71 95.84 15 Viking 0.52 - - - 87.2 2052.0 1988.3 1902.6 2.36 98.20 16 Mannville 0.24 - - - 39.6 741.5 690.0 624.7 1.07 99.27 17 Hairy Hill 0.14 - - - 23.6 573.3 564.5 552.0 0.64 99.91 18 St. Paul 0.02 - - - 3.4 67.8 66.6 64.8 0.09 100.00 19 Hedge - - - - - -12.6 -12.7 -12.8 - 100.00 TOTAL 22.20 - - - 3699.9 79830.8 76664.4 72453.9 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 4 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH CONSTANT PRICES AS OF MAY 1 ,2003 TOTAL PROVED RESERVES SORTED BY COMPANY BOE RESERVES
COMPANY INTEREST RESERVES PRESENT WORTH VALUE COMPANY BOE RESERVES ------------------------------------------- -------------------------------- --------------------- GAS OIL NGL SULPHUR BOE(1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @10.0% @12.0% @15.0% TOTAL % - ---------------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 4.79 - - - 798.3 15487.7 14827.3 13958.4 21.58 21.58 2 West Lavoy 2.46 - - - 410.7 9072.0 8661.4 8117.2 11.10 32.68 3 Birch 1.77 - - - 294.3 7317.2 7142.3 6897.7 7.95 40.63 4 Ranfurly 1.75 - - - 292.2 6574.9 6327.8 5999.2 7.90 48.53 5 Warwick East 1.56 - - - 259.9 5903.8 5669.4 5354.7 7.03 55.55 6 Vegreville 1.34 - - - 223.1 4977.5 4794.4 4547.6 6.03 61.58 7 Bonnyville 1.19 - - - 199.1 4215.1 4021.5 3763.9 5.38 66.96 8 Willingdon 1.15 - - - 191.8 4249.7 4067.3 3826.2 5.18 72.15 9 Cold Lake 1.12 - - - 186.6 4297.2 4152.8 3955.6 5.04 77.19 10 Plain 0.97 - - - 162.1 3602.6 3483.6 3320.8 4.38 81.57 11 Mundare 0.94 - - - 155.9 3404.2 3277.9 3108.3 4.21 85.79 12 Holden 0.86 - - - 143.6 2662.9 2488.5 2265.5 3.88 89.67 13 Warwick 0.77 - - - 128.3 3093.3 3020.5 2918.6 3.47 93.13 14 Jarrow 0.60 - - - 100.1 1550.7 1433.1 1288.9 2.71 95.84 15 Viking 0.52 - - - 87.2 2052.0 1988.3 1902.6 2.36 98.20 16 Mannville 0.24 - - - 39.6 741.5 690.0 624.7 1.07 99.27 17 Hairy Hill 0.14 - - - 23.6 573.3 564.5 552.0 0.64 99.91 18 St. Paul 0.02 - - - 3.4 67.8 66.6 64.8 0.09 100.00 19 Hedge - - - - - -12.6 -12.7 -12.8 - 100.00 TOTAL 22.20 - - - 3699.9 79830.8 76664.4 72453.9 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 5 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES SORTED BY @10.0% PRESENT WORTH VALUE
COMPANY INTEREST RESERVES PRESENT WORTH VALUE @10.0% PRESENT WORTH VALUE --------------------------------------- ------------------------- --------------------------------- GAS OIL NGL SULPHUR BOE(1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @10.0% @12.0% @15.0% TOTAL % - ----------------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 4.79 - - - 798.3 15487.7 14827.3 13958.4 19.40 19.40 2 West Lavoy 2.46 - - - 410.7 9072.0 8661.4 8117.2 11.36 30.76 3 Birch 1.77 - - - 294.3 7317.2 7142.3 6897.7 9.17 39.93 4 Ranfurly 1.75 - - - 292.2 6574.9 6327.8 5999.2 8.24 48.17 5 Warwick East 1.56 - - - 259.9 5903.8 5669.4 5354.7 7.40 55.56 6 Vegreville 1.34 - - - 223.1 4977.5 4794.4 4547.6 6.24 61.80 7 Cold Lake 1.12 - - - 186.6 4297.2 4152.8 3955.6 5.38 67.18 8 Willingdon 1.15 - - - 191.8 4249.7 4067.3 3826.2 5.32 72.50 9 Bonnyville 1.19 - - - 199.1 4215.1 4021.5 3763.9 5.28 77.78 10 Plain 0.97 - - - 162.1 3602.6 3483.6 3320.8 4.51 82.30 11 Mundare 0.94 - - - 155.9 3404.2 3277.9 3108.3 4.26 86.56 12 Warwick 0.77 - - - 128.3 3093.3 3020.5 2918.6 3.87 90.44 13 Holden 0.86 - - - 143.6 2662.9 2488.5 2265.5 3.34 93.77 14 Viking 0.52 - - - 87.2 2052.0 1988.3 1902.6 2.57 96.34 15 Jarrow 0.60 - - - 100.1 1550.7 1433.1 1288.9 1.94 98.28 16 Mannville 0.24 - - - 39.6 741.5 690.0 624.7 0.93 99.21 17 Hairy Hill 0.14 - - - 23.6 573.3 564.5 552.0 0.72 99.93 18 St. Paul 0.02 - - - 3.4 67.8 66.6 64.8 0.08 100.02 19 Hedge - - - - - -12.6 -12.7 -12.8 -0.02 100.00 TOTAL 22.20 - - - 3699.9 79830.8 76664.4 72453.9 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC.- MECHANICAL UPDATE Table 4 Page 1 FIRST YEAR PRODUCTION, REVENUE AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES 2003 SUMMARY
PRODUCTION REVENUE AND EXPENSES AVERAGE VALUES $/BOE(1) ----------------------------------------- --------------------------------- -------------------------------- GROSS OPER. NET OIL GAS NGL SULPHUR BOE (1) REVENUE ENCUMB. EXP REV. (2) GROSS OPER NET AREA BOPD MCF/D BPD IT/D BOEPD $M $M $M $M REVENUE ENCUMB. EXP REV (2) - ------------------------------------------------------------------------------------------------------------------------------------ ALBERTA Birch - 2455.0 - - 409.0 4201 1044 273 2884 42.21 10.49 2.74 28.98 Bonnyville - 720.4 - - 120.0 1210 190 148 871 41.42 6.52 5.06 29.84 Cold Lake - 1089.3 - - 181.4 1829 469 136 1223 41.45 10.64 3.09 27.72 Hairy Hill - 254.5 - - 42.3 436 79 61 296 42.33 7.67 5.90 28.76 Hedge - - - - - -23 - - -23 - - - - Holden - 310.3 - - 51.7 531 72 74 386 42.25 5.70 5.85 30.70 Jarrow - 216.1 - - 35.9 370 99 31 240 42.34 11.29 3.56 27.49 Lavoy - 3717.9 - - 619.1 6343 2003 325 4015 42.11 13.30 2.16 26.65 Mannville - 87.3 - - 14.5 147 29 15 103 41.40 8.22 4.10 29.08 Mundare - 935.0 - - 155.8 1591 383 153 1055 41.98 10.11 4.03 27.84 Plain - 992.2 - - 165.3 1697 460 149 1088 42.18 11.43 3.70 27.06 Ranfurly - 1438.8 - - 239.5 2459 567 126 1765 42.18 9.74 2.16 30.28 St. Paul - 21.2 - - 3.5 36 2 10 23 41.84 2.85 11.49 27.49 Vegreville - 1193.1 - - 198.7 2040 552 103 1385 42.19 11.42 2.12 28.65 Viking - 593.4 - - 98.8 1011 222 77 711 42.05 9.26 3.22 29.58 Warwick - 1091.0 - - 181.7 1848 399 178 1270 41.79 9.03 4.03 28.73 Warwick East - 1290.8 - - 214.9 2194 611 109 1474 41.95 11.69 2.09 28.18 West Lavoy - 1795.0 - - 298.9 3065 760 158 2147 42.14 10.45 2.17 29.52 Willingdon - 971.8 - - 161.9 1652 475 67 1110 41.93 12.06 1.71 28.16 SUBTOTAL ALBERTA - 19173.2 - - 3192.9 32635 8419 2192 22024 42.00 10.84 2.82 28.35 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL - 19173.2 - - 3192.9 32635 8419 2192 22024 42.00 10.84 2.82 28.35 - -----------------------------------------------------------------------------------------------------------------------------------
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE based on Gross BOE reserves. (2) Excludes capital and abandonment expenses. McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES GAS PRODUCTION FORECAST (MMCF) (1)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 597 561 310 175 91 32 - - - - 1766 - 1766 Bonnyville 175 221 181 149 122 94 72 55 44 37 1151 44 1194 Cold Lake 265 289 203 145 99 56 34 15 4 4 1115 5 1120 Hairy Hill 62 56 20 3 1 0 - - - - 142 - 142 Hedge - - - - - - - - - - - - - Holden 76 104 94 84 76 68 62 56 50 45 714 148 861 Jarrow 53 64 54 49 44 39 36 33 27 25 423 178 601 Lavoy 905 1030 735 521 404 312 215 134 109 89 4454 336 4790 Mannville 21 29 26 23 20 18 16 15 13 12 193 45 238 Mundare 228 198 175 116 69 41 26 22 19 16 910 26 935 Plain 241 252 165 117 87 61 29 20 - - 973 - 973 Ranfurly 350 489 306 197 142 69 45 20 16 15 1649 104 1753 St. Paul 5 7 4 3 0 - - - - - 20 - 20 Vegreville 290 336 215 144 100 87 58 42 33 25 1331 7 1338 Viking 144 142 86 54 24 9 9 9 8 8 493 30 523 Warwick 265 246 135 76 42 5 - - - - 770 - 770 Warwick East 314 362 267 189 138 91 67 45 32 25 1529 30 1560 West Lavoy 437 503 378 283 218 171 130 100 82 63 2365 99 2464 Willingdon 236 258 181 131 89 60 49 37 32 20 1093 57 1151 SUBTOTAL ALBERTA 4665 5145 3535 2460 1768 1214 848 602 469 384 21090 1109 22199 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL 4665 5145 3535 2460 1768 1214 848 602 469 384 21090 1109 22199 - --------------------------------------------------------------------------------------------------------------------------------
(1) Company gross share of production before royalty deductions McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES GROSS REVENUE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ---------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 4201 3943 2176 1229 642 224 - - - - 12415 - 12415 Bonnyville 1210 1525 1249 1025 843 651 500 382 302 253 7939 302 8241 Cold Lake 1829 1997 1402 1001 686 389 235 100 29 26 7693 33 7725 Hairy Hill 436 395 140 20 7 1 - - - - 999 - 999 Hedge -23 10 - - - - - - - - -12 - -12 Holden 531 731 658 593 534 481 434 391 352 317 5023 1039 6062 Jarrow 370 449 378 345 312 273 251 231 193 174 2976 1253 4229 Lavoy 6343 7217 5153 3650 2829 2183 1501 932 755 621 31185 2325 33510 Mannville 147 199 177 158 141 126 112 101 90 81 1331 309 1641 Mundare 1591 1387 1233 813 486 289 182 155 133 115 6383 181 6564 Plain 1697 1768 1161 821 609 428 203 141 - - 6828 - 6828 Ranfurly 2459 3434 2150 1385 996 486 319 143 111 102 11585 735 12319 St. Paul 36 50 29 23 2 - - - - - 140 - 140 Vegreville 2040 2364 1513 1016 705 613 409 299 230 178 9366 49 9416 Viking 1011 991 602 379 168 65 63 61 59 57 3454 212 3666 Warwick 1848 1712 940 528 293 35 - - - - 5355 - 5355 Warwick East 2194 2528 1863 1321 967 635 467 317 224 179 10694 211 10905 West Lavoy 3065 3527 2656 1991 1533 1200 916 700 579 446 16613 700 17313 Willingdon 1652 1804 1265 917 618 418 339 258 223 144 7637 404 8042 SUBTOTAL ALBERTA 32635 36030 24746 17214 12370 8498 5931 4209 3281 2690 147603 7754 155357 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL 32635 36030 24746 17214 12370 8498 5931 4209 3281 2690 147603 7754 155357 - -----------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES ENCUMBRANCE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 1044 922 477 230 100 31 - - - - 2804 - 2804 Bonnyville 190 218 159 117 87 63 45 34 25 20 958 22 980 Cold Lake 469 485 293 175 102 49 24 10 2 2 1611 2 1613 Hairy Hill 79 67 23 2 - - - - - - 171 - 171 Hedge - - - - - - - - - - - - - Holden 72 96 84 75 66 58 51 45 40 36 623 112 735 Jarrow 99 121 102 92 83 75 68 62 52 47 800 325 1125 Lavoy 2003 2190 1500 1036 772 585 421 262 212 177 9159 682 9841 Mannville 29 37 31 26 22 18 15 13 11 9 210 30 240 Mundare 377 282 266 153 81 43 26 20 16 13 1277 18 1294 Plain 460 449 266 164 106 68 34 21 - - 1567 - 1567 Ranfurly 564 957 525 291 177 90 58 17 13 11 2702 67 2769 St. Paul 2 3 2 1 0 - - - - - 9 - 9 Vegreville 551 619 387 248 173 173 116 83 61 46 2458 12 2470 Viking 215 172 85 45 16 6 5 5 5 5 559 17 576 Warwick 399 301 139 70 33 4 - - - - 946 - 946 Warwick East 609 644 426 271 190 120 82 53 41 35 2471 41 2512 West Lavoy 760 821 563 387 279 205 152 116 92 70 3447 128 3574 Willingdon 475 493 306 195 112 72 55 41 34 23 1805 63 1868 SUBTOTAL ALBERTA 8397 8878 5633 3579 2399 1659 1153 781 604 493 33576 1518 35094 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL 8397 8878 5633 3579 2399 1659 1153 781 604 493 33576 1518 35094 - -------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES CAPITAL EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ---------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 150 - - - - - - - - - 150 - 150 Bonnyville - - - - - - - - - - - - - Cold Lake 14 - - - - - - - - - 14 - 14 Hairy Hill - - - - - - - - - - - - - Hedge - - - - - - - - - - - - - Holden - - - - - - - - - - - - - Jarrow - - - - - - - - - - - - - Lavoy 100 - - - - - - - - - 100 - 100 Mannville - - - - - - - - - - - - - Mundare 75 - - - - - - - - - 75 - 75 Plain 33 - - - - - - - - - 33 - 33 Ranfurly 33 150 - - - - - - - - 183 - 183 St. Paul - - - - - - - - - - - - - Vegreville - 19 - - - 12 - - - - 31 - 31 Viking - - - - - - - - - - - - - Warwick 150 - - - - - - - - - 150 - 150 Warwick East - - - - - - - - - - - - - West Lavoy 138 - - - - - - - - - 138 - 138 Willingdon 50 - - - - - - - - - 50 - 50 SUBTOTAL ALBERTA 744 169 - - - 12 - - - - 925 - 925 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL 744 169 - - - 12 - - - - 925 - 925 - ----------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES OPERATING EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ---------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 273 281 178 120 71 29 - - - - 953 - 953 Bonnyville 148 203 189 177 168 145 124 95 84 81 1414 118 1532 Cold Lake 136 167 136 113 90 62 49 25 7 7 793 10 803 Hairy Hill 61 73 35 6 0 0 - - - - 175 - 175 Hedge - - - - - - - - - - - - - Holden 74 108 105 96 94 92 90 88 80 78 904 322 1226 Jarrow 31 38 31 30 27 23 23 22 16 15 255 156 411 Lavoy 325 442 376 290 271 249 184 98 81 63 2380 223 2603 Mannville 15 21 19 18 17 16 16 15 14 14 164 65 229 Mundare 153 151 137 104 63 39 25 23 21 20 735 35 770 Plain 149 173 125 101 87 69 37 30 - - 772 - 772 Ranfurly 126 165 119 89 80 40 29 14 11 11 684 108 792 St. Paul 10 14 9 7 1 - - - - - 41 - 41 Vegreville 103 135 97 72 55 44 29 24 23 23 604 7 611 Viking 77 91 73 59 31 14 14 14 14 14 402 58 460 Warwick 178 191 127 84 57 7 - - - - 644 - 644 Warwick East 109 153 139 109 90 58 47 34 22 16 777 20 798 West Lavoy 158 206 188 161 139 128 108 90 88 75 1339 136 1476 Willingdon 67 87 75 68 50 33 30 24 23 13 470 34 504 SUBTOTAL ALBERTA 2192 2697 2159 1703 1391 1049 805 597 485 429 13508 1294 14801 - ------------------------------------------------------------------------------------------------------------------------- TOTAL 2192 2697 2159 1703 1391 1049 805 597 485 429 13508 1294 14801 - -------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES ABANDONMENT COST FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ---------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch - - 10 20 40 40 - 10 - 10 130 10 140 Bonnyville - - 17 15 - 26 - - 10 - 68 100 168 Cold Lake - 10 - 5 19 10 10 10 - - 64 5 69 Hairy Hill - 10 - 10 - 10 - - - - 30 - 30 Hedge - - - - - - - - - - - - - Holden - - - - - - - - - - - 64 64 Jarrow - - - - 3 5 13 8 6 - 34 10 44 Lavoy 5 25 120 83 41 98 91 50 23 - 535 40 575 Mannville - - - - - - - - - - - 8 8 Mundare - - 10 10 30 20 10 20 - - 100 10 110 Plain - 10 - 10 20 30 - 20 - - 90 - 90 Ranfurly - 27 10 10 29 50 10 5 - 10 151 10 161 St. Paul - - - - 15 - - - - - 15 - 15 Vegreville - 20 10 - 12 - 28 - 5 - 74 10 84 Viking 10 - 10 9 40 17 - - - 10 95 10 105 Warwick - 10 10 28 - 10 20 - 10 - 88 - 88 Warwick East - - 10 - 10 10 10 15 20 - 75 12 87 West Lavoy 10 3 18 15 10 8 20 - 13 13 107 44 151 Willingdon - 10 - - 10 - 15 10 - 10 55 5 60 SUBTOTAL ALBERTA 25 124 225 213 278 333 226 147 86 53 1709 337 2047 - ------------------------------------------------------------------------------------------------------------------------ TOTAL 25 124 225 213 278 333 226 147 86 53 1709 337 2047 - ------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES NET REVENUE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ---------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 2734 2740 1511 859 431 124 - -10 - -10 8378 -10 8368 Bonnyville 871 1104 884 715 588 417 331 252 183 152 5498 63 5561 Cold Lake 1209 1335 973 708 475 268 151 56 20 17 5211 15 5226 Hairy Hill 296 244 82 3 6 -9 - - - - 623 - 623 Hedge -23 10 - - - - - - - - -12 - -12 Holden 386 527 469 422 375 332 293 257 232 203 3496 541 4038 Jarrow 240 290 246 223 199 170 148 139 119 112 1887 762 2650 Lavoy 3910 4560 3157 2241 1745 1252 805 522 440 380 19012 1380 20391 Mannville 103 141 127 114 102 91 82 73 65 58 957 207 1164 Mundare 980 946 812 540 306 183 118 89 94 80 4148 114 4263 Plain 1055 1136 770 546 396 260 132 70 - - 4365 - 4365 Ranfurly 1732 2130 1491 991 707 302 220 105 85 68 7830 534 8364 St. Paul 23 32 18 14 -14 - - - - - 75 - 75 Vegreville 1385 1570 1018 695 464 383 234 190 140 109 6188 20 6208 Viking 701 720 430 264 80 27 42 40 38 27 2369 123 2492 Warwick 1120 1209 665 347 203 14 -20 - -10 - 3528 - 3528 Warwick East 1474 1728 1287 940 676 447 328 214 140 128 7363 137 7500 West Lavoy 1999 2498 1888 1428 1105 860 636 495 387 288 11583 392 11975 Willingdon 1060 1214 884 654 446 313 239 184 166 97 5257 303 5560 SUBTOTAL ALBERTA 21256 24137 16711 11706 8291 5433 3738 2677 2099 1709 97755 4581 102336 - ------------------------------------------------------------------------------------------------------------------------- TOTAL 21256 24137 16711 11706 8291 5433 3738 2677 2099 1709 97755 4581 102336 - -------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES - UNRISKED TOTAL OF ALL AREAS
NATURAL GAS -------------------------- TOTAL ANNUAL SALES SALES OTHER GROSS NO. OF VOLUME PRICE REVENUE REVENUES REVENUE YEAR WELLS MMCF $/MCF M$ M$ M$ - -------------------------------------------------------------------------- 2003 71.8 5132.0 7.00 35921.2 -22.5 35898.7 2004 68.1 6041.0 7.00 42288.5 10.3 42298.8 2005 64.7 4532.3 7.00 31732.8 31732.8 2006 58.0 3395.4 7.00 23769.0 23769.0 2007 51.6 2649.6 7.00 18548.8 18548.8 2008 47.6 2177.8 7.00 15251.4 15251.4 2009 40.3 1596.8 7.00 11180.3 11180.3 2010 32.0 1183.4 7.00 8287.5 8287.5 2011 25.0 851.1 7.00 5958.1 5958.1 2012 19.9 617.8 7.00 4321.4 4321.4 2013 16.9 489.1 7.00 3422.9 3422.9 2014 15.2 406.1 7.00 2842.3 2842.3 2015 13.8 336.3 7.00 2352.8 2352.8 2016 13.5 295.5 7.00 2067.7 2067.7 2017 12.4 230.8 7.00 1615.0 1615.0 REM. 2.5 652.2 6.98 4555.3 4555.3 TOTAL 30587.2 7.00 214115.0 -12.2 214102.7 - --------------------------------------------------------------------------
CROWN ROYALTIES FREEHOLD ROYALTIES OVERRIDING ROYALTIES -------------------------- ------------------------- ------------------------ TOTAL TOTAL UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. MINERAL ROYALTY ROYALTY NPI ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY TAX & TAXES & TAXES PYMTS. YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ % M$ - --------------------------------------------------------------------------------------------------------------------------------- 2003 6842.4 452.2 6390.2 1422.1 94.0 1328.1 1334.9 77.9 1257.0 428.8 9404.1 26.18 22.1 2004 7549.6 491.8 7057.8 1690.5 112.1 1578.5 1742.3 101.3 1641.0 475.2 10752.5 25.43 26.1 2005 5073.5 324.8 4748.8 1331.4 88.1 1243.3 1297.6 75.3 1222.3 339.1 7553.5 23.80 19.8 2006 3450.5 222.2 3228.3 998.6 66.6 932.0 957.0 55.6 901.5 234.8 5296.7 22.28 15.8 2007 2399.1 153.2 2245.9 814.8 54.0 760.7 807.3 46.7 760.6 180.3 3947.6 21.28 12.9 2008 1933.4 124.8 1808.5 631.5 41.8 589.8 676.5 37.5 639.0 129.6 3166.8 20.76 12.7 2009 1291.1 82.4 1208.7 448.9 29.5 419.4 502.8 27.8 475.0 90.2 2193.4 19.62 10.9 2010 898.6 56.1 842.5 343.7 20.8 322.9 445.5 24.7 420.8 66.8 1652.9 19.95 9.5 2011 588.4 36.2 552.3 256.0 14.6 241.4 329.6 18.3 311.3 49.2 1154.2 19.37 8.4 2012 391.6 23.7 367.9 196.2 11.2 185.0 231.0 12.9 218.1 37.1 808.1 18.70 7.5 2013 284.9 17.4 267.5 171.3 9.8 161.5 183.1 10.4 172.7 30.5 632.2 18.47 6.6 2014 221.3 13.6 207.6 151.5 8.7 142.9 150.0 8.6 141.4 25.5 517.5 18.21 6.0 2015 181.5 11.2 170.3 109.7 6.3 103.4 129.7 7.4 122.2 19.5 415.5 17.66 5.5 2016 154.7 9.6 145.1 94.4 5.4 89.0 109.2 6.3 102.9 16.0 353.1 17.08 5.1 2017 120.8 7.5 113.3 64.4 3.7 60.7 71.2 4.1 67.1 10.6 251.7 15.58 4.7 REM. 323.9 18.9 305.0 237.3 13.6 223.6 414.8 23.9 390.9 40.1 959.7 21.07 19.2 TOTAL 31705.3 2045.6 29659.7 8962.3 580.1 8382.2 9382.4 538.9 8843.6 2173.3 49059.4 22.91 192.9 - --------------------------------------------------------------------------------------------------------------------------------
CAPITAL COSTS NET REVENUES AFTER COSTS ---------------------------- -------------------------------- OPERATING ABD. NET OP. DRILLING EQUIP & TOTAL PWV COSTS COSTS INCOME & COMPL FACILITY CAPITAL ANNUAL CUM @10.0% YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - -------------------------------------------------------------------------------------------------------- 2003 2342.3 25.0 24105.1 166.7 943.6 1110.3 22994.8 22994.8 22275.7 2004 2996.3 104.3 28419.7 18.8 150.0 168.8 28250.9 51245.8 25278.4 2005 2565.1 164.5 21430.0 50.0 50.0 21380.0 72625.7 17392.2 2006 2115.7 248.0 16092.8 25.0 25.0 16067.8 88693.6 11882.9 2007 1796.9 213.4 12578.0 50.0 50.0 12528.0 101221.6 8422.4 2008 1606.7 237.6 10227.8 112.4 112.4 10115.4 111337.0 6182.6 2009 1299.9 198.6 7477.6 7477.6 118814.5 4154.8 2010 1002.1 180.0 5442.9 25.0 25.0 5417.9 124232.4 2737.0 2011 768.7 143.1 3883.5 3883.5 128116.0 1783.4 2012 598.3 112.6 2794.7 2794.7 130910.7 1166.6 2013 497.9 64.8 2221.3 2221.3 133132.0 842.9 2014 439.0 42.5 1837.3 1837.3 134969.3 633.8 2015 391.0 10.0 1530.7 1530.7 136500.0 480.0 2016 376.2 22.5 1310.9 1310.9 137810.8 373.7 2017 337.1 20.9 1000.6 1000.6 138811.4 259.3 REM. 745.3 273.9 2557.2 2557.2 141368.6 451.8 TOTAL 19878.7 2061.6 142910.0 447.8 1093.6 1541.4 141368.6 104317.7 - --------------------------------------------------------------------------------------------------------
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ ------------------ ------------------------------------------------ PRODUCT GROSS NET @10.0% @12.0% @15.0% @20.0% - ------------------------------------------------------------------------------------------------- Crude Oil (mbbl) -13.4 -12.5 -11.2 -9.3 Natural Gas (mmcf) 30587.7 23440.6 104330.8 99385.8 92912.3 84065.9 TOTAL 104317.4 99373.3 92901.1 84056.6 - -------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1,2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - --------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 00/06-32-050-10-W4 W-50.000 B QTZ NRA - - - - -6.7 -6.2 -5.6 00/06-32-050-10-W4 W-50.000 SPKY NP 57.6 - - - 194.4 188.6 180.4 00/13-32-050-11-W4 W-50.000 VIK NP 48.4 - - - 118.5 114.2 108.1 02/10-07-050-12-W4 W-50.000 GLAUC/CLY P 66.4 - - - 278.1 269.7 258.0 02/01-14-050-12-W4 W-50.000 SPKY L/CUMM P 469.7 - - - 1813.5 1744.1 1650.0 00/09-15-050-12-W4 W-50.000 CUMM P 115.6 - - - 479.6 467.5 450.6 00/09-16-050-12-W4 W-50.000 LLOYD/CUMM /NIS P 7.5 - - - 33.9 34.3 34.7 00/14-16-050-12-W4 W-50.000 NIS NP 122.1 - - - 468.3 460.1 448.4 00/15-17-050-12-W4 W-50.000 NIS P 119.4 - - - 507.6 493.0 472.7 00/07-21-050-12-W4 W-50.000 GLAUC/B QTZ P 252.7 - - - 1104.5 1066.8 1015.3 00/02-22-050-12-W4 W-50.000 SPKY/LLOYD /BQ P 184.4 - - - 787.4 766.9 738.3 00/02-22-050-12-W4 W-50.000 WAS NP 163.4 - - - 528.1 487.6 434.2 00/08-22-050-12-W4 W-50.000 ELL/CUMM P 127.3 - - - 456.5 441.7 421.4 00/15-24-050-12-W4 WAS/SPKY/LLOYD NRA - - - - -7.4 -7.0 -6.4 00/02-04-051-10-W4 W-50.000 SPKY/CUMM NP 940.9 - - - 3679.3 3563.2 3403.9 00/02-04-051-10-W4 W-50.000 CLY/WAS/WABIS NP 273.0 - - - 696.1 623.2 530.1 00/05-04-051-11-W4 W-50.000 SPKY P 34.7 - - - 164.1 161.9 158.8 SUBTOTAL 2983.0 - - - 11295.8 10869.6 10293.1 BONNYVILLE Bonnyville Grand W-50.000 GRD RP P 1261.5 - - - 3985.1 3732.4 3408.9 Rapids C Pool Group Run Ptn Fort Kent Colony W-50.000 CLY P 184.3 - - - 707.2 681.5 646.4 C Pool -1 0-36 & 6-6 00/01-24-059-05-W4 W-35.000 GRD RP NRA - - - - -5.7 -5.5 -5.2 00/11-19-060-04-W4 W-50.000 CLY P 73.2 - - - 277.7 266.9 252.2 00/10-22-061-06-W4 W-50.000 CLY P 98.8 - - - 348.6 332.2 310.2 00/07-34-061-06-W4 W-25.000 CLY A P 1.2 - - - 0.4 0.6 0.9 NRA Wells NRA - - - - -18.6 -17.5 -16.0 SUBTOTAL 1618.9 - - - 5294.7 4990.6 4597.5 COLD LAKE Clearwater A Pool W-25.000 CLWTR P 418.7 - - - 1606.9 1555.0 1484.1 Group Run Secs 27&28-62-3W4 00/11-34-062-03-W4 W-25.000 CLY P 83.9 - - - 265.4 254.6 240.1 02/11-34-062-03-W4 W-25.000 LLOYD NRA - - - - -4.5 -4.4 -4.2 00/09-35-062-03-W4 W-25.000 CLY A P 112.7 - - - 425.4 405.7 379.2 00/05-36-062-03-W4 W-25.000 LLOYD P 182.9 - - - 665.9 636.2 596.4 02/14-23-063-03-W4 W-25.000 CLWTR D P 42.3 - - - 181.2 177.0 171.0 02/14-23-063-03-W4 W-25.000 CLY B NP 95.0 - - - 373.3 360.0 341.7 00/16-23-063-03-W4 W-23.750 CLY A/LLOYD P 236.1 - - - 807.7 765.3 709.5 00/07-25-063-03-W4 W-23.750 CLY A NRA - - - - -3.2 -3.0 -2.7 00/10-25-063-03-W4 W-23.750 LLOYD NRA - - - - -2.9 -2.6 -2.3 00/11-25-063-03-W4 W-23.750 CLY B NRA - - - - -4.2 -4.2 -4.0 02/02-26-063-03-W4 W-25.000 CLY B NP 140.2 - - - 446.1 418.1 382.3 02/09-26-063-03-W4 W-23.750 CLY A/LLOYD P 181.4 - - - 688.5 665.2 633.2 00/08-36-063-03-W4 W-23.750 CLY A/LLOYD P 40.0 - - - 158.1 152.5 144.8 8 Gorr Wells R- 2.125 CLY P 18.6 - - - 95.2 91.3 86.0 SUBTOTAL 1551.8 - - - 5698.8 5466.7 5155.3 HAIRY HILL 00/10-18-053-14-W4 R- 4.167 GLAUC P 7.0 - - - 38.4 37.1 35.4 00/06-21-055-14-W4 W-50.000 CLY/GLAUC/NIS P 79.0 - - - 309.6 304.2 296.5 02/10-21-055-14-W4 W-50.000 B QTZ/CLY P 75.3 - - - 285.9 279.1 269.5 00/11-30-055-14-W4 W-50.000 GLAUC P 52.8 - - - 224.0 220.4 215.3 SUBTOTAL 214.1 - - - 858.0 840.8 816.6 HEDGE Natural Gas Hedge P-50.000 NP - - - - -12.6 -12.7 -12.8
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE -------------------------------- -------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------------- HOLDEN Holden Viking Gas W- 35.500 VIK P 1029.9 - - - 2984.4 2764.2 2488.3 Unit No. 3 JARROW 00/03-33-044-11-W4 W- 25.000 B QTZ/GLAUC P 11.6 - - - 46.3 46.1 45.7 00/07-34-045-10-W4 W- 30.000 VIK P 36.8 - - - 102.1 97.1 90.4 00/14-01-045-11-W4 W- 50.000 CLY P 1.8 - - - 1.7 2.2 2.9 00/10-13-045-11-W4 W- 50.000 GLAUC P 650.4 - - - 1479.6 1342.7 1179.9 00/10-15-045-11-W4 F- 0.750 CLY/VIK P 0.1 - - - 0.3 0.3 0.3 00/06-19-045-11-W4 R- 0.750 VIK P 0.2 - - - 1.3 1.2 1.2 02/10-27-045-11-W4 W- 12.500 SPKY P 1.4 - - - 2.4 2.5 2.6 00/04-29-045-11-W4 W- 12.500 VIK P 3.7 - - - 10.0 9.8 9.6 00/06-30-045-11-W4 W- 12.500 VIK P 19.4 - - - 77.1 73.9 69.6 00/11-31-045-11-W4 R- 0.750 VIK NRA - - - - - - - 00/09-36-046-12-W4 W- 25.000 VIK A, B NRA - - - - -3.1 -2.8 -2.4 SUBTOTAL 725.3 - - - 1717.7 1573.1 1399.9 LAVOY Capital to purchase P- 50.000 P - - - - -64.6 -64.2 -63.6 compressor 00/07-21-051-13-W4 W- 50.000 CLY/WAB P 3.1 - - - 0.1 0.3 0.7 00/12-28-051-13-W4 W- 50.000 CLY/NIS P 379.9 - - - 1157.7 1109.2 1044.2 00/10-29-051-13-W4 W- 50.000 NIS/ELL P 153.6 - - - 546.5 515.3 474.7 00/10-29-051-13-W4 W- 50.000 ELL/NIS NP 814.2 - - - 1520.1 1353.6 1159.9 00/02-31-051-13-W4 W- 50.000 ELL P 125.0 - - - 397.2 382.1 361.7 00/14-31-051-13-W4 W- 50.000 WAS P 67.7 - - - 304.3 297.8 288.8 00/01-32-051-13-W4 W- 50.000 NIS L/NIS U P 415.4 - - - 1630.3 1564.1 1474.8 00/01-32-051-13-W4 W- 50.000 SPKY L/LLOYD P 302.7 - - - 1235.4 1190.8 1130.1 00/11-32-051-13-W4 W- 50.000 NIS P 198.9 - - - 646.0 601.8 545.7 00/10-33-051-13-W4 W- 50.000 CLY NRA - - - - -6.1 -5.6 -4.9 00/12-04-052-13-W4 W- 50.000 CLY/VIK NRA - - - - -7.4 -7.0 -6.4 00/11-05-052-13-W4 W- 50.000 VIK/CLY P 230.1 - - - 760.6 729.0 686.5 00/13-18-052-13-W4 W- 24.750 CLY NRA - - - - -2.7 -2.5 -2.1 00/07-30-052-13-W4 W- 50.000 2 WS NP 18.0 - - - 60.6 59.6 58.1 00/10-11-052-14-W4 W- 50.000 CLY/2 WS NRA - - - - -8.1 -7.8 -7.4 00/06-12-052-14-W4 W- 50.000 LLOYD/SPKY M P 16.7 - - - 47.3 46.8 46.0 00/11-12-052-14-W4 W- 50.000 SPKY L/CUMM L NRA - - - - -7.4 -7.0 -6.4 00/15-12-052-14-W4 W- 50.000 GLAUC/CUMM L/SPK P 147.2 - - - 644.9 626.5 601.1 00/06-15-052-14-W4 W- 50.000 CLY P 127.2 - - - 507.9 491.6 469.2 02/10-15-052-14-W4 W- 50.000 CLY P 266.7 - - - 888.1 853.6 806.8 00/06-22-052-14-W4 W- 50.000 CLY P 339.9 - - - 1032.8 986.7 925.1 00/06-22-052-14-W4 W- 50.000 VIK NP 118.7 - - - 211.0 181.6 145.9 00/08-22-052-14-W4 W- 50.000 LLOYD/SPKY L/SPK P 88.5 - - - 389.5 380.7 368.3 00/08-22-052-14-W4 W- 50.000 VIK NP 96.4 - - - 334.0 315.0 289.4 00/12-26-052-14-W4 W- 50.000 SPKY/GLAUC P 208.4 - - - 695.1 666.9 628.8 00/06-27-052-14-W4 W- 50.000 VIK P 101.7 - - - 350.1 330.9 305.7 00/12-27-052-14-W4 W- 50.000 GLAUC/NIS P 65.9 - - - 251.4 247.7 242.5 02/12-27-052-14-W4 W- 50.000 LLOYD/SPKY NRA - - - - -6.1 -5.6 -4.9 00/15-27-052-14-W4 W- 50.000 ELL P 790.7 - - - 2365.6 2227.5 2049.1 02/06-28-052-14-W4 W- 50.000 SPKY/LLOYD /NIS P 83.1 - - - 303.7 297.9 289.6 00/08-28-052-14-W4 W- 50.000 CLY/ELL P 901.1 - - - 2363.2 2221.1 2038.3 00/16-29-052-14-W4 W- 50.000 ELL P 63.6 - - - 227.8 222.7 215.4 00/10-32-052-14-W4 W- 50.000 VIK/CLY P 0.8 - - - -4.8 -4.3 -3.7 00/06-34-052-14-W4 W- 50.000 ELL/NIS NRA - - - - -8.1 -7.8 -7.4 02/07-34-052-14-W4 W- 50.000 GLAUC U P 210.7 - - - 825.7 791.1 744.6 00/06-06-053-14-W4 W- 50.000 VIK NRA - - - - -6.7 -6.2 -5.6 00/10-07-053-14-W4 F- 2.917 GLAUC P 26.4 - - - 120.1 112.7 103.2 00/07-29-053-14-W4 W- 50.000 2 WS NP 58.9 - - - 239.4 232.4 222.7 Lavoy NRA Wells ALL ZONES NRA - - - - -163.5 -151.7 -136.2 SUBTOTAL 6421.3 - - - 19770.5 18767.5 17468.3 MANNVILLE 00/09-16-052-07-W4 W- 37.500 CLY P 237.8 - - - 741.5 690.0 624.7 MUNDARE 00/04-06-054-16-W4 W- 50.000 GLAUC L/GLAUC NRA - - - - -6.7 -6.2 -5.6 00/04-06-054-16-W4 W- 50.000 VIK/CLY/SPKY NP 53.0 - - - 208.9 204.4 197.9 00/11-02-054-17-W4 W- 50.000 GLAUC P 493.8 - - - 1507.0 1404.7 1275.1 00/01-10-054-17-W4 W- 50.000 SPKY P 112.4 - - - 466.0 453.5 436.0 00/10-10-054-17-W4 CLY NRA - - - - -5.1 -4.4 -3.7 00/01-13-054-17-W4 W- 50.000 GLAUC NP 239.4 - - - 874.3 847.0 809.2
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- -------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------------- MUNDARE (CONT'D) 00/02-19-054-17-W4 W- 50.000 B QTZ/GLAUC L NRA - - - - -7.4 -7.0 -6.4 00/02-19-054-17-W4 W- 50.000 GLAUC P 106.0 - - - 449.5 444.4 437.0 00/04-20-054-17-W4 W- 50.000 GLAUC L/B QTZ P 137.8 - - - 575.4 564.8 549.6 00/04-20-054-17-W4 W- 50.000 GLAUC NP 190.0 - - - 652.2 615.4 565.4 00/02-17-055-18-W4 W- 50.000 U MN NRA - - - - -5.6 -5.0 -4.2 - - - SUBTOTAL 1332.3 - - - 4708.6 4511.4 4250.3 PLAIN 00/12-34-052-10-W4 W- 50.000 CLY P 327.7 - - - 1259.5 1216.5 1157.8 00/12-34-052-10-W4 W- 50.000 VIK NRA - - - - -6.7 -6.2 -5.6 00/10-14-052-12-W4 W- 50.000 CLY NP 200.5 - - - 752.3 725.4 688.7 00/12-28-052-12-W4 W- 50.000 SPKY M/B QTZ P 528.7 - - - 1871.8 1787.2 1674.6 00/15-32-052-12-W4 W- 50.000 WAS/SPKY U P 45.4 - - - 200.3 197.0 192.2 00/12-09-052-13-W4 W- 50.000 VIK NRA - - - - -7.4 -7.0 -6.4 00/13-36-052-13-W4 W- 50.000 SPKY NRA - - - - -8.9 -8.8 -8.5 00/14-18-053-11-W4 W- 50.000 B QTZ NRA - - - - -6.7 -6.2 -5.6 00/07-04-053-12-W4 W- 50.000 SPKY P 171.7 - - - 462.0 437.0 404.1 SUBTOTAL 1274.1 - - - 4516.0 4334.8 4091.4 RANFURLY Ranfurly Gas Unit W- 13.542 ALL ZONES P 10.5 - - - 41.0 41.2 41.4 02/09-35-050-13-W4 W- 50.000 CLY/MCLAR P 13.4 - - - 61.3 60.8 60.1 02/09-35-050-13-W4 W- 50.000 VIK NP 82.2 - - - 307.4 289.4 265.2 00/06-36-050-13-W4 W- 50.000 MCLAR P 8.0 - - - 35.2 35.4 35.6 02/09-36-050-13-W4 W- 50.000 B QTZ U P 22.2 - - - 109.0 108.1 106.9 00/11-30-050-14-W4 R- 6.900 VIK L P 10.9 - - - 56.9 54.5 51.2 00/03-32-050-14-W4 W- 50.000 B QTZ/DET P 410.2 - - - 1646.6 1584.9 1500.9 00/16-23-050-15-W4 W- 50.000 CLY P 149.9 - - - 655.4 636.9 611.2 00/03-34-050-15-W4 W- 50.000 B QTZ/CLY P 306.7 - - - 1271.5 1228.4 1169.3 00/05-18-051-07-W4 W- 25.000 WAS/SPKY NP 217.6 - - - 841.6 808.8 764.7 00/16-20-051-12-W4 W- 50.000 SPKY P 60.9 - - - 282.8 275.6 265.6 00/06-29-051-12-W4 W- 50.000 CLY/SPKY P 2.8 - - - 7.3 7.7 8.3 00/11-34-051-12-W4 W- 50.000 GLAUC L/B QTZ NP 451.6 - - - 1202.1 1138.4 1053.2 00/12-01-051-13-W4 W- 12.500 SPKY U NRA - - - - -2.2 -2.2 -2.1 02/08-04-051-13-W4 W- 50.000 CLY P 54.6 - - - 237.9 230.3 219.7 00/15-06-051-13-W4 W- 50.000 WAS U P 64.2 - - - 296.0 287.6 275.8 00/04-11-051-13-W4 W- 13.542 GLAUC/WAB P 37.8 - - - 170.1 164.7 157.3 00/06-22-051-13-W4 W- 22.500 VIK P 3.5 - - - 9.7 9.7 9.6 00/15-04-051-14-W4 W- 50.000 CUMM L/CUMM P 412.5 - - - 1072.5 971.0 851.3 00/02-09-051-14-W4 F- 1.343 BR P 0.5 - - - 3.0 2.9 2.8 00/06-10-051-14-W4 R- 9.943 BR P 5.6 - - - 33.3 32.6 31.7 00/16-12-051-14-W4 W- 50.000 WAB NRA - - - - -8.9 -8.8 -8.5 SUBTOTAL 2325.9 - - - 8329.3 7958.0 7471.2 ST. PAUL 00/05-03-058-09-W4 W- 37.500 MN P 13.5 - - - 45.4 44.3 42.7 00/12-03-058-09-W4 W- 37.500 VIK P 6.8 - - - 22.3 22.3 22.1 SUBTOTAL 20.2 - - - 67.8 66.6 64.8 VEGREVILLE 00/06-07-052-13-W4 W- 50.000 CLY/GLAUC P 100.1 - - - 391.2 384.3 374.3 02/06-07-052-13-W4 W- 50.000 SPKY L/WAS P 243.6 - - - 886.7 860.2 823.5 00/01-18-052-13-W4 W- 24.750 GLAUC P 61.3 - - - 179.5 174.4 167.1 00/01-18-052-13-W4 W- 24.750 SPKY L NP 57.6 - - - 97.6 87.0 73.6 00/06-19-052-13-W4 W- 10.026 GLAUC P 1.6 - - - 5.0 5.0 5.0 00/01-13-052-14-W4 W- 50.000 LLOYD/GLAUC P 68.3 - - - 260.5 254.0 245.0 00/06-13-052-14-W4 W- 50.000 NIS/SPKY L P 768.9 - - - 2726.8 2585.8 2400.8 00/12-13-052-14-W4 W- 50.000 LLOYD/SPKY P 59.4 - - - 275.4 271.9 267.0 00/03-24-052-14-W4 W- 50.000 DET/NIS/LLOYD/SP P 192.5 - - - 785.5 752.5 707.8 00/09-24-052-14-W4 W- 50.000 SPKY M/LLOYD/GLA P 50.0 - - - 220.3 214.8 207.2 00/10-09-053-14-W4 W- 37.500 NIS P 4.1 - - - 20.5 20.4 20.2 00/10-09-053-14-W4 W- 37.500 SPKY NP 64.1 - - - 262.5 254.5 243.3 SUBTOTAL 1671.5 - - - 6111.5 5864.7 5534.7 VIKING 00/16-14-048-12-W4 W- 50.000 SPKY P 213.8 - - - 877.2 846.9 805.3 00/03-12-049-11-W4 W- 50.000 SPKY L P 214.3 - - - 905.6 876.4 836.1 00/03-12-049-11-W4 W- 50.000 CAM/B QTZ/SPKY NP 48.0 - - - 167.1 154.7 138.2 00/04-22-049-12-W4 W- 47.500 B QTZ U/B QTZ L P 26.6 - - - 121.6 120.6 119.1
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 4 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE -------------------------------- -------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------------- VIKING (CONT'D) 00/08-31-049-12-W4 W- 50.000 LLOYD/WAS NRA - - - - -6.7 -6.2 -5.6 00/09-32-049-12-W4 W- 50.000 LLOYD P 40.6 - - - 182.1 179.1 174.7 00/06-28-049-13-W4 W- 50.000 CLY P 1.1 - - - -5.1 -5.0 -5.0 00/16-34-049-13-W4 W- 50.000 SPKY P 156.8 - - - 380.8 344.9 301.4 00/10-36-049-13-W4 W- 50.000 WAB P 4.5 - - - 7.5 7.9 8.5 00/02-24-049-14-W4 W- 50.000 WAB NRA - - - - -6.1 -5.6 -4.9 00/08-04-050-12-W4 W- 42.500 B QTZ U/B QTZ L P 40.1 - - - 170.5 166.6 161.1 00/11-13-050-13-W4 W- 34.375 VIK P 10.1 - - - 24.4 24.0 23.3 R- 0.625 SUBTOTAL 755.9 - - - 2819.1 2704.2 2552.4 WARWICK 02/06-16-053-15-W4 W- 50.000 SPKY/B QTZ/CUMM P 53.2 - - - 229.3 224.5 217.9 02/06-35-053-15-W4 W- 50.000 CLY P 291.5 - - - 1191.6 1154.5 1103.4 00/11-36-053-15-W4 W- 50.000 VIK NP 101.2 - - - 402.3 396.5 388.2 00/07-19-054-15-W4 W- 50.000 WAS NP 245.1 - - - 890.8 854.6 805.4 00/14-34-054-15-W4 W- 50.000 WAS P 167.3 - - - 661.4 638.8 607.9 00/14-34-054-15-W4 W- 50.000 NIS/CLY P 256.2 - - - 981.0 948.8 904.8 02/06-14-054-16-W4 W- 50.000 WAS NRA - - - - -7.4 -7.0 -6.4 00/13-06-055-14-W4 W- 50.000 CLY/NIS NRA - - - - -7.4 -7.0 -6.4 00/07-01-055-15-W4 GLAUC/NIS NRA - - - - -5.5 -5.2 -4.8 00/01-02-055-15-W4 W- 50.000 NIS NRA - - - - -8.9 -8.8 -8.5 SUBTOTAL 1114.5 - - - 4327.2 4189.9 4001.4 WARWICK EAST 00/16-30-052-14-W4 W- 50.000 SPKY L/SPKY U P 260.4 - - - 1092.4 1060.7 1016.8 00/08-32-052-14-W4 W- 50.000 NIS/SPKY P 350.4 - - - 1310.1 1247.4 1164.1 00/06-33-052-14-W4 W- 48.360 NIS P 497.6 - - - 1535.7 1416.1 1266.4 00/09-33-052-14-W4 W- 48.360 CLY/GLAUC/ELL P 352.2 - - - 1366.0 1302.7 1218.2 00/14-34-052-14-W4 W- 50.000 CUMM L/ELL/GLAUC P 259.2 - - - 837.8 805.0 760.5 00/06-35-052-14-W4 W- 12.500 GLAUC P 31.0 - - - 115.0 109.2 101.6 00/04-04-053-14-W4 W- 50.000 LLOYD/ELL P 53.6 - - - 171.2 166.4 159.7 00/03-05-053-14-W4 W- 50.000 SPKY U/GLAUC P 29.3 - - - 92.9 91.6 89.6 00/08-06-053-14-W4 W- 50.000 GLAUC/CLY P 81.1 - - - 291.5 285.0 275.8 00/06-07-056-14-W4 W- 25.000 SPKY P 84.9 - - - 357.0 346.2 331.3 SUBTOTAL 1999.6 - - - 7169.6 6830.4 6384.2 WEST LAVOY 00/11-19-051-13-W4 W- 50.000 VIK P 440.1 - - - 1466.2 1369.8 1247.5 00/15-15-051-14-W4 W- 50.000 CLY P 51.5 - - - 226.0 221.6 215.5 00/11-21-051-14-W4 W- 50.000 CLY/WAS P 7.3 - - - 22.1 21.9 21.8 00/11-22-051-14-W4 W- 50.000 VIK P 133.5 - - - 458.8 430.6 394.0 00/10-24-051-14-W4 W- 50.000 CLY/GLAUC P 526.8 - - - 1374.6 1276.5 1153.6 00/14-29-051-14-W4 W- 50.000 CLY P 209.3 - - - 846.3 811.7 765.1 00/08-31-051-14-W4 W- 50.000 CLY NP 63.2 - - - 165.2 161.8 157.0 00/07-34-051-14-W4 W- 50.000 VIK P 3.9 - - - 5.4 5.7 6.2 00/16-10-051-15-W4 R- 6.250 BR P 11.5 - - - 61.9 59.7 56.6 00/09-11-051-15-W4 R- 6.250 BR P 12.4 - - - 60.5 57.4 53.2 00/10-14-051-15-W4 W- 13.184 B BR P 28.6 - - - 98.5 93.3 86.4 R- 3.105 00/07-15-051-15-W4 W- 12.500 CLY NRA - - - - -2.2 -2.2 -2.1 02/07-15-051-15-W4 W- 12.500 B BR M P 70.0 - - - 278.4 265.4 248.1 00/12-15-051-15-W4 W- 12.500 CLY NP 179.3 - - - 677.4 638.6 588.4 00/09-16-051-15-W4 W- 50.000 CLY P 644.3 - - - 2197.2 2065.7 1896.7 00/10-21-051-15-W4 W- 37.500 CLY P 79.0 - - - 306.4 293.9 277.0 02/10-21-051-15-W4 W- 37.500 B BR M NRA - - - - -6.1 -5.9 -5.5 00/16-21-051-15-W4 W- 37.500 B BR M P 383.0 - - - 1420.6 1336.4 1228.1 02/10-22-051-15-W4 W- 18.809 BR P 122.7 - - - 424.2 397.7 363.7 00/07-26-051-15-W4 W- 22.500 VIK A P 8.4 - - - 22.5 21.9 21.2 00/14-29-051-15-W4 W- 50.000 CLY NRA - - - - -4.6 -4.0 -3.2 00/11-19-052-15-W4 R- 0.388 U MN P 1.0 - - - 5.4 5.1 4.8 00/14-14-054-15-W4 W- 50.000 MCLAR/VIK NP 307.0 - - - 1169.7 1127.9 1071.0 SUBTOTAL 3282.8 - - - 11274.2 10650.7 9845.0 WILLINGDON 02/10-24-054-16-W4 W- 50.000 WAS/CLY P 485.9 - - - 1811.6 1731.9 1626.0 00/13-23-056-16-W4 W- 25.000 SPKY/CLY P 329.1 - - - 995.8 916.0 816.8 02/13-23-056-16-W4 W- 25.000 GLAUC/B QTZ P 168.5 - - - 667.0 640.3 604.4 00/10-29-056-16-W4 W- 50.000 GLAUC NP 297.3 - - - 1174.9 1134.9 1080.0 00/10-29-056-16-W4 W- 50.000 CLY NP 100.2 - - - 277.3 247.6 209.9
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 5 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------ COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - -------------------------------------------------------------------------------------------------------------------------------- WILLINGDON (CONT'D) 02/12-29-056-16-W4 W- 50.000 CLY NRA - - - - 00/12-03-057-16-W4 W- 50.000 GLAUC P 135.4 - - - -8.9 -8.8 -8.5 00/12-03-057-16-W4 W- 50.000 CLY/WAS NP 150.5 - - - 434.4 419.4 398.7 00/07-15-057-16-W4 W-50.000 WAS/SPKY/LSPKY/C NP 362.0 - - - 332.8 303.2 264.5 - - - 960.2 927.6 882.6 SUBTOTAL 2028.9 - - - 6645.2 6312.2 5874.4 SUBTOTAL ALBERTA - - - 104317.1 99372.9 92900.7 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL 30587.9 - - - 104317.1 99372.9 92900.7 - --------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 1 SUMMARY OF RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY INTEREST RESERVES NET RESERVES AFTER ROYALTY PRESENT WORTH VALUE --------------------------- --------------------------- ----------------------------------------- GAS OIL NGL SULPHUR GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA BCF MBBL MBBL MLT BCF MBBL MBBL MLT @10.0% @12.0% @15.0% @20.0% - ------------------------------------------------------------------------------------------------------------------------- ALBERTA Birch 2.98 - - - 2.27 - - - 11295.8 10869.6 10293.1 9471.2 Bonnyville 1.62 - - - 1.41 - - - 5294.7 4990.6 4597.5 4071.3 Cold Lake 1.55 - - - 1.21 - - - 5698.8 5466.7 5155.3 4715.7 Hairy Hill 0.21 - - - 0.18 - - - 858.0 840.8 816.6 779.8 Hedge - - - - - - - - -12.6 -12.7 -12.8 -12.9 Holden 1.03 - - - 0.90 - - - 2984.4 2764.2 2488.3 2135.1 Jarrow 0.73 - - - 0.54 - - - 1717.7 1573.1 1399.9 1189.5 Lavoy 6.42 - - - 4.52 - - - 19770.5 18767.5 17468.3 15716.3 Mannville 0.24 - - - 0.20 - - - 741.5 690.0 624.7 540.1 Mundare 1.33 - - - 1.05 - - - 4708.6 4511.4 4250.3 3887.8 Plain 1.27 - - - 0.96 - - - 4516.0 4334.8 4091.4 3747.6 Ranfurly 2.33 - - - 1.77 - - - 8329.3 7958.0 7471.2 6801.2 St. Paul 0.02 - - - 0.02 - - - 67.8 66.6 64.8 62.0 Vegreville 1.67 - - - 1.27 - - - 6111.5 5864.7 5534.7 5071.6 Viking 0.76 - - - 0.62 - - - 2819.1 2704.2 2552.4 2341.7 Warwick 1.11 - - - 0.91 - - - 4327.2 4189.9 4001.4 3726.8 Warwick East 2.00 - - - 1.54 - - - 7169.6 6830.4 6384.2 5771.2 West Lavoy 3.28 - - - 2.60 - - - 11274.2 10650.7 9845.0 8766.0 Willingdon 2.03 - - - 1.46 - - - 6645.2 6312.2 5874.4 5274.2 SUBTOTAL ALBERTA 30.59 - - - 23.44 - - - 104317.1 99372.9 92900.7 84056.2 - ------------------------------------------------------------------------------------------------------------------------- TOTAL 30.59 - - - 23.44 - - - 104317.1 99372.9 92900.7 84056.2 - -------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 3 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES SORTED BY COMPANY GAS RESERVES
COMPANY INTEREST RESERVES PRESENT WORTH VALUE COMPANY GAS RESERVES --------------------------------------- ------------------------------- -------------------- GAS OIL NGL SULPHUR BOE (1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @ 10.0% @ 12.0% @ 15.0% TOTAL % - ------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 6.42 - - - 1070.2 19770.5 18767.5 17468.3 20.99 20.99 2 West Lavoy 3.28 - - - 547.1 11274.2 10650.7 9845.0 10.73 31.73 3 Birch 2.98 - - - 497.2 11295.8 10869.6 10293.1 9.75 41.48 4 Ranfurly 2.33 - - - 387.6 8329.3 7958.0 7471.2 7.60 49.08 5 Willingdon 2.03 - - - 338.2 6645.2 6312.2 5874.4 6.63 55.71 6 Warwick East 2.00 - - - 333.3 7169.6 6830.4 6384.2 6.54 62.25 7 Vegreville 1.67 - - - 278.6 6111.5 5864.7 5534.7 5.46 67.72 8 Bonnyville 1.62 - - - 269.8 5294.7 4990.6 4597.5 5.29 73.01 9 Cold Lake 1.55 - - - 258.6 5698.8 5466.7 5155.3 5.07 78.08 10 Mundare 1.33 - - - 222.1 4708.6 4511.4 4250.3 4.36 82.44 11 Plain 1.27 - - - 212.3 4516.0 4334.8 4091.4 4.17 86.60 12 Warwick 1.11 - - - 185.7 4327.2 4189.9 4001.4 3.64 90.25 13 Holden 1.03 - - - 171.6 2984.4 2764.2 2488.3 3.37 93.61 14 Viking 0.76 - - - 126.0 2819.1 2704.2 2552.4 2.47 96.09 15 Jarrow 0.73 - - - 120.9 1717.7 1573.1 1399.9 2.37 98.46 16 Mannville 0.24 - - - 39.6 741.5 690.0 624.7 0.78 99.23 17 Hairy Hill 0.21 - - - 35.7 858.0 840.8 816.6 0.70 99.93 18 St. Paul 0.02 - - - 3.4 67.8 66.6 64.8 0.07 100.00 19 Hedge - - - - - - 12.6 -12.7 -12.8 - 100.00 TOTAL 30.59 - - - 5098.0 104317.1 99372.9 92900.7 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 4 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES SORTED BY COMPANY BOE RESERVES
COMPANY INTEREST RESERVES PRESENT WORTH VALUE COMPANY BOE RESERVES --------------------------------------- ------------------------------- -------------------- GAS OIL NGL SULPHUR BOE (1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @ 10.0% @ 12.0% @ 15.0% TOTAL % - ------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 6.42 - - - 1070.2 19770.5 18767.5 17468.3 20.99 20.99 2 West Lavoy 3.28 - - - 547.1 11274.2 10650.7 9845.0 10.73 31.73 3 Birch 2.98 - - - 497.2 11295.8 10869.6 10293.1 9.75 41.48 4 Ranfurly 2.33 - - - 387.6 8329.3 7958.0 7471.2 7.60 49.08 5 Willingdon 2.03 - - - 338.2 6645.2 6312.2 5874.4 6.63 55.71 6 Warwick East 2.00 - - - 333.3 7169.6 6830.4 6384.2 6.54 62.25 7 Vegreville 1.67 - - - 278.6 6111.5 5864.7 5534.7 5.46 67.72 8 Bonnyville 1.62 - - - 269.8 5294.7 4990.6 4597.5 5.29 73.01 9 Cold Lake 1.55 - - - 258.6 5698.8 5466.7 5155.3 5.07 78.08 10 Mundare 1.33 - - - 222.1 4708.6 4511.4 4250.3 4.36 82.44 11 Plain 1.27 - - - 212.3 4516.0 4334.8 4091.4 4.17 86.60 12 Warwick 1.11 - - - 185.7 4327.2 4189.9 4001.4 3.64 90.25 13 Holden 1.03 - - - 171.6 2984.4 2764.2 2488.3 3.37 93.61 14 Viking 0.76 - - - 126.0 2819.1 2704.2 2552.4 2.47 96.09 15 Jarrow 0.73 - - - 120.9 1717.7 1573.1 1399.9 2.37 98.46 16 Mannville 0.24 - - - 39.6 741.5 690.0 624.7 0.78 99.23 17 Hairy Hill 0.21 - - - 35.7 858.0 840.8 816.6 0.70 99.93 18 St. Paul 0.02 - - - 3.4 67.8 66.6 64.8 0.07 100.00 19 Hedge - - - - - - 12.6 -12.7 -12.8 - 100.00 TOTAL 30.59 - - - 5098.0 104317.1 99372.9 92900.7 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 5 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES SORTED BY @10.0% PRESENT WORTH VALUE
COMPANY INTEREST RESERVES PRESENT WORTH VALUE @ 10.0% PRESENT WORTH VALUE --------------------------------------- ------------------------------- ----------------------------- GAS OIL NGL SULPHUR BOE (1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @ 10.0% @ 12.0% @ 15.0% TOTAL % - ---------------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 6.42 - - - 1070.2 19770.5 18767.5 17468.3 18.95 18.95 2 Birch 2.98 - - - 497.2 11295.8 10869.6 10293.1 10.83 29.98 3 West Lavoy 3.28 - - - 547.1 11274.2 10650.7 9845.0 10.81 40.59 4 Ranfurly 2.33 - - - 387.6 8329.3 7958.0 7471.2 7.98 48.57 5 Warwick East 2.00 - - - 333.3 7169.6 6830.4 6384.2 6.87 55.45 6 Willingdon 2.03 - - - 338.2 6645.2 6312.2 5874.4 6.37 61.82 7 Vegreville 1.67 - - - 278.6 6111.5 5864.7 5534.7 5.86 67.67 8 Cold Lake 1.55 - - - 258.6 5698.8 5466.7 5155.3 5.46 73.14 9 Bonnyville 1.62 - - - 269.8 5294.7 4990.6 4597.5 5.08 78.21 10 Mundare 1.33 - - - 222.1 4708.6 4511.4 4250.3 4.51 82.73 11 Plain 1.27 - - - 212.3 4516.0 4334.8 4091.4 4.33 87.06 12 Warwick 1.11 - - - 185.7 4327.2 4189.9 4001.4 4.15 91.20 13 Holden 1.03 - - - 171.6 2984.4 2764.2 2488.3 2.86 94.06 14 Viking 0.76 - - - 126.0 2819.1 2704.2 2552.4 2.70 96.77 15 Jarrow 0.73 - - - 120.9 1717.7 1573.1 1399.9 1.65 98.41 16 Hairy Hill 0.21 - - - 35.7 858.0 840.8 816.6 0.82 99.24 17 Mannville 0.24 - - - 39.6 741.5 690.0 624.7 0.71 99.95 18 St. Paul 0.02 - - - 3.4 67.8 66.6 64.8 0.06 100.01 19 Hedge - - - - - - 12.6 -12.7 -12.8 -0.01 100.00 TOTAL 30.59 - - - 5098.0 104317.1 99372.9 92900.7 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 4 Page 1 FIRST YEAR PRODUCTION, REVENUE AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES 2003 SUMMARY
PRODUCTION REVENUE AND EXPENSES AVERAGE VALUES S/BOE (1) ------------------------------------ -------------------------------- ------------------------------- GROSS OPER NET OIL GAS NGL SULPHUR BOE (1) REVENUE ENCUMB. EXP REV. (2) GROSS OPER. NET AREA BOPD MCF/D BPD IT/D BOEPD $M $M $M $M REVENUE ENCUMB. EXP REV (2) - -------------------------------------------------------------------------------------------------------------------------- ALBERTA Birch - 2753.4 - - 458.8 4709 1159 310 3240 42.18 10.38 2.77 29.03 Bonnyville - 753.9 - - 125.5 1266 205 151 910 41.43 6.71 4.93 29.79 Cold Lake - 1239.1 - - 206.3 2080 536 153 1391 41.44 10.68 3.05 27.72 Hairy Hill - 300.6 - - 50.0 515 96 65 354 42.30 7.88 5.36 29.06 Hedge - - - - - -23 - - -23 - - - - Holden - 313.7 - - 52.3 537 73 74 391 42.24 5.71 5.80 30.73 Jarrow - 218.8 - - 36.4 375 100 31 243 42.34 11.31 3.53 27.51 Lavoy - 3958.1 - - 659.2 6753 2144 331 4278 42.10 13.36 2.06 26.67 Mannville - 87.3 - - 14.5 147 29 15 103 41.40 8.22 4.10 29.08 Mundare - 1108.6 - - 184.7 1886 458 182 1246 41.97 10.19 4.04 27.73 Plain - 1067.2 - - 177.7 1825 499 157 1169 42.19 11.55 3.63 27.02 Ranfurly - 1503.5 - - 250.3 2569 598 129 1843 42.18 9.81 2.11 30.26 St. Paul - 21.2 - - 3.5 36 2 10 23 41.84 2.85 11.49 27.49 Vegreville - 1297.8 - - 216.1 2218 607 105 1506 42.18 11.55 2.00 28.64 Viking - 645.5 - - 107.4 1099 254 79 766 42.03 9.72 3.01 29.31 Warwick - 1211.1 - - 201.7 2050 451 193 1405 41.75 9.19 3.93 28.63 Warwick East - 1362.7 - - 226.9 2317 656 111 1550 41.95 11.88 2.01 28.07 West Lavoy - 1880.1 - - 313.0 3210 802 160 2248 42.14 10.53 2.10 29.51 Willingdon - 1368.5 - - 228.0 2331 757 89 1485 42.01 13.64 1.60 26.77 SUBTOTAL ALBERTA - 21091.2 - - 3512.5 35899 9426 2342 24130 42.00 11.03 2.74 28.23 - ------------------------------------------------------------------------------------------------------------------------- TOTAL - 21091.2 - - 3512.5 35899 9426 2342 24130 42.00 11.03 2.74 28.23 - -------------------------------------------------------------------------------------------------------------------------
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE based on Gross BOE reserves. (2) Excludes capital and abandonment expenses. McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION , REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES GAS PRODUCTION FORECAST (MMCF) (1)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ------------------------------------------------------------------------------------------------------------------------------- ALBERTA Birch 670 713 464 362 229 257 165 88 31 2 2983 - 2983 Bonnyville 183 240 206 176 152 130 109 81 71 61 1409 210 1619 Cold Lake 302 346 257 195 148 114 79 48 22 15 1525 27 1552 Hairy Hill 73 74 45 11 9 1 - - - - 214 - 214 Hedge - - - - - - - - - - - - - Holden 76 106 97 89 82 75 69 63 58 53 768 262 1030 Jarrow 53 65 56 52 48 44 41 36 31 28 455 270 725 Lavoy 963 1151 925 702 542 430 341 321 231 160 5765 656 6421 Mannville 21 29 26 23 20 18 16 15 13 12 193 45 238 Mundare 270 281 243 150 109 77 41 29 26 23 1248 84 1332 Plain 260 287 206 148 115 91 70 40 28 23 1268 6 1274 Ranfurly 366 536 398 294 205 141 91 56 42 20 2148 177 2326 St. Paul 5 7 4 3 0 - - - - - 20 - 20 Vegreville 316 394 271 192 125 116 83 59 41 32 1629 43 1672 Viking 157 165 110 75 94 45 21 9 9 9 694 62 756 Warwick 295 301 192 127 89 65 41 6 - - 1114 - 1114 Warwick East 332 398 308 236 183 136 107 78 66 41 1885 114 2000 West Lavoy 457 552 439 349 284 237 198 165 129 105 2915 367 3283 Willingdon 333 394 286 211 217 200 125 90 54 34 1943 86 2029 SUBTOTAL ALBERTA 5132 6041 4532 3396 2650 2178 1597 1183 851 618 28178 2410 30588 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL 5132 6041 4532 3396 2650 2178 1597 1183 851 618 28178 2410 30588 - -------------------------------------------------------------------------------------------------------------------------------
(1) Company gross share of production before royalty deductions McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES GROSS REVENUE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - --------------- ---- ---- ----- ----- ----- ----- ----- ---- ---- ---- -------- --------- ----- ALBERTA Birch 4709 5011 3263 2547 1613 1809 1163 622 219 14 20970 - 20970 Bonnyville 1266 1657 1419 1217 1046 900 752 558 488 419 9721 1449 11170 Cold Lake 2080 2387 1771 1344 1021 786 545 333 149 105 10520 187 10707 Hairy Hill 515 524 318 80 62 7 - - - - 1507 - 1507 Hedge -23 10 - - - - - - - - -12 - -12 Holden 537 749 686 628 575 527 483 442 405 371 5403 1845 7248 Jarrow 375 460 395 366 335 310 287 256 219 200 3203 1902 5105 Lavoy 6753 8065 6480 4919 3795 3012 2383 2244 1613 1116 40380 4554 44933 Mannville 147 199 177 158 141 126 112 101 90 81 1331 309 1641 Mundare 1886 1969 1709 1051 767 542 288 204 180 159 8754 593 9347 Plain 1825 2015 1450 1039 806 636 492 280 199 162 8904 39 8943 Ranfurly 2569 3766 2794 2063 1443 994 637 397 297 139 15100 1249 16349 St. Paul 36 50 29 23 2 - - - - - 140 - 140 Vegreville 2218 2771 1907 1353 880 817 584 413 286 228 11457 299 11756 Viking 1099 1155 766 525 656 318 148 65 63 61 4855 436 5291 Warwick 2050 2094 1331 880 614 452 284 40 - - 7745 - 7745 Warwick East 2317 2784 2153 1649 1278 954 751 545 466 289 13185 804 13989 West Lavoy 3210 3874 3085 2450 1992 1663 1393 1159 908 741 20476 2586 23062 Willingdon 2331 2757 1999 1476 1523 1401 877 631 378 238 13610 602 14212 SUBTOTAL ALBERTA 35899 42299 31733 23769 18549 15251 11180 8288 5958 4321 197247 16856 214103 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 35899 42299 31733 23769 18549 15251 11180 8288 5958 4321 197247 16856 214103 - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES ENCUMBRANCE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - --------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 1159 1173 727 546 315 395 227 102 34 2 4680 - 4680 Bonnyville 205 249 195 154 122 97 76 59 48 39 1245 117 1362 Cold Lake 536 589 396 261 174 119 73 41 18 12 2218 15 2233 Hairy Hill 96 90 52 10 7 1 - - - - 256 - 256 Hedge - - - - - - - - - - - - - Holden 73 99 88 81 73 65 58 52 48 43 680 202 882 Jarrow 100 124 107 98 90 83 76 70 60 55 862 497 1359 Lavoy 2144 2489 1894 1403 1061 829 649 629 452 312 11862 1294 13157 Mannville 29 37 31 26 22 18 15 13 11 9 210 30 240 Mundare 452 411 359 208 137 92 45 31 25 21 1780 65 1844 Plain 499 526 348 231 160 113 80 47 34 26 2065 7 2072 Ranfurly 594 1068 711 455 287 185 117 75 54 16 3563 120 3683 St. Paul 2 3 2 1 0 - - - - - 9 - 9 Vegreville 606 719 483 330 222 229 152 105 76 59 2979 72 3051 Viking 246 226 130 77 104 35 14 6 5 5 848 35 884 Warwick 451 400 223 135 87 59 34 5 - - 1394 - 1394 Warwick East 653 734 517 362 261 192 149 98 82 50 3098 159 3256 West Lavoy 802 928 692 515 397 312 249 198 155 125 4373 423 4797 Willingdon 757 886 599 402 430 345 179 122 53 35 3806 94 3900 SUBTOTAL ALBERTA 9404 10753 7554 5297 3948 3167 2193 1653 1154 808 45930 3130 49060 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL 9404 10753 7554 5297 3948 3167 2193 1653 1154 808 45930 3130 49060 - -------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES CAPITAL EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ----------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 317 - - 25 - 75 - - - - 417 - 417 Bonnyville - - - - - - - - - - - - - Cold Lake 14 - - - - - - - - - 14 - 14 Hairy Hill - - - - - - - - - - - - - Hedge - - - - - - - - - - - - - Holden - - - - - - - - - - - - - Jarrow - - - - - - - - - - - - - Lavoy 100 - 25 - - - - 25 - - 150 - 150 Mannville - - - - - - - - - - - - - Mundare 100 - - - - - - - - - 100 - 100 Plain 33 - - - - - - - - - 33 - 33 Ranfurly 33 150 25 - - - - - - - 208 - 208 St. Paul - - - - - - - - - - - - - Vegreville - 19 - - - 12 - - - - 31 - 31 Viking - - - - - - - - - - - - - Warwick 150 - - - - - - - - - 150 - 150 Warwick East - - - - - - - - - - - - - West Lavoy 138 - - - - - - - - - 138 - 138 Willingdon 225 - - - 50 25 - - - - 300 - 300 SUBTOTAL ALBERTA 1110 169 50 25 50 112 - 25 - - 1541 - 1541 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 1110 169 50 25 50 112 - 25 - - 1541 - 1541 - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES OPERATING EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ----------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 310 355 258 223 152 145 103 57 18 1 1620 - 1620 Bonnyville 151 209 197 187 178 171 158 108 105 98 1563 455 2018 Cold Lake 153 192 161 139 118 104 84 61 32 16 1061 47 1108 Hairy Hill 65 84 66 23 22 3 - - - - 263 - 263 Hedge - - - - - - - - - - - - - Holden 74 109 106 97 95 93 92 90 81 80 918 535 1453 Jarrow 31 38 31 30 28 27 26 23 17 15 265 221 486 Lavoy 331 454 431 361 312 283 244 240 182 121 2959 487 3446 Mannville 15 21 19 18 17 16 16 15 14 14 164 65 229 Mundare 182 211 192 126 101 75 37 26 24 23 997 105 1101 Plain 157 189 151 115 100 89 78 49 37 34 998 10 1007 Ranfurly 129 172 146 129 102 74 50 33 27 13 875 169 1045 St. Paul 10 14 9 7 1 - - - - - 41 - 41 Vegreville 105 151 125 101 61 60 46 34 24 23 731 33 763 Viking 79 94 75 61 63 48 28 14 14 14 491 115 606 Warwick 193 219 158 115 90 78 57 9 - - 917 - 917 Warwick East 111 156 144 124 108 85 69 52 50 31 929 71 1001 West Lavoy 160 211 194 168 146 141 137 130 102 88 1477 422 1898 Willingdon 89 119 103 92 105 114 77 61 42 25 826 52 878 SUBTOTAL ALBERTA 2342 2996 2565 2116 1797 1607 1300 1002 769 598 17093 2787 19880 - ----------------------------------------------------------------------------------------------------------------------- TOTAL 2342 2996 2565 2116 1797 1607 1300 1002 769 598 17093 2787 19880 - -----------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES ABANDONMENT COST FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ----------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch - - 10 20 30 10 30 10 - 20 130 10 140 Bonnyville - - 17 15 - 6 20 - 10 - 68 100 168 Cold Lake - 10 - - 10 10 5 15 15 - 64 10 74 Hairy Hill - - 10 - - 20 - - - - 30 - 30 Hedge - - - - - - - - - - - - - Holden - - - - - - - - - - - 64 64 Jarrow - - - - - 5 15 8 6 - 34 10 44 Lavoy 5 25 90 103 41 88 41 60 43 30 525 50 575 Mannville - - - - - - - - - - - 8 8 Mundare - - 10 10 10 20 20 10 - 10 90 20 110 Plain - 10 - 10 20 10 10 10 - - 70 20 90 Ranfurly - 27 - 10 36 23 10 20 10 15 151 10 161 St. Paul - - - - 15 - - - - - 15 - 15 Vegreville - 10 - 10 12 - 18 20 5 - 74 10 84 Viking 10 - 10 9 30 17 10 - - - 85 20 105 Warwick - 10 - 38 - - 10 10 - 10 78 10 88 Warwick East - - - 10 - 20 - - 20 15 65 22 87 West Lavoy 10 3 18 15 10 - - 18 20 3 95 56 151 Willingdon - 10 - - - 10 10 - 15 10 55 15 70 SUBTOTAL ALBERTA 25 104 165 248 213 238 199 180 143 113 1627 435 2062 - ------------------------------------------------------------------------------------------------------------------------ TOTAL 25 104 165 248 213 238 199 180 143 113 1627 435 2062 - ------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES NET REVENUE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ---------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 2924 3483 2269 1733 1116 1185 804 453 167 -9 14124 -10 14114 Bonnyville 910 1198 1010 861 745 625 498 391 325 282 6845 777 7622 Cold Lake 1377 1596 1214 944 718 554 383 215 84 76 7163 115 7278 Hairy Hill 354 351 190 48 33 -17 - - - - 958 - 958 Hedge -23 10 - - - - - - - - -12 - -12 Holden 391 541 491 450 408 369 333 300 275 247 3805 1045 4850 Jarrow 243 298 257 237 217 195 170 156 136 131 2042 1175 3217 Lavoy 4173 5098 4040 3052 2381 1812 1449 1290 936 653 24884 2722 27607 Mannville 103 141 127 114 102 91 82 73 65 58 957 207 1164 Mundare 1146 1339 1141 701 513 350 181 132 126 102 5731 392 6123 Plain 1135 1290 951 683 526 424 324 174 129 102 5738 3 5741 Ranfurly 1810 2344 1909 1464 1014 708 457 266 203 91 10266 922 11188 St. Paul 23 32 18 14 -14 - - - - - 75 - 75 Vegreville 1506 1871 1297 911 585 514 367 253 180 146 7630 184 7814 Viking 756 827 547 376 458 216 95 43 42 40 3401 257 3658 Warwick 1255 1465 951 592 437 315 183 16 - -10 5206 -10 5196 Warwick East 1550 1891 1490 1151 909 657 533 394 315 193 9082 552 9634 West Lavoy 2100 2733 2182 1753 1440 1209 1007 813 631 526 14394 1685 16078 Willingdon 1260 1742 1298 982 938 907 612 447 269 168 8623 441 9065 SUBTOTAL ALBERTA 22995 28251 21380 16068 12528 10115 7478 5418 3884 2795 130910 10458 141368 - ---------------------------------------------------------------------------------------------------------------------- TOTAL 22995 28251 21380 16068 12528 10115 7478 5418 3884 2795 130910 10458 141368 - ----------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROBABLE RESERVES - UNRISKED TOTAL OF ALL AREAS
NATURAL GAS ---------------------------- ANNUAL SALES SALES GROSS NO. OF VOLUME PRICE REVENUE REVENUE YEAR WELLS MMCF $/MCF M$ M$ - -------------------------------------------------------------------- 2003 2.1 466.6 6.99 3263.7 3263.7 2004 3.1 896.1 7.00 6269.0 6269.0 2005 7.0 997.2 7.01 6986.8 6986.8 2006 8.5 935.4 7.01 6554.8 6554.8 2007 8.7 882.1 7.00 6179.0 6179.0 2008 14.2 963.6 7.01 6753.6 6753.6 2009 13.9 749.1 7.01 5249.5 5249.5 2010 12.1 581.6 7.01 4078.3 4078.3 2011 8.4 382.2 7.00 2677.4 2677.4 2012 4.9 233.4 6.99 1631.4 1631.4 2013 3.4 187.2 6.99 1309.1 1309.1 2014 5.2 199.7 7.00 1396.8 1396.8 2015 6.9 192.5 6.99 1345.9 1345.9 2016 7.4 174.5 7.00 1221.4 1221.4 2017 9.6 158.0 7.01 1107.5 1107.5 REM. 1.7 389.0 7.00 2721.5 2721.5 TOTAL 8388.3 7.00 58745.6 58745.6 - --------------------------------------------------------------------
CROWN ROYALTIES FREEHOLD ROYALTIES OVERRIDING ROYALTIES --------------------------- --------------------------- --------------------------- TOTAL TOTAL UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. MINERAL ROYALTY ROYALTY NPI ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY TAX & TAXES & TAXES PYMTS. YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ % M$ - ----------------------------------------------------------------------------------------------------------------------------------- 2003 623.0 43.0 580.1 198.0 11.3 186.7 186.8 10.7 176.1 64.4 1007.3 30.86 0.6 2004 1272.5 86.1 1186.4 315.5 18.8 296.8 301.5 17.4 284.0 107.3 1874.6 29.90 1.2 2005 1293.9 84.1 1209.9 352.2 21.2 331.0 292.3 17.0 275.3 103.9 1920.2 27.48 1.5 2006 1181.8 79.1 1102.8 312.6 19.0 293.6 255.1 14.8 240.3 81.2 1717.9 26.21 1.7 2007 977.2 65.2 912.1 325.0 20.6 304.4 271.9 15.9 256.0 76.1 1548.6 25.06 1.8 2008 1043.0 72.4 970.6 274.4 20.2 254.2 240.0 14.0 225.9 56.8 1507.5 22.32 2.0 2009 734.1 49.5 684.7 173.6 13.9 159.8 168.2 9.7 158.5 37.8 1040.8 19.83 1.5 2010 519.9 33.4 486.5 146.2 9.5 136.7 232.3 13.2 219.1 30.1 872.4 21.39 1.5 2011 318.0 19.8 298.2 86.3 4.9 81.3 159.6 9.1 150.6 20.0 550.1 20.55 1.5 2012 184.8 11.1 173.7 50.4 2.9 47.5 85.0 4.9 80.1 13.5 314.9 19.30 1.5 2013 119.5 7.3 112.2 73.1 4.2 68.9 75.9 4.3 71.6 14.6 267.5 20.43 1.5 2014 101.9 6.3 95.6 97.8 5.6 92.2 66.0 3.8 62.2 16.3 266.3 19.06 1.5 2015 100.5 6.5 94.0 68.9 3.9 65.0 61.4 3.5 57.9 12.4 229.2 17.03 2.8 2016 87.8 5.7 82.2 58.7 3.3 55.3 51.7 3.0 48.7 9.9 196.1 16.05 2.6 2017 81.6 5.2 76.4 38.5 2.2 36.4 25.5 1.5 24.0 5.9 142.6 12.88 3.1 REM. 196.2 11.5 184.7 121.9 7.0 114.9 201.0 11.6 189.4 20.6 509.7 18.73 12.4 TOTAL 8835.8 585.9 8249.8 2693.1 168.4 2524.7 2674.2 154.5 2519.7 670.8 13965.5 23.77 38.7 - ----------------------------------------------------------------------------------------------------------------------------------
CAPITAL COSTS NET REVENUES AFTER COSTS --------------------------- --------------------------- OPERATING ABD. NET OP. DRILLING EQUIP & TOTAL PWV COSTS COSTS INCOME & COMPL FACILITY CAPITAL ANNUAL CUM @10.0% YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - ----------------------------------------------------------------------------------------------- 2003 149.9 2105.9 166.7 200.0 366.7 1739.2 1739.2 1684.8 2004 299.1 -20.0 4114.0 4114.0 5853.3 3681.1 2005 406.6 -59.9 4718.5 50.0 50.0 4668.5 10521.8 3797.4 2006 413.2 35.0 4387.1 25.0 25.0 4362.1 14883.8 3225.6 2007 405.9 -64.6 4287.4 50.0 50.0 4237.4 19121.2 2848.5 2008 557.3 -94.9 4781.8 100.0 100.0 4681.8 23802.9 2861.1 2009 494.7 -27.3 3739.9 3739.9 27542.9 2077.8 2010 405.2 32.9 2766.4 25.0 25.0 2741.4 30284.2 1384.5 2011 284.1 57.2 1784.4 1784.4 32068.7 819.4 2012 169.0 60.0 1086.1 1086.1 33154.8 453.4 2013 120.6 24.8 894.8 894.8 34049.6 339.6 2014 166.0 -88.3 1051.4 1051.4 35101.0 362.7 2015 209.1 0.0 904.7 904.7 36005.8 283.7 2016 218.8 -7.5 811.5 811.5 36817.2 231.4 2017 263.7 -67.9 766.0 766.0 37583.3 198.5 REM. 514.8 236.4 1448.3 1448.3 39031.5 236.6 TOTAL 5078.0 16.0 39648.2 416.7 200.0 616.7 39031.5 24486.0 - -----------------------------------------------------------------------------------------------
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ ------------------ ------------------------------------- PRODUCT GROSS NET @10.0% @12.0% @15.0% @20.0% - --------------------------------------------------------------------------------------------------------- Natural Gas (mmcf) 8388.6 6361.5 24486.3 22708.4 20446.7 17484.1 TOTAL 24486.3 22708.4 20446.7 17484.1 - ---------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------ COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 00/06-32-050-10-W4 W- 50.000 SPKY PA 57.6 - - - 194.4 188.6 180.4 00/13-32-050-11-W4 W- 50.000 VIK PA 48.4 - - - 125.3 120.4 113.7 02/10-07-050-12-W4 W- 50.000 GLAUC/CLY PA 23.3 - - - 90.4 85.9 79.6 02/01-14-050-12-W4 W- 50.000 SPKY L/CUMM PA 125.4 - - - 411.1 383.3 346.7 00/14-16-050-12-W4 W- 50.000 NIS PA 27.1 - - - 113.4 110.1 105.5 00/15-17-050-12-W4 W- 50.000 NIS PA 36.9 - - - 143.0 136.3 127.3 00/07-21-050-12-W4 W- 50.000 GLAUC/B QTZ PA 52.3 - - - 201.4 189.9 174.5 00/02-22-050-12-W4 W- 50.000 SPKY/LLOYD /B Q PA 56.2 - - - 219.0 209.9 197.3 00/02-22-050-12-W4 W- 50.000 WAS PA 163.4 - - - 528.1 487.6 434.2 00/08-22-050-12-W4 W- 50.000 ELL/CUMM PA 27.5 - - - 87.5 82.8 76.4 00/02-04-051-10-W4 W- 50.000 SPKY/CUMM PA 314.9 - - - 1115.8 1057.6 979.6 00/02-04-051-10-W4 W- 50.000 CLY/WAS/WABIS PA 273.0 - - - 696.1 623.2 530.1 00/05-04-051-11-W4 W- 50.000 SPKY PA 11.3 - - - 53.0 51.7 49.9 SUBTOTAL 1217.5 - - - 3978.5 3727.3 3395.4 BONNYVILLE Bonnyville Grand W- 50.000 GRD RP PA 354.3 - - - 851.7 756.9 642.0 Rapids C Pool Group Run Ptn Fort Kent Colony W- 50.000 CLY PA 46.7 - - - 158.8 148.9 135.8 C Pool -10-36 & 6-6 00/10-22-061-06-W4 W- 50.000 CLY PA 23.5 - - - 69.1 63.3 55.8 SUBTOTAL 424.5 - - - 1079.6 969.1 833.6 COLD LAKE Clearwater A Pool W- 25.000 CLWTR PA 65.0 - - - 221.1 209.5 194.1 Group Run Sees 27&28-62-3W4 00/11-34-062-03-W4 W- 25.000 CLY PA 11.8 - - - 31.2 28.8 25.8 00/09-35-062-03-W4 W- 25.000 CLY A PA 35.4 - - - 111.0 101.9 90.1 00/05-36-062-03-W4 W- 25.000 LLOYD PA 46.9 - - - 140.9 129.9 115.6 02/14-23-063-03-W4 W- 25.000 CLWTR D PA 8.9 - - - 35.4 34.1 32.2 02/14-23-063-03-W4 W- 25.000 CLY B PA 95.0 - - - 373.3 360.0 341.7 00/16-23-063-03-W4 W- 23.750 CLY A/LLOYD PA 66.9 - - - 182.5 166.0 145.1 02/02-26-063-03-W4 W- 25.000 CLY B PA 41.6 - - - 101.2 90.2 77.1 02/09-26-063-03-W4 W- 23.750 CLY A/LLOYD PA 49.5 - - - 165.7 156.4 144.0 00/08-36-063-03-W4 W- 23.750 CLY A/LLOYD PA 11.1 - - - 39.4 37.1 33.9 SUBTOTAL 432.1 - - - 1401.6 1313.9 1199.7 HAIRY HILL 00/06-21-055-14-W4 W- 50.000 CLY/GLAUC/NIS PA 16.4 - - - 62.3 60.4 57.8 02/10-21-055-14-W4 W- 50.000 B QTZ/CLY PA 34.0 - - - 129.4 125.0 118.9 00/11-30-055-14-W4 W- 50.000 GLAUC PA 21.8 - - - 93.1 90.9 87.9 SUBTOTAL 72.2 - - - 284.7 276.3 264.6 HOLDEN Holden Viking Gas W- 35.500 VIK PA 168.5 - - - 321.6 275.7 222.8 Unit No. 3 JARROW 00/10-13-045-11-W4 W- 50.000 GLAUC PA 118.6 - - - 146.7 121.1 93.9 00/06-30-045-11-W4 W- 12.500 VIK PA 5.9 - - - 20.4 19.0 17.1 SUBTOTAL 124.5 - - - 167.1 140.1 111.0 LAVOY 00/12-28-051-13-W4 W- 50.000 CLY/NIS PA 106.5 - - - 275.5 256.5 231.7 00/10-29-051-13-W4 W- 50.000 NIS/ELL PA 47.2 - - - 132.9 119.7 103.2 00/10-29-051-13-W4 W- 50.000 ELL/NIS PA 118.7 - - - 96.7 74.1 51.6 00/02-31-051-13-W4 W- 50.000 ELL PA 17.8 - - - 49.4 46.0 41.6 00/14-31-051-13-W4 W- 50.000 WAS PA 26.3 - - - 113.7 110.1 105.0 00/01-32-051-13-W4 W- 50.000 NIS L/NIS U PA 116.4 - - - 389.8 363.4 328.9 00/01-32-051-13-W4 W- 50.000 SPKY L/LLOYD PA 68.3 - - - 240.0 225.7 206.7 00/11-32-051-13-W4 W- 50.000 NIS PA 47.3 - - - 109.2 95.6 79.4 00/11-05-052-13-W4 W- 50.000 VIK/CLY PA 69.9 - - - 201.4 187.7 169.8 00/06-15-052-14-W4 W- 50.000 CLY PA 59.7 - - - 223.2 212.5 197.9
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ----------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------------- LAVOY (CONT'D) 02/10-15-052-14-W4 W- 50.000 CLY PA 61.8 - - - 177.9 166.2 150.8 00/06-22-052-14-W4 W- 50.000 CLY PA 71.2 - - - 174.9 160.7 142.3 00/06-22-052-14-W4 W- 50.000 VIK PA 118.7 - - - 211.0 181.6 145.9 00/08-22-052-14-W4 W- 50.000 LLOYD/SPKY L/SPK PA 29.5 - - - 125.3 120.9 114.9 00/08-22-052-14-W4 W- 50.000 VIK PA 96.4 - - - 334.0 315.0 289.4 00/12-26-052-14-W4 W- 50.000 SPKY/GLAUC PA 42.1 - - - 120.2 111.8 100.8 00/06-27-052-14-W4 W- 50.000 VIK PA 23.6 - - - 64.7 58.3 50.2 00/15-27-052-14-W4 W- 50.000 ELL PA 222.0 - - - 514.2 462.8 399.5 02/06-28-052-14-W4 W- 50.000 SPKY/LLOYD/MIS PA 22.4 - - - 77.8 75.3 71.8 00/08-28-052-14-W4 W- 50.000 CLY/ELL PA 174.4 - - - 339.0 302.8 259.0 00/16-29-052-14-W4 W- 50.000 ELL PA 22.9 - - - 79.8 77.0 73.1 02/07-34-052-14-W4 W- 50.000 GLAUC U PA 68.6 - - - 232.0 216.4 196.2 SUBTOTAL 1631.7 - - - 4282.7 3940.2 3509.8 MUNDARE 00/04-06-054-16-W4 W- 50.000 VIK/CLY/SPKY PA 53.0 - - - 215.6 210.6 203.5 00/11-02-054-17-W4 W- 50.000 GLAUC PA 118.0 - - - 254.1 223.0 186.2 00/01-10-054-17-W4 W- 50.000 SPKY PA 30.2 - - - 113.9 108.8 101.8 00/01-13-054-17-W4 W- 50.000 GLAUC PA 68.4 - - - 242.2 229.9 213.2 00/02-19-054-17-W4 W- 50.000 GLAUC PA 45.4 - - - 188.5 185.4 180.9 00/04-20-054-17-W4 W- 50.000 GLAUC L/B QTZ PA 43.9 - - - 173.5 168.3 161.1 00/04-20-054-17-W4 W- 50.000 GLAUC PA 38.0 - - - 116.6 107.4 95.4 SUBTOTAL 396.9 - - - 1304.4 1233.5 1142.0 PLAIN 00/12-34-052-10-W4 W- 50.000 CLY PA 53.7 - - - 178.2 167.7 153.7 00/10-14-052-12-W4 W- 50.000 CLY PA 57.3 - - - 196.7 185.6 170.8 00/12-28-052-12-W4 W- 50.000 SPKY M/B QTZ PA 132.0 - - - 388.5 359.1 321.5 00/15-32-052-12-W4 W- 50.000 WAS/SPKY U PA 11.4 - - - 48.5 47.1 45.0 00/07-04-053-12-W4 W- 50.000 SPKY PA 47.1 - - - 101.5 91.8 79.6 SUBTOTAL 301.5 - - - 913.4 851.3 770.6 RANFURLY 02/09-35-050-13-W4 W- 50.000 VIK PA 82.2 - - - 307.4 289.4 265.2 00/03-32-050-14-W4 W- 50.000 B QTZ/DET PA 132.9 - - - 461.1 431.8 393.0 00/03-34-050-15-W4 W- 50.000 B QTZ/CLY PA 48.7 - - - 173.2 162.6 148.4 00/05-18-051-07-W4 W- 50.000 WAS/SPKY PA 50.0 - - - 172.8 162.2 148.4 00/16-20-051-12-W4 W- 50.000 SPKY PA 23.0 - - - 102.1 98.1 92.6 00/11-34-051-12-W4 W- 50.000 GLAUC L/B QTZ PA 111.1 - - - 277.3 255.4 227.1 00/15-06-051-13-W4 W- 50.000 WAS U PA 23.6 - - - 100.6 95.7 89.0 00/04-11-051-13-W4 W- 13.542 GLAUOWAB PA 6.3 - - - 24.9 23.6 21.7 00/15-04-051-14-W4 W- 50.000 CUMM L/CUMM PA 94.8 - - - 134.9 111.3 86.5 SUBTOTAL 572.6 - - - 1754.3 1630.2 1472.0 VEGREVILLE 00/06-07-052-13-W4 W- 50.000 CLY/GLAUC PA 22.0 - - - 83.3 80.8 77.4 02/06-07-052-13-W4 W- 50.000 SPKY L/WAS PA 69.6 - - - 232.6 221.6 206.7 00/01-13-052-14-W4 W- 50.000 LLOYD/GLAUC PA 27.3 - - - 101.1 97.3 92.1 00/06-13-052-14-W4 W- 50.000 NIS/SPKY L PA 117.6 - - - 325.5 295.6 258.3 00/12-13-052-14-W4 W- 50.000 LLOYD/SPKY PA 32.2 - - - 149.3 146.7 143.0 00/03-24-052-14-W4 W- 50.000 DET/NIS/LLOYD/SP PA 39.4 - - - 133.9 123.8 110.7 00/09-24-052-14-W4 W- 50.000 SPKY M/LLOYD/GLA PA 25.2 - - - 108.3 104.4 98.9 SUBTOTAL 333.2 - - - 1134.1 1070.3 987.2 VIKING 00/16-14-048-12-W4 W- 50.000 SPKY PA 88.3 - - - 324.6 307.3 284.0 00/03-12-049-11-W4 W- 50.000 SPKYL PA 60.7 - - - 227.5 215.4 199.2 00/03-12-049-11-W4 W- 50.000 CAM/B QTZ/SPKY PA 48.0 - - - 167.1 154.7 138.2 00/16-34-049-13-W4 W- 50.000 SPKY PA 35.6 - - - 47.9 38.6 28.4 SUBTOTAL 232.5 - - - 767.1 716.0 649.8 WARWICK 02/06-16-053-15-W4 W- 50.000 SPKY/B QTZ/CUMM PA 13.6 - - - 56.9 54.9 52.2 02/06-35-053-15-W4 W- 50.000 CLY PA 125.2 - - - 472.7 450.7 420.9 00/07-19-054-15-W4 W- 50.000 WAS PA 73.6 - - - 250.2 233.7 211.9 00/14-34-054-15-W4 W- 50.000 WAS PA 39.7 - - - 135.8 127.9 117.3 00/14-34-054-15-W4 W- 50.000 NIS/CLY PA 92.4 - - - 318.3 302.1 280.5 SUBTOTAL 344.6 - - - 1233.9 1169.3 1082.8
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------------ COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------------- WARWICK EAST 00/16-30-052-14-W4 W- 50.000 SPKY L/SPKY U PA 40.6 - - - 150.2 142.4 131.9 00/08-32-052-14-W4 W- 50.000 NIS/SPKY PA 59.1 - - - 175.8 160.7 141.5 00/06-33-052-14-W4 W- 48.360 NIS PA 114.7 - - - 229.6 195.0 154.9 00/09-33-052-14-W4 W- 48.360 CLY/GLAUC/ELL PA 95.3 - - - 307.7 283.4 252.0 00/14-34-052-14-W4 W- 50.000 CUMM L/ELL/GLAUC PA 69.6 - - - 192.0 179.4 162.6 00/06-35-052-14-W4 W- 12.500 GLAUC PA 5.9 - - - 17.4 15.8 13.8 00/04-04-053-14-W4 W- 50.000 LLOYD/ELL PA 9.3 - - - 28.2 26.7 24.7 00/08-06-053-14-W4 W- 50.000 GLAUC/CLY PA 22.6 - - - 76.7 74.0 70.2 00/06-07-056-14-W4 W- 25.000 SPKY PA 23.0 - - - 88.1 83.7 77.9 SUBTOTAL 440.1 - - - 1265.7 1161.1 1029.4 WEST LAVOY 00/11-19-051-13-W4 W- 50.000 VIK PA 118.2 - - - 285.5 252.5 213.0 00/11-22-051-14-W4 W- 50.000 VIK PA 23.7 - - - 60.1 53.0 44.4 00/10-24-051-14-W4 W- 50.000 CLY/GLAUC PA 118.2 - - - 211.9 184.8 153.0 00/14-29-051-14-W4 W- 50.000 CLY PA 49.9 - - - 171.2 159.3 143.7 00/09-11-051-15-W4 R- 6.250 BR PA 2.9 - - - 11.4 10.3 9.0 02/07-15-051-15-W4 W- 12.500 B BR M PA 17.6 - - - 58.2 53.6 47.7 00/12-15-051-15-W4 W- 12.500 CLY PA 52.7 - - - 155.0 139.8 121.1 00/09-16-051-15-W4 W- 50.000 CLY PA 198.0 - - - 518.9 466.3 402.1 00/10-21-051-15-W4 W- 37.500 CLY PA 26.4 - - - 90.3 84.2 76.2 00/16-21-051-15-W4 W- 37.500 B BR M PA 106.4 - - - 301.6 270.7 232.8 02/10-22-051-15-W4 W- 18.809 BR PA 26.6 - - - 67.4 59.8 50.7 00/14-14-054-15-W4 W- 50.000 MCLAR/VIK PA 77.7 - - - 270.7 255.0 234.2 SUBTOTAL 818.3 - - - 2202.1 1989.3 1727.9 WILLINGDON 02/10-24-054-16-W4 W- 50.000 WAS/CLY PA 60.2 - - - 184.1 170.3 152.8 00/13-23-056-16-W4 W- 25.000 SPKY/CLY PA 32.0 - - - 56.6 47.2 36.6 02/13-23-056-16-W4 W- 25.000 GLAUC/B QTZ PA 40.6 - - - 136.8 127.7 115.9 00/10-29-056-16-W4 W- 50.000 GLAUC PA 85.0 - - - 306.5 288.9 265.3 00/10-29-056-16-W4 W- 50.000 CLY PA 100.2 - - - 277.3 247.6 209.9 00/12-03-057-16-W4 W- 50.000 GLAUC PA 47.4 - - - 135.9 127.9 117.0 00/12-03-057-16-W4 W- 50.000 CLY/WAS PA 150.5 - - - 332.8 303.2 264.5 00/07-15-057-16-W4 W- 50.000 WAS/SPKY/LSPKY/C PA 362.0 - - - 965.3 932.1 886.3 SUBTOTAL 878.0 - - - 2395.4 2244.9 2048.2 SUBTOTAL ALBERTA 8388.7 - - - 24486.2 22708.4 20446.8 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 8388.7 - - - 24486.2 22708.4 20446.8 - -----------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH CONSTANT PRICES AS OF MAY 1,2003 PROVED PRODUCING RESERVES TOTAL OF ALL AREAS
NATURAL GAS ------------------------------------- ANNUAL SALES SALES GROSS NO.OF VOLUME PRICE REVENUE REVENUE YEAR WELLS MMCF $/MCF M$ M$ - ---------------------------------------------------------------------------- 2003 63.1 3876.2 7.00 27119.5 27119.5 2004 57.5 4229.0 7.00 29592.9 29592.9 2005 50.6 2948.3 7.00 20630.2 20630.2 2006 43.3 2096.6 7.00 14667.9 14667.9 2007 37.5 1534.3 7.00 10737.4 10737.4 2008 29.7 1063.4 7.00 7445.5 7445.5 2009 24.4 753.3 7.00 5273.2 5273.2 2010 18.6 540.2 7.00 3781.9 3781.9 2011 15.5 417.0 7.01 2921.6 2921.6 2012 13.9 337.7 7.01 2366.5 2366.5 2013 12.6 261.5 7.02 1834.5 1834.5 2014 9.3 171.8 7.02 1206.2 1206.2 2015 6.4 112.7 7.03 792.1 792.1 2016 5.6 91.1 7.03 640.0 640.0 2017 2.3 44.1 7.02 309.3 309.3 REM. 0.9 129.4 7.04 910.3 910.3 TOTAL 18606.7 7.00 130229.0 130229.0 - ----------------------------------------------------------------------------
CROWN ROYALTIES FREEHOLD ROYALTIES OVERRIDING ROYALTIES ---------------------------- --------------------------- ------------------------- TOTAL TOTAL UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. MINERAL ROYALTY ROYALTY NPI ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY TAX & TAXES & TAXEX PYMTS. YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ % M$ - ----------------------------------------------------------------------------------------------------------------------------------- 2003 4926.8 309.5 4617.3 1081.8 66.4 1015.4 1061.5 61.2 1000.3 316.9 6950.0 25.63 21.6 2004 4877.1 304.0 4573.2 1221.5 74.8 1146.7 1188.5 68.5 1120.0 322.5 7162.5 24.20 24.8 2005 2973.9 186.0 2787.9 874.1 53.4 820.7 843.9 48.6 795.4 208.7 4612.8 22.36 18.3 2006 1872.8 117.5 1755.3 612.0 37.3 574.7 590.7 34.0 556.7 137.1 3023.9 20.62 14.1 2007 1216.6 75.0 1141.5 442.1 26.1 416.0 447.9 25.8 422.1 93.8 2073.4 19.31 11.1 2008 754.3 45.6 708.7 331.6 19.1 312.5 325.3 18.6 306.7 65.8 1393.6 18.72 8.9 2009 477.0 28.7 448.3 255.9 14.6 241.4 244.5 14.0 230.5 46.8 967.0 18.34 7.9 2010 331.2 20.1 311.1 180.1 10.3 169.8 153.9 8.8 145.1 31.9 658.0 17.40 7.1 2011 232.2 14.2 218.0 153.9 8.8 145.2 117.9 6.7 111.2 25.0 499.4 17.09 6.3 2012 173.2 10.7 162.5 131.3 7.5 123.8 99.3 5.7 93.7 19.8 399.9 16.90 5.7 2013 136.4 8.4 128.0 84.8 4.8 79.9 68.5 3.9 64.6 12.5 285.1 15.54 5.1 2014 93.4 5.8 87.6 42.5 2.4 40.0 48.2 2.7 45.5 6.3 179.5 14.88 4.5 2015 57.5 3.3 54.1 30.5 1.7 28.8 33.9 1.9 32.0 4.5 119.4 15.07 2.7 2016 44.7 2.6 42.1 25.9 1.5 24.5 24.5 1.4 23.2 3.6 93.3 14.58 2.5 2017 18.4 1.1 17.3 16.4 0.9 15.5 14.0 0.8 13.2 2.4 48.4 15.65 1.6 REM. 37.4 2.1 35.3 71.5 4.1 67.4 66.0 3.7 62.3 9.2 174.2 19.14 6.8 TOTAL 18222.8 1134.5 17088.3 5556.0 333.7 5222.3 5328.7 306.3 5022.4 1306.8 28640.3 21.99 149.0 - ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL COSTS NET REVENUES AFTER COSTS ---------------------------------- ------------------------------------ OPERATING ABD. NET OP. DRILLING EQUIP & TOTAL PWV COSTS COSTS INCOME & COMPL FACILITY CAPITAL ANNUAL CUM @10.0% YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - ------------------------------------------------------------------------------------------------------------------------- 2003 1850.7 20.0 18277.1 66.7 66.7 18210.4 18210.4 17640.9 2004 2282.6 44.5 20078.4 20078.4 38288.9 17965.3 2005 1826.9 120.0 14052.1 14052.1 52341.0 11430.2 2006 1464.5 120.5 10044.8 10044.8 62385.8 7427.9 2007 1212.5 157.2 7283.3 7283.3 69669.0 4896.1 2008 936.4 209.4 4897.2 4897.2 74566.2 2992.9 2009 748.5 147.2 3402.6 3402.6 77968.8 1890.4 2010 557.9 92.3 2466.8 2466.8 80435.6 1245.9 2011 449.1 63.5 1903.3 1903.3 82338.9 874.0 2012 394.5 52.6 1513.8 1513.8 83852.7 631.9 2013 348.3 40.0 1156.1 1156.1 85008.9 438.7 2014 251.7 123.4 647.0 647.0 85655.8 223.2 2015 165.3 10.0 494.7 494.7 86150.6 155.1 2016 140.9 30.0 373.3 373.3 86523.9 106.4 2017 57.0 88.9 113.4 113.4 86637.3 29.4 REM. 146.3 37.5 545.5 545.5 87182.8 105.0 TOTAL 12833.0 1356.9 87249.4 66.7 66.7 87182.8 68053.5 - -------------------------------------------------------------------------------------------------------------------------
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ ------------------ --------------------------------------- PRODUCT GROSS NET @10.0% @12.0% @15.0% @20.0% - ------------------------------------------------------------------------------------------ Natural Gas (mmcf) 18607.0 14450.2 68053.3 65337.0 61720.0 56662.4 TOTAL 68053.3 65337.0 61720.0 56662.4 - ------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - -------------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 02/10-07-050-12-W4 W- 50.000 GLAUC/CLY PP 43.1 - - - 187.7 183.9 178.4 02/01-14-050-12-W4 W- 50.000 SPKY L/CUMM PP 344.2 - - - 1402.4 1360.8 303.3 00/09-15-050-12-W4 W- 50.000 CUMM PP 115.6 - - - 479.6 467.5 450.6 00/09-16-050-12-W4 W- 50.000 LLOYD/CUMM /NIS PP 7.5 - - - 33.9 34.3 34.7 00/15-17-050-12-W4 W- 50.000 NIS PP 82.4 - - - 364.6 356.6 345.4 00/07-21-050-12-W4 W- 50.000 GLAUC/B QTZ PP 200.4 - - - 903.0 876.9 840.8 00/02-22-050-12-W4 W- 50.000 SPKY/LLOYD /B Q PP 128.2 - - - 568.4 557.1 541.0 00/08-22-050-12-W4 W- 50.000 ELL/CUMM PP 99.7 - - - 369.0 359.0 345.0 00/15-24-050-12-W4 WAS/SPKY/LLOYD NRA - - - - -7.4 -7.0 -6.4 00/05-04-051-11-W4 W- 50.000 SPKY PP 23.5 - - - 111.1 110.2 108.8 SUBTOTAL 1044.6 - - - 4412.3 4299.3 4141.6 BONNYVILLE Bonnyville Grand W- 50.000 GRD RP PP 907.2 - - - 3133.4 2975.5 2766.9 Rapids C Pool Group Run Ptn Fort Kent Colony W- 50.000 CLY PP 137.6 - - - 548.3 532.5 510.6 C Pool -10-36 & 6-6 00/11-19-060-04-W4 W- 50.000 CLY PP 73.2 - - - 277.7 266.9 252.2 00/10-22-061-06-W4 W- 50.000 CLY PP 75.2 - - - 279.6 268.9 254.4 00/07-34-061-06-W4 W- 25.000 CLY A PP 1.2 - - - 0.4 0.6 0.9 SUBTOTAL 1194.4 - - - 4239.4 4044.5 785.0 COLD LAKE Clearwater A Pool W- 25.000 CLWTR PP 353.7 - - - 1385.8 1345.5 1290.0 Group Run Secs 27&28-62-3W4 00/11-34-062-03-W4 W- 25.000 CLY PP 72.1 - - - 234.2 225.8 214.3 00/09-35-062-03-W4 W- 25.000 CLY A PP 77.3 - - - 314.4 303.7 289.0 00/05-36-062-03-W4 W- 25.000 LLOYD PP 136.0 - - - 525.0 506.4 480.8 02/14-23-063-03-W4 W- 25.000 CLWTR D PP 33.4 - - - 145.8 142.9 138.8 00/16-23-063-03-W4 W- 23.750 CLY A/LLOYD PP 169.2 - - - 625.2 599.3 564.4 00/07-25-063-03-W4 W- 23.750 CLY A NRA - - - - -3.2 -3.0 -2.7 02/09-26-063-03-W4 W- 23.750 CLY A/LLOYD PP 131.9 - - - 522.8 508.8 489.3 00/08-36-063-03-W4 W- 23.750 CLY A/LLOYD PP 28.9 - - - 118.7 115.4 110.9 8 Gorr Wells R- 2.125 CLY PP 18.6 - - - 95.2 91.3 86.0 SUBTOTAL 1021.0 - - - 3963.8 3836.2 3660.9 HAIRY HILL 00/10-18-053-14-W4 R- 4.167 GLAUC PP 7.0 - - - 38.4 37.1 35.4 00/06-21-055-14-W4 W- 50.000 CLY/GLAUC/NIS PP 62.7 - - - 247.4 243.8 238.6 02/10-21-055-14-W4 W- 50.000 B QTZ/CLY PP 41.2 - - - 156.6 154.1 150.6 00/11-30-055-14-W4 W- 50.000 GLAUC PP 31.0 - - - 130.9 129.5 127.4 SUBTOTAL 141.9 - - - 573.3 564.5 552.0 HOLDEN Holden Viking Gas W- 35.500 VIK PP 861.4 - - - 2662.9 2488.5 2265.5 Unit No. 3 JARROW 00/03-33-044-11-W4 W- 25.000 B QTZ/GLAUC PP 11.6 - - - 46.3 46.1 45.7 00/07-34-045-10-W4 W- 30.000 VIK PP 36.8 - - - 102.1 97.1 90.4 00/14-01-045-11-W4 W- 50.000 CLY PP 1.8 - - - 1.7 2.2 2.9 00/10-13-045-11-W4 W- 50.000 GLAUC PP 531.8 - - - 1333.0 1221.6 1086.0 00/10-15-045-11-W4 F- 0.750 CLY/VIK PP 0.1 - - - 0.3 0.3 0.3 00/06-19-045-11-W4 R- 0.750 VIK PP 0.2 - - - 1.3 1.2 1.2 02/10-27-045-11-W4 W- 12.500 SPKY PP 1.4 - - - 2.4 2.5 2.6 00/04-29-045-11-W4 W- 12.500 VIK PP 3.7 - - - 10.0 9.8 9.6 00/06-30-045-11-W4 W- 12.500 VIK PP 13.5 - - - 56.7 54.9 52.5 00/11-31-045-11-W4 R- 0.750 VIK NRA - - - - - - - SUBTOTAL 600.9 - - - 1553.7 1435.8 1291.3
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ----------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------------- LAVOY Capital to purchase P- 50.000 PP - - - - -64.6 -64.2 -63.6 compressor 00/07-21-051-13-W4 W- 50.000 CLY/WAB PP 3.1 - - - 0.1 0.3 0.7 00/12-28-051-13-W4 W- 50.000 CLY/NIS PP 273.4 - - - 882.2 852.8 812.5 00/10-29-051-13-W4 W- 50.000 NIS/ELL PP 106.4 - - - 413.6 395.6 371.4 00/02-31-051-13-W4 W- 50.000 ELL PP 107.2 - - - 347.8 336.1 320.1 00/14-31-051-13-W4 W- 50.000 WAS PP 41.5 - - - 190.5 187.8 183.8 00/01-32-051-13-W4 W- 50.000 NIS L/NIS U PP 299.0 - - - 1240.5 1200.7 1145.9 00/01-32-051-13-W4 W- 50.000 SPKY L/LLOYD PP 234.5 - - - 995.3 965.1 923.4 00/11-32-051-13-W4 W- 50.000 NIS PP 151.6 - - - 536.8 506.2 466.3 00/12-04-052-13-W4 W- 50.000 CLY/VIK NRA - - - - -7.4 -7.0 -6.4 00/11-05-052-13-W4 W- 50.000 VIK/CLY PP 160.2 - - - 559.1 541.3 516.7 00/06-12-052-14-W4 W- 50.000 LLOYD/SPKY M PP 16.7 - - - 47.3 46.8 46.0 00/11-12-052-14-W4 W- 50.000 SPKY L/CUMM L NRA - - - - -7.4 -7.0 -6.4 00/15-12-052-14-W4 W- 50.000 GLAUC/CUMM L/SPK PP 147.2 - - - 644.9 626.5 601.1 00/06-15-052-14-W4 W- 50.000 CLY PP 67.4 - - - 284.7 279.2 271.3 02/10-15-052-14-W4 W- 50.000 CLY PP 204.9 - - - 710.2 687.4 656.0 00/06-22-052-14-W4 W- 50.000 CLY PP 268.7 - - - 857.8 826.0 782.8 00/08-22-052-14-W4 W- 50.000 LLOYD/SPKY L/SPK PP 59.0 - - - 264.2 259.8 253.5 00/12-26-052-14-W4 W- 50.000 SPKY/GLAUC PP 166.3 - - - 574.8 555.1 528.0 00/06-27-052-14-W4 W- 50.000 VIK PP 78.0 - - - 285.4 272.6 255.5 00/12-27-052-14-W4 W- 50.000 GLAUC/NIS PP 65.9 - - - 251.4 247.7 242.5 00/15-27-052-14-W4 W- 50.000 ELL PP 568.7 - - - 1851.4 1764.8 1649.6 02/06-28-052-14-W4 W- 50.000 SPKY/LLOYD /NIS PP 60.8 - - - 225.8 222.5 217.7 00/08-28-052-14-W4 W- 50.000 CLY/ELL PP 726.7 - - - 2024.2 1918.2 1779.3 00/16-29-052-14-W4 W- 50.000 ELL PP 40.6 - - - 148.0 145.6 142.3 00/10-32-052-14-W4 W- 50.000 VIK/CLY PP 0.8 - - - -4.8 -4.3 -3.7 02/07-34-052-14-W4 W- 50.000 GLAUC U PP 142.1 - - - 593.8 574.6 548.4 00/10-07-053-14-W4 F- 2.917 GLAUC PP 26.4 - - - 120.1 112.7 103.2 SUBTOTAL 4017.2 - - - 13965.9 13443.0 12737.6 MANNVILLE 00/09-16-052-07-W4 W- 37.500 CLY PP 237.8 - - - 741.5 690.0 624.7 MUNDARE 00/11-02-054-17-W4 W- 50.000 GLAUC PP 375.7 - - - 1252.9 1181.7 1088.9 00/01-10-054-17-W4 W- 50.000 SPKY PP 82.3 - - - 352.1 344.7 334.2 00/10-10-054-17-W4 CLY NRA - - - - -5.1 -4.4 -3.7 00/02-19-054-17-W4 W- 50.000 GLAUC PP 60.6 - - - 261.0 259.0 256.1 00/04-20-054-17-W4 W- 50.000 GLAUC L/B QTZ PP 93.9 - - - 401.9 396.4 388.6 SUBTOTAL 612.5 - - - 2262.8 2177.3 2064.1 PLAIN 00/12-34-052-10-W4 W- 50.000 CLY PP 274.0 - - - 1081.3 1048.8 1004.1 00/12-28-052-12-W4 W- 50.000 SPKY M/B QTZ PP 396.7 - - - 1483.3 1428.1 1353.2 00/15-32-052-12-W4 W- 50.000 WAS/SPKY U PP 34.0 - - - 151.8 149.9 147.2 00/12-09-052-13-W4 W- 50.000 VIK NRA - - - - -7.4 -7.0 -6.4 00/07-04-053-12-W4 W- 50.000 SPKY PP 124.6 - - - 360.5 345.1 324.5 SUBTOTAL 829.3 - - - 3069.4 2965.0 2822.5 RANFURLY Ranfurly Gas Unit W- 13.542 ALL ZONES PP 10.5 - - - 41.0 41.2 41.4 02/09-35-050-13-W4 W- 50.000 CLY/MCLAR PP 13.4 - - - 61.3 60.8 60.1 00/06-36-050-13-W4 W- 50.000 MCLAR PP 8.0 - - - 35.2 35.4 35.6 02/09-36-050-13-W4 W- 50.000 B QTZ U PP 22.2 - - - 109.0 108.1 106.9 00/11-30-050-14-W4 R- 6.900 VIK L PP 10.9 - - - 56.9 54.5 51.2 00/03-32-050-14-W4 W- 50.000 B QTZ/DET PP 277.3 - - - 1185.5 1153.0 1108.0 00/16-23-050-15-W4 W- 50.000 CLY PP 149.9 - - - 655.4 636.9 611.2 00/03-34-050-15-W4 W- 50.000 B QTZ/CLY PP 258.0 - - - 1098.2 1065.8 1020.9 00/16-20-051-12-W4 W- 50.000 SPKY PP 37.9 - - - 180.7 177.5 173.0 00/06-29-051-12-W4 W- 50.000 CLY/SPKY PP 2.8 - - - 7.3 7.7 8.3 02/08-04-051-13-W4 W- 50.000 CLY PP 54.6 - - - 237.9 230.3 219.7 00/15-06-051-13-W4 W- 50.000 WAS U PP 40.7 - - - 195.5 191.9 186.8 00/04-11-051-13-W4 W- 13.542 GLAUC/WAB PP 31.6 - - - 145.1 141.1 135.6 00/06-22-051-13-W4 W- 22.500 VIK PP 3.5 - - - 9.7 9.7 9.6 00/15-04-051-14-W4 W- 50.000 CUMM L/CUMM PP 317.7 - - - 937.6 859.7 764.7 00/02-09-051-14-W4 F- 1.343 BR PP 0.5 - - - 3.0 2.9 2.8 00/06-10-051-14-W4 R- 9.943 BR PP 5.6 - - - 33.3 32.6 31.7 SUBTOTAL 1245.2 - - - 4992.6 4809.2 4567.4
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- --------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST% ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------ ST. PAUL 00/05-03-058-09-W4 W- 37.500 MN PP 13.5 - - - 45.4 44.3 42.7 00/12-03-058-09-W4 W- 37.500 VIK PP 6.8 - - - 22.3 22.3 22.1 SUBTOTAL 20.2 - - - 67.8 66.6 64.8 VEGREVILLE 00/06-07-052-13-W4 W- 50.000 CLY/GLAUC PP 78.2 - - - 308.0 303.5 296.9 02/06-07-052-13-W4 W- 50.000 SPKY L/WAS PP 174.0 - - - 654.1 638.6 616.8 00/01-18-052-13-W4 W- 24.750 GLAUC PP 61.3 - - - 179.5 174.4 167.1 00/06-19-052-13-W4 W- 10.026 GLAUC PP 1.6 - - - 5.0 5.0 5.0 00/01-13-052-14-W4 W- 50.000 LLOYD/GLAUC PP 41.1 - - - 159.4 156.7 152.9 00/06-13-052-14-W4 W- 50.000 NIS/SPKY L PP 651.3 - - - 2401.2 2290.1 2142.5 00/12-13-052-14-W4 W- 50.000 LLOYD/SPKY PP 27.2 - - - 126.1 125.2 123.9 00/03-24-052-14-W4 W- 50.000 DET/NIS/LLOYD/SP PP 153.1 - - - 651.6 628.6 597.1 00/09-24-052-14-W4 W- 50.000 SPKY M/LLOYD/GLA PP 24.8 - - - 111.9 110.4 108.3 00/10-09-053-14-W4 W- 37.500 NIS PP 4.1 - - - 20.5 20.4 20.2 SUBTOTAL 1216.6 - - - 4617.4 4452.9 4230.7 VIKING 00/16-14-048-12-W4 W- 50.000 SPKY PP 125.5 - - - 552.6 539.6 521.3 00/03-12-049-11-W4 W- 50.000 SPKY L PP 153.7 - - - 678.2 661.0 637.0 00/04-22-049-12-W4 W- 47.500 B QTZ U/B QTZ L PP 26.6 - - - 121.6 120.6 119.1 00/09-32-049-12-W4 W- 50.000 LLOYD PP 40.6 - - - 182.1 179.1 174.7 00/06-28-049-13-W4 W- 50.000 CLY PP 1.1 - - - -5.1 -5.0 -5.0 00/16-34-049-13-W4 W- 50.000 SPKY PP 121.2 - - - 332.9 306.3 273.0 00/10-36-049-13-W4 W- 50.000 WAB PP 4.5 - - - 7.5 7.9 8.5 00/02-24-049-14-W4 W- 50.000 WAB NRA - - - - -6.1 -5.6 -4.9 00/08-04-050-12-W4 W- 42.500 B QTZ U/B QTZ L PP 40.1 - - - 170.5 166.6 161.1 00/11-13-050-13-W4 W- 34.375 VIK PP 10.1 - - - 24.4 24.0 23.3 R- 0.625 SUBTOTAL 523.4 - - - 2058.7 1994.5 1908.2 WARWICK 02/06-16-053-15-W4 W- 50.000 SPKY/B QTZ/CUMM PP 39.6 - - - 172.4 169.6 165.7 02/06-35-053-15-W4 W- 50.000 CLY PP 166.3 - - - 718.9 703.8 682.5 00/14-34-054-15-W4 W- 50.000 WAS PP 127.6 - - - 525.6 510.9 490.5 00/14-34-054-15-W4 W- 50.000 NIS/CLY PP 163.8 - - - 662.7 646.7 624.3 00/07-01-055-15-W4 GLAUC/NIS NRA - - - - -5.5 -5.2 -4.8 SUBTOTAL 497.2 - - - 2074.1 2025.9 1958.3 WARWICK EAST 00/16-30-052-14-W4 W- 50.000 SPKY L/SPKY U PP 219.7 - - - 942.3 918.3 884.9 00/08-32-052-14-W4 W- 50.000 NIS/SPKY PP 291.2 - - - 1134.3 1086.7 1022.7 00/06-33-052-14-W4 W- 48.360 NIS PP 382.9 - - - 1306.1 1221.1 1111.6 00/09-33-052-14-W4 W- 48.360 CLY/GLAUC/ELL PP 256.9 - - - 1058.4 1019.4 966.2 00/14-34-052-14-W4 W- 50.000 CUMM L/ELL/GLAUC PP 189.6 - - - 645.8 625.7 597.9 00/06-35-052-14-W4 W- 12.500 GLAUC PP 25.1 - - - 97.5 93.4 87.8 00/04-04-053-14-W4 W- 50.000 LLOYD/ELL PP 44.3 - - - 143.0 139.7 135.0 00/03-05-053-14-W4 W- 50.000 SPKY U/GLAUC PP 29.3 - - - 92.9 91.6 89.6 00/08-06-053-14-W4 W- 50.000 GLAUC/CLY PP 58.5 - - - 214.7 211.0 205.7 00/06-07-056-14-W4 W- 25.000 SPKY PP 62.0 - - - 268.9 262.5 253.4 SUBTOTAL 1559.5 - - - 5903.8 5669.4 5354.7 WEST LAVOY 00/11-19-051-13-W4 W- 50.000 VIK PP 321.9 - - - 1180.7 1117.3 1034.5 00/15-15-051-14-W4 W- 50.000 CLY PP 51.5 - - - 226.0 221.6 215.5 00/11-21-051-14-W4 W- 50.000 CLY/WAS PP 7.3 - - - 22.1 21.9 21.8 00/11-22-051-14-W4 W- 50.000 VIK PP 109.8 - - - 398.7 377.5 349.5 00/10-24-051-14-W4 W- 50.000 CLY/GLAUC PP 408.6 - - - 1162.6 1091.7 1000.6 00/14-29-051-14-W4 W- 50.000 CLY PP 159.4 - - - 675.1 652.5 621.4 00/07-34-051-14-W4 W- 50.000 VIK PP 3.9 - - - 5.4 5.7 6.2 00/16-10-051-15-W4 R- 6.250 BR PP 11.5 - - - 61.9 59.7 56.6 00/09-11-051-15-W4 R- 6.250 BR PP 9.4 - - - 49.1 47.0 44.3 00/10-14-051-15-W4 W- 13.184 B BR PP 28.6 - - - 98.5 93.3 86.4 R- 3.105 02/07-15-051-15-W4 W- 12.500 B BR M PP 52.4 - - - 220.2 211.8 200.5 00/09-16-051-15-W4 W- 50.000 CLY PP 446.3 - - - 1678.4 1599.4 1494.6 00/10-21-051-15-W4 W- 37.500 CLY PP 52.6 - - - 216.1 209.7 200.9 00/16-21-051-15-W4 W- 37.500 B BR M PP 276.6 - - - 1119.0 1065.8 995.3
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 4 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- --------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST% ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------ WEST LAVOY (CONT'D) 02/10-22-051-15-W4 W- 18.809 BR PP 96.1 - - - 356.8 337.8 313.0 00/07-26-051-15-W4 W- 22.500 VIK A PP 8.4 - - - 22.5 21.9 21.2 00/11-19-052-15-W4 R- 0.388 U MN PP 1.0 - - - 5.4 5.1 4.8 SUBTOTAL 2045.5 - - - 7498.3 7139.9 6666.9 WILLINGDON 02/10-24-054-16-W4 W- 50.000 WAS/CLY PP 425.7 - - - 1627.4 1561.6 1473.2 00/13-23-056-16-W4 W- 25.000 SPKY/CLY PP 297.1 - - - 939.2 868.9 780.3 02/13-23-056-16-W4 W- 25.000 GLAUC/B QTZ PP 127.9 - - - 530.2 512.6 488.5 00/12-03-057-16-W4 W- 50.000 GLAUC PP 88.0 - - - 298.5 291.5 281.7 SUBTOTAL 938.6 - - - 3395.4 3234.6 3023.6 SUBTOTAL ALBERTA 18607.1 - - - 68053.2 65336.9 61720.0 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL 18607.1 - - - 68053.2 65336.9 61720.0 - ------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED NON-PRODUCING RESERVES TOTAL OF ALL AREAS
NATURAL GAS ------------------------------------ TOTAL ANNUAL SALES OTHER OTHER GROSS NO. OF VOLUME PRICE REVENUE REVENUES REVENUE YEAR WELLS MMCF $/MCF M$ M$ M$ - ------- ------ -------- ------- ------- ---------- ------- 2003 6.6 789.2 7.02 5538.0 -22.5 5515.5 2004 7.5 915.7 7.02 6426.5 10.3 6436.8 2005 7.2 586.8 7.01 4115.7 4115.7 2006 6.1 363.4 7.01 2546.3 2546.3 2007 5.3 233.3 7.00 1632.4 1632.4 2008 3.6 150.6 6.98 1052.2 1052.2 2009 2.0 94.4 6.97 657.6 657.6 2010 1.2 61.6 6.94 427.4 427.4 2011 1.1 51.8 6.93 359.1 359.1 2012 1.1 46.7 6.92 323.4 323.4 2013 1.0 40.4 6.91 279.2 279.2 2014 0.9 34.7 6.90 239.4 239.4 2015 0.7 31.1 6.90 214.7 214.7 2016 0.5 29.9 6.90 206.3 206.3 2017 0.5 28.7 6.90 198.2 198.2 REM 0.5 133.9 6.90 923.6 923.6 TOTAL 3,592.0 7.00 25,140.0 -12.2 25,127.7 - ------------------------------------------------------------------------------------------------------
CROWN ROYALTIES FREEHOLD ROYALTIES OVERRIDING ROYALTIES -------------------------- ---------------------------- ---------------------------- TOTAL TOTAL UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. MINERAL ROYALTY ROYALTY NPI ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY TAX & TAXES & TAXES PYMTS. YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ % M$ - ------------------------------------------------------------------------------------------------------------------------------------ 2003 1292.6 99.7 1192.8 142.3 16.3 126.0 86.6 6.0 80.6 47.4 1446.8 26.13 2004 1399.9 101.7 1298.2 153.4 18.4 135.0 252.3 15.4 237.0 45.3 1715.5 24.80 2005 805.6 54.7 751.0 105.1 13.5 91.5 161.4 9.8 151.6 26.4 1020.5 24.80 2006 395.8 25.6 370.2 74.0 10.2 63.7 111.2 6.7 104.5 16.4 554.8 21.79 2007 205.3 13.0 192.3 47.7 7.3 40.4 87.6 5.1 82.4 10.4 325.6 19.94 2008 136.1 6.9 129.2 25.5 2.5 23.1 111.2 4.8 106.4 7.0 265.6 25.25 2009 80.0 4.1 75.8 19.3 1.1 18.2 90.1 4.1 85.9 5.6 185.5 28.21 1.7 2010 47.5 2.6 44.9 17.4 1.0 16.4 59.2 2.7 56.5 4.8 122.6 28.69 1.5 2011 38.2 2.2 36.0 15.8 0.9 14.9 52.0 2.5 49.5 4.2 104.7 29.14 1.0 2012 33.6 2.0 31.6 14.5 0.8 13.7 46.7 2.4 44.3 3.8 93.4 28.87 0.6 2013 29.0 1.8 27.2 13.4 0.8 12.6 38.6 2.2 36.5 3.4 79.7 29.94 0.4 2014 26.0 1.6 24.4 11.3 0.6 10.6 35.8 2.1 33.7 3.0 71.7 29.94 2015 23.6 1.4 22.2 10.2 0.6 9.6 34.3 2.0 32.4 2.7 66.9 31.15 2016 22.1 1.3 20.9 9.8 0.6 9.2 33.0 1.9 31.1 2.5 63.7 30.87 2017 20.8 1.2 19.6 9.4 0.5 8.9 31.7 1.8 29.9 2.4 60.7 30.61 REM 90.3 5.2 85.1 43.9 2.5 41.3 147.8 8.6 139.2 10.3 275.9 29.87 TOTAL 4646.5 325.0 4321.5 712.9 77.8 635.1 1379.5 78.1 1301.4 195.5 6453.4 25.67 5.3 - ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL COSTS NET REVENUES AFTER COSTS -------------------------------- ------------------------------- OPERATING ABD. NET OP. DRILLING EQUIP & TOTAL PWV COSTS COSTS INCOME & COMPL FACILITY CAPITAL ANNUAL CUM @10.0% YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - ----------------------------------------------------------------------------------------------------------------- 2003 341.6 5.0 3722.1 676.9 676.9 3045.1 3045.1 2949.9 2004 414.5 79.8 4227.1 18.8 150.0 168.8 4058.4 7103.5 3632.0 2005 331.5 104.5 2659.3 2659.3 9762.8 2164.4 2006 238.0 92.5 1661.0 1661.0 11423.8 1229.5 2007 178.6 120.9 1007.4 1007.4 12967.5 677.7 2008 112.9 123.3 548.7 12.4 12.4 536.3 12967.5 328.6 2009 56.8 78.8 335.1 335.1 13302.6 186.6 2010 39.0 55.0 209.8 209.8 13512.4 106.6 2011 35.5 22.5 195.8 195.8 13708.2 90.1 2012 34.8 194.8 194.8 13903.0 81.3 2013 29.1 170.4 170.4 14073.4 64.7 2014 21.3 7.5 138.9 138.9 14212.3 47.9 2015 16.6 131.2 131.2 14343.5 41.2 2016 16.5 126.1 126.1 14469.6 36.0 2017 16.4 121.2 121.2 14590.8 31.4 REM 84.3 563.4 563.4 15154.2 110.2 TOTAL 1967.4 689.7 16012.3 31.1 826.9 858.0 15154.2 11778.1 - ------------------------------------------------------------------------------------------------------------------
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ -------------------------- ------------------------------------------------------- PRODUCT GROSS NET @10.0% @12.0% @15.0% @20.0% - ------------------------------------------------------------------------------------------------------------ Crude Oil (mbbl) -13.4 -12.5 -11.2 -9.3 Natural Gas (mmcf) 3592.1 2628.8 11791.4 11340.3 10745.4 9919.4 TOTAL 11778.0 11327.9 10734.2 9910.1 - ------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED NON-PRODUCING RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ------------------------------ COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (MS) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MIT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------------ ALBERTA BIRCH 00/06-32-050-10-W4 W-50.000 B QTZ NRA - - - - -6.7 -6.2 -5.6 00/06-32-050-10-W4 W-50.000 SPKY NRA - - - - - - - 00/13-32-050-11-W4 W-50.000 VIK - - - - - -6.7 -6.2 -5.6 00/14-16-050-12-W4 W-50.000 NIS PNP 95.0 - - - 354.9 349.9 342.9 00/02-22-050-12-W4 W-50.000 WAS NRA - - - - - - - 00/02-04-051-10-W4 W-50.000 SPKY-CUMM PNP 626.0 - - - 2563.5 2505.5 2424.4 00/02-04-051-10-W4 W-50.000 CLY/WAS/WABIS NRA - - - - - - - SUBTOTAL 721.0 - - - 2904.9 2843.0 2756.1 BONNYVILLE 00/01-24-059-05-W4 W-35.000 GRD RP NRA - - - - -5.7 -5.5 -5.2 NRA Wells NRA - - - - -18.6 -17.5 -16.0 SUBTOTAL - - - - -24.3 -23.0 -21.1 COLD LAKE 02/11-34-062-03-W4 W-25.000 LLOYD NRA - - - - -4.5 -4.4 -4.2 02/14-23-063-03-W4 W-25.000 CLY B NRA - - - - - - - 00/10-25-063-03-W4 W-23.750 LLOYD NRA - - - - -2.9 -2.6 -2.3 00/11-25-063-03-W4 W-23.750 CLY B NRA - - - - -4.2 -4.2 -4.0 02/02-26-063-03-W4 W-25.000 CLY B PNP 98.6 - - - 345.0 327.8 305.3 SUBTOTAL 98.6 - - - 333.3 316.7 294.7 HEDGE Natural Gas Hedge P-50.000 PNP - - - - -12.6 -12.7 -12.8 JARROW 00/09-36-046-12-W4 W-25.000 VIK A,B NRA - - - - -3.1 -2.8 -2.4 LAVOY 00/10-29-051-13-W4 W-50.000 ELL/NIS PNP 695.5 - - - 1423.4 1279.5 1108.3 00/10-33-051-13-W4 W-50.000 CLY NRA - - - - -6.1 -5.6 -4.9 00/13-18-052-13-W4 W-24.750 CLY NRA - - - - -2.7 -2.5 -2.1 00/07-30-052-13-W4 W-50.000 2 WS PNP 18.0 - - - 60.6 59.6 58.1 00/10-11-052-14-W4 W-50.000 CLY/2 WS NRA - - - - -8.1 -7.8 -7.4 00/06-22-052-14-W4 W-50.000 VIK NRA - - - - - - - 00/08-22-052-14-W4 W-50.000 VIK NRA - - - - - - - 02/12-27-052-14-W4 W-50.000 LLOYD/SPKY NRA - - - - -6.1 -5.6 -4.9 00/06-34-052-14-W4 W-50.000 ELL/NIS NRA - - - - -8.1 -7.8 -7.4 00/06-06-053-14-W4 W-50.000 VIK NRA - - - - -6.7 -6.2 -5.6 00/07-29-053-14-W4 W-50.000 2 WS PNP 58.9 - - - 239.4 232.4 222.7 Lavoy NRA Wells ALL ZONES NRA - - - - -163.5 -151.7 -136.2 SUBTOTAL 772.5 - - - 1521.8 1384.3 1220.8 MUNDARE 00/04-06-054-16-W4 W-50.000 GLAUC L/GLAUC NRA - - - - -6.7 -6.2 -5.6 00/04-06-054-16-W4 W-50.000 VIK/CLY/SPKY - - - - - -6.7 -6.2 -5.6 00/01-13-054-17-W4 W-50.000 GLAUC PNP 171.0 - - - 632.1 617.1 596.0 00/02-19-054-17-W4 W-50.000 B QTZ/GLAUC L NRA - - - - -7.4 -7.0 -6.4 00/04-20-054-17-W4 W-50.000 GLAUC PNP 152.0 - - - 535.7 507.9 470.0 00/02-17-055-18-W4 W-50.000 U MN NRA - - - - -5.6 -5.0 -4.2 SUBTOTAL 323.0 - - - 1141.4 1100.6 1044.2 PLAIN 00/12-34-052-10-W4 W-50.000 VIK NRA - - - - -6.7 -6.2 -5.6 00/10-14-052-12-W4 W-50.000 CLY PNP 143.2 - - - 555.5 539.8 517.9 00/13-36-052-13-W4 W-50.000 SPKY NRA - - - - -8.9 -8.8 -8.5 00/14-18-053-11-W4 W-50.000 B QTZ NRA - - - - -6.7 -6.2 -5.6 SUBTOTAL 143.2 - - - 533.2 518.5 498.3 RANFURLY 02/09-35-050-13-W4 W-50.000 VIK NRA - - - - - - - 00/05-18-051-07-W4 W-25.000 WAS/SPKY PNP 167.6 - - - 668.8 646.6 616.3 00/11-34-051-12-W4 W-50.000 GLAUC L/B QTZ PNP 340.5 - - - 924.8 883.0 826.1 00/12-01-051-13-W4 W-12.500 SPKY U NRA - - - - -2.2 -2.2 -2.1
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. -- MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH CONSTANT PRICES AS OF MAY 1, 2003 PROVED NON-PRODUCING RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ---------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------------ RANFURLY (CONT'D) 00/16-12-051-14-W4 W-50.000 WAB NRA - - - - -8.9 -8.8 -8.5 SUBTOTAL 508.1 - - - 1582.4 1518.6 1431.8 VEGREVILLE 00/01-18-052-13-W4 W-24.750 SPKY L PNP 57.6 - - - 97.6 87.0 73.6 00/10-09-053-14-W4 W-37.500 SPKY PNP 64.1 - - - 262.5 254.5 243.3 SUBTOTAL 121.7 - - - 360.1 341.5 316.9 VIKING 00/03-12-049-11-W4 W-50.000 CAM/B QTZ/SPKY NRA - - - - - - - 00/08-31-049-12-W4 W-50.000 LLOYD/WAS NRA - - - - -6.7 -6.2 -5.6 SUBTOTAL - - - - -6.7 -6.2 -5.6 WARWICK 00/11-36-053-15-W4 W-50.000 VIK PNP 101.2 - - - 402.3 396.5 388.2 00/07-19-054-15-W4 W-50.000 WAS PNP 171.5 - - - 640.6 620.9 593.5 02/06-14-054-16-W4 W-50.000 WAS NRA - - - - -7.4 -7.0 -6.4 00/13-06-055-14-W4 W-50.000 CLY/NIS NRA - - - - -7.4 -7.0 -6.4 00/01-02-055-15-W4 W-50.000 NIS NRA - - - - -8.9 -8.8 -8.5 SUBTOTAL 272.6 - - - 1019.2 994.7 960.4 WEST LAVOY 00/08-31-051-14-W4 W-50.000 CLY PNP 63.2 - - - 165.2 161.8 157.0 00/07-15-051-15-W4 W-12.500 CLY NRA - - - - -2.2 -2.2 -2.1 00/12-15-051-15-W4 W-12.500 CLY PNP 126.6 - - - 522.4 498.8 467.3 02/10-21-051-15-W4 W-37.500 B BR M NRA - - - - -6.1 -5.9 -5.5 00/14-29-051-15-W4 W-50.000 CLY NRA - - - - -4.6 -4.0 -3.2 00/14-14-054-15-W4 W-50.000 MCLAR/VIK PNP 229.3 - - - 899.0 872.9 836.8 SUBTOTAL 419.0 - - - 1573.7 1521.5 1450.3 WILLINGDON 00/10-29-056-16-W4 W-50.000 GLAUC PNP 212.3 - - - 868.4 846.0 814.7 00/10-29-056-16-W4 W-50.000 CLY PNP - - - - - - - 02/12-29-056-16-W4 W-50.000 CLY NRA - - - - -8.9 -8.8 -8.5 00/12-03-057-16-W4 W-50.000 CLY/WAS NRA - - - - - - - 00/07-15-057-16-W4 W-50.000 WAS/SPKY/LSPKY/C - - - - - -5.1 -4.4 -3.7 SUBTOTAL 212.3 - - - 854.4 832.8 802.5 SUBTOTAL ALBERTA 3592.1 - - - 11777.7 11327.5 10733.9 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 3592.1 - - - 11777.7 11327.5 10733.9 - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF CRUDE OIL RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
PROPERTY GROSS CRUDE COMPANY VOLUMETRIC FACTORS OIL RESERVES SHARE ----------------------------- ----------------------------- ---------- NET ORIG. ORIG. CUM. REM. REM. 2003 RESERVES AREA AND COMPANY RESERVE AREA PAY POR. SW SG OIL OIP REC. RES. PROD. RES. RES. RATE BASED PROPERTY INTEREST % ZONES CLASS ACRE FT % % % SHR. MBBL % MBBL MBBL MBBL MBBL BOPD ON - ------------------------------------------------------------------------------------------------------------------------------------ ALBERTA BIRCH 00/06-32-050-10-W4 W-50.000 B QTZ 0.0 0.00 LAVOY 00/06-06-053-14-W4 W-50.000 VIK 0.0 0.00 SUBTOTAL ALBERTA - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ----------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- ----- ------- ---- ---- ---- ---- -- ----- ----- ----- ALBERTA BIRCH 00/06-32-050-10-W4 W-50.000 SPKY PA 160 4.9 26.0 50.0 653 544 0.917 00/13-32-050-11-W4 W-50.000 VIK PA 320 3.3 26.0 60.0 435 537 0.940 02/10-07-050-12-W4 W-50.000 02/10-07-050-12-W4/0 GLAUC/GLAUC PR 14.1 22.5 45.0 585 542 PA 02/10-07-050-12-W4/2 CLY PR 20.0 24.0 55.0 435 536 Subtotal PR PA 02/01-14-050-12-W4 W-50.000 SPKY L PR 160 9.8 33.0 40.0 780 537 PA CUMM PR 427 4.3 29.0 45.0 780 539 PA Subtotal PR PA 00/09-15-050-12-W4 W-50.000 CUMM PR 480 4.3 23.0 40.0 415 539 0.940 00/09-16-050-12-W4 W-50.000 00/09-16-050-12-W4/2 LLOYD/CUMM PR 13.4 24.2 50.0 580 555 00/09-16-050-12-W4/0 NIS PR 160 16.7 24.0 35.0 580 555 Subtotal PR 00/14-16-050-12-W4 W-50.000 NIS PR 160 16.4 25.0 35.0 452 555 0.940 PA 00/15-17-050-12-W4/0 W-50.000 NIS PR 160 8.2 25.0 35.0 680 542 0.900 PA 40 680 542 0.900 00/07-21-050-12-W4 W-50.000 00/07-21-050-12-W4/2 GLAUC/GLAUC PR 7.9 27.0 43.0 653 550 00/07-21-050-12-W4/0 B QTZ PR 320 12.1 23.0 35.0 696 553
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------- -------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- ---- ---- ---- ---- ----- ---- ---- ----- -------- ALBERTA BIRCH 00/06-32-050-10-W4 206 70.0 144 144 5.0 137 57.6 72 Vol 00/13-32-050-11-W4 146 70.0 102 102 5.0 97 48.4 63 Vol 02/10-07-050-12-W4 02/10-07-050-12-W4/0 200 109 91 5.0 86 Decl 50 50 5.0 48 Decl 02/10-07-050-12-W4/2 21 21 221 130 91 4.9 86 43.1 51 50 50 4.0 48 23.3 5 02/01-14-050-12-W4 775 50.0 388 14 374 5.0 355 Vol 20.0 155 155 5.0 147 Vol 728 50.0 364 14 350 5.0 333 Vol 15.0 109 109 5.0 104 Vol 1503 50.0 752 28 724 4.9 688 344.2 376 264 264 4.9 251 125.4 16 00/09-15-050-12-W4 361 70.0 253 10 243 5.0 231 115.6 132 Vol 00/09-16-050-12-W4 00/09-16-050-12-W4/2 44 44 00/09-16-050-12-W4/0 724 250 234 16 5.0 15 Decl 724 40.6 294 278 16 5.4 15 7.5 31 00/14-16-050-12-W4 571 35.0 200 200 5.0 190 95.0 217 Vol 10.0 57 57 5.0 54 27.1 13 Vol 00/15-17-050-12-W4/0 459 70.0 321 147 174 5.0 165 82.4 113 Vol 115 70.0 81 81 5.0 77 36.9 14 Vol 00/07-21-050-12-W4 00/07-21-050-12-W4/2 1 1 00/07-21-050-12-W4/0 1210 75.0 908 486 422 5.0 401 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 2 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ PA 40 Subtotal PR PA 00/02-22-12-W4 W- 50.000 00/02-22-050-12-W4/2 SPKY PR 160 21.0 30.0 40.0 653 540 PA 00/02-22-050-12-W4/0 B QTZ/CUMM PR 6.9 23.0 45.0 725 542 00/02-22-050-12-W4/3 LLOYD PR 640 6.6 27.0 50.0 479 540 Subtotal PR PA 00/02-22-050-12-W4 W- 50.000 WAS PA 80 23.0 26.0 50.0 653 539 0.910 00/08-22-050-12-W4/0 W- 50.000 ELL/CUMM PR 320 15.4 23.7 48.0 627 532 0.920 PA 00/15-24-505-12-W4 00/15-24-050-12-W4/4 WAS/SPKY U PR 14.1 26.2 50.0 696 524 00/15-24-050-12-W4/3 SPKY M/LLOYD PR 6.5 29.4 52.0 696 524 Subtotal PR 00/02-04-051-10-W4 W- 50.000 SPKY PR 213 7.2 30.0 30.0 667 531 PA 107 667 531 CUMM PR 213 12.1 27.0 30.0 682 533 PA 107 682 533 Subtotal PR PA 00/02-04-051-10-W4 W- 50.000 CLY PA 160 3.3 31.0 55.0 595 528 WAS PA 160 3.9 29.0 35.0 624 531 WABIS PA 80 19.4 27.0 30.0 812 533 SUBTOTAL PA 00/05-04-051-11-W4/0 W- 50.000 SPKY PR 80 8.2 27.0 35.0 776 540 0.900 PA SUBTOTAL PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------ ------------------ ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MC/FD ON - --------------------------------------------------------------------------------------------------------------------------- 75.0 113 113 5.0 107 Vol 1210 75.1 909 487 422 5.0 401 200.4 212 113 113 5.3 107 52.3 14 00/02-22-12-W4 00/02-22-050-12-W4/2 1240 50.0 620 388 232 5.0 220 Vol 0.0 124 124 5.0 118 Vol 00/02-22-050-12-W4/0 60 60 00/02-22-050-12-W4/3 835 200 162 38 5.0 36 Perf 2075 42.4 880 610 270 5.1 256 128.2 195 124 124 4.8 118 56.2 25 00/02-22-050-12-W4 492 70.0 344 344 5.0 327 163.4 Vol 00/08-22-050-12-W4/0 1200 40.0 480 270 210 5.0 200 99.7 114 Vol 5.0 60 60 5.0 57 27.5 9 Vol 00/15-24-505-12-W4 65 65 5.0 Perf 00/15-24-050-12-W4/4 29 29 00/15-24-050-12-W4/3 94 94 7.7 00/02-04-051-10-W4 687 75.0 515 515 5.0 489 Vol 345 75.0 259 259 5.0 246 Vol 1070 75.0 803 803 5.0 763 Vol 538 75.0 404 404 5.0 384 Vol 1757 75.0 1318 1318 5.0 1252 626.0 958 883 75.1 663 663 5.0 630 314.9 69 00/02-04-051-10-W4 139 50.0 70 70 5.0 67 Vol 232 50.0 116 116 5.0 110 Vol 776 50.0 388 388 5.0 369 Vol 1147 50.0 574 574 4.9 546 273.0 00/05-04-051-11-W4/0 284 175 126 49 5.0 47 23.5 53 Decl 25 25 5.0 24 11.3 6 Decl SUBTOTAL 10144 5897 2180 3717 3531 1765.6 2453 2989 2601 2601 2473 1217.5 306
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 3 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - -------------------------------------------------------------------------------------------------------------------------------- BONNYVILLE Bonnyville Grand W-50.000 GRD RP PR Rapids C Pool PA Group Run Ptn Fort Kent Colony W-50.000 CLY PR C Pool-10-36 & 6-6 PA 00/01-24-059-05-W4/0 W-35.000 GRD RP PR 00/11-19-060-04-W4/0 W-50.000 CLY PR 00/10-22-061-06-W4/0 W-50.000 CLY PR PA 00/07-34-061-06-W4/0 W-25.000 CLY A PR 8.2 31.0 30.0 232 522 0.966 SUBTOTAL PR PA COLD LAKE Clearwater A Pool W-25.000 CLWTR PR 12.0 33.0 30.0 392 524 0.940 Group Run PA 392 524 0.940 Secs 27&28-62-3W4 00/11-34-062-03-W4/2 W-25.000 CLY PR 9.8 30.0 40.0 339 520 0.949 PA 02/11-34-062-03-W4 W-25.000 LLOYD PR 4.9 33.0 35.0 414 524 0.942 00/09-35-062-03-W4/3 W-25.000 CLY A PR 8.5 35.0 20.0 156 518 0.970 PA 00/05-36-062-03-W4/2 W-25.000 LLOYD PR 5.2 34.0 45.0 428 519 0.940 PA 02/14-23-063-03-W4/2 W-25.000 CLWTR D PR 640 4.3 33.0 35.0 417 524 0.943 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE --------------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - -------------------------------------------------------------------------------------------------------------------------------- BONNYVILLE Bonnyville Grand 19000 17090 1910 5.0 1815 907.2 483 Decl Rapids C Pool 750 750 5.0 713 354.3 22 Decl Group Run Ptn Fort Kent Colony 3100 2810 290 5.0 275 137.6 132 Perf C Pool-10-36 & 6-6 100 100 5.0 95 46.7 9 Perf 00/01-24-059-05-W4/0 249 249 00/11-19-060-04-W4/0 2100 1946 154 5.0 146 73.2 47 Decl 00/10-22-061-06-W4/0 1150 992 158 5.0 151 75.2 52 Decl 50 50 5.0 48 23.5 2 Decl 00/07-34-061-06-W4/0 275 270 5 5.0 4 1.2 6 Decl SUBTOTAL 25874 23357 2517 2391 1194.4 722 900 900 856 424.5 33 COLD LAKE Clearwater A Pool 5700 85.0 4845 3356 1489 5.0 1415 353.7 433 MB Group Run 5700 5.0 285 285 5.0 271 65.0 28 MB Secs 27&28-62-3W4 00/11-34-062-03-W4/2 4600 4297 303 5.0 288 72.1 53 Decl 50 50 5.0 48 11.8 1 Decl 02/11-34-062-03-W4 00/09-35-062-03-W4/3 1000 675 325 5.0 309 77.3 59 Perf 150 150 5.0 143 35.4 2 Perf 00/05-36-062-03-W4/2 1800 1228 572 5.0 544 136.0 112 Perf 200 200 5.0 190 46.9 6 Perf 02/14-23-063-03-W4/2 769 60.0 461 320 141 5.0 134 33.4 49 Vol 5.0 39 39 5.0 37 8.9 4 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 4 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------ COLD LAKE (CONT'D) 02/14-23-063-03-W4 W-25.000 CLY B PR PA 160 44.3 33.0 30.0 119 519 0.982 00/16-23-063-03-W4 W-23.750 00/16-23-063-03-W4/2 CLY A PR 10.0 34.0 30.0 150 522 PA 00/16-23-063-03-W4/0 LLOYD PR 29.5 34.0 30.0 415 524 PA Subtotal PR PA 00/07-25-063-03-W4/0 W-23.750 CLY A PR 8.2 34.0 30.0 150 523 0.960 00/10-25-063-03-W4/0 W-23.750 LLOYD PR 5.9 34.0 30.0 422 524 0.940 00/11-25-063-03-W4/2 W-23.750 CLY B PR 9.2 34.0 30.0 319 520 0.951 02/02-26-063-03-W4 W-25.000 CLY B PR 9.2 33.0 30.0 92 519 0.986 PA 02/09-26-063-03-W4 W-23.750 02/09-26-063-03-W4/2 CLY A PR 29.5 34.0 35.0 135 521 PA 02/09-26-063-03-W4/0 LLOYD PR 5.9 34.0 30.0 415 524 Subtotal PR PA 00/08-36-063-03-W4 W-23.750 00/08-36-063-03-W4/2 CLY PR 8.2 34.0 30.0 135 521 PA 00/08-36-063-03-W4/0 LLOYD PR 6.6 34.0 30.0 413 524 Subtotal PR PA 8 Gorr Wells R-2.125 CLY PR SUBTOTAL PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE -------------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------ COLD LAKE (CONT'D) 02/14-23-063-03-W4 589 70.0 412 412 5.0 391 95.0 83 Vol 00/16-23-063-03-W4 00/16-23-063-03-W4/2 650 605 45 5.0 43 Perf 50 50 5.0 48 Perf 00/16-23-063-03-W4/0 2850 2145 705 5.0 670 Decl 250 250 5.0 238 Decl 3500 2750 750 5.1 712 169.2 125 300 300 4.7 286 66.9 8 00/07-25-063-03-W4/0 150 150 00/10-25-063-03-W4/0 930 930 00/11-25-063-03-W4/2 82 82 02/02-26-063-03-W4 425 10 415 5.0 395 98.6 66 Perf 175 175 5.0 166 41.6 3 Perf 02/09-26-063-03-W4 02/09-26-063-03-W4/2 475 403 72 5.0 68 Perf 25 25 5.0 24 Perf 02/09-26-063-03-W4/0 3100 2587 513 5.0 487 Decl 200 200 5.0 190 Decl 3575 2990 585 5.1 555 131.9 150 225 225 4.9 214 49.5 12 00/08-36-063-03-W4 00/08-36-063-03-W4/2 600 473 127 5.0 121 Decl 50 50 5.0 48 Decl 00/08-36-063-03-W4/0 326 326 926 799 128 4.8 122 28.9 29 50 50 4.0 48 11.1 2 8 Gorr Wells 9500 8579 921 5.0 875 18.6 13 Decl SUBTOTAL 6469 31794 26166 5629 5349 1119.6 1089 6289 1886 1886 1794 432.1 150
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES Page 5 MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - -------------------------------------------------------------------------------------------------------------- HAIRY HILL 00/10-18-053-14-W4/0 R-4.167 GLAUC PR 40.0 30.0 30.0 687 542 0.918 00/06-21-055-14-W4 W-50.000 00/06-21-055-14-W4/3 CLY PR 640 5.9 31.0 45.0 364 535 PA 00/06-21-055-14-W4/0 NIS PR 11.5 13.0 45.0 334 544 00/06-21-055-14-W4/2 GLAUC PR 160 9.2 31.0 40.0 524 542 Subtotal PR PA 02/10-21-055-14-W4 W-50.000 02/10-21-055-14-W4/0 B QTZ PR 6.6 24.0 40.0 283 542 02/10-21-055-14-W4/4 CLY PR 320 3.3 28.0 50.0 458 530 PA 160 458 530 Subtotal PR PA 00/11-30-055-14-W4/0 W-50.000 GLAUC PR 160 6.6 25.0 50.0 618 531 0.920 PA SUBTOTAL PR PA HOLDEN Holden Viking Gas W-35.500 VIK PR 4.9 18.0 50.0 635 540 0.917 Unit No.3 PA JARROW 00/03-33-044-11-W4 W-25.000 00/03-33-044-11-W4/0 B QTZ PR 3.0 29.0 35.0 694 538 00/03-33-044-11-W4/2 GLAUC PR 2.6 30.0 40.0 799 537 Subtotal PR 00/07-34-045-10-W4/2 W-30.000 VIK PR 640 4.0 24.0 40.0 705 532 0.909 00/14-01-045-11-W4/0 W-50.000 CLY PR 160 2.0 28.0 40.0 785 535 0.896
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE -------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ---------------------- --------------------------------------------------------------------------------------- HAIRY HILL 00/10-18-053-14-W4/0 10000 9824 176 5.0 167 7.0 6 Decl 00/06-21-055-14-W4 00/06-21-055-14-W4/3 716 80.0 573 457 116 5.0 110 Vol 5.0 36 36 5.0 34 Perf 00/06-21-055-14-W4/0 151 151 00/06-21-055-14-W4/2 438 210 194 16 5.0 15 Perf 1154 80.9 934 802 132 4.9 125 62.7 107 36 36 5.6 34 16.4 7 02/10-21-055-14-W4 02/10-21-055-14-W4/0 214 214 02/10-21-055-14-W4/4 210 75.0 158 71 87 5.0 83 Vol 105 75.0 79 79 5.0 75 Vol 210 177.1 372 285 87 4.8 82 41.2 67 105 75.2 79 79 5.1 75 34.0 22 00/11-30-055-14-W4/0 257 250 185 65 5.0 62 31.0 74 Perf 50 50 5.0 48 21.8 17 Perf SUBTOTAL 1621 11556 11096 460 436 141.9 254 105 165 165 157 72.2 46 HOLDEN Holden Viking Gas 13500 10946 2554 5.0 2426 861.4 310 Decl Unit No.3 500 500 5.0 475 168.5 3 Decl JARROW 00/03-33-044-11-W4 00/03-33-044-11-W4/0 900 851 49 5.0 47 Perf 00/03-33-044-11-W4/2 5 5 905 856 49 4.8 46 11.6 31 00/07-34-045-10-W4/2 831 700 571 129 5.0 123 36.8 17 Decl 00/14-01-045-11-W4/0 136 75 71 4 5.0 3 1.8 20 Decl
MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES Page 6 MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST% ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ JARROW (CONT'D) 00/10-13-045-11-W4/0 W- 50.000 GLAUC PR 21.0 30.0 60.0 790 535 0.896 PA 00/10-15-045-11-W4 F- 0.750 00/10-15-045-11-w4/0 CLY PR 2.3 20.0 30.0 810 537 00/10-15-045-11-W4/2 VIK PR 3.9 15.0 55.0 10.0 736 535 Subtotal PR 00/06-19-045-11-W4/0 R- 0.750 VIK PR 3.9 18.4 41.0 10.0 784 535 0.893 02/10-27-045-11-W4/0 W- 12.500 SPKY PR 9.8 26.0 50.0 506 542 0.894 00/04-29-045-11-W4/0 W- 12.500 VIK PR 3.9 21.0 34.0 10.0 701 535 0.859 00/06-30-045-11-W4/0 W- 12.500 VIK PR 2.3 23.0 30.0 10.0 696 535 0.859 PA 00/11-31-045-11-W4/0 R- 0.750 VIK PR 4.0 18.5 41.0 10.0 854 535 0.893 00/09-36-046-12-W4 W- 25.000 VIK A,B PR 4.9 22.0 45.0 SUBTOTAL PR PA LAVOY 00/07-21-051-13-W4 W- 50.000 00/07-21-051-13-W4/2 CLY PR 7.2 31.0 30.0 761 542 00/07-21-051-13-W4/0 WAB PR 80 13.1 22.0 30.0 561 549 Subtotal PR 00/12-28-051-13-W4 W- 50.000 CLY PR 320 4.3 29.0 45.0 604 533 PA 107 604 533 NIS PR 160 24.9 24.0 30.0 424 540 PA Subtotal PR PA 00/10-29-051-13-W4/0 W- 50.000 NIS/ELL PR 5.5 16.0 40.0 691 538 0.913 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - -------------------------------------------------------------------------------------------------------------------- JARROW (CONT'D) 00/10-13-045-11-W4/0 8700 7580 1120 5.0 1063 531.8 143 Decl 250 250 5.0 238 118.6 2 Decl 00/10-15-045-11-W4 00/10-15-045-11-W4/0 485 477 8 5.0 8 Perf 00/10-15-045-11-W4/2 301 301 786 778 8 5.6 7 0.1 0 00/06-19-045-11-W4/0 1415 1385 30 5.0 28 0.2 0 Decl 02/10-27-045-11-W4/0 165 153 12 5.0 11 1.4 3 Perf 00/04-29-045-11-W4/0 775 744 31 5.0 30 3.7 3 Decl 00/06-30-045-11-W4/0 2700 2586 114 5.0 108 13.5 11 Perf 50 50 5.0 48 5.9 1 Perf 00/11-31-045-11-W4/0 256 256 00/09-36-046-12-W4 SUBTOTAL 967 16,477 14,980 1497 1419 600.9 228 300 300 286 124.5 3 LAVOY 00/07-21-051-13-W4 00/07-21-051-13-W4/2 9 9 00/07-21-051-13-W4/0 274 145 138 7 5.0 7 Decl 274 56.2 154 147 7 5.9 6 3.1 17 00/12-28-051-13-W4 423 70.0 296 151 145 5.0 138 Vol 141 70.0 99 99 5.0 94 Vol 860 50.0 430 430 5.0 409 Vol 15.0 129 129 5.0 123 Vol 1283 56.6 726 151 575 4.9 547 273.4 280 228 228 4.8 217 106.5 27 00/10-29-051-13-W4/0 3850 3626 224 5.0 213 106.4 65 Decl 100 100 5.0 95 47.2 3 Decl
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 7 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ Lavoy(cont'd) 00/10-29-051-13-W4 W- 50.000 ELL/NIS PR PA 00/02-31-051-13-W4/0 W- 50.000 ELL PR 320 25.6 13.0 35.0 10.0 423 544 0.918 PA 00/14-31-051-13-W4/2 W- 50.000 WAS PR 427 3.3 27.0 60.0 798 542 0.892 PA 00/01-32-051-13-W4 W- 50.000 00/01-32-051-13-W4/0 NIS L PR 15.4 19.0 30.0 508 551 00/01-32-051-13-W4/2 NIS U PR 6.6 23.0 35.0 508 551 PA Subtotal PR PA 00/01-32-051-13-W4/3 W- 50.000 SPKY L/LLOYD PR 320 11.5 30.0 42.0 720 537 0.900 PA 00/11-32-051-13-W4/0 W- 50.000 NIS PR 18.0 18.0 35.0 684 547 0.922 PA 00/10-33-051-13-W4/0 W- 50.000 CLY PR 4.9 29.0 30.0 765 535 0.902 00/12-04-052-13-W4 W- 50.000 00/12-04-052-13-W4/0 CLY PR 18.4 24.0 55.0 780 539 00/12-04-052-13-W4/2 VIK PR 1.6 18.0 50.0 266 537 Subtotal PR 00/11-05-052-13-W4 W- 50.000 00/11-05-052-13-W4/2 VIK PR 2.0 19.0 50.0 361 533 00/11-05-052-13-W4/0 CLY PR 320 19.7 27.0 50.0 781 533 PA Subtotal PR PA 00/13-18-052-13-W4 W- 24.750 CLY PR 8.2 30.0 50.0 790 545 0.887 00/07-30-052-13-W4 W- 50.000 2 WS PR 80 4.9 19.0 50.0 539 521 0.925 - ------------------------------------------------------------------------------------------------------------------------------------
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE --------------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW SURF. SALES SALES 2003 RESERVES GIP REC RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------------ Lavoy(cont'd) 00/10-29-051-13-W4 1500 36 1464 5.0 1391 695.5 137 Perf 250 250 5.0 238 118.7 1 Perf 00/02-31-051-13-W4/0 767 65.0 499 273 226 5.0 214 107.2 86 Vol 5.0 38 38 5.0 36 17.8 3 Vol 00/14-31-051-13-W4/2 388 50.0 194 107 87 5.0 83 41.5 77 Vol 15.0 58 58 5.0 55 26.3 12 Vol 00/01-32-051-13-W4 00/01-32-051-13-W4/0 248 248 00/01-32-051-13-W4/2 1250 620 630 5.0 599 Perf 250 250 5.0 238 Perf 1498 868 630 5.0 598 299.0 294 250 250 4.8 238 116.4 24 00/01-32-051-13-W4/3 1480 50.0 740 246 494 5.0 469 234.5 257 Vol 10.0 148 148 5.0 141 68.3 20 Vol 00/11-32-051-13-W4/0 6000 5681 319 5.0 303 151.6 67 Decl 100 100 5.0 95 47.3 2 Decl 00/10-33-051-13-W4/0 29 29 00/12-04-052-13-W4 00/12-04-052-13-W4/0 162 162 00/12-04-052-13-W4/2 8 8 170 170 00/11-05-052-13-W4 00/11-05-052-13-W4/2 117 117 00/11-05-052-13-W4/0 2170 1150 812 338 5.0 321 Decl 150 150 5.0 143 Decl 2170 58.4 1267 929 338 5.1 320 160.2 146 150 150 4.7 143 69.9 13 00/13-18-052-13-W4 00/07-30-052-13-W4 64 60.0 38 38 5.0 36 18.0 22 Vol - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE TABLE 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES PAGE 8 MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- ----- -------- ------ ----- ---- --- --- ---- ----- --- LAVOY (CONT'D) 00/10-11-052-14-W4 W-50.000 00/10-11-052-14-W4/0 CLY PR 15.1 23.0 55.0 778 539 00/10-11-052-14-W4/2 2 WS PR 15.1 29.0 50.0 580 535 Subtotal PR 00/06-12-052-14-W4 W-50.000 00/06-12-052-14-W4/2 LLOYD PR 15.7 31.0 35.0 729 551 00/06-12-052-14-W4/3 SPKY M PR 5.6 28.0 45.0 794 549 Subtotal PR 00/11-12-052-14-W4/4 W-50.000 SPKY L/CUMM PR 5.0 28.0 45.0 718 546 0.916 00/15-12-052-14-W4 W-50.000 00/15-12-052-14-W4/0 GLAUC/CUMM PR 213 13.1 26.0 36.3 417 549 00/15-12-052-14-W4/2 SPKY L PR 320 9.8 30.0 45.0 573 546 Subtotal PR 00/06-15-052-14-W4/2 W-50.000 CLY PR 320 4.9 26.0 30.0 714 544 0.897 PA 80 714 544 0.897 02/10-15-052-14-W4 W-50.000 CLY PR 320 6.6 26.0 30.0 544 531 0.925 PA 80 544 531 0.925 00/06-22-052-14-W4 W-50.000 CLY PR 40 65.0 24.0 40.0 723 537 0.910 PA 10 723 537 0.910 00/06-22-052-14-W4 W-50.000 VIK PA 320 3.3 24.0 40.0 740 535 0.910 00/08-22-052-14-W4 W-50.000 00/08-22-052-14-W4/2 LLOYD/SPKY L PR 20.7 26.3 42.0 734 555 PA 00/08-22-052-14-W4/3 SPKY U PR 213 4.9 27.0 40.0 788 555 PA Subtotal PR PA 00/08-22-052-14-W4 W-50.000 VIK PA 320 3.3 24.0 50.0 738 547 0.908 00/12-26-052-14-W4 W-50.000 00/12-26-052-14-W4/2 SPKY U&L PR 18.0 31.0 50.0 589 538
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE --------------------------------------------------------- ----------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC RES. OROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON ----------------- ----- ---- ------- ------ ------ ----- ------ ------- ------ -------- LAVOY (CONT'D) 00/10-11-052-14-W4 00/10-11-052-14-W4/0 71 71 00/10-11-052-14-W4/2 71 71 00/06-12-052-14-W4 00/06-12-052-14-W4/2 325 322 3 5.0 3 Perf 00/06-12-052-14-W4/3 125 93 32 5.0 30 Decl 450 415 35 3.6 33 16.7 29 00/11-12-052-14-W4/4 00/15-12-052-14-W4 40 40 00/15-12-052-14-W4/0 573 75.0 430 227 203 5.0 193 Vol 00/15-12-052-14-W4/2 904 400 293 107 5.0 102 Decl 1477 56.2 830 520 310 5.0 294 147.2 160 00/06-15-052-14-W4/2 646 80.0 517 375 142 5.0 135 67.4 94 Vol 166 80.0 129 129 5.0 123 59.7 16 Vol 02/10-15-052-14-W4 658 80.0 526 95 431 5.0 410 204.9 195 Vol 165 80.0 132 132 5.0 125 61.8 13 Vol 00/06-22-052-14-W4 856 70.0 599 33 566 5.0 537 268.7 229 Vol 214 70.0 150 150 5.0 143 71.2 7 Vol 00/06-22-052-14-W4 357 70.0 250 250 5.0 238 118.7 Vol 00/08-22-052-14-W4 00/08-22-052-14-W4/2 225 198 27 5.0 26 Decl 25 25 5.0 24 Decl 00/08-22-052-14-W4/3 410 60.0 246 149 97 5.0 92 Vol 10.0 41 41 5.0 39 Vol 471 347 124 5.1 118 59.0 96 66 66 4.5 63 29.5 14 00/08-22-052-14-W4 290 70.0 203 203 5.0 193 96.4 Vol 00/12-26-052-14-W4 00/12-26-052-14-W4/2 67 67
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 9 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST% ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ LAVOY (CONT'D) 00/12-26-052-14-W4/0 GLAUC PR 320 24.6 26.0 45.0 522 540 PA Subtotal PR PA 00/06-27-052-14-W4/4 W-50.000 VIK PR 2.0 21.0 50.0 PA 00/12-27-052-14-W4 W-50.000 00/12-27-052-14-W4/2 GLAUC PR 5.6 25.0 35.0 532 548 00/12-27-052-14-W4/0 NIS PR 36.7 19.0 35.0 504 548 Subtotal PR 02/12-27-052-14-W4 W-50.000 02/12-27-052-14-W4/0 LLOYD PR 26.2 30.0 45.0 549 540 02/12-27-052-14-W4/2 SPKY L PR 3.9 32.0 45.0 612 540 Subtotal PR 00/15-27-052-14-W4 W-50.000 ELL PR 320 32.5 25.0 35.0 402 549 0.950 PA 107 402 549 0.950 02/06-28-052-14-W4 W-50.000 02/06-28-052-14-W4/2 SPKY L/LLOYD PR PA 02/06-28-052-14-W4/0 NIS PR 23.0 25.0 30.0 537 548 Subtotal PR PA 00/08-28-052-14-W4 W-50.000 00/08-28-052-14-W4/2 CLY PR 160 14.8 23.0 45.0 750 539 PA 00/08-28-052-14-W4/0 ELL PR 480 24.0 24.0 20.0 450 549 PA Subtotal PR PA 00/16-29-052-14-W4/0 W-50.000 ELL PR 26.2 27.0 50.0 475 551 0.945 PA 00/10-32-052-14-W4 W-50.000 00/10-32-052-14-W4/2 VIK PR 4.6 21.0 40.0 683 537
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - -------------------------------------------------------------------------------------------------------------------- LAVOY (CONT'D) 00/12-26-052-14-W4/0 1790 50.0 895 545 350 5.0 333 Vol 5.0 90 90 5.0 86 Vol 1790 53.7 962 612 350 5.0 333 166.3 138 90 90 4.4 86 42.1 7 00/06-27-052-14-W4/4 1700 1536 164 5.0 157 78.0 43 Decl 50 50 5.0 48 23.6 1 Decl 00/12-27-052-14-W4 00/12-27-052-14-W4/2 900 861 39 5.0 37 Perf 00/12-27-052-14-W4/0 700 600 100 5.0 95 Decl 1600 1461 139 5.0 132 65.9 126 02/12-27-052-14-W4 02/12-27-052-14-W4/0 42 42 02/12-27-052-14-W4/2 19 19 61 61 00/15-27-052-14-W4 2010 70.0 1407 210 1197 5.0 1138 568.7 355 Vol 673 70.0 471 471 5.0 447 222.0 19 Vol 02/06-28-052-14-W4 02/06-28-052-14-W4/2 500 372 128 5.0 122 Perf 50 50 5.0 48 Perf 02/06-28-052-14-W4/0 80 80 580 452 128 4.8 122 60.8 108 50 50 4.0 48 22.4 13 00/08-28-052-14-W4 00/08-28-052-14-W4/2 715 70.0 501 230 271 5.0 257 Vol 10.0 72 72 5.0 68 Vol 00/08-28-052-14-W4/0 2980 75.0 2235 976 1259 5.0 1196 Vol 10.0 298 298 5.0 283 Vol 3695 74.0 2736 1206 1530 5.0 1453 726.7 421 370 370 5.1 351 174.4 15 00/16-29-052-14-W4/0 400 314 86 5.0 81 40.6 67 Decl 50 50 5.0 48 22.9 8 Decl 00/10-32-052-14-W4 00/10-32-052-14-W4/2 3 3
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES Page 10 MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLY RESERVES
VOLUMETRIC FACTORS ---------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - -------------------------------------------------------------------------------------------------------------------- LAVOY (CONT'D) 00/10-32-052-14-W4/0 CLY PR 9.2 23.0 55.0 710 540 Subtotal PR 00/06-34-052-14-W4/0 W-50.000 ELL/NIS PR 38.4 19.7 35.7 518 548 0.942 02/07-34-052-14-W4/2 W-50.000 GLAUC U PR 1.6 23.0 40.0 805 549 0.907 PA 00/10-07-053-14-W4/0 F-2.917 GLAUC PR 25.9 30.0 35.0 681 542 0.900 00/07-29-053-14-W4 W-50.000 2 WS PR 160 7.9 17.0 50.0 583 517 0.910 SUBTOTAL PR PA MANNVILLE 00/09-16-052-07-W4/0 W-37.500 CLY PR MUNDARE 00/04-06-054-16-W4 W-50.000 00/04-06-054-16-W4/2 GLAUC PR 6.6 24.0 45.0 5.0 740 540 00/04-06-054-16-W4/0 GLAUC L PR 3.3 26.0 40.0 5.0 748 540 Subtotal PR 00/04-06-054-16-W4 W-50.000 VIK PA 320 2.3 23.0 40.0 493 533 CLY PR 3.3 21.0 45.0 725 533 SPKY PR 6.9 24.0 40.0 709 537 Subtotal PR PA 00/11-02-054-17-W4/0 W-50.000 GLAUC PR 23.0 24.0 45.0 745 539 0.903 PA 00/01-10-054-17-W4/3 W-50.000 SPKY PR 160 9.8 24.0 45.0 580 537 0.920 PA 40 00/10-10-054-17-W4/3 CLY PR 428 4.9 28.0 40.0 783 535 0.887
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE -------------------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMDF % MMCF MMCF MCF/D ON - ----------------------------------------------------------------------------------------------------------------- LAVOY (CONT'D) 00/10-32-052-14-W4/0 45 43 2 5.0 2 Perf 48 46 2 9.1 2 0.8 13 00/06-34-052-14-W4/0 79 79 02/07-34-052-14-W4/2 450 151 299 5.0 285 142.1 144 Perf 150 150 5.0 143 68.6 21 Perf 00/10-07-053-14-W4/0 11500 10549 951 5.0 903 26.4 11 Perf 00/07-29-053-14-W4 206 60.0 124 124 5.0 118 58.9 54 Vol SUBTOTAL 177764 41816 30836 10980 10431 4789.7 3729 1860 3483 3483 3314 1631.7 240 MANNVILLE 00/09-16-052-07-W4/0 2400 1733 667 5.0 634 237.8 87 Decl MUNDARE 00/04-06-054-16-W4 00/04-06-054-16-W4/2 12 12 00/04-06-054-16-W4/0 34 34 46 46 00/04-06-054-16-W4 160 70.0 112 112 5.0 106 Vol 106 70.0 112 112 5.4 106 53.0 65 00/11-02-054-17-W4/0 2000 1209 791 5.0 752 375.7 193 Decl 250 250 5.0 238 118.0 8 Decl 00/01-10-054-17-W4/3 376 70.0 263 90 173 5.0 164 82.3 112 Vol 70.0 66 66 5.0 63 30.2 11 Vol 00/10-10-054-17-W4/3 902 105 105 5.0 Perf
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 11 HAWKER RESOURCES INC.- MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS -------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ---------------------------------------------------------------------------------------------------------------------------- MUNDARE (CONT'D) 00/01-13-054-17-W4 W-50.000 GLAUC PR 320 7.0 23.0 40.0 763 552 0.917 PA 00/02-19-054-17-W4 W-50.000 00/02-19-054-17-W4/0 B QTZ PR 17.7 26.0 40.0 808 538 00/02-19-054-17-W4/2 GLAUC L PR 8.5 25.0 25.0 760 537 SUBTOTAL PR 00/02-19-054-17-W4/3 W-50.000 GLAUC PR 160 8.9 27.0 25.0 754 537 0.900 PA 00/04-20-054-17-W4 W-50.000 GLAUC L/B QT PR 213 9.2 22.5 50.0 684 552 0.910 PA 00/04-20-054-17-W4 W-50.000 GLAUC PR 320 3.6 33.0 35.0 699 551 0.910 PA 00/02-17-055-18-W4/2 W-50.000 U MN PR 3.9 28.0 45.0 761 540 0.910 SUBTOTAL PR PA PLAIN 00/12-34-052-10-W4/0 W-50.000 CLY PR 320 10.5 26.0 30.0 595 531 0.920 PA 00/12-34-052-10-W4 W-50.000 VIK PR 3.9 24.0 50.0 145 528 0.980 00/10-14-052-12-W4 W-50.000 CLY PR 320 4.3 28.0 40.0 718 535 0.902 PA 107 718 535 0.902 00/12-28-052-12-W4 W-50.000 00/12-28-052-12-W4/2 SPKY M PR 320 9.8 30.0 45.0 493 524 PA 00/12-28-052-12-W4/0 B QTZ PR 213 14.8 30.0 20.0 624 531 PA 40 624 531 Subtotal PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------------------- ----------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------------ MUNDARE (CONT'D) 00/01-13-054-17-W4 720 50.0 360 360 5.0 342 171.0 239 Vol 20.0 144 144 5.0 137 68.4 12 Vol 0/02-19-054-17-W4 00/02-19-054-17-W4/0 43 43 00/02-19-054-17-W4/2 238 238 281 281 00/02-19-054-17-W4/3 696 35.0 244 116 128 5.0 121 60.6 192 Vol 15.0 104 104 5.0 99 45.4 56 Vol 00/04-20-054-17-W4 464 50.0 232 34 198 5.0 187 93.9 199 Vol 20.0 93 93 5.0 88 43.9 21 Vol 00/04-20-054-17-W4 533 60.0 320 320 5.0 304 152.0 Vol 15.0 80 80 5.0 76 38.0 Vol 00/02-17-055-18-W4/2 40 40 SUBTOTAL 3691 3891 1921 1970 1870 935.5 934 160 849 849 807 396.9 174 PLAIN 00/12-34-052-10-W4/0 1150 60.0 690 113 577 5.0 548 274.0 319 Vol 10.0 115 115 5.0 109 53.7 19 Vol 00/12-34-052-10-W4 00/10-14-052-12-W4 528 70.0 370 68 302 5.0 287 143.2 182 Vol 176 70.0 123 123 5.0 117 57.3 23 Vol 00/12-28-052-12-W4 00/12-28-052-12-W4/2 792 45.0 356 171 185 5.0 176 Vol 10.0 79 79 5.0 75 Vol 00/12-28-052-12-W4/0 1450 75.0 1088 438 650 5.0 618 Vol 272 75.0 204 204 5.0 194 Vol 2242 64.4 1444 609 835 5.0 793 396.7 349 283 283 4.9 269 132.0 25
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 12 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------ PLAIN (CONT'D) 00/15-32-052-12-W4/2 W-50.000 WAS/SPKY U PR 29.8 26.4 48.0 500 545 0.940 PA 00/12-09-052-13-W4/0 W-50.000 VIK PR 1.6 15.0 50.0 757 537 0.872 00/13-36-052-13-W4 W-50.000 SPKY PR 4.9 30.0 50.0 669 542 0.918 00/14-18-053-11-W4 W-50.000 B QTZ PR 3.3 23.0 30.0 754 544 0.890 00/07-04-053-12-W4/2 W-50.000 SPKY PR 29.0 28.0 40.0 670 532 0.931 PA SUBTOTAL PR PA RANFURLY Ranfurly Gas Unit W-13.542 ALL ZONES PR 02/09-35-050-13-W4 W-50.000 02/09-35-050-13-W4/2 CLY PR 10.5 20.0 60.0 725 539 02/09-35-050-13-W4/0 MCLAR PR 25.6 22.0 50.0 798 539 Subtotal PR 02/09-35-050-13-W4 W-50.000 VIK PA 160 5.6 21.0 40.0 653 537 0.920 00/06-36-050-13-W4/3 W-50.000 MCLAR PR 80 34.4 26.0 50.0 725 535 0.900 02/09-36-050-13-W4/0 W-50.000 B QTZ U PR 428 3.3 25.0 40.0 550 545 0.930 00/11-30-050-14-W4/2 R-6.900 VIK L PR 6.6 11.0 45.0 789 533 0.900 00/03-32-050-14-W4 W-50.000 B QTZ PR 213 9.8 24.0 25.0 624 541 PA DET PR 160 15.4 24.0 50.0 725 542 PA Subtotal PR PA 00/16-23-050-15-W4/3 W-50.000 CLY PR 320 6.6 23.0 45.0 753 540 0.920
McDANIEL & ASSOCIATES CONSULTANTS LTD.
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - --------------------------------------------------------------------------------------------------------------- PLAIN (CONT'D) 00/15-32-052-12-W4/2 225 153 72 5.0 68 34.0 62 PERF 25 25 5.0 24 11.4 5 PERF 00/12-09-052-13-W4/0 32 32 00/13-36-052-13-W4 00/14-18-053-11-W4 00/07-04-053-12-W4/2 2500 2238 262 5.0 250 124.6 79 DECL 100 100 5.0 95 47.1 4 DECL SUBTOTAL 3920 5261 3213 2048 1946 972.5 992 176 646 646 614 301.5 75 RANFURLY Ranfurly Gas Unit 18300 18218 82 5.0 78 10.5 26 DECL 02/09-35-050-13-W4 02/09-35-050-13-W4/2 12 12 02/09-35-050-13-W4/0 150 122 28 5.0 27 DECL 162 134 28 4.8 27 13.4 41 02/09-35-050-13-W4 231 75.0 173 173 5.0 164 82.2 VOL 00/06-36-050-13-W4/3 833 100 83 17 5.0 16 8.0 33 PERF 02/09-36-050-13-W4/0 355 180 133 47 5.0 45 22.2 54 PERF 00/11-30-050-14-W4/2 1200 1033 167 5.0 158 10.9 7 DECL 00/03-32-050-14-W4 728 50.0 364 29 335 5.0 318 VOL 20.0 146 146 5.0 139 VOL 672 40.0 269 21 248 5.0 236 VOL 20.0 134 134 5.0 127 VOL 1400 45.2 633 50 583 4.9 555 277.3 326 280 280 5.0 266 132.9 22 00/16-23-050-15-W4/3 626 70.0 438 122 316 5.0 300 149.9 162 VOL
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. -- MECHANICAL UPDATE Table 1 Page 13 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- ----- ------- ---- ---- ---- --- --- ----- ------ ---- RANFURLY (CONT'D) 00/03-34-050-15-W4/2 W-50.000 B QTZ PR 6.6 28.0 25.0 715 544 00/03-34-050-15-W4/3 CLY PR 320 8.9 28.0 50.0 788 535 PA Subtotal PR PA 00/05-18-051-07-W4 W-25.000 WAS PR 160 13.1 33.0 50.0 624 540 PA 40 624 540 SPKY PR 320 4.9 30.0 40.0 653 540 PA 80 653 540 Subtotal PR PA 00/16-20-051-12-W4/0 W-50.000 SPKY PR PA 00/06-29-051-12-W4 W-50.000 00/06-29-051-12-W4/3 CLY PR 160 4.9 29.0 40.0 609 538 00/06-29-051-12-W4/2 SPKY/SPKY/U PR 16.4 25.8 47.0 725 540 Subtotal PR 00/11-34-051-12-W4 W-50.000 GLAUC L PR 427 5.9 27.0 35.0 609 544 PA B QTZ PR 80 23.3 24.0 40.0 653 546 PA Subtotal PR PA 00/12-01-051-13-W4 W-12.500 SPKY U PR 2.3 24.0 60.0 00/08-04-051-13-W4/0 W-50.000 CLY PR 9.8 30.0 35.0 769 539 0.890 00/15-06-051-13-W4/2 W-50.000 WAS U PR 160 13.1 23.0 60.0 785 542 0.900 PA 00/04-11-051-13-W4 W-13.542 00/04-11-051-13-W4/2 GLAUC PR 3.3 30.0 25.0 250 546 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------------- ----------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- --- ---- ---- ---- ---- ----- ----- ----- -------- RANFURLY (CONT'D) 00/03-34-050-15-W4/2 58 58 00/03-34-050-15-W4/3 1030 60.0 618 75 543 5.0 516 Vol 10.0 103 103 5.0 98 Vol 1030 65.6 676 133 543 5.0 516 258.0 277 103 103 5.9 98 48.7 9 00/05-18-051-07-W4 664 70.0 465 465 5.0 516 Vol 166 70.0 116 116 5.0 110 Vol 567 70.0 397 397 5.0 377 Vol 142 70.0 99 99 5.0 94 Vol 1231 70.0 862 156 706 5.0 670 167.6 203 308 69.8 215 215 5.1 204 50.0 21 00/16-20-051-12-W4/0 300 220 80 5.0 76 37.9 58 Decl 50 50 5.0 48 23.0 7 Decl 00/06-29-051-12-W4 00/06-29-051-12-W4/3 260 110 104 6 5.0 6 Decl 00/06-29-051-12-W4/2 36 36 260 56.2 146 140 6 4.2 6 2.8 23 00/11-34-051-12-W4 832 60.0 499 499 5.0 474 Vol 15.0 125 125 5.0 119 Vol 545 40.0 218 218 5.0 207 Vol 20.0 109 109 5.0 104 Vol 1377 52.1 717 717 5.0 681 340.5 234 234 4.7 223 111.1 00/12-01-051-13-W4 00/08-04-051-13-W4/0 275 160 115 5.0 110 54.6 46 Decl 00/15-06-051-13-W4/2 480 225 139 86 5.0 81 40.7 51 Decl 50 50 5.0 48 23.6 2 Perf 00/04-11-051-13-W4 00/04-11-051-13-W4/2 700 460 240 5.0 228 Decl 50 50 5.0 48 Decl
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 14 HAWKER RESOURCES INC. -- MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ---------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT. % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ RANFURLY (CONT'D) 00/04-11-051-13-WR/0 WAB PR 15.1 30.0 35.0 592 546 Subtotal PR PA 00/06-22-051-13-W4/3 W-22.500 VIK PR 2.6 24.0 40.0 706 536 0.908 00/15-04-051-14-W4/0 W-50.000 CUMM L/CUMM PR 160 27.9 25.0 32.5 730 546 0.914 PA 00/02-09-051-14-W4/0 F- 1.343 BR PR 640 11.5 32.0 60.0 165 509 0.974 00/06-10-051-14-W4/0 R- 9.943 BR PR 640 19.7 34.0 60.0 140 510 0.977 00/16-12-051-14-W4/0 W-50.000 WAB PR 24.6 22.0 40.0 5.0 604 546 0.928 SUBTOTAL PR PA ST. PAUL 00/05-03-058-09-W4/0 W-37.500 MN PR 00/12-03-058-09-W4/2 W-37.500 VIK PR 5.0 25.0 50.0 516 528 0.920 SUBTOTAL PR VEGREVILLE 00/06-07-052-13-W4 W-50.000 00/06-07-052-13-W4/2 CLY PR 8.5 28.0 40.0 798 533 PA 00/06-07-052-13-W4/0 GLAUC PR 3.3 25.0 40.0 447 543 Subtotal PR PA 02/06-07-052-13-W4 W-50.000 02/06-07-052-13-W4/0 SPKY L PR 13.1 30.0 45.0 595 533 PA - ------------------------------------------------------------------------------------------------------------------------------------
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ----------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - --------------------------------------------------------------------------------------------------------- RANFURLY (CONT'D) 00/04-11-051-13-WR/0 150 145 5 5.0 5 Perf 850 605 245 4.9 233 31.6 33 50 50 4.0 48 6.3 1 00/06-22-051-13-W4/3 250 233 17 5.0 15 3.5 10 Decl 00/15-04-051-14-W4/0 1700 1400 731 669 5.0 635 317.7 91 Decl 200 200 5.0 190 94.8 2 Decl 00/02-09-051-14-W4/0 483 450 412 38 5.0 36 0.5 1 Decl 00/06-10-051-14-W4/0 744 500 441 59 5.0 56 5.6 7 Decl 00/16-12-051-14-W4/0 15 15 SUBTOTAL 10519 27679 23158 4521 4294 1753.3 1449 539 1355 1355 1289 572.6 65 ST. PAUL 00/05-03-058-09-W4/0 3950 3912 38 5.O 36 13.5 11 Decl 00/12-03-058-09-W4/2 60 41 19 5.0 18 6.8 11 Decl SUBTOTAL 4010 3953 57 54 20.2 21 VEGREVILLE 00/06-07-052-13-W4 00/06-07-052-13-W4/2 950 785 165 5.0 157 Decl 50 50 5.0 48 Decl 00/06-07-052-13-W4/0 276 276 1226 1061 165 5.1 156 78.2 139 50 50 4.0 48 22.0 14 02/06-07-052-13-W4 02/06-07-052-13-W4/0 1050 792 258 5.0 245 Decl 100 100 5.0 95 Decl - -------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 15 HAWKER RESOURCES INC.- MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS -------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - -------------------------------------------------------------------------------------------------------------------------------- VEGREVILLE (CONT'D) 02/06-07-052-13-W4/2 WAS PR 80 19.7 23.0 40.0 778 542 PA Subtotal PR PA 00/01-18-052-13-W4/0 W- 24.750 GLAUC PR 26.6 25.0 25.0 620 548 0.920 00/01-18-052-13-W4 W- 24.750 SPKY L PR 213 4.3 30.0 45.0 737 546 0.893 00/06/19-052-13-W4/0 W- 10.026 GLAUC PR 30.2 23.0 25.0 00/01-13-052-14-W4 W- 50.000 00/01-13-052-14-W4/2 LLOYD PR 4.9 33.0 30.0 329 551 00/01-13/052-14-W4/0 GLAUC PR 320 13.1 22.0 35.0 335 553 PA Subtotal PR PA 00/06-13-052-14-W4 W- 50.000 00/06-13-052-14-W4/0 NIS PR 4.6 22.0 30.0 274 PA 00/06-13-052-14-W4/2 SPKY L PR 3.9 26.0 40.0 639 551 Subtotal PR PA 00/12-13-052-14-W4 W- 50.000 00/12-13-052-14-W4/2 LLOYD PR 80 7.2 33.0 30.0 648 531 PA 20 648 531 00/12-13-052-14-W4/3 SPKY U/SPKY Y PR 80 11.1 25.3 36.8 754 530 PA Subtotal PR PA 00/03-24-052-14-W4 W- 50.000 00/03-24-052-14-W4/0 DET/NIS PR 15.1 23.7 31.1 482 544 00/03-24-052-14-W4/2 LLOYD/SPKY LJ PR 320 12.7 22.2 46.0 557 539 PA Subtotal PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ----------------------------------------------------------------- ------------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. PROD. LOSS RES. LOSS RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------------ VEGREVILLE (CONT'D) 02/06-07-052-13-W4/2 533 70.0 373 264 109 5.0 104 Vol 10.0 53 53 5.0 50 Vol 1423 1056 367 5.1 348 174.0 225 153 153 5.2 145 69.6 27 00/01-18-052-13-W4/0 3600 3339 261 5.0 248 61.3 60 Perf 00/01-18-052-13-W4 350 70.0 245 245 5.0 233 57.6 Vol 00/06/19-052-13-W4/0 2400 2383 17 5.0 15 1.6 5 Decl 00/01-13-052-14-W4 3 3 00/01-13-052-14-W4/2 588 55.0 323 237 86 5.0 82 Vol 00/01-13-052-14-W4/0 10.0 59 59 5.0 56 Vol 588 55.4 326 240 86 4.7 82 41.1 63 59 59 5.1 56 27.3 8 00/06-13-052-14-W4 00/06-13-052-14-W4/0 13750 12922 828 5.0 787 Perf 250 250 5.0 238 Perf 00/06-13-052-14-W4/2 1530 80.0 1224 681 543 5.0 516 Vol 14974 13603 1371 5.0 1303 651.3 417 250 250 4.8 238 117.6 13 00/12-13-052-14-W4 00/12-13-052-14-W4/2 276 60.0 166 140 26 5.0 25 Vol 69 60.0 41 41 5.0 39 Vol 00/12-13-052-14-W4/3 345 35.0 121 90 31 5.0 29 Vol 10.0 35 35 5.0 33 Vol 621 46.2 287 230 57 4.9 54 27.2 96 76 76 5.3 72 32.2 32 00/03-24-052-14-W4 00/03-24-052-14-W4/0 254 254 00/03-24-052-14-W4/2 842 70.0 589 267 322 5.0 306 Vol 10.0 84 84 5.0 80 Vol 842 100.1 843 521 322 5.0 306 153.1 125 84 84 4.8 80 39.4 5
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 16 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST% ZONES CLASS ACRE FT % % % PSIA DEG R Z - ---------------------------------------------------------------------------------------------------------------------------------- VEGREVILLE (cont'd) 00/09-24-052-14-W4 W-50.000 00/09-24-052-14-W4/2 SPKY M/LLOYD PR 160 15.7 27.4 50.0 516 546 PA 00/09-24-052-14-W4/0 GLAUC U/CUM PR 7.2 24.5 40.4 537 549 Subtotal PR PA 00/10-09-053-14-W4/0 W-37.500 NIS PR 19.7 17.0 20.0 5.0 573 542 0.930 00/10-09-053-14-W4 W-37.500 SPKY PR 160 4.9 28.0 45.0 776 539 0.896 Subtotal PR PA VIKING 00/16-14-048-12-W4 W-50.000 SPKY PR 320 4.9 27.0 50.0 773 542 0.900 PA 160 773 542 0.900 00/03-12-049-11-W4/4 W-50.000 SPKY L PR 320 9.8 26.0 40.0 566 533 0.921 PA 00/03-12-049-11-W4 W-50.000 00/03-12-049-11-W4/2 B QTZ PR 3.3 25.0 45.0 696 535 00/03-12-049-11-W4/0 CAM PR 9.8 13.0 40.0 629 535 PA 00/03-12-049-11-W4/3 GLAUC PR 4.3 25.0 35.0 535 PA Subtotal PR PA 00/04-22-049-12-W4 W-47.500 00/04-22-049-12-W4/0 B QTZ L PR 4.3 19.5 35.0 711 538 00/04-22-049-12-W4/2 B QTZ U PR 4.9 24.0 30.0 758 538 Subtotal PR 00/08-31-049-12-W4 W-50.000 00/08-31-049-12-W4/2 LLOYD PR 9.8 27.0 55.0 787 544 00/08-31-049-12-W4/3 WAS PR 6.6 25.0 55.0 808 542 - ----------------------------------------------------------------------------------------------------------------------------------
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------- ----------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ---------------------------------------------------------------------------------------------------------------------------------- VEGREVILLE (cont'd) 00/09-24-052-14-W4 00/09-24-052-14-W4/2 538 30.0 161 109 52 5.0 49 Vol 10.0 54 54 5.0 51 Vol 00/09-24-052-14-W4/0 153 Vol 538 29.9 161 262 52 5.0 50 24.8 45 54 54 5.6 51 25.2 5 00/10-09-053-14-W4/0 800 789 11 5.0 11 4.1 27 Perf 00/10-09-053-14-W4 300 60.0 180 180 5.0 171 64.1 Vol Subtotal 3239 26465 23484 3134 2977 1338.3 1202 726 726 690 333.2 105 VIKING 00/16-14-048-12-W4 519 75.0 389 125 264 5.0 252 125.5 165 Vol 259 75.0 194 194 5.0 184 88.3 33 Vol 00/03-12-049-11-W4/4 872 50.0 436 112 324 5.0 307 153.7 190 Vol 15.0 131 131 5.0 124 60.7 19 Vol 00/03-12-049-11-W4 9 9 00/03-12-049-11-W4/2 63 63 00/03-12-049-11-W4/0 50 50 5.0 48 Perf 30 30 00/03-12-049-11-W4/3 50 50 5.0 48 Perf 102 102 100 100 4.0 96 48.0 00/04-22-049-12-W4 900 868 32 5.0 30 Perf 00/04-22-049-12-W4/0 115 89 26 26 Perf 00/04-22-049-12-W4/2 1015 957 58 2.9 56 26.6 66 00/08-31-049-12-W4 00/08-31-049-12-W4/2 492 492 00/08-31-049-12-W4/3 15 15 - ----------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 17 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ----------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- -------- ------- ---- ---- ---- --- --- ----- ----- ----- VIKING (CONT'D) Subtotal PR 00/09-32-049-12-W4/2 W- 50.000 LLOYD PR 4.9 30.0 40.0 801 542 0.897 00/06-28-049-13-W4/0 W- 50.000 CLY PR 24.3 26.0 45.0 609 537 0.910 00/16-34-049-13-W4/2 W- 50.000 SPKY PR 320 9.2 22.0 55.0 830 544 0.882 PA 00/10-36-049-13-W4/0 W- 50.000 WAB PR 160 11.8 21.0 25.0 486 535 0.950 00/02-24-049-14-W4/0 W- 50.000 WAB PR 8.9 18.0 45.0 755 553 0.917 00/08-04-050-12-W4 W- 42.500 00/08-04-050-12-W4/0 B QTZ U PR 11.5 26.0 50.0 797 538 00/08-04-050-12-W4/2 B QTZ U PR 640 2.6 21.0 45.0 740 539 Subtotal PR 00/11-13-050-13-W4/0 W- 34.375 VIK PR 3.3 20.0 35.0 808 537 0.897 R- 0.625 SUBTOTAL PR PA WARWICK 02/06-16-053-15-W4 W- 50.000 02/06-16-053-15-W4/2 SPKY PR 17.1 23.0 45.0 749 546 02/06-16-053-15-W4/0 B QTZ PR 3.9 26.0 60.0 637 546 02/06-16-053-15-W4/4 CUMM PR 160 6.6 27.0 45.0 587 546 PA Subtotal PR PA 02/06-35-053-15-W4/0 W- 50.000 CLY PR 213 11.5 25.0 45.0 719 533 0.898 PA 107 719 533 0.898 00/11-36-053-15-W4 W- 50.000 VIK PR 320 2.6 28.0 40.0 653 540 0.920 00/07-19-054-15-W4 W- 50.000 WAS PR 160 22.3 27.0 50.0 681 539 0.910 PA
PROPERTY GROSS NATURAL GAS RESOURCES COMPANY SURNAME ------------------------------------------------------------- ---------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- ----- ---- ----- ---- ----- ---- ----- ----- -------- VIKING (CONT'D) 507 507 00/09-32-049-12-W4/2 1700 1615 85 5.0 82 40.6 64 Perf 00/06-28-049-13-W4/0 180 178 2 5.0 2 1.1 18 Perf 00/16-34-049-13-W4/2 778 650 395 255 5.0 242 121.2 30 Decl 75 75 5.0 71 35.6 0 Decl 00/10-36-049-13-W4/0 440 30.0 132 123 9 5.0 8 4.5 30 Vol 00/02-24-049-14-W4/0 1090 1090 00/08-04-050-12-W4 00/08-04-050-12-W4/0 447 447 00/08-04-050-12-W4/2 458 65.0 298 199 99 5.0 94 Vol 458 162.7 745 646 99 5.2 94 40.1 46 Vol 00/11-13-050-13-W4/0 790 760 30 5.0 29 10.1 9 Decl SUBTOTAL 3067 7736 6610 1126 1072 523.4 618 259 500 500 475 232.5 52 WARWICK 02/06-16-053-15-W4 02/06-16-053-15-W4/2 99 99 02/06-16-053-15-W4/0 86 86 02/06-16-053-15-W4/4 290 35.0 102 19 83 5.0 79 Vol 10.0 29 29 5.0 28 Vol 290 99.0 287 204 83 5.0 79 39.6 67 29 29 3.4 28 13.6 5 02/06-35-053-15-W4/0 782 70.0 547 197 350 5.0 333 166.3 241 Vol 393 70.0 275 275 5.0 261 125.2 50 Vol 00/11-36-053-15-W4 284 75.0 213 213 5.0 202 101.2 217 Vol 00/07-19-054-15-W4 1030 35.0 361 361 5.0 343 171.5 188 Vol 15.0 155 155 5.0 147 73.6 7 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 18 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ----------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- -------- ------- ---- ---- ---- --- --- ----- ----- ----- WARWICK (CONT'D) 00/14-34-054-15-W4/3 W- 50.000 WAS PR 160 10.2 23.0 40.0 725 539 0.900 PA 40 725 539 0.900 00/14-34-054-15-W4 W- 50.000 00/14-34-054-15-W4/2 NIS U PR 160 7.5 12.0 35.0 452 544 00/14-34-054-15-W4/4 CLY PR 213 8.2 26.0 40.0 660 530 PA 107 660 530 Subtotal PR PA 02/06-14-054-16-W4 W- 50.000 WAS PR 3.3 25.0 50.0 674 00/13/06-055-14-W4 W- 50.000 00/13-06-055-14-W4/2 CLY PR 8.2 29.0 60.0 597 531 00/13-06-055-14-W4/0 NIS U PR 16.4 19.0 20.0 498 535 Subtotal PR 00/07-10-055-15-W4 00/07-01-055-15-W4/2 GLAUC U PR 7.2 26.0 50.0 654 528 00/07-01-055-15-W4/0 NIS PR 16.4 15.0 25.0 5.0 267 531 Subtotal PR 00/01-02-055-15-W4 W- 50.000 NIS PR 16.4 20.0 20.0 410 533 0.950 SUBTOTAL PR PA WARWICK EAST 00/16-30-052-14-W4 W- 50.500 00/16-30-052-14-W4/4 SPKY U PR 80 3.9 28.5 35.0 696 546 00/16-30-052-14-W4/3 SPKY L PR 427 4.9 28.5 35.0 708 546 PA Subtotal PR PA 00/08-32-052-14-W4 W- 50.000 00/08-32-052-14-W4/0 NIS PR 320 13.1 30.0 25.0 446 548 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW SURF. RAW RAW 2003 RESERVES GIP REC GIP PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- ----- ---- ----- ---- ----- ---- ----- ----- -------- WARWICK (CONT'D) 00/14-34-054-15-W4/3 520 65.0 338 69 269 5.0 255 127.6 143 Vol 130 65.0 85 85 5.0 81 39.7 10 Vol 00/14-34-054-15-W4 00/14-34-054-15-W4/2 127 50.0 64 17 47 5.0 45 Vol 00/14-34-054-15-W4/4 575 70.0 403 105 298 5.0 283 Vol 289 70.0 202 202 5.0 192 Vol 702 66.5 467 122 345 4.9 328 163.8 235 289 69.9 202 202 5.0 192 92.4 48 02/06-14-054-16-W4 00/13/06-055-14-W4 00/13-06-055-14-W4/2 312 312 00/13-06-055-14-W4/0 2854 2854 3166 3166 00/07-10-055-15-W4 00/07-01-055-15-W4/2 40 40 5.0 Perf 00/07-01-055-15-W4/0 100 100 5.0 Perf 140 140 0.0 00/01-02-055-15-W4 SUBTOTAL 3608 5519 3898 1621 1540 769.9 1090 812 746 746 709 344.9 120 WARWICK EAST 00/16-30-052-14-W4 00/16-30-052-14-W4/4 126 35.0 44 12 32 5.0 30 Vol 00/16-30-052-14-W4/3 859 60.0 515 85 430 5.0 409 Vol 10.0 86 86 5.0 82 Vol 985 56.8 559 97 462 4.9 439 219.7 275 86 86 4.7 82 40.6 10 00/08-32-052-14-W4 00/08-32-052-14-W4/0 1260 60.0 756 143 613 5.0 582 Vol 10.0 126 126 5.0 120 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 19 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST% ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ WARWICK EAST (CONT'D) 00/08-32-052-14-W4/2 LLOYD PR 6.6 27.0 50.0 740 546 Subtotal PR PA 00/06-33-052-14-W4/0 W-48.360 NIS PR 11.0 19.0 35.0 374 538 0.951 PA 00/09-33-052-14-W4 W-48.360 00/09-33-052-14-W4/2 CLY PR 60 21.0 23.0 40.0 735 533 PA 00/09-33-052-14-W4/0 GLAUC/ELL PR 320 23.0 26.5 42.5 491 539 PA Subtotal PR PA 00/14-34-052-14-W4 W-50.000 00/14-34-052-14-W4/0 GLAUC/ELL PR 640 6.6 22.4 48.0 492 540 PA 00/14-34-052-14-W4/2 CUMM L PR 320 10.2 23.0 50.0 653 540 PA Subtotal PR PA 00/06-35-052-14-W4/0 W-12.500 GLAUC PR 20.0 18.0 35.0 538 678 0.908 PA 00/04-04-053-14-W4 W-50.000 00/04-04-053-14-W4/2 LLOYD PR 4.6 31.0 35.0 727 540 00/04-04-053-14-W4/0 ELL PR 80 16.4 28.0 30.0 522 548 PA Subtotal PR PA 00/03-05-053-14-W4 W-50.000 00/03-05-053-14-W4/2 SPKY U PR 80 9.8 13.0 40.0 674 531 00/03-05-053-14-W4/0 GLAUC PR 80 17.4 23.0 25.0 453 548 Subtotal PR 00/08-06-053-14-W4 W-50.000 00/08-06-053-14-W4/0 GLAUC PR 160 32.8 28.0 30.0 501 540
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - -------------------------------------------------------------------------------------------------------------------- WARWICK EAST (CONT'D) 00/08-32-052-14-W4/2 13 13 1260 61.0 769 156 613 5.0 583 291.2 213 126 126 4.8 120 59.1 8 00/06-33-052-14-W4/0 4000 3167 833 5.0 791 382.9 139 Decl 250 250 5.0 238 114.7 2 Decl 00/09-33-052-14-W4 00/09-33-052-14-W4/2 407 55.0 224 104 120 5.0 114 Vol 10.0 41 41 5.0 39 Vol 00/09-33-052-14-W4/0 1690 55.0 930 491 439 5.0 417 Vol 10.0 169 169 5.0 161 Vol 2097 55.0 1154 595 559 4.9 531 256.9 203 210 210 4.8 200 95.3 13 00/14-34-052-14-W4 00/14-34-052-14-W4/0 738 65.0 480 342 138 5.0 131 Vol 10.0 74 74 5.0 70 Vol 00/14-34-052-14-W4/2 766 60.0 460 199 261 5.0 248 Vol 10.0 77 77 5.0 73 Vol 1504 62.5 940 541 399 4.9 379 189.6 190 151 151 5.3 143 69.6 19 00/06-35-052-14-W4/0 3800 3588 212 5.0 201 25.1 16 Decl 50 50 5.0 48 5.9 0 Decl 00/04-04-053-14-W4 00/04-04-053-14-W4/2 96 96 00/04-04-053-14-W4/0 403 50.0 202 109 93 5.0 88 Vol 5.0 20 20 5.0 19 Vol 403 73.9 298 205 93 5.0 89 44.3 45 20 20 5.0 19 9.3 2 00/03-05-053-14-W4 00/03-05-053-14-W4/2 132 45.0 59 42 17 5.0 16 Vol 00/03-05-053-14-W4/0 325 45.0 146 102 44 5.0 42 Vol 457 44.9 205 144 61 4.7 59 29.3 41 00/08-06-053-14-W4 00/08-06-053-14-W4/0 1550 500 428 72 5.0 68 Perf
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 20 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS -------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ---------------------------------------------------------------------------------------------------------------------------- WARWICK EAST (CONT'D) PA 00/08-06-053-14-W4/2 CLY PR 80 8.9 21.0 45.0 687 531 Subtotal PR PA 00/06-07-056-14-W4 W-25.000 SPKY PR 213 8.2 30.0 35.0 636 535 0.940 PA SUBTOTAL PR PA WEST LAVOY 00/11-19-051-13-W4/0 W-50.000 VIK PR PA 00/15-15-051-14-W4/0 W-50.000 CLY PR 640 4.9 28.0 35.0 377 501 0.947 00/11-21-051-14-W4 W-50.000 00/11-21-051-14-W4/3 CLY PR 7.0 22.8 40.0 850 540 00/11-21-051-14-W4/2 W-50.000 WAS PR 14.0 25.0 60.0 837 547 Subtotal PR 00/11-22-051-14-W4/2 W-50.000 VIK PR 2.0 24.0 30.0 712 536 0.905 PA 00/10-22-051-14-W4 W-50.000 00/10-24-051-14-W4/0 GLAUC PR 16.0 26.0 20.0 706 543 PA 00/10-24-051-14-W4/2 CLY PR 2.0 25.0 50.0 Subtotal PR PA 00/14-29-051-14-W4/0 W-50.000 CLY PR 560 6.0 25.0 40.0 639 540 0.920 PA 80 639 540 0.920 00/08-31-051-14-W4 W-50.000 CLY PR 160 4.9 27.0 45.0 555 571 0.920 00/07/34-051-14-W4/0 W-50.000 VIK PR
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------------------- ------------------ ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. PROD. LOSS RES. LOSS RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------------ WARWICK EAST (CONT'D) 50 50 5.0 48 Perf 00/08-06-053-14-W4/2 183 80.0 146 94 52 5.0 49 Vol 1733 37.3 646 522 124 5.2 117 58.5 93 50 50 4.0 48 22.6 10 00/06-07-056-14-W4 666 55.0 366 105 261 5.0 248 62.0 76 Vol 15.0 100 100 5.0 95 23.0 8 Vol SUBTOTAL 9105 12737 9120 3617 3437 1559.5 1290 1043 1043 993 440.1 72 WEST LAVOY 00/11-19-051-13-W4/0 14500 13822 678 5.0 644 321.9 176 Decl 250 250 5.0 238 118.2 8 Decl 00/15-15-051-14-W4/0 701 45.0 316 207 109 5.0 103 51.5 74 Vol 00/11-21-051-14-W4 00/11-21-051-14-W4/3 1125 1110 15 5.0 14 Perf 00/11-21-051-14-W4/2 177 177 1302 1287 15 6.1 15 7.3 30 00/11-22-051-14-W4/2 2800 2569 231 5.0 220 109.8 50 Decl 50 50 5.0 48 23.7 1 Decl 00/10-22-051-14-W4 00/10-24-051-14-W4/0 10000 8500 7640 860 5.0 817 Perf 250 250 5.0 238 Perf 00/10-24-051-14-W4/2 19 19 10000 85.2 8519 7659 860 5.0 817 408.6 189 250 250 4.8 238 118.2 7 00/14-29-051-14-W4/0 1000 75.0 750 414 336 5.0 319 159.4 146 Vol 143 75.0 107 107 5.0 102 49.9 10 Vol 00/08-31-051-14-W4 190 70.0 133 133 5.0 126 63.2 114 Vol 00/07/34-051-14-W4/0 620 612 8 5.0 7 3.9 8 Perf
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 21 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT. % % % PSIA. DEG. R Z - ----------------- ---------- ----- ------- ---- ---- ---- --- --- ----- ------ ---- WEST LAVOY (CONT'D) 00/16-10-051-15-W4/0 R- 6.250 BR PR 00/09-11-051-15-W4/0 R- 6.250 BR PR PA 00/10-14-051-15-W4/0 W- 13.184 B BR PR 13.1 30.0 50.0 177 526 0.970 R- 3.105 00/07-15-051-15-W4/0 W- 12.500 CLY PR 3.9 28.0 35.0 875 535 0.880 02/07-15-051-15-W4/0 W- 12.500 B BR M PR 8.5 34.0 45.0 182 528 0.975 PA 00/12-15-051-15-W4/0 W- 12.500 CLY PR 5.6 28.0 40.0 600 537 0.925 PA 00/09-16-051-15-W4/2 W- 50.000 CLY PR 427 8.9 26.0 40.0 687 538 0.917 PA 00/10-21-051-15-W4/3 W- 37.500 CLY PR 3.0 24.0 50.0 768 541 0.899 PA 02/10-21-051-15-W4/2 W- 37.500 B BR M PR 9.8 24.0 60.0 00/16-21-051-15-W4 W- 37.500 B BR M PR PA 02/10-22-051-15-W4/0 W- 18.809 BR PR 19.7 34.0 30.0 157 519 0.977 PA 00/07-26-051-15-W4/0 W- 22.500 VIK A PR 3.0 17.5 45.0 00/14-29-051-15-W4 W- 50.000 CLY PR 4.3 24.0 40.0 865 531 0.892 00/11-19-052-15-W4/0 R- 0.388 U MN PR 00/14-14-054-15-W4 W- 50.000 MCLAR PR 213 5.2 31.0 40.0 702 530 PA 107 702 530 00/14-14-054-15-W4/4 VIK PR 640 2.3 20.0 35.0 574 528
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------------- ---------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- --- ---- ---- ---- ---- ----- ----- ----- -------- WEST LAVOY (CONT'D) 00/16-10-051-15-W4/0 1500 1307 193 5.0 184 11.5 9 Perf 00/09-11-051-15-W4/0 800 641 159 5.0 152 9.4 6 Decl 50 50 5.0 48 2.9 0 Decl 00/10-14-051-15-W4/0 1050 865 185 5.0 176 28.6 13 Perf 00/07-15-051-15-W4/0 2040 2040 5.0 02/07-15-051-15-W4/0 1350 909 441 5.0 419 52.4 41 Perf 150 150 5.0 143 17.6 2 Perf 00/12-15-051-15-W4/0 1165 99 1066 5.0 1013 126.6 85 MB 445 445 5.0 423 52.7 4 MB 00/09-16-051-15-W4/2 1280 1385 445 940 5.0 892 446.3 299 MB 420 420 5.0 399 198.0 19 MB 00/10-21-051-15-W4/3 1025 877 148 5.0 141 52.6 47 Decl 75 75 5.0 71 26.4 4 Decl 02/10-21-051-15-W4/2 6 6 00/16-21-051-15-W4 875 99 776 5.0 737 276.6 169 MB 300 300 5.0 285 106.4 8 MB 02/10-22-051-15-W4/0 2550 2012 538 5.0 511 96.1 51 Decl 150 150 5.0 143 26.6 2 Decl 00/07-26-051-15-W4/0 575 536 39 5.0 38 8.4 7 Decl 00/14-29-051-15-W4 00/11-19-052-15-W4/0 1850 1567 283 5.0 270 1.0 1 Perf 00/14-14-054-15-W4 467 70.0 327 327 5.0 311 Vol 235 70.0 165 165 5.0 157 Vol 00/14-14-054-15-W4/4 350 70.0 245 245 5.0 233 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 22 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST% ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ WEST LAVOY (CONT'D) Subtotal PR PA Subtotal PR PA WILLINGDON 02/10-24-054-16-W4 W-50.000 02/10-24-054-16-W4/0 WAS PR 160 27.6 24.0 45.0 712 542 PA 02/10-24-054-16-W4/2 CLY PR 480 5.6 26.0 50.0 645 542 Subtotal PR PA 00/13-23-056-16-W4 W-25.000 00/13-23-056-16-W4/0 CLY PR 13.8 26.0 40.0 646 535 00/13-23-056-16-W4/2 SPKY PR 13.8 30.0 35.0 659 536 PA Subtotal PR PA 02/13-23-056-16-W4 W-25.000 02/13-23-056-16-W4/2 GLAUC PR 6.6 29.0 40.0 629 544 PA 02/13-23-056-16-W4/0 B QTZ PR 6.6 27.0 30.0 623 546 PA Subtotal PR PA 00/10-29-056-16-W4 W-50.000 GLAUC PR 320 13.1 24.0 50.0 570 539 0.920 PA 00/10-29-056-16-W4 W-50.000 CLY PA 320 8.2 27.0 35.0 218 531 0.970 02/12-29-056-16-W4 W-50.000 CLY PR 5.9 31.0 40.0 157 531 0.976 00/12-03-057-16-W4 W-50.000 GLAUC PR 160 11.2 24.0 40.0 624 542 0.920 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - -------------------------------------------------------------------------------------------------------------------- WEST LAVOY (CONT'D) 817 70.0 572 90 482 4.9 459 229.3 276 235 70.2 165 165 4.8 157 77.7 20 13988 45683 38063 7620 7243 2464.5 1794 378 2412 2412 2295 818.3 85 WILLINGDON 02/10-24-054-16-W4 02/10-24-054-16-W4/0 1300 50.0 650 141 509 5.0 484 Vol 10.0 130 130 5.0 124 Vol 02/10-24-054-16-W4/2 707 70.0 495 108 387 5.0 368 Vol 2007 57.1 1145 249 896 5.0 851 425.7 363 130 130 4.6 124 60.2 15 00/13-23-056-16-W4 00/13-23-056-16-W4/0 1969 1969 00/13-23-056-16-W4/2 2415 1164 1251 5.0 1188 MB 135 135 5.0 128 MB 4384 3133 1251 5.0 1188 297.1 96 135 135 5.2 128 32.0 1 02/13-23-056-16-W4 02/13-23-056-16-W4/2 625 447 178 5.0 169 Decl 75 75 5.0 71 Decl 02/13-23-056-16-W4/0 1400 1040 360 5.0 342 Perf 100 100 5.0 95 Perf 2025 1487 538 4.9 512 127.9 131 175 175 5.1 166 40.6 11 00/10-29-056-16-W4 894 50.0 447 447 5.0 425 212.3 281 Vol 20.0 179 179 5.0 170 85.0 14 Vol 00/10-29-056-16-W4 301 70.0 211 211 5.0 200 100.2 Vol 02/12-29-056-16-W4 5.0 00/12-03-057-16-W4 499 40.0 200 15 185 5.0 176 88.0 101 Vol 20.0 100 100 5.0 95 47.4 6 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES Page 23 MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ WILLINGDON (CONT'D) W- 50.000 CLY PA 160 1.6 27.0 40.0 624 535 00/12-03-057-16-W4 WAS PA 160 7.2 30.0 45.0 624 537 Subtotal PA 00/07-15-057-16-W4 W- 50.000 WAS PA 160 4.9 33.0 50.0 551 542 SPKY PA 160 13.1 31.0 50.0 566 544 L SPKY PA 160 6.9 30.0 50.0 573 544 CUMM PA 160 6.6 29.0 60.0 580 546 Subtotal PA SUBTOTAL PR PA SUBTOTAL ALBERTA PR PA - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PR PA - ------------------------------------------------------------------------------------------------------------------------------------
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- ------------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------------ WILLINGDON (CONT'D) 81 70.0 57 57 5.0 54 Vol 00/12-03-057-16-W4 371 70.0 260 260 5.0 247 Vol 452 70.1 317 317 5.0 301 150.5 00/07-15-057-16-W4 221 50.0 111 111 5.0 105 Vol 568 60.0 341 341 5.0 324 Vol 296 60.0 178 178 5.0 169 Vol 221 60.0 133 133 5.0 126 Vol 1306 58.4 763 763 5.1 724 362.0 401 SUBTOTAL 3400 8201 4884 3317 3152 1150.9 971 2059 2010 2010 1908 878.0 447 SUBTOTAL ALBERTA 91502 296496 239598 57052 54202 22199.2 19234 15626 20122 20122 19135 8388.7 1975 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 91502 296496 239598 57052 54202 22199.2 19234 15626 20122 20122 19135 8388.7 1975 - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 1 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION ALBERTS Birch Southward Mannville OWNED BY COMPANY 6-32-50-10 Working Interest 100.00000% SW-32-50-10 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Mannville OWNED BY COMPANY 6-32-50-10 Working Interest 100.00000% Sec 32-50-10W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Birch OWNED BY COMPANY 13-32-50-11 Working Interest 100.00000% Sec 32-50-11W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 10-7-50-12 Working Interest 100.00000% Sec 7-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Southward 102 OWNED BY COMPANY Ranfurly 1-14-50-12 Working Interest 100.00000% Sec 14-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 9-15-50-12 Working Interest 100.00000% Sec 15-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 20.00000% Mineral Tax ALTA MIN. TAX Southward Ranfurly OWNED BY COMPANY 9-16-50-12 Working Interest 100.00000% Sec 16-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 14-18-50-12 Working Interest 100.00000% Sec 16-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 15-17-50-12 Working Interest 100.00000% Sec 17-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 2 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION Southward Ranfurly OWNED BY COMPANY 7-21-50-12 Working Interest 100.00000% Sec 21-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Southward Ranfurly OWNED BY COMPANY 2-22-50-12 Working Interest 100.00000% Sec 22-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 2-22-50-12 Working Interest 100.00000% Sec 22-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 2-22-50-12 Working Interest 100.00000% Sec 22-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 12.50000% Southward Ranfurly OWNED BY COMPANY 15-24-50-12 Working Interest 100.00000% Sec 24-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Mannville OWNED BY COMPANY 2-4-51-10 Working Interest 100.00000% Sec 4-51-10W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Mannville OWNED BY COMPANY 2-4-51-10 Working Interest 100.00000% Sec 4-51-10W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Birch OWNED BY COMPANY 5-4-51-11 Working Interest 100.00000% Sec 4-51-10W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN BONNYVILLE Bonnyville Grand Rapids C Pool Group Run INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000% Trace Factor 80.00000% Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 3 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION BONNYVILLE (CONT'D) INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 20.00000% Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Ptn fort Kent Colony OWNED BY COMPANY C Pool - 10-35 & 6-6 Working Interest 10.00000% Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA OLD CROWN Southward Goal OWNED BY COMPANY Murielik 1-24-59-5 Working Interest 70.00000% Sec 24-59-SW4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Bonnyville Working Interest 100.00000% 11-19-60-4 Percentage of production 50.00000% Sec 19-60-4W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Bonnyville Working Interest 100.00000% 10-22-61-6 Percentage of production 50.00000% Sec 22-61-6W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Bonnyville 7-34-51-6 Working Interest 50.00000% Sec 34-61-6W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN COLD LAKE Clearwater A Pool OWNED BY COMPANY Group Run Working Interest 50.00000% Secs 27&28-62-3W4 Percentage of production 50.00000% Secs 27 & 28-62-3W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Kent OWNED BY COMPANY 11-34-62-3 Working Interest 50.00000% Sec 34-62-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Kent 11-34-62-3 Working Interest 50.00000% Sec 34-62-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 4 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION COLD LANE (CONT'D) Southward Goal OWNED BY COMPANY Kent 9-35-62-3 Working Interest 50.00000% Sec 35-62-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Elan 5A Beaverdam OWNED BY COMPANY 5-36-62-32 Working Interest 50.00000% Sec 36-62-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Tappit OWNED BY COMPANY Coldik 14-23-63-3 Working Interest 50.00000% Sec 23-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Tappit OWNED BY COMPANY Coldik 14-23-63-3 Working Interest 50.00000% Sec 23-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Cold OWNED BY COMPANY Lake 16-23-63-3 Working Interest 47.50000% Sec 23-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Cold OWNED BY COMPANY Lake 7-25-63-3 Working Interest 47.50000% Sec 25-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Cold OWNED BY COMPANY Lake 10-25-63-3 Working Interest 47.50000% Sec 25-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Cold Lake 11-25-63-3 Working Interest 47.50000% Sec 25-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Tappit OWNED BY COMPANY Cold Lake 2-26-63-3 Working Interest 50.00000% Sec 26-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Cold OWNED BY COMPANY Lake 9-28-63-3 Working Interest 47.50000% Sec 26-63-3W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 5 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION COLD LAKE (CONT'D) OWNED BY COMPANY Southward Goal Cold Working Interest 47.50000% Lake 8-36-63-3 Percentage of production 50.00000% Sec 38-63-3W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN 8 Gorr Wells OWNED BY COMPANY Gross Overriding Royalty 4.25000% Percentage of Production 50.00000% HAIRY HILL Decl et al Warwick OWNED BY COMPANY 10-18-53-14 Gross Overriding Royalty 8.33500% Sec 18-53-14W4 Percentage of production 50.00000% Southward Hairy Hill 6-21-55-14 E&SW-21-55-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 75.00000% ENCUMBRANCES Freehold Royalty Payable 18.00000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 5.00000% NW-21-35-14W4 INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 25.00000% ENCUMBRANCES Freehold Royalty Payable 20.00000% Mineral Tax ALTA MIN. TAX Southward Hairy Hill OWNED BY COMPANY 10-21-55-14 Working Interest 100.00000% Sec 21-55-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Southward Hairy Hill OWNED BY COMPANY 11-30-55-14 Working Interest 100.00000% Sec 11-30-55-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN HEDGE Natural Gas Hodge OWNED BY COMPANY Working Interest 100.00000% Percentage of production 50.00000% HOLDEN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 6 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION HOLDEN (CONT'D) Holden Viking Gas Unit No. 3 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 71.00000% Tract Factor 50.00000% Percentage of production 87.16000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.75000% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 71.00000% Tract Factor 50.00000% Percentage of production 32.84000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN.TAX Gross Overriding Royalty 1.75000% JARROW Southward etal OWNED BY COMPANY Killam 3-33-44-11 Working Interest 50.00000% Sec 33-44-11W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 25.00000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 0.50000% Merland et al Jarrow OWNED BY COMPANY 7-34-45-10 Working Interest 60.00000% Sec 34-45-10W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 15.00000% Southward Jarrow OWNED BY COMPANY 14-1-45-11 Working Interest 100.00000% Sec 1-45-11W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 17.00000% Mineral Tax ALTA MIN. TAX Southward Jarrow 10-13-45-11 Sec 13-45-11W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.50000% Tract Factor 50.00000% Percentage of production 13.00000% ENCUMBRANCES Mineral Tax ALTA NEW CROWN Gross Overriding Royalty 11.47600% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.50000% Tract Factor 50.00000% Percentage of production 87.00000% ENCUMBRANCES Freehold Royalty Payable 14.28300% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 11.47600% McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 7 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION JARROW (CONT'D) Zargon Jarrow OWNED BY COMPANY 10-15-45-11 Freehold Royalty Interest 1.5000% Sec 15-45-11W4 Percentage of production 50.00000% ENCUMBRANCES Mineral Tax ALTA MIN. TAX Voyager Jarrow OWNED BY COMPANY 6-19-45-11 Gross Overriding Royalty 1.5000% Sec 19-45-11W4 Percentage of production 50.00000% ENCUMBRANCES Mineral Tax ALTA MIN. TAX Merland et al OWNED BY COMPANY Kinsella 10-27LM Working Interest 25.00000% - -45-11 Percentage of production 50.00000% Sec 27-45-11W4 ENCUMBRANCES Freehold Royalty Payable 17.00000% Mineral Tax ALTA MIN. TAX Merland et al OWNED BY COMPANY Kinsella 4-29-45-11 Working Interest 25.00000% Sec 29-45-11W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.56300% Merland Canso Viking OWNED BY COMPANY 6-30-45-11 Working Interest 25.00000% Sec 30-45-11W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.56300% Voyager Viking OWNED BY COMPANY 11-31-45-11 Gross Overriding Royalty 1.50000% Sec 31-45-11W4 Percentage of production 50.00000% Merland Paloma OWNED BY COMPANY Viking 9-36-46-12 Working Interest 50.00000% Sec 36-46-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.50000% LAVOY Capital to purchase OWNED BY COMPANY compressor Working Interest 100.00000% Percentage of production 50.00000% Southward Warwick OWNED BY COMPANY 7-21-51-13 Working Interest 100.00000% Sec 21-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC.-MECHANICAL UPDATE Page 8 LIST OF INTEREST AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 12-28-51-13 Working Interest 100.00000% Sec 28-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 10-29-51-13W4 Working Interest 100.00000% Sec 29-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick 10-29-51-13 Sec 29-51-13W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 62.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.00000% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 38.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000% Southward Warwick OWNED BY COMPANY 2-31-51-13 Working Interest 100.00000% Sec 31-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 15.67000% Southward Warwick OWNED BY COMPANY 14-31-51-13 Working Interest 100.00000% Sec 31-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 1-32-51-13 Working Interest 100.00000% Sec 32-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 1-32-51-13 Working Interest 100.00000% Sec 31-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC.-MECHANICAL UPDATE Page 9 LIST OF INTEREST AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 11-32-51-13W4 Working Interest 100.00000% Sec 32-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 10-33-51-13W4 Working Interest 100.00000% Sec 29-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% Southward Plain OWNED BY COMPANY 12-4-52-13 Working Interest 100.00000% Sec 4-52-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 11-5-52-13 Working Interest 100.00000% Sec 5-52-13W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000% Southward et al OWNED BY COMPANY Warwick 13-18-52-13 Working Interest 49.50000% Sec 18-52-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000% Net Profits Interest 2.83000% Southward Warwick OWNED BY COMPANY 7-30-52-13 Working Interest 100.00000% Sec 30-52-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 10-11-52-14 Working Interest 100.00000% Sec 11-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Policy 16.67000% Southward Warwick OWNED BY COMPANY 6-12-52-14 Working Interest 100.00000% Sec 12-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Policy 16.67000% Southward Warwick OWNED BY COMPANY 11-12-52-14 Working Interest 100.00000% Sec 12-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Policy 16.67000% McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC.-MECHANICAL UPDATE Page 10 LIST OF INTEREST AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 15-12-52-14 Working Interest 100.00000% Sec 12-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick 6-15-52-14 Sec 15-52-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 55.60000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 44.40000% ENCUMBRANCES Freehold Royalty Payable 6.95000% Mineral Tax ALTA MIN. TAX Southward 102 Warwick 10-15-52-14 Sec 15-52-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 55.40000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 44.40000% ENCUMBRANCES Freehold Royalty Payable 16.00000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 6-22-52-14 Working Interest 100.00000% Sec 22-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 6-22-52-14 Working Interest 100.00000% Sec 22-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC.-MECHANICAL UPDATE Page 11 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 8-22-52-14 Working Interest 100.00000% Sec 22-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 16.67000% Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 8-22-52-14 Working Interest 100.00000% Sec 22-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 16.67000% Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 12-26-52-14 Working Interest 100.00000% Sec 26-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000% Southward Warwick OWNED BY COMPANY 6-27-52-14 Working Interest 100.00000% Sec 27-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 12-27-52-14 Working Interest 100.00000% Sec 27-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% Southward 102 OWNED BY COMPANY Warwick 12-27-52-14 Working Interest 100.00000% Sec 27-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 15-27-52-14 Working Interest 100.00000% Sec 27-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% Southward 102 Warwick 6-28-52-14 OWNED BY COMPANY Sec 28-52-14W4 Working Interest 100.00000% Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC.- MECHANICAL UPDATE Page 12 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 8-28-52-14 Working Interest 100.00000% Sec 28-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 16-29-52-14 Working Interest 100.00000% Sec 29-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 10-32-52-14 Working Interest 100.00000% Sec 32-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 6-34-52-14 Working Interest 100.00000% Sec 34-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Southward 102 OWNED BY COMPANY Warwick 7-34-52-14 Working Interest 100.00000% Sec 34-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 6-6-53-14 Working Interest 100.00000% Sec 6-53-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1/150 MIN 5.00% MAX 15.00% DECL et al Warwick OWNED BY COMPANY 10-7-53-14 Freehold Royalty Interest 11.66900% Sec 7-53-14 Tract Factor 50.00000% Percentage of Production 50.00000% Southward Warwick OWNED BY COMPANY 7-29-53-14 Working Interest 100.00000% Sec 29-53-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN MANNVILLE OWNED BY COMPANY Nco Manville Working Interest 75.00000% 9-16-52-7 Percentage of production 50.00000% Sec 16-52-7W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 13 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION Mundane Southward Pinedale OWNED BY COMPANY 4-6-54-16 Working Interest 100.00000% Sec 6-54-16W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Pinedale OWNED BY COMPANY 4-6-54-16 Working Interest 100.00000% Sec 6-54-16W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 11-2-54-17 Working Interest 100.00000% Sec 2-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000% Southward Norris OWNED BY COMPANY 1-10-54-17 Working Interest 100.00000% Sec 10-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 10-10-54-17 Working Interest 100.00000% Sec 10-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 1-13-54-17 Working Interest 100.00000% Sec 13-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 15.00000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 5.00000% Southward Norris OWNED BY COMPANY 2-18-54-17 Working Interest 100.00000% Sec 19-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 2-19-54-17 Working Interest 100.00000% Sec 18-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 4-20-54-17 Working Interest 100.00000% Sec 20-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 14 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION MUNDARE (CONT'D) Southward Norris OWNED BY COMPANY 4-20-54-17 Working interest 100.00000% Sec 20-54-17W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Astotin OWNED BY COMPANY 2-17-55-18 Working interest 100.00000% Sec 17-55-18W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 16.67000% Mineral Tax ALTA MIN. TAX PLAIN Southward Misidora OWNED COMPANY BY 12-34-52-10 Working interest 100.00000% Sec 34-52-10W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Misidora OWNED COMPANY BY 12-34-52-10 Working interest 100.00000% Sec 34-52-10W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED COMPANY BY 10-14-52-12 Working interest 100.00000% Sec 14-52-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED COMPANY BY 12-28-52-12 Working interest 100.00000% Sec 28-52-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED COMPANY BY 12-32-52-12 Working interest 100.00000% Sec 32-52-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED COMPANY BY BEFORE PAYOUT AFTER PAYOUT 12-9-32-13 Working interest 100.00000% 50.00000% Sec 9-52-13W4 Percentage of production 50.00000% 50.00000% ENCUMBRANCES Freehold Royalty Payable 19.00000% 19.00000% Mineral Tax ALTA MIN. TAX ALTA MIN. TAX Gross Overriding Royalty 15.00000% Net Profits Interest 2.83000% 2.83000% PAYOUT STATUS AT 2002/9 $ 200000 Southward Plain OWNED COMPANY BY 13-36-52-13 Working interest 100.00000% Sec 36-52-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN
MCDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 15 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION PLAIN (CONT'D) Southward Plain OWNED BY COMPANY 14-18-53-11 Working interest 100.00000% Sec 18-53-11W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY 7-4-53-12 Working interest 100.00000% Sec 4-53-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% RANFURLY Ranfurly Gas Unit INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 27.08500% Tract Factor 50.00000% Percentage of production 50.55840% ENCUMBRANCES Government Royalty ALTA NEW CROWN INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 27.08500% Tract Factor 50.00000% Percentage of Production 49.44160% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 9-35-50-13 Working Interest 100.00000% Sec 35-50-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 9-35-50-13 Working Interest 100.00000% Sec 35-50-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 6-36-50-13 Working Interest 100.00000% Sec 36-50-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 9-36-50-13 Working Interest 100.00000% Sec 36-50-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Amoco Warwick OWNED BY COMPANY 11-30-50-14 Gross Overriding Royalty 13.80000% Sec 30-50-14W4 Percentage of production 50.00000% MCDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 16 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION RANFURLY (CONT'D) Southward Warwick OWNED BY COMPANY 3-32-50-14 Working Interest 100.00000% Sec 32-50-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Signalta et al OWNED BY COMPANY Warwick 16-23-50-15 Working Interest 100.00000% Sec 23-50-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Inland OWNED BY COMPANY 3-34-50-15 Working Interest 100.00000% Sec 34-50-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN AVN Mannville OWNED BY COMPANY BEFORE PAYOUT AFTER PAYOUT 5-18-51-7 Working Interest 50.00000% Sec 18-51-7W4 Gross Overriding Royalty 15.00000% Percentage of production 50.00000% 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN ALTA NEW CROWN PAYOUT STATUS AT 2002/9 $ 400000 Ogy Ranfurly OWNED BY COMPANY 16-20-51-12 Working Interest 100.00000% Sec 20-51-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 6-29-51-12 Working Interest 100.00000% Sec 29-51-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY 11-34-51-12 Working Interest 100.00000% Sec 34-51-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 15.00000% Paloma et al OWNED BY COMPANY Warwick 12-1-51-13 Working Interest 25.00000% Sec 1-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty Freehold Royalty Payable 4.75000% Mineral Tax ALTA MIN. TAX Net Profits Interests 2.83000% Southward Warwick OWNED BY COMPANY 8-4-51-13 Working Interest 100.00000% Sec 4-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 17 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION RANFURLY (CONT'D) Southward Warwick OWNED BY COMPANY 15-6-51-13 Working Interest 100.00000% Sec 6-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Signalta et al Warwick 4-11-51-13 Sec 11-51-13W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 27.08500% Tract Factor 50.00000% Percentage of production 30.55840% ENCUMBRANCES Government Royalty ALTA NEW CROWN INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 27.08500% Tract Factor 50.00000% Percentage of production 49.44160% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Encal Warwick OWNED BY COMPANY 6-22-51-13 Working Interest 45.00000% Sec 22-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 18.67000% Southward Warwick OWNED BY COMPANY 15-4-51-14 Working Interest 100.00000% Sec 4-51-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000% Signalta et al OWNED BY COMPANY Warwick 2-9-51-14 Freehold Royalty 2.66620% Sec 9-51-14W4 Percentage of production 50.00000% Voyager Warwick OWNED BY COMPANY 6-10-51-14 Gross Overriding Royalty 20.00000% Sec 10-51-14W4 Tract Factor 50.00000% Percentage of production 99.43400% Southward Warwick OWNED BY COMPANY 16-12-51-14 Working Interest 100.00000% Sec 12-51-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000% St. Paul Centra St. Paul OWNED BY COMPANY 5-3-58-9 Working Interest 75.00000% Sec 3-58-9W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 18 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION ST. PAUL (CONT'D) Centra St. Paul OWNED BY COMPANY 12-3-58-9 Working Interest 75.00000 % Sec 3-58-9W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN VEGREVILLE Southward Warwick OWNED BY COMPANY 6-7-52-13 Working Interest 100.00000 % Sec 7-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000 % Southward 102 OWNED BY COMPANY Warwick 6-7-52-13 Working Interest 100.00000 % Sec 7-32-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward etal OWNED BY COMPANY Warwick 1-18-52-13 Working Interest 49.50000 % Sec 18-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000 % Net Profits Interests 2.83000 % Southward etal OWNED BY COMPANY Warwick 1-18-52-13 Working Interest 49.50000 % Sec 18-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000 % Net Profits Interests 2.83000 % Southward etal OWNED BY COMPANY Warwick 8-19-52-13 Working Interest 20.05250 % Sec 19-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Net Profits Interests 2.83000 % Southward Warwick OWNED BY COMPANY 1-13-52-14 Working Interest 100.00000 % Sec 13-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 23.00000 % Mineral Tax ALTA MIN. TAX Amoco Warwick OWNED BY COMPANY 6-13-52-14 Working Interest 100.00000 % Sec 13-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 23.00000 % Mineral Tax ALTA MIN. TAX
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 19 HAWKER RESOURCES INC. MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION VEGREVILLE (CONT'D) Southward Warwick OWNED BY COMPANY 12-13-52-14 Working Interest 100.00000% SW-13-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 3-24-52-14 Working Interest 100.00000% Sec 24-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 9-24-52-14 Working Interest 100.00000% Sec 24-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al OWNED BY COMPANY Warwick 10-9-53-14 Working Interest 75.00000% Sec 9-53-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al OWNED BY COMPANY Warwick 10-9-53-14 Working Interest 75.00000% Sec 9-53-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN VIKING OWNED BY COMPANY Marland Kinselle 16-14-48-12 Working Interest 100.00000% Sec 14-48-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Viking OWNED BY COMPANY Kinselle 3-12-49-11 Working Interest 100.00000% Sec 12-49-11W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Viking OWNED BY COMPANY Kinselle 3-12-49-11 Working Interest 100.00000% Sec 12-49-11W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al OWNED BY COMPANY Viking 4-22-49-12 Working Interest 95.00000% Sec 22-49-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.57890% Net Profits Intests 2.63158% McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 20 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION Viking (cont'd) Southward Kinsella OWNED BY COMPANY 8-31-49-12 Working Interest 100.00000% Sec 31-49-12W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 15.50000% Mineral Tax ALTA MIN. TAX Net Profits Interests 2.8300% Southward Viking OWNED BY COMPANY 9-32-49-12 Working Interest 100.00000% Sec 32-49-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000% Southward Viking OWNED BY COMPANY 6-28-49-13 Working Interest 100.00000% Sec 28-49-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Kinsella OWNED BY COMPANY 16-34-49-13 Working Interest 100.00000% Sec 34-49-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000% Southward Viking OWNED BY COMPANY 10-36-49-13 Working Interest 100.00000% Sec 36-49-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000% Net Profits Interests 2.83000% Southward el al OWNED BY COMPANY Viking 2-24-49-14 Working Interest 100.00000% Sec 24-49-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000% Southward Ranfurly OWNED BY COMPANY 8-4-50-12 Working Interest 85.00000% Sec 4-50-12W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000% Southward etal OWNED BY COMPANY Warwick 11-13-50-13 Working Interest 68.75000% Sec 13-50-13W4 Gross Overriding Royalty 1.25005% Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 28.99900% Mineral Tax ALTA MIN. TAX Net Profits Interests 2.50000% WARWICK McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 21 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WARWICK (CONT'D) Southward Royal OWNED BY COMPANY 6-16-53-15 Working Interest 100.00000% Sec 16-53-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward 102 OWNED BY COMPANY Warwick 6-35-53-15 Working Interest 100.00000% Sec 35-53-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 15.00000% Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 11-36-53-15 Working Interest 100.00000% Sec 36-53-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 7-19-54-15 Working Interest 100.00000% Sec 19-54-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 16.00000% Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 14-34-54-15 Working Interest 100.00000% Sec 34-54-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 14-34-54-15 Working Interest 100.00000% Sec 34-54-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward 102 OWNED BY COMPANY Pinedale 6-14-54-16 Working Interest 100.00000% Sec 14-54-16W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Halry OWNED BY COMPANY BEFORE PAYOUT AFTER PAYOUT 13-6-55-14 Working Interest 100.00000% 75.00000% Sec 6-55-14W4 Percentage of production 50.00000% 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN ALTA NEW CROWN PAYOUT STATUS AT 2002/9 $ 450000 Southward Halry Hill OWNED BY COMPANY 7-1-35-15 Working Interest 75.00000% Sec 1-55-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Willingdon OWNED BY COMPANY 1-2-55-15 Working Interest 100.00000% Sec 2-55-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 22 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION WARWICK EAST Southward Warwick OWNED BY COMPANY 16-30-52-14 Working Interest 100.00000% Sec 30-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 8-32-52-14 Working Interest 100.00000% Sec 32-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Aegis Warwick OWNED BY COMPANY 6-33-52-14 Working Interest 96.72020% Sec 33-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 18.00000% Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 9-33-52-14 Working Interest 96.72020% Sec 33-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 18.00000% Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 14-34-52-14 Working Interest 100.00000% Sec 34-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 15.00000% DECL et al Warwick OWNED BY COMPANY 6-35-52-14 Working Interest 25.00000% Sec 35-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 4-4-53-14 Working Interest 100.00000% Sec 4-53-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 3-5-53-14 Working Interest 100.00000% Sec 34-52-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000% Southward Warwick OWNED BY COMPANY 8-6-53-14 Working Interest 100.00000% Sec 6-53-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% MCDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 23 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION WARWICK EAST (CONT'D) Voyager Paloma Willingdon 6-7-56-14 Sec 7-56-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 50.00000% Tract Factor 50.00000% Percentage of production 5.72000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.50000% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 50.00000% Tract Factor 50.00000% Percentage of production 94.28000% ENCUMBRANCES Freehold Royalty Payable 15.76200% Mineral Tax ALTA MIN. TAX Net Profits Interest 2.50000% WEST LAVOY Southward Warwick OWNED BY COMPANY 11-19-51-13 Working Interest 100.00000% Sec 19-51-13W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 15-15-51-14 Working Interest 100.00000% Sec 15-51-14W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Southward Warwick 11-21-51-14 Sec 21-51-13W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 25.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.6700% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX INTEREST NUMBER 3 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 50.00000% Percentage of production 25.00000% ENCUMBRANCES Freehold Royalty Payable 7.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 1.56250% MCDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 24 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION WEST LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 11-22-51-14 Working Interest 100.00000% Sec 22-51-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick 10-24-51-14 Sec 24-51-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 62.00000% Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 18.00000% INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000% Tract Factor 38.00000% Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 18.00000% Southward Warwick OWNED BY COMPANY 14-29-51-14 Working Interest 100.00000% Sec 29-51-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 8-31-51-14 Working Interest 100.00000% Sec 31-51-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 15.00000% Southward Warwick OWNED BY COMPANY 7-34-51-14 Working Interest 100.00000% Sec 34-51-14W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000% Poco et al Inland OWNED BY COMPANY 16-10-51-15 Gross Overriding Royalty 12.50000% Sec 10-51-15W4 Percentage of production 50.00000% Poco et al Inland OWNED BY COMPANY 9-11-51-15 Gross Overriding Royalty 12.50000% Sec 11-51-15W4 Percentage of production 50.00000% Voyager et al Inland OWNED BY COMPANY 10-14-51-15 Working Interest 26.36760% Sec 14-51-15W4 Gross Overriding Royalty 6.21000% Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.50000% McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 25 LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES ACREAGE DESCRIPTION OWNERSHIP INFORMATION WEST LAVOY (CONT'D) Amoco Canpar Inland OWNED BY COMPANY 7-15-51-15 Working Interest 25.00000% Sec 15-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Amoco Inland OWNED BY COMPANY 7-15BR-51-15 Working Interest 25.00000% Sec 15-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Signalta et al OWNED BY COMPANY Inland 12-15-51-15 Working Interest 25.00000% Sec 15-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Southward Inland OWNED BY COMPANY 9-16-51-15 Working Interest 100.00000% Sec 16-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Amoco Inland OWNED BY COMPANY 10-21-51-15 Working Interest 75.00000% Sec 21-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Amoco Inland OWNED BY COMPANY 10-21BR-51-15 Working Interest 75.00000% Sec 21-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Signalta et al OWNED BY COMPANY Inland 15-21-51-15 Working Interest 75.00000% Sec 21-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Signalta et al OWNED BY COMPANY Inland 10-22-51-15 Working Interest 37.61760% Sec 22-51-15W4 Percentage of production 50.00000% ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 0.57830% Signalta et al OWNED BY COMPANY Inland 7-26-51-15 Working Interest 45.00000% Sec 26-51-15?W4 Percentage of production 50.00000% ENCUMBRANCES Freehold Royalty Payable 9.38000% Mineral Tax ALTA MIN. TAX McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 26 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WEST LAVOY (CONT'D) Southward Inland OWNED BY COMPANY 14-29-51-15 Working Interest 100.00000 % Sec 29-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Deci et al Royal OWNED BY COMPANY 11-19-52-15 Gross Overriding Royalty 0.77630 % Sec 19-52-15W4 Percentage of production 50.00000 % Southward Warwick OWNED BY COMPANY 14-14-54-15 Working Interest 100.00000 % Sec 14-54-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN WILLINGTON Southward Pinedale OWNED BY COMPANY 10-24-54-16 Working Interest 100.00000 % Sec 24-54-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward etal OWNED BY COMPANY Ukalta 13-23-56-16 Working Interest 50.00000 % Sec 23-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward etal 102 OWNED BY COMPANY Ukalta 13-23-56-16 Working Interest 50.00000 % Sec 23-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta OWNED BY COMPANY 10-29-56-16 Working Interest 100.00000 % Sec 29-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta OWNED BY COMPANY 10-29-56-16 Working Interest 100.00000 % Sec 29-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward 102 Ukalta OWNED BY COMPANY 10-29-56-16 Working Interest 100.00000 % Sec 29-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 27 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WILLINGDON (CONT'D) Southward Ukalta 12-3-57-16 Sec 3-57-16W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 75.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 20.00000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 25.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta 12-3-57-16 Sec 3-57-16W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 75.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 20.00000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 25.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta OWNED BY COMPANY 7-15-57-16 Working Interest 100.00000 % Sec 15-57-16W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 20.00000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. MECHANICAL UPDATE ---------------------------------------- EVALUATION OF GAS RESERVES BASED ON MARCH ESCALATING PRICE ASSUMPTIONS AS OF MAY 1, 2003 MCDANIEL & ASSOCIATES CONSULTANTS LTD. Oil and Gas Reservoir Engineering HAWKER RESOURCES INC. MECHANICAL UPDATE ------------------------------ EVALUATION OF GAS RESERVES BASED ON MARCH ESCALATING PRICE ASSUMPTIONS AS OF MAY 1, 2003 PREPARED FOR: HAWKER RESOURCES INC. C/O ROSS SMITH ENERGY GROUP 400,407 - 8th AVENUE S.W. CALGARY, ALBERTA T2P 1E5 PREPARED BY: MCDANIEL & ASSOCIATES CONSULTANTS LTD. 2200, 255 - 5th AVENUE S.W. CALGARY, ALBERTA T2P 3G6 APRIL 2003 MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. MECHANICAL UPDATE ----------------------------------- TABLE OF CONTENTS COVERING LETTER CERTIFICATES OF QUALIFICATION SUMMARY TOTAL COMPANY RESERVES AND PRESENT WORTH VALUES FIGURES Table A Location of Major Properties Natural Gas Production Profile Before Tax Net Operating Income Profile Reserve Distribution by Reserve Class and Product Reserve and Present Worth Value Distribution for Major Properties PRICE SCHEDULES EVALUATION METHODOLOGY APPENDIX 1 TOTAL PROVED RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 Reserves and Present Worth Values by Area Table 3 Total Proved Reserves Sorted by Company Gas Reserves Sorted by Company BOE Reserves Sorted by 15% Present Worth Values First Year Production, Revenues and Expenses by Area Table 4 Ten Year Production, Revenues and Expenses by Area Table 5 MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 2 MARCH ESCALATING PRICE ASSUMPTIONS TABLE OF CONTENTS APPENDIX 2 TOTAL PROVED AND PROBABLE RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 Reserves and Present Worth Values by Area Table 3 Total Proved & Probable Reserves Sorted by Company Gas Reserves Sorted by Company BOE Reserves Sorted by 15% Present Worth Values First Year Production, Revenues and Expenses by Area Table 4 Ten Year Production, Revenues and Expenses by Area Table 5 APPENDIX 3 PROBABLE RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 APPENDIX 4 PROVED PRODUCING RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 APPENDIX 5 PROVED NON-PRODUCING RESERVES Forecast of Production and Revenues Table 1 Reserves and Present Worth Values by Property Table 2 APPENDIX 6 SUMMARY OF RESERVE ESTIMATES Summary of Crude Oil Reserve Estimates Table 1 Summary of Natural Gas Reserve Estimates Table 1 APPENDIX 7 COMPANY INTEREST DATA Lists of Interests and Encumbrances Table 1 MCDANIEL & ASSOCIATES CONSULTANTS LTD. [MCDANIEL & ASSOCIATES CONSULTANTS LTD. LETTERHEAD] April 22, 2003 HAWKER RESOURCES INC. C/O ROSS SMITH ENERGY GROUP 400, 407 - 8TH AVENUE S.W. CALGARY, ALBERTA T2P 1E5 Attention: Mr. Jim Jarrell, Vice President Reference: HAWKER RESOURCES INC. MECHANICAL UPDATE EVALUATION OF GAS RESERVES MARCH ESCALATING PRICE ASSUMPTIONS Dear Sir: Pursuant to your request we have prepared an update of the natural gas reserves and the present worth values of these reserves for the natural gas interests of Hawker Resources Inc., hereinafter referred to as the "Company", as of May 1, 2003. The future net revenues and present worth values presented in this report were calculated using "March Escalating Price" assumptions based on our opinion of the future natural gas prices at March 1, 2003 and were presented in Canadian dollars. No allowances were made for income tax or for the Alberta Royalty Tax Credit. THIS UPDATE IS BASED ON THE REPORT ENTITLED "SOUTHWARD ENERGY LTD., EVALUATION OF GAS RESERVES, BASED ON ESCALATING PRICE ASSUMPTIONS, AS OF JANUARY 1, 2003", DATED DECEMBER 16, 2002. FOR THIS UPDATE THE REFERENCE DATE WAS MECHANICALLY UPDATED TO MAY 1, 2003 BY REMOVING THE ESTIMATED PRODUCTION FROM JANUARY 1, 2003 TO MAY 1, 2003. IT SHOULD BE NOTED THAT THERE HAS BEEN NO REVIEW OF RECENT WELL PERFORMANCE DATA OR OPERATING COST DATA SINCE THE PREPARATION OF THE JANUARY 1, 2003 REPORT. SEVERAL OTHER CHANGES AND ADDITIONS WERE INCLUDED WITH THIS UPDATE AS SUMMARIZED BELOW: - ALL W5 WELLS WERE REMOVED. - A HEDGE RUN WAS INCLUDED FOR THE INDICATED NATURAL GAS HEDGE. - THE EVALUATION OF 17 NEW WELLS DRILLED IN 2003 WERE INCLUDED. - THE EVALUATION OF APPROXIMATELY 15 WORKOVERS IN 2003 WERE INCLUDED. The properties evaluated in this report were indicated to include essentially all of the Company's conventional natural gas interests in Canada. The principle natural gas properties are located in the Lavoy and West Lavoy areas in the province of Alberta. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 2 MARCH ESCALATING PRICE ASSUMPTIONS APRIL 22, 2003 - -------------------------------------------------------------------------------- The Company's share of proved remaining and probable additional natural gas reserves as of May 1, 2003 and the respective present worth values assigned to these reserves based on "March Escalating Price" assumptions were estimated to be as follows: ESTIMATED COMPANY SHARE OF REMAINING RESERVES AS OF MAY 1, 2003 MMCF, MBBL
PROVED PROVED TOTAL PROBABLE PRODUCING NON-PRODUCING PROVED ADDITIONAL TOTAL - ------------------------------------------------------------------------------------------------ Natural Gas Gross (1) 18,607 3,592 22,199 8,389 30,588 Net (2) 14,450 2,629 17,079 6,362 23,441
ESTIMATED COMPANY SHARE OF PRESENT WORTH VALUES BEFORE INCOME TAX AS OF MAY 1, 2003 $1000 (3)(4)
DISCOUNTED AT 0% 10% 12% 15% 20% - ------------------------------------------------------------------------------------------------------------- Proved Developed Producing Reserves 65,104 52,721 50,927 48,523 45,124 Proved Developed Non-Producing Reserves 11,983 9,628 9,314 8,897 8,314 Total Proved Reserves 77,087 62,349 60,241 57,420 53,438 Probable Additional Reserves-Unrisked 27,003 17,356 16,173 14,664 12,681 Total Proved & Probable Reserves-Unrisked 104,090 79,705 76,414 72,084 66,119 Probable Additional Reserves-Risked (5) 13,502 8,678 8,087 7,332 6,341 Total Proved & Probable Reserves-Risked (5) 90,589 71,027 68,328 64,752 59,779
(1) Gross reserves are defined as the aggregate of the Company's working interest and royalty interest reserves before deductions of royalties payable to others. (2) Net reserves are gross reserves less all royalties payable to others. (3) Financial matters such as prepayments, take or pay payments, general obligations, etc. were not included. (4) Based on "March Escalating Price" assumptions at March 1, 2003 (see Price Schedules). (5) Includes a 50 percent reduction in the probable present worth values to account for the risk associated with the probable additional reserves. The Company's share of remaining reserves and present worth values are presented on a total Company basis in the summary section of this report. The location of the Company's major properties and a graphical summary of the forecast production, net income and reserve distributions are also presented in this section. Tables summarizing the reserves, production and revenues for the various reserve classes are presented in Appendices 1 to 6. A summary of the Company's interests and encumbrances in each property is presented in Appendix 7. Discussions of the assumptions and methodology employed to prepare the reserve estimates and revenue forecasts are also contained in the "Evaluation Methodology" section. MCDANIEL & ASSOCIATE CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 3 MARCH ESCALATING PRICE ASSUMPTIONS APRIL 22, 2003 - -------------------------------------------------------------------------------- Detailed reserve estimates and revenue forecasts and other supporting data for each of the properties that were reviewed in detail were provided in the detailed property report. Property discussions and a detailed description of the economic factors employed to derive the cash flow forecasts were also included therein. The extent and character of all factual information supplied by the Company including ownership, well data, production, prices, revenues, operating costs, contracts, and other relevant data were relied upon by us in preparing this report and has been accepted as represented without independent verification. In view of the generality of the assignment the opinions expressed are not intended to provide a stand alone analysis of any specific property but to relate to an overall evaluation of the reserves of the Company. This update was prepared by McDaniel & Associates Consultants Ltd. for the exclusive use of Hawker Resources Inc. and is not to be reproduced, distributed or made available, in whole or in part, to any person, company or organization other than Hawker Resources Inc. without the knowledge and consent of McDaniel & Associates Consultants Ltd. We reserve the right to revise any estimates provided herein if any relevant data existing prior to preparation of this update was not made available or if any data provided was found to be erroneous. Sincerely, MCDANIEL & ASSOCIATES CONSULTANTS LTD. "signed by P. A. Welch" "signed by B. J. Wurster" - ------------------------------------ ------------------------------ P. A. Welch, P. Eng. B. J. Wurster, E.I.T. "signed by R. Ott" - ------------------------------------ R. Ott, P. Geol. PERMIT TO PRACTICE MCDANIEL & ASSOCIATES CONSULTANTS LTD. Signature "signed by B. H. Emslie" ---------------------------------- Date Tuesday, April 22, 2003 --------------------------------------- PERMIT NUMBER: P 3145 The Association of Professional Engineers, Geologists and Geophysicists of Alberta MCDANIEL & ASSOCIATES CONSULTANTS LTD. CERTIFICATE OF QUALIFICATION I, Philip Arthur Welch, Petroleum Engineer of 2200,255 - 5th Avenue, S.W., Calgary, Alberta, Canada hereby certify: 1. That I am the Executive Vice President of McDaniel & Associates Consultants Ltd. which Company did prepare, at the request of Hawker Resources Inc., the report entitled "Hawker Resources Inc., Evaluation of Gas Reserves, Based on March Escalating Price Assumptions, As of May 1, 2003", dated April 22, 2003, and that I was involved in the preparation of this report. 2. That I attended the University of British Columbia in the years 1980 to 1987 and that I graduated with Bachelor of Applied Science and Master of Applied Science degrees in Mechanical Engineering, that I am a registered Professional Engineer of the Association of Professional Engineers, Geologists & Geophysicists of Alberta; that I am a member of the Canadian Institute of Mining and Metallurgy and that I have in excess of thirteen years experience in oil and gas reservoir studies and evaluations. 3. That McDaniel & Associates Consultants Ltd., its officers or employees, have no direct or indirect interest, nor do they expect to receive any direct or indirect interest in any properties or securities of Hawker Resources Inc., any associate or affiliate thereof. 4. That the aforementioned report was not based on a personal field examination of the properties in question, however, such an examination was not deemed necessary in view of the extent and accuracy of the information available on the properties in question. "signed by P. A. Welch" - --------------------------------- P. A. Welch, P. Eng. Calgary, Alberta Dated: April 22, 2003 CERTIFICATE OF QUALIFICATION I, Bryan J. Wurster, Engineer In Training of 2200,255 - 5th Avenue, S.W., Calgary, Alberta, Canada hereby certify: 1. That I am an Engineer In Training of McDaniel & Associates Consultants Ltd. which Company did prepare, at the request of Hawker Resources Inc., the report entitled "Hawker Resources Inc., Evaluation of Gas Reserves, Based on March Escalating Price Assumptions, As of May 1, 2003", dated April 22, 2003, and that I was involved in the preparation of this report. 2. That I attended the University of Manitoba in the years 1993 to 1997 and that I graduated with Bachelor of Science degree in Mechanical Engineering, that I am a registered Engineer In Training of the Association of Professional Engineers, Geologists & Geophysicists of Alberta; that I am a member of the Canadian Institute of Mining and Metallurgy and that I have in excess of four years of experience in oil and gas reservoir studies and evaluations. 3. That McDaniel & Associates Consultants Ltd., its officers or employees, have no direct or indirect interest, nor do they expect to receive any direct or indirect interest in any properties or securities of Hawker Resources Inc., any associate or affiliate thereof. 4. That the aforementioned report was not based on a personal field examination of the properties in question, however, such an examination was not deemed necessary in view of the extent and accuracy of the information available on the properties in question. "signed by B. J. Wurster" - -------------------------------- B. J. Wurster, E.I.T. Calgary, Alberta Dated: April 22, 2003 CERTIFICATE OF QUALIFICATION I, Ronald Ott, Petroleum Geologist of 2200, 255 - 5th Avenue, S.W., Calgary, Alberta, Canada hereby certify: 1. That I am the Manager of Geology for McDaniel & Associates Consultants Ltd. which Company did prepare, at the request of Hawker Resources Inc., the report entitled "Hawker Resources Inc., Evaluation of Gas Reserves, Based on March Escalating Price Assumptions, As of May 1, 2003", dated April 22, 2003, and that I was involved in the preparation of this report. 2. That I attended University of Calgary in the years 1984 to 1988, graduating with a Bachelor of Science degree in Geology; that I am a member of the Canadian Society of Petroleum Geologists; that I am a registered Professional Geologist of the Association of Professional Engineers, Geologists & Geophysicists of Alberta and that I have in excess of nine years experience in oil and gas reservoir studies and evaluations. 3. That McDaniel & Associates Consultants Ltd., its officers or employees, have no direct or indirect interest, nor do they expect to receive any direct or indirect interest in any properties or securities of Hawker Resources Inc., any associate or affiliate thereof 4. That the aforementioned report was not based on a personal field examination of the properties in question, however, such an examination was not deemed necessary in view of the extent and accuracy of the information available on the properties in question. "signed by R. Ott" - --------------------------------- R. Ott, P. Geol. Calgary, Alberta Dated: April 22, 2003 HAWKER RESOURCES INC. - MECHANICAL UPDATE TABLE A TOTAL COMPANY RESERVES AND PRESENT WORTH VALUES MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED & PROBABLE RESERVES - UNRISKED TOTAL OF ALL AREAS
COMPANY SHARE OF COMPANY SHARE OF PRESENT WORTH VALUES REMAINING RESERVES BEFORE INCOME TAX (4)(5)(6) (MBBL, MMCF, MLT) (M$) --------------------- -------------------------------------------------------------- GROSS(1) NET(2) @0.0% @10.0% @12.0% @15.0% @20.0% - ----------------------------------------------------------------------------------------------------------------------------------- PROVED PRODUCING RESERVES Natural Gas 18,607.0 14,450.2 65,103.7 52,720.6 50,927.4 48,522.9 45,123.9 --------- -------- -------- -------- -------- TOTAL 65,103.7 52,720.6 50,927.4 48,522.9 45,123.9 PROVED NON-PRODUCING RESERVES Crude Oil -22.1 -14.8 -13.7 -12.3 -10.3 Natural Gas 3,592.1 2,628.8 12,004.9 9,643.1 9,327.4 8,909.2 8,323.8 --------- -------- -------- -------- -------- TOTAL 11,982.8 9,628.3 9,313.7 8,896.8 8,313.5 TOTAL PROVED RESERVES Crude Oil -22.1 -14.8 -13.7 -12.3 -10.3 Natural Gas 22,199.1 17,079.0 77,108.5 62,363.7 60,254.8 57,432.0 53,447.8 --------- -------- -------- -------- -------- TOTAL 77,086.5 62,348.8 60,241.1 57,419.7 53,437.5 TOTAL PROBABLE RESERVES Natural Gas 8,388.6 6,361.5 27,003.3 17,355.7 16,172.5 14,664.2 12,681.3 --------- -------- -------- -------- -------- TOTAL 27,003.3 17,355.7 16,172.5 14,664.2 12,681.3 TOTAL PROVED & PROBABLE RESERVES Crude Oil -22.1 -14.8 -13.7 -12.3 -10.3 Natural Gas 30,587.7 23,440.6 104,111.9 79,719.5 76,427.4 72,096.2 66,129.2 --------- -------- -------- -------- -------- TOTAL 104,089.8 79,704.6 76,413.6 72,083.9 66,118.9 BOE RESERVES & PWV/BOE(3) Proved Producing 3,101.2 2,408.4 20.99 17.00 16.42 15.65 14.55 Proved Non-Producing 598.7 438.1 20.02 16.08 15.56 14.86 13.89 Total Proved 3,699.8 2,846.5 20.84 16.85 16.28 15.52 14.44 Total Probable 1,398.1 1,060.3 19.31 12.41 11.57 10.49 9.07 Total Proved & Probable 5,098.0 3,906.8 20.42 15.63 14.99 14.14 12.97
(1) Before royalty deductions. (2) After royalty deductions. (3) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE based on Gross BOE reserves. (4) No allowance was made for the degree of risk associated with any of the reserve categories. (5) Before allowance for Alberta Royalty Tax Credit. (6) Costs associated with extraction of natural gas products have in most cases been deducted from the natural gas revenues. MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE LOCATION OF MAJOR PROPERTIES [MAP] [MCDANIEL & ASSOCIATES CONSULTANTS LTD. LOGO] HAWKER RESOURCES INC. - MECHANICAL UPDATE MARCH ESCALATING PRICES TOTAL COMPANY COMPANY SHARE NATURAL GAS PRODUCTION PROFILE [LINE GRAPH] BEFORE TAX NET OPERATING INCOME PROFILE [BAR GRAPH] MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE MARCH ESCALATING PRICES RESERVE DISTRIBUTION BY RESERVE CLASS AND PRODUCT RESERVE DISTRIBUTION BY RESERVE CLASS [PIE CHART] PP 61% PA 27% PNP 12%
RESERVE AND PRESENT WORTH VALUE DISTRIBUTION FOR MAJOR PROPERTIES TOTAL PROVED RESERVES TOP 5 PROPERTIES BY 15% PWV [PIE CHART] Lavoy 19% West Lavoy 11% Birch 10% Ranfurly 8% Warwick East 7% Other 45%
MCDANIEL & ASSOCIATES CONSULTANTS LTD. TABLE 1 MCDANIEL & ASSOCIATES CONSULTANTS LTD. SUMMARY OF PRICE FORECASTS MARCH 1, 2003
ALBERTA EDMONTON WTI BRENT EDMONTON BOW RIVER AVERAGE COND. & US/CAN CRUDE CRUDE LIGHT MEDIUM HEAVY NATURAL NATURAL EDMONTON EDMONTON EDMONTON EXCHANGE OIL OIL CRUDE OIL CRUDE OIL CRUDE OIL GAS GASOLINES PROPANE BUTANES NGL MIX INFLATION RATE YEAR $US/BBL $US/BBL $C/BBL $C/BBL $C/BBL $C/MMBTU $/BB1 $/BBL $/BBL $/BBL % $US/$CAN - ---------------------------------------------------------------------------------------------------------------------------------- (1) (2) (3) (4) (5) (6) (7) HISTORY 1986 15.00 20.50 15.11 na 2.35 20.10 13.96 17.30 16.40 4.2 0.719 1987 19.30 24.30 20.79 na 1.64 23.80 9.98 16.80 15.10 4.4 0.755 1988 16.00 18.70 14.41 na 1.44 18.30 8.19 12.95 11.90 4.0 0.812 1989 19.60 22.20 18.09 na 1.47 21.80 8.14 10.35 11.60 5.0 0.844 1990 24.50 27.60 21.06 16.00 1.45 27.00 13.67 16.21 17.20 4.8 0.857 1991 21.40 23.40 15.07 9.05 1.18 22.90 11.91 15.25 15.30 5.6 0.873 1992 20.55 23.50 17.52 12.95 1.22 23.00 10.55 14.05 14.30 1.5 0.828 1993 18.60 21.90 16.70 13.30 1.89 21.50 14.10 13.55 15.40 1.8 0.775 1994 17.20 22.20 18.43 15.00 1.83 21.75 12.50 13.45 14.70 0.2 0.732 1995 18.45 24.25 20.80 17.25 1.18 23.76 13.90 13.80 15.80 2.2 0.729 1996 22.10 29.35 25.11 20.05 1.50 28.75 22.20 17.15 21.70 1.6 0.733 1997 20.55 19.09 27.80 21.22 14.40 1.85 31.10 18.60 19.05 21.30 1.6 0.722 1998 14.40 12.77 20.35 14.60 9.40 1.90 21.85 10.95 11.90 13.50 1.0 0.687 1999 19.25 17.86 27.60 23.35 19.65 2.60 27.60 15.45 17.73 18.70 1.7 0.673 2000 30.31 28.40 44.72 34.35 27.80 5.20 46.25 31.55 35.00 35.70 2.7 0.674 2001 25.97 24.42 39.60 25.07 18.05 5.25 42.42 29.15 28.45 31.60 2.0 0.646 2002 26.10 24.95 39.95 31.65 27.60 3.89 40.65 19.85 26.10 26.20 2.0 0.637 2003 (2 mo est.) 34.00 32.50 51.00 42.00 36.50 8.00 51.00 20.25 25.00 28.10 2.0 0.670 FORECAST 2003 (10 mo.) 30.00 28.50 43.10 36.10 31.10 6.90 43.10 28.80 28.40 31.50 2.0 0.680 2004 26.00 24.47 37.20 31.59 26.49 5.65 37.20 25.40 24.50 27.40 2.0 0.680 2005 24.00 22.44 34.30 28.58 23.38 5.05 34.30 23.10 22.60 25.20 2.0 0.680 2006 23.00 21.41 32.80 26.96 21.66 4.80 32.80 22.00 21.60 24.00 2.0 0.680 2007 23.30 21.68 33.20 27.25 21.83 4.65 33.20 21.80 21.90 24.10 2.0 0.680 2008 23.80 22.14 33.90 27.83 22.31 4.70 33.90 22.20 22.40 24.60 2.0 0.680 2009 24.30 22.61 34.60 28.41 22.78 4.80 34.60 22.70 22.80 25.10 2.0 0.680 2010 24.80 23.08 35.30 28.98 23.24 4.90 35.30 23.10 23.30 25.60 2.0 0.680 2011 25.30 23.54 36.00 29.56 23.70 5.00 36.00 23.60 23.70 26.10 2.0 0.680 2012 25.80 24.01 36.70 30.13 24.15 5.10 36.70 24.10 24.20 26.70 2.0 0.680 2013 26.30 24.47 37.50 30.80 24.70 5.20 37.50 24.60 24.70 27.20 2.0 0.680 2014 26.80 24.93 38.20 31.36 25.14 5.30 38.20 25.00 25.20 27.70 2.0 0.680 2015 27.30 25.40 38.90 31.92 25.58 5.40 38.90 25.50 25.60 28.20 2.0 0.680 2016 27.80 25.86 39.60 32.49 26.02 5.50 39.60 25.90 26.10 28.70 2.0 0.680 2017 28.40 26.42 40.40 33.14 26.55 5.60 40.40 26.40 26.60 29.30 2.0 0.680 2018 29.00 26.98 41.30 33.90 27.17 5.70 41.30 27.00 27.20 29.90 2.0 0.680 2019 29.60 27.54 42.20 34.65 27.79 5.85 42.20 27.60 27.80 30.60 2.0 0.680 2020 30.20 28.10 43.00 35.30 28.30 5.95 43.00 28.10 28.40 31.20 2.0 0.680 2021 30.80 28.66 43.90 36.04 28.90 6.10 43.90 28.80 28.90 31.90 2.0 0.680 2022 31.40 29.21 44.70 36.69 29.40 6.20 44.70 29.30 29.50 32.50 2.0 0.680 Thereafter 31.40 29.21 44.70 36.69 29.40 6.20 44.70 29.30 29.50 32.50 0.0 0.680
(1) West Texas Intermediate at Cushing Oklahoma 40 degrees API/0.5% sulphur (2) North Sea Brent Blend 37 degrees API/l.0% sulphur (3) Edmonton Light Sweet 40 degrees API, 0.5% sulphur (4) Bow River Medium 25 degrees API/2.1% sulphur at Hardisty Alberta (5) Heavy crude oil 12 degrees API at Hardisty Alberta (after deduction of blending costs to reach pipeline quality) (6) Average Alberta field price (7) NGL Mix based on 45 percent propane, 35 percent butane and 20 percent natural gasolines. G030301 - Effective March 1, 2003 MCDANIEL & ASSOCIATES CONSULTANTS LTD. TABLE 2 MCDANIEL & ASSOCIATES CONSULTANTS LTD. SUMMARY OF NATURAL GAS PRICE FORECASTS MARCH 1, 2003
ALBERTA SASK. SASK. BRITISH BRITISH B.C. U.S. AECO ALBERTA SPOT PLOV. SPOT COLUMBIA COLUMBIA SPOT HENRY HUB SPOT AVERAGE AGGREGATOR SALES GAS SALES CANWEST CANWEST SALES GAS PRICE PRICE PLANTGATE PLANTGATE PLANTGATE PLANTGATE PLANTGATE PLANTGATE WELLHEAD PLANTGATE YEAR $US/MMBTU $C/GJ $C/MMBTU $C/MMBTU $C/MMBTU $C/MMBTU $C/MMBTU $C/MMBTU $C/MCF $C/MMBTU - ------------------------------------------------------------------------------------------------------------------------ (1) HISTORY 1986 1.75 - 2.35 2.59 - 2.51 - - - - 1987 1.50 - 1.64 1.82 - 1.86 - - - - 1988 1.85 - 1.44 1.66 1.21 1.86 - - - - 1989 1.68 - 1.47 1.57 1.28 1.60 - - - - 1990 1.67 - 1.45 1.64 1.20 1.67 - - - - 1991 1.54 - 1.18 1.31 0.97 1.61 1.13 1992 1.79 - 1.22 1.30 1.04 1.51 - 1.47 1.11 1.10 1993 2.13 - 1.89 1.60 2.16 2.16 - 1.73 1.37 2.13 1994 1.92 1.88 1.83 1.81 1.86 1.92 - 1.81 1.45 1.87 1995 1.62 1.12 1.18 1.23 1.02 1.35 - 1.29 0.90 1.12 1996 2.50 1.39 1.54 1.63 1.34 1.52 - 1.51 1.14 1.47 1997 2.59 1.71 1.84 1.86 1.67 1.85 - 1.78 1.43 1.98 1998 2.06 1.96 1.90 1.88 1.84 2.05 - 1.94 1.59 2.00 1999 2.28 2.79 2.60 2.46 2.78 2.82 2.96 2.52 2.19 2.77 2000 4.31 5.32 5.20 4.57 5.38 4.78 4.83 5.27 5.05 4.88 2001 3.98 5.15 5.25 5.25 5.25 5.70 6.15 6.75 6.58 6.30 2002 3.36 3.86 3.89 3.80 3.91 3.90 3.90 3.63 3.35 3.93 2003 (2 mo est.) 5.70 7.56 7.50 7.25 7.80 7.50 7.80 6.50 6.10 6.65 FORECAST 2003 (10 mo.) 5.50 6.69 6.90 6.90 6.90 7.05 7.05 6.80 6.65 6.90 2004 4.50 5.51 5.65 5.65 5.65 5.80 5.80 5.55 5.35 5.65 2005 4.00 4.95 5.05 5.05 5.05 5.20 5.20 4.95 4.70 5.05 2006 3.75 4.71 4.80 4.80 4.80 4.95 4.95 4.70 4.45 4.80 2007 3.66 4.57 4.65 4.65 4.65 4.80 4.80 4.55 4.30 4.65 2008 3.69 4.61 4.70 4.70 4.70 4.85 4.85 4.60 4.30 4.70 2009 3.77 4.71 4.80 4.80 4.80 4.95 4.95 4.70 4.40 4.80 2010 3.85 4.81 4.90 4.90 4.90 5.05 5.05 4.80 4.50 4.90 2011 3.93 4.90 5.00 5.00 5.00 5.20 5.20 4.90 4.60 5.00 2012 4.00 5.00 5.10 5.10 5.10 5.30 5.30 5.00 4.70 5.10 2013 4.08 5.10 5.20 5.20 5.20 5.40 5.40 5.10 4.80 5.20 2014 4.16 5.19 5.30 5.30 5.30 5.50 5.50 5.20 4.90 5.30 2015 4.24 5.29 5.40 5.40 5.40 5.60 5.60 5.30 5.00 5.40 2016 4.31 5.38 5.50 5.50 5.50 5.70 5.70 5.40 5.10 5.50 2017 4.41 5.50 5.60 5.60 5.60 5.80 5.80 5.50 5.15 5.60 2018 4.50 5.62 5.70 5.70 5.70 5.90 5.90 5.60 5.25 5.70 2019 4.59 5.73 5.85 5.85 5.85 6.05 6.05 5.75 5.40 5.85 2020 4.69 5.85 5.95 5.95 5.95 6.15 6.15 5.85 5.50 5.95 2021 4.78 5.97 6.10 6.10 6.10 6.30 6.30 6.00 5.65 6.10 2022 4.87 6.08 6.20 6.20 6.20 6.40 6.40 6.10 5.75 6.20 Thereafter 4.87 6.08 6.20 6.20 6.20 6.40 6.40 6.10 5.75 6.20
(1) This forecast also applies to direct sales contracts and the Alberta gas reference price used in the crown royalty calculations. G030301 - Effective March 1, 2003 MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. MECHANICAL UPDATE ------------------------------ EVALUATION OF GAS RESERVES BASED ON MARCH ESCALATING PRICE ASSUMPTIONS AS OF MAY 1, 2003 EVALUATION METHODOLOGY INTRODUCTION Estimates of the natural gas reserves and the associated present worth values before income taxes attributable to the Canadian properties of the Company have been presented in this report as of May 1, 2003. Reserve estimates were prepared for approximately 250 individual properties in which the Company was indicated to have an interest in Western Canada based on detailed studies of the reservoir and performance characteristics as well as historical revenues and costs. The basic information employed in the preparation of this report was obtained from the Company's files, published sources and from our own files. Detailed reserve estimates and revenue forecasts and other supporting data for each of the properties that were reviewed in detail were provided in the detailed property report. Property discussions and a detailed description of the economic factors employed to derive the cash flow forecasts were also included therein. The effective date of this report is May 1, 2003. The reserve estimates presented herein were based on the operating and economic conditions and development status as of that date except for changes planned for the immediate future or in the process of implementation. The assumptions and methodology employed in the preparation of this report conform with generally accepted petroleum engineering and evaluation principles and are consistent with those used in our previous evaluations of the Company. A brief review of the methodology employed in arriving at the reserves and present worth value estimates is presented in this section. RESERVE ESTIMATES NATURAL GAS The natural gas reserve estimates were based on a study of the volumetric data and performance characteristics of the individual wells and reservoirs in question. Volumetric estimates of the gas-in-place were based on individual well pore volume interpretations, geological studies of the pools and areas and on unitization studies and published estimates. Material balance estimates of the gas-in-place were MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 2 MARCH ESCALATING PRICE ASSUMPTIONS APRIL 22, 2003 - -------------------------------------------------------------------------------- employed where such information was available. The reserves recoverable from the currently producing properties were estimated from studies of performance characteristics and/or reservoir pressure histories. In cases of competitive drainage in multi-well pools the reserves were based on an analysis of the relevant factors relating to the future pool depletion by existing and possible future wells. The recovery factors for the non-producing properties were estimated from a consideration of test rates, reservoir pressures and by analogy with similar wells or reservoirs. RESERVE CLASSIFICATION The natural gas reserves of the Company were classified into proved and probable additional categories. The proved reserves were considered to be those reserves estimated as recoverable under current technology and existing economic conditions, from that portion of a reservoir which can be reasonably evaluated as economically productive on the basis of analysis of drilling, geological, geophysical and engineering data, including the reserves to be obtained by enhanced recovery processes demonstrated to be economic and technically successful in the subject reservoir. Probable reserves are those reserves which analysis of drilling, geological, geophysical and engineering data does not demonstrate to be proved under current technology and existing economic conditions, but where such analysis suggests the likelihood of their existence and future recovery. Probable additional reserves to be obtained by the application of enhanced recovery processes will be the increased recovery over and above that estimated in the proved category which can be realistically estimated for the pool on the basis of enhanced recovery processes which can be reasonably expected to be instituted in the future. A more detailed description of the factors considered in making these reserve assignments is presented in the "Reserve Definitions" at the end of this section. The proved reserves have been further subdivided into proved producing and proved non-producing categories. Reserves were considered to be producing if these reserves are currently being produced or if definitive steps are being taken to begin production of these reserves in the immediate future. Reserves assigned to non-producing zones in producing wells were classified as producing if the reserve quantities were estimated to be minor relative to the Company's reserves in the area. Non-producing reserves recoverable from existing wells that require relatively minor capital expenditures to produce were classified as proved non-producing. The natural gas reserves were presented in thousands of standard cubic feet (MCF) and calculated at a base pressure of 14.65 psia and a base temperature of 60 degrees Fahrenheit. COMPANY SHARE OF RESERVES The Company's net share of reserves was obtained by employing the Company's indicated gross working and royalty interests in the various properties in question less all royalties owned by others. In MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 3 MARCH ESCALATING PRICE ASSUMPTIONS APRIL 22, 2003 - -------------------------------------------------------------------------------- estimating net reserves the applicable Crown royalties were based on the regulations in effect as of May 1, 2003. PRESENT WORTH VALUE ESTIMATES The present worth values of the natural gas reserves were obtained by employing future production and revenue analyses. The future natural gas production was predicated on the provisions of the natural gas purchase contracts where such contracts were available with consideration to the historical producing rates and the estimated deliverability. In those areas where shut-in natural gas reserves exist commencement of production was based on the proximity to a pipeline connection and the relevant factors relating to the future marketing of the reserves. The forecast natural gas prices with an adjustment for the heating value of the gas were employed to calculate the gross share of future natural gas revenues. Royalties and mineral taxes payable to the Crown were estimated based on the methods in effect as of May 1, 2003. Freehold and overriding royalties payable to others were estimated based on the indicated applicable rates. In those cases where a proportionate share of the natural gas gathering and processing charges were indicated to be payable by the Crown or royalties owned by others, these charges have been deducted in determining the net royalties payable. In all cases, estimates of the applicable capital expenditures and operating costs with an allowance for inflation were deducted in arriving at the Company's share of future net revenues. An allowance for future well abandonment costs was made for all of the Company's working interest wells, however, no allowance was made for the abandonment of any facilities. The present worth values were then obtained by employing 10, 12, 15 and 20 percent nominal annual discount rates compounded annually. No allowances were made for income tax or for the Alberta Royalty Tax Credit. The estimated present worth values of the proved plus probable additional reserves were obtained by employing future production and revenue analyses on a total proved plus probable reserve basis. All additional costs required to recover the probable additional reserves were included in the revenue forecasts. It should be pointed out that no allowance was made for any risk associated with the probable reserves in this report other than in the present worth value summary in the covering letter. Summaries of the Company's share of remaining reserves together with forecast future revenues, royalties, taxes, operating and capital costs, cash flow and present worth values are presented in detailed tabulations in Appendices 1 to 6. MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 4 MARCH ESCALATING PRICE ASSUMPTIONS APRIL 22, 2003 - -------------------------------------------------------------------------------- RESERVE DEFINITIONS CRUDE OIL A mixture, consisting mainly of pentanes and heavier hydrocarbons that may contain sulphur compounds, that is liquid at the conditions under which its volume is measured or estimated, but excluding such liquids obtained from the processing of natural gas. SYNTHETIC OIL Oil derived from the upgrading of crude bitumen or by chemical modification of coal or other materials and which is largely interchangeable with conventional crude oil as a refinery feedstock. NATURAL GAS The lighter hydrocarbons and associated non-hydrocarbon substances occurring naturally in an underground reservoir, which under atmospheric conditions is essentially a gas, but which may contain liquids. The natural gas reserve estimates are reported on a marketable basis, that is the gas which is available to a transmission line after removal of certain hydrocarbons and non-hydrocarbon compounds present in the raw natural gas and which meets specifications for use as a domestic, commercial or industrial fuel. NATURAL GAS LIQUIDS Those hydrocarbon components recovered from raw natural gas as liquids by processing through extraction plants or recovered from field separators, scrubbers or other gathering facilities. These liquids include the hydrocarbon components ethane, propane, butanes and pentanes plus, or a combination thereof. SULPHUR Elemental sulphur removed from the produced natural gas by processing through an extraction plant. REMAINING RESERVES Remaining reserves are those quantities of crude oil, natural gas, natural gas liquids and sulphur remaining after deducting those quantities produced up to the reference date of the study. GROSS RESERVES The total of the Company's working interests and/or royalty interests share of reserves before deducting royalties owned by others. NET RESERVES The total of the Company's working interests and/or royalty interests share of reserves after deducting the amounts attributable to the royalties owned by others. MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 5 MARCH ESCALATING PRICE ASSUMPTIONS APRIL 22, 2003 - -------------------------------------------------------------------------------- ROYALTIES The term royalties, as used in this report, refers to royalties paid to others. The royalties deducted from the reserves are based on the royalty percentage calculated by applying the applicable royalty rate or formula. In the case of Crown sliding scale royalties which are dependent on selling price the price forecasts for the individual properties in question has been employed. PROVED RESERVES Those reserves estimated as recoverable under current technology and existing economic conditions, from that portion of a reservoir which can be reasonably evaluated as economically productive on the basis of analysis of drilling, geological, geophysical and engineering data, including the reserves to be obtained by enhanced recovery processes demonstrated to be economic and technically successful in the subject reservoir. Reserves assigned to non-producing zones in producing wells were classified as producing if the reserve quantities were estimated to be minor relative to the Company's reserves in the area. COMMENTS: 1. Where reserves are clearly known to exist in a reservoir and would be physically recoverable but cannot be termed "proved reserves" because they are not commercially recoverable due to their remote location (i.e. frontier reserves), these reserves are itemized separately in the report and their special circumstances fully explained. 2. Zones which have not been completed but which are interpreted to be productive from well logs (or core analyses) and which have conclusive drill stem tests or other production tests indicating economic producing rates are considered to be proved providing there is a high degree of certainty that these reserves will be produced. 3. Zones interpreted to be productive from well logs (or core analyses) either completed or behind pipe but which have not been tested or have inconclusive tests are considered proved only if offsetting wells indicate favorable tests or productive characteristics from this zone and there is a high degree of certainty that these reserves will be produced because of favorable reservoir characteristics. 4. The proved recovery efficiencies for presently shut-in reserves are estimated from theoretical considerations or by analogy to the nearest similar zone or area. In all cases the productive capacities of the individual wells or reservoirs in question are taken into account. 5. The proved natural gas reserves may be based on the assumption that additional compressor horsepower will be installed to achieve lower abandonment pressures providing there is a high degree of certainty that such action will be taken. 6. An allowance for increased recoveries in enhanced recovery (water-flood, solvent-flood, etc.) projects is made only on the basis of demonstrated more favorable performance from the project in question or from similar projects in like reservoirs. Increased proved recoveries may be assigned prior to the installation of the facilities if in our opinion there is a high degree of certainty that such facilities will be installed in the future. A gradual transfer of reserves from a probable additional to a proved category is usually made in such projects as more performance history is obtained. The assignment of higher recovery factors to these projects by regulatory authorities does not necessarily provide a basis for increased proved recoveries since such assignments must often be made prior to obtaining indicative performance history in order to provide sufficient incentives to institute such schemes. MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE PAGE 6 MARCH ESCALATING PRICE ASSUMPTIONS APRIL 22, 2003 - -------------------------------------------------------------------------------- 7. Natural gas liquids and sulphur reserves are based on the recoveries of these products from the proved natural gas reserves and are dependent on current plant efficiencies. In the case of shut-in wells the reserves are based on analyses of the raw natural gas and anticipated extraction efficiencies. PROVED PRODUCING RESERVES Those proved reserves that are actually on production, or if not producing, that could be recovered from existing wells or facilities and where the reasons for the current non-producing status is the choice of the owner. An illustration of such a situation is where a well or zone is capable but is shut-in because its deliverability is not required to meet contract commitments. Reserves assigned to non-producing zones in producing wells were classified as producing if the reserve quantities were estimated to be minor relative to the Company's reserves in the area. PROVED NON-PRODUCING RESERVES Those non-producing proved reserves recoverable from existing wells that require relatively minor capital expenditures to produce. PROVED UNDEVELOPED RESERVES Those reserves expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major capital expenditure will be required. PROBABLE ADDITIONAL RESERVES Those reserves which analysis of drilling, geological, geophysical and engineering data does not demonstrate to be proved under current technology and existing economic conditions, but where such analysis suggests the likelihood of their existence and future recovery. Probable additional reserves to be obtained by the application of enhanced recovery processes will be the increased recovery over and above that estimated in the proved category which can be realistically estimated for the pool on the basis of enhanced recovery processes which can be reasonably expected to be instituted in the future. COMMENTS: 1. The probable additional natural gas reserves are based on the potential productive areas of the natural gas reservoirs in question which could not be deemed proved at this time as well as those solution gas reserves commercially recoverable from the probable additional crude oil reserves. 2. The probable additional reserves of natural gas liquids and sulphur were considered to be those reserves recoverable from the probable additional natural gas reserves. 3. Portions of the zones which have questionable potential based on well log interpretations (or core analyses) and which have not been indicated productive by conclusive tests are considered to be probable additional. MCDANIEL & ASSOCIATES CONSULTANTS LTD. TABLE 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES TOTAL OF ALL AREAS
NATURAL GAS ---------------------------- TOTAL ANNUAL SALES SALES OTHER GROSS NO.OF VOLUME PRICE REVENUE REVENUES REVENUE YEAR WELLS MMCF $/MCF M$ M$ M$ - ------------------------------------------------------------------- 2003 69.7 4665.3 7.00 32657.5 -22.5 32635.0 2004 65.0 5144.7 5.73 29494.2 558.3 30052.4 2005 57.8 3535.1 5.12 18111.2 18111.2 2006 49.4 2460.0 4.87 11974.9 11974.9 2007 42.8 1767.6 4.72 8336.1 8336.1 2008 33.3 1214.1 4.77 5788.3 5788.3 2009 26.4 847.7 4.87 4125.8 4125.8 2010 19.8 601.8 4.97 2989.2 2989.2 2011 16.6 468.9 5.07 2377.3 2377.3 2012 15.0 384.4 5.17 1988.2 1988.2 2013 13.5 301.9 5.28 1593.0 1593.0 2014 10.0 206.5 5.38 1110.4 1110.4 2015 6.9 143.9 5.48 788.0 788.0 2016 6.1 121.0 5.58 674.6 674.6 2017 2.8 72.8 5.66 411.9 411.9 REM. 1.3 263.2 6.03 1587.4 1587.4 TOTAL 22198.8 5.59 124007.8 535.7 124543.5 ======= ==== ======== ===== ========
CROWN ROYALTIES FREEHOLD ROYALTIES OVERRIDING ROYALTIES ---------------------------- -------------------------- -------------------------- TOTAL TOTAL UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. MINERAL ROYALTY ROYALTY NPI ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY TAX & TAXES & TAXES PYMTS. YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ % M$ - ------------------------------------------------------------------------------------------------------------------------------------ 2003 6219.4 414.5 5804.9 1224.1 84.0 1140.1 1148.1 68.3 1079.7 363.9 8388.7 25.69 21.5 2004 5139.9 419.1 4720.9 1125.9 96.4 1029.4 1179.8 87.0 1092.8 295.4 7138.5 24.20 19.7 2005 2766.2 253.5 2512.7 716.6 70.4 646.2 735.8 61.8 674.0 166.7 3999.6 22.08 12.6 2006 1578.2 153.7 1424.4 477.2 50.8 426.3 488.3 44.0 444.3 102.7 2397.7 20.02 9.0 2007 958.2 96.7 861.5 330.1 36.4 293.7 360.8 34.0 326.8 67.2 1549.2 18.58 6.7 2008 606.4 58.8 547.6 243.2 24.1 219.1 297.4 26.4 270.9 47.5 1085.2 18.75 6.4 2009 387.4 37.7 349.7 191.5 18.0 173.5 232.8 20.8 212.0 35.0 770.2 18.67 5.8 2010 268.9 26.5 242.4 140.3 13.2 127.0 151.4 13.5 137.9 25.0 532.3 17.81 5.0 2011 195.9 19.5 176.4 123.0 11.6 111.4 123.2 11.1 112.1 20.3 420.3 17.68 4.4 2012 152.9 15.4 137.5 107.8 10.1 97.7 107.9 9.8 98.1 16.7 350.0 17.60 3.8 2013 124.7 12.6 112.1 74.0 6.9 67.0 80.8 7.6 73.2 11.5 263.8 16.56 3.3 2014 91.7 9.3 82.4 41.3 3.9 37.4 64.5 6.1 58.4 6.9 185.1 16.67 2.9 2015 63.4 6.1 57.4 31.9 3.0 28.9 53.4 5.1 48.4 5.4 140.0 17.76 1.8 2016 53.3 5.1 48.2 28.5 2.7 25.8 45.9 4.4 41.5 4.7 120.2 17.81 1.7 2017 31.8 3.1 28.7 21.0 2.0 19.0 37.1 3.5 33.6 3.7 84.9 20.62 1.1 REM. 110.3 10.5 99.8 100.0 9.5 90.6 185.1 17.6 167.4 16.2 373.9 23.56 5.0 TOTAL 18748.5 1542.1 17206.5 4976.1 443.2 4533.0 5292.0 421.0 4871.0 1188.8 27799.5 22.42 110.6 ======= ====== ======= ====== ===== ====== ====== ===== ====== ====== ======= ===== =====
CAPITAL COSTS NET REVENUES AFTER COSTS ---------------------------------- ------------------------------- OPERATING ABD. NET OP. DRILLING EQUIP & TOTAL PWV COSTS COSTS INCOME & COMPL FACILITY CAPITAL ANNUAL CUM @15.0% YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - --------------------------------------------------------------------------------------------------------------------- 2003 2226.6 25.5 21972.6 748.5 748.5 21224.2 21224.2 20258.1 2004 2795.3 129.3 19969.7 19.5 156.1 175.6 19794.1 41018.3 16816.9 2005 2282.1 237.3 11579.5 11579.5 52597.8 8555.9 2006 1836.9 230.2 7501.1 7501.1 60098.9 4820.2 2007 1531.6 305.7 4942.9 4942.9 65041.9 2761.5 2008 1179.9 373.1 3144.0 13.9 13.9 3130.0 68171.9 1521.5 2009 924.7 259.0 2166.2 2166.2 70338.1 915.5 2010 699.3 172.2 1580.5 1580.5 71918.5 581.3 2011 579.2 102.7 1270.8 1270.8 73189.3 406.1 2012 523.4 64.2 1046.9 1046.9 74236.2 290.7 2013 469.2 49.7 807.0 807.0 75043.3 194.9 2014 346.3 166.1 410.1 410.1 75453.4 86.2 2015 235.3 12.9 398.0 398.0 75851.3 72.7 2016 207.6 39.3 305.8 305.8 76157.1 48.6 2017 98.7 119.7 107.4 107.4 76264.6 14.9 REM. 331.0 54.9 822.5 822.5 77087.0 75.2 TOTAL 16267.3 2341.6 78025.0 33.5 904.5 938.0 77087.0 57420.2 ======= ====== ======= ==== ===== ===== ======= =======
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ ------------------------- ------------------------------------------ PRODUCT GROSS NET @10.0% @12.0% @15.0% @20.0% Crude Oil (mbbl) -14.8 -13.7 -12.3 -10.3 Natural Gas (mmcf) 22199.1 17079.0 62363.7 60254.8 57432.0 53447.8 TOTAL 62348.8 60241.1 57419.7 53437.5 ======= ======= ======= =======
MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- --------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - --------------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 00/06-32-050-10-W4 W- 50.000 B QTZ NRA - - - - -7.4 -6.9 -6.2 00/06-32-050-10-W4 W- 50.000 SPKY NRA - - - - - - - 00/13-32-050-11-W4 W- 50.000 VIK - - - - - -7.3 -6.8 -6.0 02/10-07-050-12-W4 W- 50.000 GLAUC/CLY PP 43.1 - - - 149.9 147.4 143.8 02/01-14-050-12-W4 W- 50.000 SPKY L/CUMM PP 344.2 - - - 1135.2 1105.9 1065.0 00/09-15-050-12-W4 W- 50.000 CUMM PP 115.6 - - - 388.8 380.3 368.3 00/09-16-050-12-W4 W- 50.000 LLOYD/CUMM /NIS PP 7.5 - - - 32.8 33.3 33.9 00/14-16-050-12-W4 W- 50.000 NIS PNP 95.0 - - - 315.0 310.9 305.2 00/15-17-050-12-W4 W- 50.000 NIS PP 82.4 - - - 298.7 293.1 285.2 00/07-21-050-12-W4 W- 50.000 GLAUC/B QTZ PP 200.4 - - - 725.3 707.1 681.8 00/02-22-050-12-W4 W- 50.000 SPKY/LLOYD /B Q PP 128.2 - - - 479.7 471.2 459.1 00/02-22-050-12-W4 W- 50.000 WAS NRA - - - - - - - 00/08-22-050-12-W4 W- 50.000 ELL/CUMM PP 99.7 - - - 291.1 284.6 275.4 00/15-24-050-12-W4 WAS/SPKY/LLOYD NRA - - - - -8.0 -7.6 -7.0 00/02-04-051-10-W4 W- 50.000 SPKY/CUMM PNP 626.0 - - - 2180.9 2137.3 2076.1 00/02-04-051-10-W4 W- 50.000 CLY/WAS/WABIS NRA - - - - - - - 00/05-04-051-11-W4 W- 50.000 SPKY PP 23.5 - - - 99.2 98.6 97.6 SUBTOTAL 1765.6 - - - 6073.7 5948.4 5772.2 BONNYVILLE Bonnyville Grand W- 50.000 GRD RP PP 907.2 - - - 2190.2 2101.0 1981.2 Rapids C Pool Group Run Ptn Fort Kent Colony W- 50.000 CLY PP 137.6 - - - 412.0 402.4 389.1 C Pool - 10-36 & 6-6 00/01-24-059-05-W4 W- 35.000 GRD RP NRA - - - - -6.0 -5.8 -5.5 00/11-19-060-04-W4 W- 50.000 CLY PP 73.2 - - - 195.5 189.4 180.9 00/10-22-061-06-W4 W- 50.000 CLY PP 75.2 - - - 196.4 190.7 182.7 00/07-34-061-06-W4 W- 25.000 CLY A PP 1.2 - - - 0.1 0.3 0.5 NRA Wells NRA - - - - -20.1 -18.9 -17.3 SUBTOTAL 1194.4 - - - 2967.9 2859.0 2711.8 COLD LAKE Clearwater A Pool W- 25.000 CLWTR PP 353.7 - - - 1123.5 1095.6 1057.1 Group Run Secs 27&28-62-3W4 00/11-34-062-03-W4 W- 25.000 CLY PP 72.1 - - - 157.7 153.7 148.2 02/11-34-062-03-W4 W- 25.000 LLOYD NRA - - - - -4.7 -4.6 -4.4 00/09-35-062-03-W4 W- 25.000 CLY A PP 77.3 - - - 239.4 232.2 222.3 00/05-36-062-03-W4 W- 25.000 LLOYD PP 136.0 - - - 404.8 392.2 374.7 02/14-23-063-03-W4 W- 25.000 CLWTR D PP 33.4 - - - 119.9 117.9 115.0 02/14-23-063-03-W4 W- 25.000 CLY B NRA - - - - - - - 00/16-23-063-03-W4 W- 23.750 CLY A/LLOYD PP 169.2 - - - 476.3 459.0 435.5 00/07-25-063-03-W4 W- 23.750 CLY A NRA - - - - -3.5 -3.3 -2.9 00/10-25-063-03-W4 W- 23.750 LLOYD NRA - - - - -3.3 -3.0 -2.6 00/11-25-063-03-W4 W- 23.750 CLY B NRA - - - - -4.4 -4.3 -4.2 02/02-26-063-03-W4 W- 25.000 CLY B PNP 98.6 - - - 250.5 240.0 226.0 02/09-26-063-03-W4 W- 23.750 CLY A/LLOYD PP 131.9 - - - 423.3 413.3 399.3 00/08-36-063-03-W4 W- 23.750 CLY A/LLOYD PP 28.9 - - - 90.0 88.0 85.1 8 Gorr Wells R- 2.125 CLY PP 18.6 - - - 74.0 71.3 67.6 SUBTOTAL 1119.6 - - - 3343.6 3248.1 3116.7 HAIRY HILL 00/10-18-053-14-W4 R- 4.167 GLAUC PP 7.0 - - - 30.4 29.5 28.3 00/06-21-055-14-W4 W- 50.000 CLY/GLAUC/NIS PP 62.7 - - - 210.0 207.4 203.7 02/10-21-055-14-W4 W- 50.000 B QTZ/CLY PP 41.2 - - - 125.5 124.0 121.9 00/11-30-055-14-W4 W- 50.000 GLAUC PP 31.0 - - - 116.4 115.3 113.6 SUBTOTAL 141.9 - - - 482.3 476.2 467.5 HEDGE Natural Gas Hedge P- 50.000 PNP - - - - 477.7 467.4 452.7
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ---------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MIT @10.0% @12.0% @15.0% - --------------------------------------------------------------------------------------------------------------------------------- HOLDEN Holden Viking Gas W- 35,500 VIK PP 861.4 - - - 1792.9 1694.2 1566.3 Unit No. 3 JARROW 00/03-33-044-11-W4 W- 25.000 B QTZ/GLAUC PP 11.6 - - - 42.4 42.3 42.1 00/07-34-045-10-W4 W- 30.000 VIK PP 36.8 - - - 65.1 62.6 59.2 00/14-01-045-11-W4 W- 50.000 CLY PP 1.8 - - - 0.8 1.4 2.2 00/10-13-045-11-W4 W- 50.000 GLAUC PP 531.8 - - - 983.2 905.8 811.7 00/10-15-045-11-W4 F- 0.750 CLY/VIK PP 0.1 - - - 0.3 0.3 0.3 00/06-19-045-11-W4 R- 0.750 VIK PP 0.2 - - - 1.1 1.0 1.0 02/10-27-045-11-W4 W- 12.500 SPKY PP 1.4 - - - 1.4 1.5 1.7 00/04-29-045-11-W4 W- 12.500 VIK PP 3.7 - - - 5.6 5.6 5.6 00/06-30-045-11-W4 W- 12.500 VIK PP 13.5 - - - 42.3 41.2 39.7 00/11-31-045-11-W4 R- 0.750 VIK NRA - - - - - - - 00/09-36-046-12-W4 W- 25.000 VIK A,B NRA - - - - -3.4 -3.1 -2.7 SUBTOTAL 600.9 - - - 1138.7 1058.7 960.9 LAVOY Capital to purchase P- 50.000 PP - - - - -65.9 -65.5 -64.9 compressor 00/07-21-051-13-W4 W- 50.000 CLY/WAB PP 3.1 - - - -0.5 -0.3 0.1 00/12-28-051-13-W4 W- 50.000 CLY/NIS PP 273.4 - - - 700.6 680.5 652.9 00/10-29-051-13-W4 W- 50.000 NIS/ELL PP 106.4 - - - 297.0 286.6 272.3 00/10-29-051-13-W4 W- 50.000 ELL/NIS PNP 695.5 - - - 1041.7 938.1 815.6 00/02-31-051-13-W4 W- 50.000 ELL PP 107.2 - - - 260.1 253.0 243.2 00/14-31-051-13-W4 W- 50.000 WAS PP 41.5 - - - 165.2 163.1 160.1 00/01-32-051-13-W4 W- 50.000 NIS L/NIS U PP 299.0 - - - 992.2 964.2 925.5 00/01-32-051-13-W4 W- 50.000 SPKY L/LLOYD PP 234.5 - - - 802.2 781.0 751.6 00/11-32-051-13-W4 W- 50.000 NIS PP 151.6 - - - 377.6 359.4 335.5 00/10-33-051-13-W4 W- 50.000 CLY NRA - - - - -6.9 -6.3 -5.5 00/12-04-052-13-W4 W- 50.000 CLY/VIK NRA - - - - -8.0 -7.6 -7.0 00/11-05-052-13-W4 W- 50.000 VIK/CLY PP 160.2 - - - 435.7 424.1 408.0 00/13-18-052-13-W4 W- 24.750 CLY NRA - - - - -3.2 -2.8 -2.4 00/07-30-052-13-W4 W- 50.000 2 WS PNP 18.0 - - - 43.6 43.1 42.5 00/10-11-052-14-W4 W- 50.000 CLY/2 WS NRA - - - - -8.5 -8.1 -7.7 00/06-12-052-14-W4 W- 50.000 LLOYD/SPKY M PP 16.7 - - - 37.1 36.8 36.4 00/11-12-052-14-W4 W- 50.000 SPKY L/CUMM L NRA - - - - -8.0 -7.6 -7.0 00/15-12-052-14-W4 W- 50.000 GLAUC/CUMM L/SPK PP 147.2 - - - 515.2 502.6 484.9 00/06-15-052-14-W4 W- 50.000 CLY PP 67.4 - - - 236.3 232.3 226.6 02/10-15-052-14-W4 W- 50.000 CLY PP 204.9 - - - 561.8 546.4 525.1 00/06-22-052-14-W4 W- 50.000 CLY PP 268.7 - - - 669.0 647.4 617.9 00/06-22-052-14-W4 W- 50.000 VIK NRA - - - - - - - 00/08-22-052-14-W4 W- 50.000 LLOYD/SPKY L/SPK PP 59.0 - - - 225.8 222.5 217.7 00/08-22-052-14-W4 W- 50.000 VIK NRA - - - - - - - 00/12-26-052-14-W4 W- 50.000 SPKY/GLAUC PP 166.3 - - - 443.4 430.5 412.8 00/06-27-052-14-W4 W- 50.000 VIK PP 78.0 - - - 195.2 188.3 178.9 00/12-27-052-14-W4 W- 50.000 GLAUC/NIS PP 65.9 - - - 219.9 217.1 213.0 02/12-27-052-14-W4 W- 50.000 LLOYD/SPKY NRA - - - - -6.9 -6.3 -5.5 00/15-27-052-14-W4 W- 50.000 ELL PP 568.7 - - - 1434.5 1374.6 1294.6 02/06-28-052-14-W4 W- 50.000 SPKY/LLOYD /NIS PP 60.8 - - - 193.8 191.4 187.9 00/08-28-052-14-W4 W- 50.000 CLY/ELL PP 726.7 - - - 1564.0 1490.2 1393.1 00/16-29-052-14-W4 W- 50.000 ELL PP 40.6 - - - 124.9 123.2 120.8 00/10-32-052-14-W4 W- 50.000 VIK/CLY PP 0.8 - - - -5.5 -5.0 -4.3 00/06-34-052-14-W4 W- 50.000 ELL/NIS NRA - - - - -8.6 -8.3 -7.8 02/07-34-052-14-W4 W- 50.000 GLAUC U PP 142.1 - - - 464.2 451.6 434.3 00/06-06-053-14-W4 W- 50.000 VIK NRA - - - - -7.4 -6.9 -6.2 00/10-07-053-14-W4 F- 2.917 GLAUC PP 26.4 - - - 89.9 84.9 78.2 00/07-29-053-14-W4 W- 50.000 2 WS PNP 58.9 - - - 178.1 174.1 168.4 Lavoy NRA Wells ALL ZONES NRA - - - - -180.0 -166.7 -149.3 SUBTOTAL 4789.7 - - - 11959.5 11515.8 10930.5 MANNVILLE 00/09-16-052-07-W4 W- 37.500 CLY PP 237.8 - - - 525.9 493.2 451.5 MUNDARE 00/04-06-054-16-W4 W- 50.000 GLAUC L/GLAUC NRA - - - - -7.4 -6.9 -6.2 00/04-06-054-16-W4 W- 50.000 VIK/CLY/SPKY - - - - - -7.4 -6.9 -6.2 00/11-02-054-17-W4 W- 50.000 GLAUC PP 375.7 - - - 916.0 869.9 809.5 00/01-10-054-17-W4 W- 50.000 SPKY PP 82.3 - - - 285.5 280.5 273.4 00/10-10-054-17-W4 CLY NRA - - - - -5.9 -5.2 -4.3 00/01-13-054-17-W4 W- 50.000 GLAUC PNP 171.0 - - - 513.2 502.6 487.5
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE --------------------------------- ----------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------------ MUNDARE (CONT'D) 00/02-19-054-17-W4 W-50.000 B QTZ/GLAUC L NRA - - - - -8.0 -7.6 -7.0 00/02-19-054-17-W4 W-50.000 GLAUC PP 60.6 - - - 246.7 245.1 242.6 00/04-20-054-17-W4 W-50.000 GLAUC L/B QTZ PP 93.9 - - - 357.4 353.0 346.7 00/04-20-054-17-W4 W-50.000 GLAUC PNP 152.0 - - - 349.6 331.9 307.7 00/02-17-055-18-W4 W-50.000 U MN NRA - - - - -6.3 -5.6 -4.8 SUBTOTAL 935.5 - - - 2633.4 2550.9 2439.1 PLAIN 00/12-34-052-10-W4 W-50.000 CLY PP 274.0 - - - 863.4 841.2 810.4 00/12-34-052-10-W4 W-50.000 VIK NRA - - - - -7.3 -6.8 -6.0 00/10-14-052-12-W4 W-50.000 CLY PNP 143.2 - - - 433.7 423.4 409.0 00/12-28-052-12-W4 W-50.000 SPKY M/B QTZ PP 396.7 - - - 1146.4 1109.6 1059.4 00/15-32-052-12-W4 W-50.000 WAS/SPKY U PP 34.0 - - - 129.8 128.5 126.6 00/12-09-052-13-W4 W-50.000 VIK NRA - - - - -8.0 -7.6 -7.0 00/13-36-052-13-W4 W-50.000 SPKY NRA - - - - -9.3 -9.1 -8.8 00/14-18-053-11-W4 W-50.000 B QTZ NRA - - - - -7.4 -6.9 -6.2 00/07-04-053-12-W4 W-50.000 SPKY PP 124.6 - - - 252.0 243.3 231.4 SUBTOTAL 972.5 - - - 2793.3 2715.6 2608.8 RANFURLY Ranfurly Gas Unit W-13.542 ALL ZONES PP 10.5 - - - 35.4 35.8 36.2 02/09-35-050-13-W4 W-50.000 CLY/MCLAR PP 13.4 - - - 57.1 56.7 56.1 02/09-35-050-13-W4 W-50.000 VIK NRA - - - - - - - 00/06-36-050-13-W4 W-50.000 MCLAR PP 8.0 - - - 34.5 34.7 34.9 02/09-36-050-13-W4 W-50.000 B QTZ U PP 22.2 - - - 98.6 98.0 97.2 00/11-30-050-14-W4 R- 6.900 VIK L PP 10.9 - - - 43.8 42.1 39.9 00/03-32-050-14-W4 W-50.000 B QTZ/DET PP 277.3 - - - 974.7 951.1 918.3 00/16-23-050-15-W4 W-50.000 CLY PP 149.9 - - - 527.1 514.3 496.2 00/03-34-050-15-W4 W-50.000 B QTZ/CLY PP 258.0 - - - 890.9 867.7 835.3 00/05-18-051-07-W4 W-25.000 WAS/SPKY PNP 167.6 - - - 540.5 524.9 503.6 00/16-20-051-12-W4 W-50.000 SPKY PP 37.9 - - - 152.0 149.6 146.3 00/06-29-051-12-W4 W-50.000 CLY/SPKY PP 2.8 - - - 6.6 7.0 7.6 00/11-34-051-12-W4 W-50.000 GLAUC L/B QTZ PNP 340.5 - - - 644.5 616.3 577.8 00/12-01-051-13-W4 W-12.500 SPKY U NRA - - - - -2.3 -2.3 -2.2 02/08-04-051-13-W4 W-50.000 CLY PP 54.6 - - - 179.0 174.2 167.5 00/15-06-051-13-W4 W-50.000 WAS U PP 40.7 - - - 161.5 159.0 155.3 00/04-11-051-13-W4 W-13.542 GLAUC/WAB PP 31.6 - - - 116.8 114.0 110.0 00/06-22-051-13-W4 W-22.500 VIK PP 3.5 - - - 8.6 8.5 8.5 00/15-04-051-14-W4 W-50.000 CUMM L/CUMM PP 317.7 - - - 686.8 633.3 568.2 00/02-09-051-14-W4 F- 1.343 BR PP 0.5 - - - 2.6 2.6 2.5 00/06-10-051-14-W4 R- 9.943 BR PP 5.6 - - - 28.3 27.8 27.1 00/16-12-051-14-W4 W-50.000 WAB NRA - - - - -9.3 -9.1 -8.8 SUBTOTAL 1753.3 - - - 5177.6 5006.2 4777.4 ST. PAUL 00/05-03-058-09-W4 W-37.500 MN PP 13.5 - - - 29.7 29.2 28.5 00/12-03-058-09-W4 W-37.500 VIK PP 6.8 - - - 16.8 16.9 17.0 SUBTOTAL 20.2 - - - 46.5 46.1 45.4 VEGREVILLE 00/06-07-052-13-W4 W-50.000 CLY/GLAUC PP 78.2 - - - 268.1 264.7 259.8 02/06-07-052-13-W4 W-50.000 SPKY L/WAS PP 174.0 - - - 541.4 530.3 514.7 00/01-18-052-13-W4 W-24.750 GLAUC PP 61.3 - - - 139.7 136.4 131.6 00/01-18-052-13-W4 W-24.750 SPKY L PNP 57.6 - - - 56.3 50.2 42.4 00/06-19-052-13-W4 W-10.026 GLAUC PP 1.6 - - - 4.3 4.4 4.5 00/01-13-052-14-W4 W-50.000 LLOYD/GLAUC PP 41.1 - - - 133.2 131.3 128.5 00/06-13-052-14-W4 W-50.000 NIS/SPKY L PP 651.3 - - - 1869.8 1792.4 1689.2 00/12-13-052-14-W4 W-50.000 LLOYD/SPKY PP 27.2 - - - 121.9 121.1 119.9 00/03-24-052-14-W4 W-50.000 DET/NIS/LLOYD/ SP PP 153.1 - - - 501.4 486.0 464.9 00/09-24-052-14-W4 W-50.000 SPKY M/LLOYD/ GLA PP 24.8 - - - 96.9 95.7 94.0 00/10-09-053-14-W4 W-37.500 NIS PP 4.1 - - - 20.4 20.3 20.1 00/10-09-053-14-W4 W-37.500 SPKY PNP 64.1 - - - 189.7 184.2 176.6 SUBTOTAL 1338.3 - - - 3943.2 3817.1 3646.2 VIKING 00/16-14-048-12-W4 W-50.000 SPKY PP 125.5 - - - 453.6 444.5 431.6 00/03-12-049-11-W4 W-50.000 SPKY L PP 153.7 - - - 553.9 541.7 524.5 00/03-12-049-11-W4 W-50.000 CAM/B QTZ/SPKY NRA - - - - - - - 00/04-22-049-12-W4 W-47.500 B QTZ U/B QTZ L PP 26.6 - - - 110.6 109.9 108.7
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 4 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE --------------------------------- ---------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ----------------------------------------------------------------------------------------------------------------------------------- VIKING (CONT'D) 00/08-31-049-12-W4 W-50.000 LLOYD/WAS NRA - - - - -7.4 -6.9 -6.2 00/09-32-049-12-W4 W-50.000 LLOYD PP 40.6 - - - 153.4 151.1 147.9 00/06-28-049-13-W4 W-50.000 CLY PP 1.1 - - - -5.3 -5.3 -5.2 00/16-34-049-13-W4 W-50.000 SPKY PP 121.2 - - - 211.9 197.0 178.3 00/10-36-049-13-W4 W-50.000 WAB PP 4.5 - - - 6.7 7.2 7.8 00/02-24-049-14-W4 W-50.000 WAB NRA - - - - -6.9 -6.3 -5.5 00/08-04-050-12-W4 W-42.500 B QTZ U/B QTZ L PP 40.1 - - - 134.1 131.5 127.9 00/11-13-050-13-W4 W-34.375 VIK PP 10.1 - - - 15.6 15.6 15.4 R- 0.625 SUBTOTAL 523.4 - - - 1620.2 1580.1 1525.4 WARWICK 02/06-16-053-15-W4 W-50.000 SPKY/B QTZ/CUMM PP 39.6 - - - 145.0 143.0 140.1 02/06-35-053-15-W4 W-50.000 CLY PP 166.3 - - - 598.6 587.9 572.6 00/11-36-053-15-W4 W-50.000 VIK PNP 101.2 - - - 353.2 348.7 342.2 00/07-19-054-15-W4 W-50.000 WAS PNP 171.5 - - - 496.4 482.9 463.9 00/14-34-054-15-W4 W-50.000 WAS PP 127.6 - - - 414.7 404.7 390.8 00/14-34-054-15-W4 W-50.000 NIS/CLY PP 163.8 - - - 539.1 528.2 512.7 02/06-14-054-16-W4 W-50.000 WAS NRA - - - - -7.8 -7.4 -6.8 00/13-06-055-14-W4 W-50.000 CLY/NIS NRA - - - - -8.0 -7.6 -7.0 00/07-01-055-15-W4 GLAUC/NIS NRA - - - - -6.0 -5.7 -5.2 00/01-02-055-15-W4 W-50.000 NIS NRA - - - - -9.3 -9.1 -8.8 SUBTOTAL 769.9 - - - 2515.9 2465.6 2394.7 WARWICK EAST 00/16-30-052-14-W4 W-50.000 SPKY L/SPKY U PP 219.7 - - - 780.1 762.6 738.0 00/08-32-052-14-W4 W-50.000 NIS/SPKY PP 291.2 - - - 871.9 839.9 796.5 00/06-33-052-14-W4 W-48.360 NIS PP 382.9 - - - 963.1 905.4 830.8 00/09-33-052-14-W4 W-48.360 CLY/GLAUC/ELL PP 256.9 - - - 827.2 800.4 763.8 00/14-34-052-14-W4 W-50.000 CUMM L/ELL/ GLAUC PP 189.6 - - - 511.0 497.3 478.2 00/06-35-052-14-W4 W-12.500 GLAUC PP 25.1 - - - 69.9 67.5 64.2 00/04-04-053-14-W4 W-50.000 LLOYD/ELL PP 44.3 - - - 105.3 103.6 101.1 00/03-05-053-14-W4 W-50.000 SPKY U/GLAUC PP 29.3 - - - 73.7 73.0 71.9 00/08-06-053-14-W4 W-50.000 GLAUC/CLY PP 58.5 - - - 180.6 177.9 173.9 00/06-07-056-14-W4 W-25.000 SPKY PP 62.0 - - - 219.7 215.2 208.9 SUBTOTAL 1559.5 - - - 4602.5 4442.7 4227.2 WEST LAVOY 00/11-19-051-13-W4 W-50.000 VIK PP 321.9 - - - 882.7 841.2 786.5 00/15-15-051-14-W4 W-50.000 CLY PP 51.5 - - - 185.1 182.2 178.0 00/11-21-051-14-W4 W-50.000 CLY/WAS PP 7.3 - - - 21.7 21.6 21.4 00/11-22-051-14-W4 W-50.000 VIK PP 109.8 - - - 275.9 263.6 247.1 00/10-24-051-14-W4 W-50.000 CLY/GLAUC PP 408.6 - - - 866.4 819.1 757.9 00/14-29-051-14-W4 W-50.000 CLY PP 159.4 - - - 524.7 509.8 489.2 00/08-31-051-14-W4 W-50.000 CLY PNP 63.2 - - - 132.1 129.6 126.1 00/07-34-051-14-W4 W-50.000 VIK PP 3.9 - - - 2.9 3.3 3.9 00/16-10-051-15-W4 R- 6.250 BR PP 11.5 - - - 48.9 47.3 45.2 00/09-11-051-15-W4 R- 6.250 BR PP 9.4 - - - 37.9 36.5 34.5 00/10-14-051-15-W4 W-13.184 B BR PP 28.6 - - - 67.4 64.5 60.5 R- 3.105 00/07-15-051-15-W4 W-12.500 CLY NRA - - - - -2.3 -2.3 -2.2 02/07-15-051-15-W4 W-12.500 B BR M PP 52.4 - - - 169.8 164.3 156.8 00/12-15-051-15-W4 W-12.500 CLY PNP 126.6 - - - 405.4 389.1 367.5 00/09-16-051-15-W4 W-50.000 CLY PP 446.3 - - - 1292.6 1238.8 1167.2 00/10-21-051-15-W4 W-37.500 CLY PP 52.6 - - - 163.4 159.5 153.9 02/10-21-051-15-W4 W-37.500 B BR M NRA - - - - -6.5 -6.2 -5.9 00/16-21-051-15-W4 W-37.500 B BR M PP 276.6 - - - 856.1 820.3 772.6 02/10-22-051-15-W4 W-18.809 BR PP 96.1 - - - 264.3 252.0 235.9 00/07-26-051-15-W4 W-22.500 VIK A PP 8.4 - - - 12.8 12.6 12.4 00/14-29-051-15-W4 W-50.000 CLY NRA - - - - -5.5 -4.7 -3.8 00/11-19-052-15-W4 R- 0.388 U MN PP 1.0 - - - 4.1 3.9 3.7 00/14-14-054-15-W4 W-50.000 MCLAR/VIK PNP 229.3 - - - 719.8 701.7 676.5 SUBTOTAL 2464.5 - - - 6919.6 6647.6 6284.7 WILLINGDON 02/10-24-054-16-W4 W-50.000 WAS/CLY PP 425.7 - - - 1280.4 1235.2 1174.2 00/13-23-056-16-W4 W-25.000 SPKY/CLY PP 297.1 - - - 695.7 646.8 585.1 02/13-23-056-16-W4 W-25.000 GLAUC/B QTZ PP 127.9 - - - 421.8 409.7 393.0 00/10-29-056-16-W4 W-50.000 GLAUC PNP 212.3 - - - 711.1 695.0 672.4 00/10-29-056-16-W4 W-50.000 CLY NRA - - - - - - -
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 5 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE --------------------------------- ----------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------------ WILLINGDON (CONT'D) 02/12-29-056-16-W4 W-50.000 CLY NRA - - - - -9.3 -9.1 -8.8 00/12-03-057-16-W4 W-50.000 GLAUC PP 88.0 - - - 240.2 235.4 228.7 00/12-03-057-16-W4 W-50.000 CLY/WAS NRA - - - - - - - 00/07-15-057-16-W4 W-50.000 WAS/SPKY/ LSPKY/C - - - - - -5.8 -5.1 -4.2 SUBTOTAL 1150.9 - - - 3334.1 3207.8 3040.4 SUBTOTAL ALBERTA 22199.2 - - - 62348.4 60240.7 57419.4 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 22199.2 - - - 62348.4 60240.7 57419.4 - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 1 SUMMARY OF RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1,2003 TOTAL PROVED RESERVES
COMPANY INTEREST RESERVES NET RESERVES AFTER ROYALTY PRESENT WORTH VALUE --------------------------------- ------------------------------- ------------------------------------- GAS OIL NGL SULPHUR GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA BCF MBBL MBBL MLT BCF MBBL MBBL MLT @10.0% @12.O% @15.0% @20.0% - -------------------------------------------------------------------------------------------------------------------------------- ALBERTA Birch 1.77 - - - 1.34 - - - 6073.7 5948.4 5772.2 5506.4 Bonnyville 1.19 - - - 1.04 - - - 2967.9 2859.0 2711.8 2502.0 Cold Lake 1.12 - - - 0.87 - - - 3343.6 3248.1 3116.7 2924.7 Hairy Hill 0.14 - - - 0.12 - - - 482.3 476.2 467.5 453.8 Hedge - - - - - - - - 477.7 467.4 452.7 430.1 Holden 0.86 - - - 0.76 - - - 1792.9 1694.2 1566.3 1395.0 Jarrow 0.60 - - - 0.45 - - - 1138.7 1058.7 960.9 838.9 Lavoy 4.79 - - - 3.37 - - - 11959.5 11515.8 10930.5 10119.1 Mannville 0.24 - - - 0.20 - - - 525.9 493.2 451.5 397.1 Mundare 0.94 - - - 0.74 - - - 2633.4 2550.9 2439.1 2279.3 Plain 0.97 - - - 0.74 - - - 2793.3 2715.6 2608.8 2452.3 Ranfurly 1.75 - - - 1.34 - - - 5177.6 5006.2 4777.4 4454.6 St. Paul 0.02 - - - 0.02 - - - 46.5 46.1 45.4 44.3 Vegreville 1.34 - - - 1.01 - - - 3943.2 3817.1 3646.2 3401.6 Viking 0.52 - - - 0.44 - - - 1620.2 1580.1 1525.4 1446.0 Warwick 0.77 - - - 0.63 - - - 2515.9 2465.6 2394.7 2287.2 Warwick East 1.56 - - - 1.20 - - - 4602.5 4442.7 4227.2 3920.9 West Lavoy 2.46 - - - 1.95 - - - 6919.6 6647.6 6284.7 5776.7 Willingdon 1.15 - - - 0.87 - - - 3334.1 3207.8 3040.4 2807.1 SUBTOTAL ALBERTA 22.20 - - - 17.08 - - - 62348.4 60240.7 57419.4 53437.2 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL 22.20 - - - 17.08 - - - 62348.4 60240.7 57419.4 53437.2 - --------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 3 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES SORTED BY COMPANY GAS RESERVES
COMPANY INTEREST RESERVES PRESENT WORTH VALUE COMPANY GAS RESERVES ---------------------------------------- --------------------------- -------------------- GAS OIL NGL SULPHUR BOE(1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @ 10.0% @ 12.0% @ 15.0% TOTAL % - ------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 4.79 - - - 798.3 11959.5 11515.8 10930.5 21.58 21.58 2 West Lavoy 2.46 - - - 410.7 6919.6 6647.6 6284.7 11.10 32.68 3 Birch 1.77 - - - 294.3 6073.7 5948.4 5772.2 7.95 40.63 4 Ranfurly 1.75 - - - 292.2 5177.6 5006.2 4777.4 7.90 48.53 5 Warwick East 1.56 - - - 259.9 4602.5 4442.7 4227.2 7.03 55.55 6 Vegreville 1.34 - - - 223.1 3943.2 3817.1 3646.2 6.03 61.58 7 Bonnyville 1.19 - - - 199.1 2967.9 2859.0 2711.8 5.38 66.96 8 Willingdon 1.15 - - - 191.8 3334.1 3207.8 3040.4 5.18 72.15 9 Cold Lake 1.12 - - - 186.6 3343.6 3248.1 3116.7 5.04 77.19 10 Plain 0.97 - - - 162.1 2793.3 2715.6 2608.8 4.38 81.57 11 Mundare 0.94 - - - 155.9 2633.4 2550.9 2439.1 4.21 85.79 12 Holden 0.86 - - - 143.6 1792.9 1694.2 1566.3 3.88 89.67 13 Warwick 0.77 - - - 128.3 2515.9 2465.6 2394.7 3.47 93.13 14 Jarrow 0.60 - - - 100.1 1138.7 1058.7 960.9 2.71 95.84 15 Viking 0.52 - - - 87.2 1620.2 1580.1 1525.4 2.36 98.20 16 Mannville 0.24 - - - 39.6 525.9 493.2 451.5 1.07 99.27 17 Hairy Hill 0.14 - - - 23.6 482.3 476.2 467.5 0.64 99.91 18 St. Paul 0.02 - - - 3.4 46.5 46.1 45.4 0.09 100.00 19 Hedge - - - - - 477.7 467.4 452.7 - 100.00 TOTAL 22.20 - - - 3699.9 62348.4 60240.7 57419.4 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 4 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES SORTED BY COMPANY BOE RESERVES
COMPANY INTEREST RESERVES PRESENT WORTH VALUE COMPANY BOE RESERVES ----------------------------------------- --------------------------- -------------------- GAS OIL NGL SULPHUR BOE(1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @ 10.0% @ 12.0% @ 15.0% TOTAL % - ------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 4.79 - - - 798.3 11959.5 11515.8 10930.5 21.58 21.58 2 West Lavoy 2.46 - - - 410.7 6919.6 6647.6 6284.7 11.10 32.68 3 Birch 1.77 - - - 294.3 6073.7 5948.4 5772.2 7.95 40.63 4 Ranfurly 1.75 - - - 292.2 5177.6 5006.2 4777.4 7.90 48.53 5 Warwick East 1.56 - - - 259.9 4602.5 4442.7 4227.2 7.03 55.55 6 Vegreville 1.34 - - - 223.1 3943.2 3817.1 3646.2 6.03 61.58 7 Bonnyville 1.19 - - - 199.1 2967.9 2859.0 2711.8 5.38 66.96 8 Willingdon 1.15 - - - 191.8 3334.1 3207.8 3040.4 5.18 72.15 9 Cold Lake 1.12 - - - 186.6 3343.6 3248.1 3116.7 5.04 77.19 10 Plain 0.97 - - - 162.1 2793.3 2715.6 2608.8 4.38 81.57 11 Mundare 0.94 - - - 155.9 2633.4 2550.9 2439.1 4.21 85.79 12 Holden 0.86 - - - 143.6 1792.9 1694.2 1566.3 3.88 89.67 13 Warwick 0.77 - - - 128.3 2515.9 2465.6 2394.7 3.47 93.13 14 Jarrow 0.60 - - - 100.1 1138.7 1058.7 960.9 2.71 95.84 15 Viking 0.52 - - - 87.2 1620.2 1580.1 1525.4 2.36 98.20 16 Mannville 0.24 - - - 39.6 525.9 493.2 451.5 1.07 99.27 17 Hairy Hill 0.14 - - - 23.6 482.3 476.2 467.5 0.64 99.91 18 St. Paul 0.02 - - - 3.4 46.5 46.1 45.4 0.09 100.00 19 Hedge - - - - - 477.7 467.4 452.7 - 100.00 TOTAL 22.20 - - - 3699.9 62348.4 60240.7 57419.4 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:l for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 5 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES SORTED BY @15.0% PRESENT WORTH VALUE
COMPANY INTEREST RESERVES PRESENT WORTH VALUE @ 15.0% PRESENT WORTH VALUE ----------------------------------------- --------------------------- --------------------------- GAS OIL NGL SULPHUR BOE(1) BEFORE TAX (M$) % OF CUMULATIVE RANK BCF MBBL MBBL MLT MBBL @ 10.0% @ 12.0% @ 15.0% TOTAL % - -------------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 4.79 - - - 798.3 11959.5 11515.8 10930.5 19.04 19.04 2 West Lavoy 2.46 - - - 410.7 6919.6 6647.6 6284.7 10.95 29.98 3 Birch 1.77 - - - 294.3 6073.7 5948.4 5772.2 10.05 40.03 4 Ranfurly 1.75 - - - 292.2 5177.6 5006.2 4777.4 8.32 48.35 5 Warwick East 1.56 - - - 259.9 4602.5 4442.7 4227.2 7.36 55.72 6 Vegreville 1.34 - - - 223.1 3943.2 3817.1 3646.2 6.35 62.07 7 Cold Lake 1.12 - - - 186.6 3343.6 3248.1 3116.7 5.43 67.49 8 Willingdon 1.15 - - - 191.8 3334.1 3207.8 3040.4 5.29 72.79 9 Bonnyville 1.19 - - - 199.1 2967.9 2859.0 2711.8 4.72 77.51 10 Plain 0.97 - - - 162.1 2793.3 2715.6 2608.8 4.54 82.06 11 Mundare 0.94 - - - 155.9 2633.4 2550.9 2439.1 4.25 86.30 12 Warwick 0.77 - - - 128.3 2515.9 2465.6 2394.7 4.17 90.47 13 Holden 0.86 - - - 143.6 1792.9 1694.2 1566.3 2.73 93.20 14 Viking 0.52 - - - 87.2 1620.2 1580.1 1525.4 2.66 95.86 15 Jarrow 0.60 - - - 100.1 1138.7 1058.7 960.9 1.67 97.53 16 Hairy Hill 0.14 - - - 23.6 482.3 476.2 467.5 0.81 98.35 17 Hedge - - - - - 477.7 467.4 452.7 0.79 99.13 18 Mannville 0.24 - - - 39.6 525.9 493.2 451.5 0.79 99.92 19 St. Paul 0.02 - - - 3.4 46.5 46.1 45.4 0.08 100.00 TOTAL 22.20 - - - 3699.9 62348.4 60240.7 57419.4 100.00 -
(1) Barrels of Oil Equivalent based on 6.0:1 for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:1 for Ethane, 1.00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BoE base McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 4 Page 1 FIRST YEAR PRODUCTION, REVENUE AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES 2003 SUMMARY
PRODUCTION REVENUE AND EXPENSES AVERAGE VALUES $BOE (1) ---------------------------------------- -------------------------------- ---------------------------------- GROSS OPER. NET OIL GAS NGL SULPHUR BOE (1) REVENUE ENCUMB. EXP REV. (2) GROSS OPER NET AREA BOPD MCF/D BPD IT/D BOEPD $M $M $M $M REVENUE ENCUMB. EXP REV (2) - ------------------------------------------------------------------------------------------------------------------------------------ ALBERTA Birch - 2455.0 - - 409.0 4201 1043 275 2882 42.21 10.48 2.77 28.96 Bonnyville - 720.4 - - 120.0 1210 190 151 869 41.42 6.51 5.16 29.75 Cold Lake - 1089.3 - - 181.4 1829 469 139 1221 41.45 10.62 3.15 27.67 Hairy Hill - 254.5 - - 42.3 436 79 62 295 42.33 7.66 6.02 28.65 Hedge - - - - - -23 - - -23 - - - - Holden - 310.3 - - 51.7 531 72 75 385 42.25 5.69 5.96 30.59 Jarrow - 216.1 - - 35.9 370 99 32 240 42.34 11.28 3.63 27.43 Lavoy - 3717.9 - - 619.1 6343 2001 331 4011 42.11 13.28 2.20 26.63 Mannville - 87.3 - - 14.5 147 29 15 103 41.40 8.21 4.18 29.1 Mundare - 935.0 - - 155.8 1591 383 154 1054 41.98 10.10 4.07 27.1 Plain - 992.2 - - 165.3 1697 459 151 1086 42.18 11.42 3.75 27.1 Ranfurly - 1438.8 - - 239.5 2459 567 128 1763 42.18 9.73 2.20 30.25 St. Paul - 21.2 3.5 36 2 10 23 41.84 2.85 11.73 27.26 Vegreville - 1193.1 - - 198.7 2040 552 105 1384 42.19 11.41 2.16 28.62 Viking - 593.4 - - 98.8 1011 222 79 710 42.05 9.25 3.28 29.53 Warwick - 1091.0 - - 181.7 1848 399 180 1269 41.79 9.02 4.08 28.70 Warwick East - 1290.8 - - 214.9 2194 611 111 1473 41.95 11.68 2.12 28.15 West Lavoy - 1795.0 - - 298.9 3065 759 161 2145 42.14 10.44 2.21 29.49 Willingdon - 971.8 - - 161.9 1652 475 68 1109 41.93 12.05 1.73 28.15 SUBTOTAL ALBERTA - 19173.2 - - 3192.9 32635 8410 2227 21998 42.00 10.83 2.87 28.31 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL - 19173.2 - - 3192.9 32635 8410 2227 21998 42.00 10.83 2.87 28.31 - ------------------------------------------------------------------------------------------------------------------------------------
(1) Barrels of Oil Equivalent based on 6.0:l for Natural Gas, 1.00:1 for Condensate and C5+, 1.00:l for Ethane, 1,00:1 for Propane, 1.00:1 for Butanes, 1.00:1 for NGL Mix, 1.00:1 for Sulphur. PWV/BOE based on Gross BOE reserves. (2) Excludes capital and abandonment expenses. McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES GAS PRODUCTION FORECAST (MMCF) (1)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - --------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 597 561 310 175 91 32 - - - - 1766 - 1766 Bonnyville 175 221 181 149 122 94 72 55 44 37 1151 44 1194 Cold Lake 265 289 203 145 99 56 34 15 4 4 1115 5 1120 Hairy Hill 62 56 20 3 1 0 - - - - 142 - 142 Hedge - - - - - - - - - - - - - Holden 76 104 94 84 76 68 62 56 50 45 714 148 861 Jarrow 53 64 54 49 44 39 36 33 27 25 423 178 601 Lavoy 905 1030 735 521 404 312 215 134 109 89 4454 336 4790 Mannville 21 29 26 23 20 18 16 15 13 12 193 45 238 Mundare 228 198 175 116 69 41 26 22 19 16 910 26 935 Plain 241 252 165 117 87 61 29 20 - - 973 - 973 Ranfurly 350 489 306 197 142 69 45 20 16 15 1649 104 1753 St. Paul 5 7 4 3 0 - - - - - 20 - 20 Vegreville 290 336 215 144 100 87 58 42 33 25 1331 7 1338 Viking 144 142 86 54 24 9 9 9 8 8 493 30 523 Warwick 265 246 135 76 42 5 - - - - 770 - 770 Warwick East 314 362 267 189 138 91 67 45 32 25 1529 30 1560 West Lavoy 437 503 378 283 218 171 130 100 82 63 2365 99 2464 Willingdon 236 258 181 131 89 60 49 37 32 20 1093 57 1151 SUBTOTAL ALBERTA 4665 5145 3535 2460 1768 1214 848 602 469 384 21090 1109 22199 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL 4665 5145 3535 2460 1768 1214 848 602 469 384 21090 1109 22199 - --------------------------------------------------------------------------------------------------------------------------------
(1) Company gross share of production before royalty deductions McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES GROSS REVENUE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ---- ----- ----- ----- ----- ---- ---- ---- ---- ---- ---- -------- --------- ------ ALBERTA Birch 4201 3229 1593 855 433 153 - - - - 10462 - 10462 Bonnyville 1210 1249 914 713 568 443 348 271 219 187 6122 229 6351 Cold Lake 1829 1635 1026 696 462 265 163 71 21 19 6188 25 6213 Hairy Hill 436 323 102 14 5 1 - - - - 881 - 881 Hedge -23 558 - - - - - - - - 536 - 536 Holden 531 599 482 413 360 328 302 277 255 234 3781 806 4587 Jarrow 370 367 277 240 210 186 175 164 140 128 2258 1029 3287 Lavoy 6343 5910 3771 2539 1906 1487 1044 662 547 459 24669 1886 26555 Mannville 147 163 130 110 95 86 78 71 65 60 1004 242 1246 Mundare 1591 1136 902 565 327 197 127 110 97 85 5137 138 5274 Plain 1697 1448 850 571 411 291 141 100 - - 5508 - 5508 Ranfurly 2459 2812 1573 963 671 331 222 101 80 76 9289 601 9890 St. Paul 36 41 21 16 1 - - - - - 115 - 115 Vegreville 2040 1936 1107 706 475 418 285 212 167 131 7477 37 7514 Viking 1011 811 441 264 113 44 44 43 43 42 2855 164 3019 Warwick 1848 1401 688 367 197 24 - - - - 4526 - 4526 Warwick East 2194 2070 1364 919 651 433 325 225 162 132 8475 160 8635 West Lavoy 3065 2888 1944 1385 1033 818 637 497 420 329 13016 536 13552 Willingdon 1652 1477 926 638 417 285 236 183 161 106 6081 313 6394 SUBTOTAL ALBERTA 32635 30053 18111 11975 8336 5788 4126 2989 2377 1988 118379 6165 124544 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 32635 30053 18111 11975 8336 5788 4126 2989 2377 1988 118379 6165 124544 - -----------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES ENCUMBRANCE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - --------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 1043 737 335 152 64 20 - - - - 2351 - 2351 Bonnyville 190 175 113 79 57 41 30 23 18 14 740 16 756 Cold Lake 469 391 208 117 66 32 16 7 2 1 1308 2 1310 Hairy Hill 79 54 16 1 - - - - - - 150 - 150 Hedge - - - - - - - - - - - - - Holden 72 77 60 51 43 38 34 31 28 25 458 83 541 Jarrow 99 97 72 62 54 49 45 42 36 33 590 256 846 Lavoy 2001 1764 1068 696 500 383 281 178 148 126 7146 532 7678 Mannville 29 30 22 17 14 12 10 9 7 6 156 22 178 Mundare 377 224 187 101 52 27 17 13 11 9 1016 13 1029 Plain 459 362 189 110 69 44 23 14 - - 1271 - 1271 Ranfurly 564 772 374 196 114 59 39 11 9 8 2146 52 2198 St. Paul 2 3 1 1 0 - - - - - 7 - 7 Vegreville 550 499 276 167 112 115 79 57 43 33 1929 9 1938 Viking 214 139 61 30 11 4 4 4 3 3 472 13 485 Warwick 399 238 95 44 19 2 - - - - 797 - 797 Warwick East 608 518 302 181 123 79 55 36 29 25 1956 30 1986 West Lavoy 759 662 401 260 181 134 102 79 64 50 2692 94 2786 Willingdon 475 397 218 131 72 47 37 28 23 16 1445 47 1491 SUBTOTAL ALBERTA 8389 7139 4000 2398 1549 1085 770 532 420 350 26632 1168 27800 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL 8389 7139 4000 2398 1549 1085 770 532 420 350 26632 1168 27800 - -----------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES CAPITAL EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ------ ALBERTA Birch 150 - - - - - - - - - 150 - 150 Bonnyville - - - - - - - - - - - - - Cold Lake 15 - - - - - - - - - 15 - 15 Hairy Hill - - - - - - - - - - - - - Hedge - - - - - - - - - - - - - Holden - - - - - - - - - - - - - Jarrow - - - - - - - - - - - - - Lavoy 102 - - - - - - - - - 102 - 102 Mannville - - - - - - - - - - - - - Mundare 75 - - - - - - - - - 75 - 75 Plain 34 - - - - - - - - - 34 - 34 Ranfurly 34 156 - - - - - - - - 190 - 190 St. Paul - - - - - - - - - - - - - Vegreville - 20 - - - 14 - - - - 33 - 33 Viking - - - - - - - - - - - - - Warwick 150 - - - - - - - - - 150 - 150 Warwick East - - - - - - - - - - - - - West Lavoy 139 - - - - - - - - - 139 - 139 Willingdon 50 - - - - - - - - - 50 - 50 SUBTOTAL ALBERTA 748 176 - - - 14 - - - - 938 - 938 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL 748 176 - - - 14 - - - - 938 - 938 - ---------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES OPERATING EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 275 289 187 129 77 33 - - - - 990 - 990 Bonnyville 151 211 200 192 186 163 143 112 100 99 1557 148 1704 Cold Lake 139 173 145 123 100 70 57 29 9 9 852 13 865 Hairy Hill 62 76 37 6 0 0 - - - - 182 - 182 Hedge - - - - - - - - - - - - - Holden 75 112 112 104 103 103 103 104 95 96 1007 414 1420 Jarrow 32 39 33 33 30 26 26 26 19 18 281 215 496 Lavoy 331 458 398 314 298 280 211 115 97 77 2580 298 2878 Mannville 15 21 20 20 19 18 18 17 17 17 182 85 267 Mundare 154 155 144 111 69 44 28 27 25 24 782 44 826 Plain 151 179 132 108 96 78 43 35 - - 822 - 822 Ranfurly 128 171 126 96 88 45 33 16 13 13 729 147 877 St. Paul 10 15 9 8 1 - - - - - 43 - 43 Vegreville 105 140 103 78 61 49 34 29 28 28 653 9 661 Viking 79 95 77 64 34 16 17 17 17 17 432 75 507 Warwick 180 197 133 90 63 8 - - - - 672 - 672 Warwick East 111 159 147 117 99 65 55 40 27 19 839 26 864 West Lavoy 161 214 199 175 154 144 124 105 105 91 1470 172 1643 Willingdon 68 89 79 73 55 37 35 28 27 16 507 44 551 SUBTOTAL ALBERTA 2227 2796 2282 1837 1532 1180 925 699 579 523 14580 1688 16268 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL 2227 2796 2282 1837 1532 1180 925 699 579 523 14580 1688 16268 - ----------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES ABANDONMENT COST FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- --------- ------ ALBERTA Birch - - 10 22 44 45 - 12 - 12 144 13 157 Bonnyville - - 18 16 - 29 - - 12 - 76 127 202 Cold Lake - 10 - 5 21 11 11 11 - - 71 6 77 Hairy Hill - 10 - 11 - 11 - - - - 32 - 32 Hedge - - - - - - - - - - - - - Holden - - - - - - - - - - - 86 86 Jarrow - - - - 3 6 14 9 7 - 39 15 54 Lavoy 5 26 127 89 45 110 105 58 27 - 593 52 644 Mannville - - - - - - - - - - - 10 10 Mundare - - 10 11 33 22 11 23 - - 111 15 126 Plain - 10 - 11 22 34 - 23 - - 100 - 100 Ranfurly - 28 11 11 32 56 11 6 - 12 167 15 182 St. Paul - - - - 17 - - - - - 17 - 17 Vegreville - 21 11 - 13 - 32 - 6 - 82 12 95 Viking 10 - 11 9 44 19 - - - 12 105 13 118 Warwick - 10 10 30 - 11 23 - 12 - 96 - 96 Warwick East - - 11 - 11 11 11 18 24 - 85 15 101 West Lavoy 10 3 18 16 11 8 23 - 15 15 120 56 176 Willingdon - 10 - - 11 - 17 11 - 12 62 7 69 SUBTOTAL ALBERTA 26 129 237 230 306 373 259 172 103 64 1899 443 2342 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL 26 129 237 230 306 373 259 172 103 64 1899 443 2342 - ---------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED RESERVES NET REVENUE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL - ------------- ----- ----- ----- ---- ---- ---- ---- ---- ---- ---- -------- --------- ----- ALBERTA Birch 2732 2202 1060 553 248 55 - -12 - -12 6826 -13 6813 Bonnyville 869 862 583 426 326 210 175 136 89 74 3749 -61 3689 Cold Lake 1206 1061 673 451 275 152 79 24 11 9 3942 4 3946 Hairy Hill 295 183 49 -4 4 -11 - - - - 516 - 516 Hedge -23 558 - - - - - - - - 536 - 536 Holden 385 409 310 258 214 187 164 143 132 113 2316 223 2539 Jarrow 240 231 172 146 124 106 89 87 77 77 1348 543 1891 Lavoy 3904 3661 2178 1440 1063 715 447 310 276 256 14249 1004 15253 Mannville 103 112 87 73 62 56 50 45 41 37 666 125 790 Mundare 979 750 556 339 171 101 68 45 59 51 3118 64 3182 Plain 1052 897 528 342 224 136 76 27 - - 3281 - 3281 Ranfurly 1729 1682 1059 659 435 169 137 66 57 41 6033 375 6408 ST. Paul 23 23 11 7 -16 - - - - - 48 - 48 Vegreville 1384 1256 717 461 289 239 140 126 89 71 4772 7 4779 Viking 699 572 290 159 24 5 23 22 21 8 1824 61 1885 Warwick 1119 956 449 203 115 3 -23 - -12 - 2811 - 2811 Warwick East 1473 1391 903 620 418 278 204 131 83 88 5588 89 5677 West Lavoy 1996 2010 1326 935 688 531 389 313 236 173 8595 213 8808 Willingdon 1059 980 629 434 278 200 147 116 111 62 4017 216 4233 SUBTOTAL ALBERTA 21224 19794 11580 7501 4943 3130 2166 1580 1271 1047 74236 2851 77086 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL 21224 19794 11580 7501 4943 3130 2166 1580 1271 1047 74236 2851 77086 - ----------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES - UNRISKED TOTAL OF ALL AREAS
NATURAL GAS ---------------------------- TOTAL ANNUAL SALES SALES OTHER GROSS NO. OF VOLUME PRICE REVENUE REVENUES REVENUE YEAR WELLS MMCF $/MCF M$ M$ M$ - ------------------------------------------------------------------- 2003 71.8 5132.0 7.00 35921.2 -22.5 35898.7 2004 68.1 6041.0 5.73 34627.5 558.3 35185.8 2005 64.7 4532.3 5.12 23224.8 23224.8 2006 58.0 3395.4 4.87 16534.9 16534.9 2007 51.6 2649.6 4.72 12500.2 12500.2 2008 47.6 2177.8 4.77 10388.6 10388.6 2009 40.3 1596.8 4.87 7777.6 7777.6 2010 32.0 1183.4 4.97 5885.3 5885.3 2011 25.0 851.1 5.07 4317.4 4317.4 2012 19.9 617.8 5.17 3194.0 3194.0 2013 16.9 489.1 5.27 2579.6 2579.6 2014 15.2 406.1 5.38 2183.2 2183.2 2015 13.8 336.3 5.47 1841.3 1841.3 2016 13.5 295.5 5.58 1648.2 1648.2 2017 12.4 230.8 5.68 1310.8 1310.8 REM. 2.5 652.2 6.06 3951.0 3951.0 TOTAL 30587.2 5.49 167885.6 535.7 168421.3 - -------------------------------------------------------------------
CROWN ROYALTIES FREEHOLD ROYALTIES OVERRIDING ROYALTIES -------------------------- --------------------------- --------------------------- TOTAL TOTAL UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. MINERAL ROYALTY ROYALTY NPI ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY TAX & TAXES & TAXES PYMTS. YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ % M$ - ------------------------------------------------------------------------------------------------------------------------------------ 2003 6842.4 458.0 6384.4 1422.1 95.4 1326.7 1334.9 79.2 1255.7 428.3 9395.1 26.15 22.1 2004 6181.9 508.2 5673.8 1384.3 115.8 1268.5 1426.6 105.0 1321.7 381.8 8645.8 24.97 20.7 2005 3713.2 342.0 3371.2 974.4 92.8 881.6 949.7 79.6 870.0 240.4 5363.3 23.09 13.6 2006 2400.3 238.7 2161.6 694.7 71.4 623.3 665.8 59.9 605.8 157.1 3547.9 21.46 10.1 2007 1616.8 167.9 1448.9 549.1 59.0 490.1 544.1 51.4 492.7 116.3 2548.0 20.38 7.9 2008 1316.9 139.5 1177.5 430.2 46.5 383.7 460.8 42.1 418.7 84.4 2064.3 19.87 7.6 2009 898.2 94.0 804.2 312.3 33.4 278.9 349.8 31.9 317.9 60.1 1461.0 18.78 6.8 2010 638.1 65.3 572.7 244.1 24.1 220.0 316.4 28.9 287.5 45.5 1125.7 19.13 6.1 2011 426.4 43.0 383.4 185.5 17.5 168.1 238.9 21.9 217.0 34.3 802.7 18.59 5.4 2012 289.4 28.8 260.6 145.0 13.7 131.4 170.7 15.7 155.1 26.3 573.4 17.95 4.9 2013 214.7 21.6 193.1 129.1 12.2 116.9 138.0 12.9 125.1 22.1 457.2 17.72 4.4 2014 169.9 17.2 152.7 116.4 11.0 105.4 115.2 10.9 104.3 18.9 381.3 17.47 4.0 2015 142.1 14.4 127.6 85.8 8.1 77.7 101.5 9.6 91.8 14.7 311.9 16.94 3.7 2016 123.3 12.6 110.7 75.3 7.1 68.2 87.1 8.3 78.8 12.2 269.9 16.37 3.4 2017 98.0 10.1 87.9 52.2 4.9 47.3 57.8 5.5 52.3 8.3 195.8 14.94 3.2 REM. 280.5 27.0 253.5 207.1 19.6 187.5 362.3 34.5 327.9 33.6 802.5 20.31 14.2 TOTAL 25352.1 2188.3 23163.8 7007.5 632.3 6375.2 7319.5 597.2 6722.3 1684.2 37945.8 22.60 138.2 - ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL COSTS NET REVENUES AFTER COSTS ------------------------------- -------------------------------- OPERATING ABD. NET OP. DRILLING EQUIP & TOTAL PWV COSTS COSTS INCOME & COMPL FACILITY CAPITAL ANNUAL CUM @15.0% YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ - ------------------------------------------------------------------------------------------------------------ 2003 2378.5 25.5 24077.3 167.5 949.5 1117.0 22960.4 22960.4 21915.4 2004 3104.4 108.5 23306.3 19.5 156.1 175.6 23130.7 46091.1 19651.5 2005 2711.1 173.8 14962.8 53.1 53.1 14909.8 61000.9 11016.0 2006 2282.3 267.6 10427.0 27.1 27.1 10400.0 71400.8 6682.3 2007 1977.4 235.2 7731.8 54.1 54.1 7677.6 79078.5 4289.2 2008 1802.4 266.7 6247.5 124.3 124.3 6123.2 85201.6 2975.3 2009 1489.1 226.8 4593.9 4593.9 89795.5 1941.0 2010 1171.5 210.3 3371.8 28.7 28.7 3343.0 93138.6 1228.6 2011 917.3 170.8 2421.2 2421.2 95559.8 773.5 2012 729.0 136.8 1750.1 1750.1 97309.9 486.0 2013 618.8 80.5 1418.8 1418.8 98728.6 342.6 2014 556.6 53.9 1187.4 1187.4 99916.0 249.4 2015 505.9 12.9 1006.9 1006.9 100923.0 183.9 2016 496.4 29.7 848.8 848.8 101771.7 134.8 2017 453.7 28.2 629.9 629.9 102401.6 87.0 REM. 1062.0 383.8 1688.6 1688.6 104090.2 128.0 TOTAL 22256.4 2411.0 105670.0 474.3 1105.5 1579.9 104090.2 72084.5 - ------------------------------------------------------------------------------------------------------------
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ ----------------------- ------------------------------------------------------- PRODUCT GROSS NET @10.0% @12.0% @15.0% @20.0% - ------------------------------------------------------------------------------------------------------------------ Crude Oil (mbbl) -14.8 -13.7 -12.3 -10.3 Natural Gas (mmcf) 30587.7 23440.6 79719.5 76427.4 72096.2 66129.2 TOTAL 79704.6 76413.6 72083.9 66118.9 - ------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- --------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE LAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - --------------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 00/06-32-050-10-W4 W- 50.000 B QTZ NRA - - - - -7.4 -6.9 -6.2 00/06-32-050-10-W4 W- 50.000 SPKY NP 57.6 - - - 143.1 139.2 133.6 00/13-32-050-11-W4 W- 50.000 VIK NP 48.4 - - - 74.4 71.7 67.8 02/10-07-050-12-W4 W- 50.000 GLAUC/CLY P 66.4 - - - 210.5 205.2 197.8 02/01-14-050-12-W4 W- 50.000 SPKY L/CUMM P 469.7 - - - 1424.8 1376.9 1311.6 00/09-15-050-12-W4 W- 50.000 CUMM P 115.6 - - - 388.8 380.3 368.3 00/09-16-050-12-W4 W- 50.000 LLOYD/CUMM /NIS P 7.5 - - - 32.8 33.3 33.9 00/14-16-050-12-W4 W- 50.000 NIS NP 122.1 - - - 402.4 396.0 386.8 00/15-17-050-12-W4 W- 50.000 NIS P 119.4 - - - 400.5 390.7 377.0 00/07-21-050-12-W4 W- 50.000 GLAUC/B QTZ P 252.7 - - - 869.2 843.4 808.0 00/02-22-050-12-W4 W- 50.000 SPKY/LLOYD /B Q P 184.4 - - - 640.2 625.5 605.0 00/02-22-050-12-W4 W- 50.000 WAS NP 163.4 - - - 334.0 308.4 274.6 00/08-22-050-12-W4 W- 50.000 ELL/CUMM P 127.3 - - - 352.4 342.9 329.7 00/15-24-050-12-W4 WAS/SPKY/LLOYD NRA - - - - -8.0 -7.6 -7.0 00/02-04-051-10-W4 W- 50.000 SPKY/CUMM NP 940.9 - - - 2999.5 2915.9 2800.8 00/02-04-051-10-W4 W- 50.000 CLY/WAS/WABIS NP 273.0 - - - 446.7 399.5 339.3 00/05-04-051-11-W4 W- 50.000 SPKY P 34.7 - - - 140.4 138.9 136.7 SUBTOTAL 2983.0 - - - 8844.4 8553.5 8158.0 BONNYVILLE Bonnyville Grand W- 50.000 GRD RP P 1261.5 - - - 2761.9 2613.9 2421.8 Rapids C Pool Group Run Ptn Fort Kent Colony W- 50.000 CLY P 184.3 - - - 515.8 500.5 479.5 C Pool - 10-36 & 6-6 00/01-24-059-05-W4 W- 35.000 GRD RP NRA - - - - -6.0 -5.8 -5.5 00/11-19-060-04-W4 W- 50.000 CLY P 73.2 - - - 195.5 189.4 180.9 00/10-22-061-06-W4 W- 50.000 CLY P 98.8 - - - 240.1 231.2 219.0 00/07-34-061-06-W4 W- 25.000 CLY A P 1.2 0.1 0.3 0.5 NRA Wells NRA - - - - -20.1 -18.9 -17.3 SUBTOTAL 1618.9 - - - 3687.2 3510.5 3279.0 COLD LAKE Clearwater A Pool W- 25.000 CLWTR P 418.7 - - - 1287.3 1251.8 1203.0 Group Run Secs 27&28-62-3W4 00/11-34-062-03-W4 W- 25.000 CLY P 83.9 - - - 175.7 170.7 163.8 02/11-34-062-03-W4 W- 25.000 LLOYD NRA - - - - -4.7 -4.6 -4.4 00/09-35-062-03-W4 W- 25.000 CLY A P 112.7 - - - 312.2 299.3 282.0 00/05-36-062-03-W4 W- 25.000 LLOYD P 182.9 - - - 501.2 481.4 454.7 02/14-23-063-03-W4 W- 25.000 CLWTR D P 42.3 - - - 145.2 142.3 138.2 02/14-23-063-03-W4 W- 25.000 CLY B NP 95.0 - - - 285.6 276.9 265.0 00/16-23-063-03-W4 W- 23.750 CLY A/LLOYD P 236.1 - - - 603.4 575.1 537.6 00/07-25-063-03-W4 W- 23.750 CLY A NRA - - - - -3.5 -3.3 -2.9 00/10-25-063-03-W4 W- 23.750 LLOYD NRA - - - - -3.3 -3.0 -2.6 00/11-25-063-03-W4 W- 23.750 CLY B NRA - - - - -4.4 -4.3 -4.2 02/02-26-063-03-W4 W- 25.000 CLY B NP 140.2 - - - 319.8 302.3 279.7 02/09-26-063-03-W4 W- 23.750 CLY A/LLOYD P 181.4 - - - 540.0 523.9 501.8 00/08-36-063-03-W4 W- 23.750 CLY A/LLOYD P 40.0 - - - 115.5 112.2 107.5 8 Gorr Wells R- 2.125 CLY P 18.6 - - - 74.0 71.3 67.6 SUBTOTAL 1551.8 - - - 4344.0 4192.1 3986.8 HAIRY HILL 00/10-18-053-14-W4 R- 4.167 GLAUC P 7.0 - - - 30.4 29.5 28.3 00/06-21-055-14-W4 W- 50.000 CLY/GLAUC/NIS P 79.0 - - - 255.6 251.8 246.3 02/10-21-055-14-W4 W- 50.000 B QTZ/CLY P 75.3 - - - 216.3 212.5 207.0 00/11-30-055-14-W4 W- 50.000 GLAUC P 52.8 - - - 187.7 185.1 181.4 SUBTOTAL 214.1 - - - 690.0 678.9 663.1 HEDGE Natural Gas Hedge P- 50.000 NP - - - - 477.7 467.4 452.7
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE ------------------------------- ---------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE LAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - --------------------------------------------------------------------------------------------------------------------------------- HOLDEN Holden Viking Gas W-35.500 VIK P 1029.9 - - - 2007.7 1880.2 1718.6 Unit No. 3 JARROW 00/03-33-044-11-W4 W- 25.000 B QTZ/GLAUC P 11.6 - - - 42.4 42.3 42.1 00/07-34-045-10-W4 W- 30.000 VIK P 36.8 - - - 65.1 62.6 59.2 00/14-01-045-11-W4 W- 50.000 CLY P 1.8 - - - 0.8 1.4 2.2 00/10-13-045-11-W4 W- 50.000 GLAUC P 650.4 - - - 1094.7 997.5 882.4 00/10-15-045-11-W4 F- 0.750 CLY/VIK P 0.1 - - - 0.3 0.3 0.3 00/06-19-045-11-W4 R- 0.750 VIK P 0.2 - - - 1.l 1.0 1.0 02/10-27-045-11-W4 W- 12.500 SPKY P 1.4 - - - 1.4 1.5 1.7 00/04-29-045-11-W4 W- 12.500 VIK P 3.7 - - - 5.6 5.6 5.6 00/06-30-045-11-W4 W- 12.500 VIK P 19.4 - - - 55.5 53.6 51.0 00/11-31-045-11-W4 R- 0.750 VIK NRA - - - - - - - 00/09-36-046-12-W4 W- 25.000 VIK A,B NRA - - - - -3.4 -3.1 -2.7 SUBTOTAL 725.3 - - - 1263.3 1162.7 1042.8 LAVOY Capital to purchase P- 50.000 P - - - - -65.9 -65.5 -64.9 compressor 00/07-21-051-13-W4 W- 50.000 CLY/WAB P 3.1 - - - -0.5 -0.3 0.1 00/12-28-051-13-W4 W- 50.000 CLY/NIS P 379.9 - - - 901.5 868.8 824.5 00/10-29-051-13-W4 W- 50.000 NIS/ELL P 153.6 - - - 385.6 367.1 342.6 00/10-29-051-13-W4 W- 50.000 ELL/NIS NP 814.2 - - - 1118.7 996.8 856.0 00/02-31-051-13-W4 W- 50.000 ELL P 125.0 - - - 293.5 284.4 271.9 00/14-31-051-13-W4 W- 50.000 WAS P 67.7 - - - 249.4 244.8 238.4 00/01-32-051-13-W4 W- 50.000 NIS L/NIS U P 415.4 - - - 1273.5 1227.7 1165.7 00/01-32-051-13-W4 W- 50.000 SPKY L/LLOYD P 302.7 - - - 976.5 945.8 903.7 00/11-32-051-13-W4 W- 50.000 NIS P 198.9 - - - 452.1 425.2 390.8 00/10-33-051-13-W4 W- 50.000 CLY NRA - - - - -6.9 -6.3 -5.5 00/12-04-052-13-W4 W- 50.000 CLY/VIK NRA - - - - -8.0 -7.6 -7.0 00/11-05-052-13-W4 W- 50.000 VIK/CLY P 230.1 - - - 577.9 557.5 530.0 00/13-18-052-13-W4 W- 24.750 CLY NRA - - - - -3.2 -2.8 -2.4 00/07-30-052-13-W4 W- 50.000 2 WS NP 18.0 - - - 43.6 43.1 42.5 00/10-11-052-14-W4 W- 50.000 CLY/2 WS NRA - - - - -8.5 -8.1 -7.7 00/06-12-052-14-W4 W- 50.000 LLOYD/SPKY M P 16.7 - - - 37.1 36.8 36.4 00/11-12-052-14-W4 W- 50.000 SPKY L/CUMM L NRA - - - - -8.0 -7.6 -7.0 00/15-12-052-14-W4 W- 50.000 GLAUC/CUMM L/SPK P 147.2 - - - 515.2 502.6 484.9 00/06-15-052-14-W4 W- 50.000 CLY P 127.2 - - - 393.5 382.7 367.6 02/10-15-052-14-W4 W- 50.000 CLY P 266.7 - - - 689.2 666.2 634.8 00/06-22-052-14-W4 W- 50.000 CLY P 339.9 - - - 791.4 760.4 718.7 00/06-22-052-14-W4 W- 50.000 VIK NP 118.7 - - - 137.1 118.0 94.7 00/08-22-052-14-W4 W- 50.000 LLOYD/SPKY L/SPK P 88.5 - - - 319.3 313.0 304.1 00/08-22-052-14-W4 W- 50.000 VIK NP 96.4 - - - 211.4 199.6 183.6 00/12-26-052-14-W4 W- 50.000 SPKY/GLAUC P 208.4 - - - 527.6 509.4 484.6 00/06-27-052-14-W4 W- 50.000 VIK P 101.7 - - - 236.2 225.7 211.7 00/12-27-052-14-W4 W- 50.000 GLAUC/NIS P 65.9 - - - 219.9 217.1 213.0 02/12-27-052-14-W4 W- 50.000 LLOYD/SPKY NRA - - - - -6.9 -6.3 -5.5 00/15-27-052-14-W4 W- 50.000 ELL P 790.7 - - - 1809.4 1713.0 1588.0 02/06-28-052-14-W4 W- 50.000 SPKY/LLOYD /NIS P 83.1 - - - 252.6 248.5 242.6 00/08-28-052-14-W4 W- 50.000 CLY/ELL P 901.1 - - - 1814.7 1714.8 1586.0 00/16-29-052-14-W4 W- 50.000 ELL P 63.6 - - - 182.1 178.6 173.6 00/10-32-052-14-W4 W- 50.000 VIK/CLY P 0.8 - - - -5.5 -5.0 -4.3 00/06-34-052-14-W4 W- 50.000 ELL/NIS NRA - - - - -8.6 -8.3 -7.8 02/07-34-052-14-W4 W- 50.000 GLAUC U P 210.7 - - - 630.1 607.6 577.1 00/06-06-053-14-W4 W- 50.000 VIK NRA - - - - -7 -6.9 -6.2 00/10-07-053-14-W4 F- 2.917 GLAUC P 26.4 - - - 89.9 84.9 78.2 00/07-29-053-14-W4 W- 50.000 2 WS NP 58.9 - - - 178.1 174.1 168.4 Lavoy NRA Wells ALL ZONES NRA - - - - -180.0 -166.7 -149.3 SUBTOTAL 6421.3 - - - 14997.8 14322.8 13447.0 MANNVILLE 00/09-16-052-07-W4 W- 37.500 CLY P 237.8 - - - 525.9 493.2 451.5 MUNDARE 00/04-06-054-16-W4 W- 50.000 GLAUC L/GLAUC NRA - - - - -7.4 -6.9 -6.2 00/04-06-054-16-W4 W- 50.000 VIK/CLY/SPKY NP 53.0 - - - 161.5 158.6 154.4 00/11-02-054-17-W4 W- 50.000 GLAUC P 493.8 - - - 1093.5 1026.2 940.6 00/01-10-054-17-W4 W- 50.000 SPKY P 112.4 - - - 364.7 356.6 345.1 00/10-10-054-17-W4 CLY NRA - - - - -5.9 -5.2 -4.3 00/01-13-054-17-W4 W- 50.000 GLAUC NP 239.4 - - - 681.7 663.2 637.4
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE --------------------------------- ----------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------------ MUNDARE (CONT'D) 00/02-19-054-17-W4 W-50.000 B QTZ/GLAUC L NRA - - - - -8.0 -7.6 -7.0 00/02-19-054-17-W4 W-50.000 GLAUC P 106.0 - - - 407.5 403.3 397.3 00/04-20-054-17-W4 W-50.000 GLAUC L/B QTZ P 137.8 - - - 488.0 479.9 468.4 00/04-20-054-17-W4 W-50.000 GLAUC NP 190.0 - - - 423.6 400.3 368.6 00/02-17-055-18-W4 W-50.000 U MN NRA - - - - -6.3 -5.6 -4.8 SUBTOTAL 1332.3 - - - 3593.0 3462.9 3289.6 PLAIN 00/12-34-052-10-W4 W-50.000 CLY P 327.7 - - - 990.5 961.5 921.7 00/12-34-052-10-W4 W-50.000 VIK NRA - - - - -7.3 -6.8 -6.0 00/10-14-052-12-W4 W-50.000 CLY NP 200.5 - - - 571.6 554.4 530.9 00/12-28-052-12-W4 W-50.000 SPKY M/B QTZ P 528.7 - - - 1419.0 1363.0 1288.1 00/15-32-052-12-W4 W-50.000 WAS/SPKY U P 45.4 - - - 165.0 162.7 159.4 00/12-09-052-13-W4 W-50.000 VIK NRA - - - - -8.0 -7.6 -7.0 00/13-36-052-13-W4 W-50.000 SPKY NRA - - - - -9.3 -9.1 -8.8 00/14-18-053-11-W4 W-50.000 B QTZ NRA - - - - -7.4 -6.9 -6.2 00/07-04-053-12-W4 W-50.000 SPKY P 171.7 - - - 316.4 302.2 283.2 SUBTOTAL 1274.1 - - - 3430.5 3313.5 3155.2 RANFURLY Ranfurly Gas Unit W-13.542 ALL ZONES P 10.5 - - - 35.4 35.8 36.2 02/09-35-050-13-W4 W-50.000 CLY/MCLAR P 13.4 - - - 57.1 56.7 56.1 02/09-35-050-13-W4 W-50.000 VIK NP 82.2 - - - 196.6 185.2 169.8 00/06-36-050-13-W4 W-50.000 MCLAR P 8.0 - - - 34.5 34.7 34.9 02/09-36-050-13-W4 W-50.000 B QTZ U P 22.2 - - - 98.6 98.0 97.2 00/11-30-050-14-W4 R- 6.900 VIK L P 10.9 - - - 43.8 42.1 39.9 00/03-32-050-14-W4 W-50.000 B QTZ/DET P 410.2 - - - 1305.4 1261.9 1202.7 00/16-23-050-15-W4 W-50.000 CLY P 149.9 - - - 527.1 514.3 496.2 00/03-34-050-15-W4 W-50.000 B QTZ/CLY P 306.7 - - - 1014.5 984.1 942.2 00/05-18-051-07-W4 W-25.000 WAS/SPKY NP 217.6 - - - 671.4 648.5 617.6 00/16-20-051-12-W4 W-50.000 SPKY P 60.9 - - - 225.3 220.4 213.4 00/06-29-051-12-W4 W-50.000 CLY/SPKY P 2.8 - - - 6.6 7.0 7.6 00/11-34-051-12-W4 W-50.000 GLAUC L/B QTZ NP 451.6 - - - 841.0 797.8 739.8 00/12-01-051-13-W4 W-12.500 SPKY U NRA - - - - -2.3 -2.3 -2.2 02/08-04-051-13-W4 W-50.000 CLY P 54.6 - - - 179.0 174.2 167.5 00/15-06-051-13-W4 W-50.000 WAS U P 64.2 - - - 229.7 224.1 216.1 00/04-11-051-13-W4 W-13.542 GLAUC/WAB P 37.8 - - - 134.4 130.7 125.6 00/06-22-051-13-W4 W-22.500 VIK P 3.5 - - - 8.6 8.5 8.5 00/15-04-051-14-W4 W-50.000 CUMM L/CUMM P 412.5 - - - 788.8 717.2 633.1 00/02-09-051-14-W4 F- 1.343 BR P 0.5 - - - 2.6 2.6 2.5 00/06-10-051-14-W4 R- 9.943 BR P 5.6 - - - 28.3 27.8 27.1 00/16-12-051-14-W4 W-50.000 WAB NRA - - - - -9.3 -9.1 -8.8 SUBTOTAL 2325.9 - - - 6417.1 6160.3 5823.0 ST. PAUL 00/05-03-058-09-W4 W-37.500 MN P 13.5 - - - 29.7 29.2 28.5 00/12-03-058-09-W4 W-37.500 VIK P 6.8 - - - 16.8 16.9 17.0 SUBTOTAL 20.2 - - - 46.5 46.1 45.4 VEGREVILLE 00/06-07-052-13-W4 W-50.000 CLY/GLAUC P 100.1 - - - 333.0 327.9 320.5 02/06-07-052-13-W4 W-50.000 SPKY L/WAS P 243.6 - - - 713.9 695.5 670.0 00/01-18-052-13-W4 W-24.750 GLAUC P 61.3 - - - 139.7 136.4 131.6 00/01-18-052-13-W4 W-24.750 SPKY L NP 57.6 - - - 56.3 50.2 42.4 00/06-19-052-13-W4 W-10.026 GLAUC P 1.6 - - - 4.3 4.4 4.5 00/01-13-052-14-W4 W-50.000 LLOYD/GLAUC P 68.3 - - - 204.6 200.3 194.2 00/06-13-052-14-W4 W-50.000 NIS/SPKY L P 768.9 - - - 2106.9 2008.4 1878.8 00/12-13-052-14-W4 W-50.000 LLOYD/SPKY P 59.4 - - - 248.4 245.5 241.3 00/03-24-052-14-W4 W-50.000 DET/NIS/LLOYD/ SP P 192.5 - - - 593.7 571.9 542.2 00/09-24-052-14-W4 W-50.000 SPKY M/LLOYD/ GLA P 50.0 - - - 171.7 168.0 162.9 00/10-09-053-14-W4 W-37.500 NIS P 4.1 - - - 20.4 20.3 20.1 00/10-09-053-14-W4 W-37.500 SPKY NP 64.1 - - - 189.7 184.2 176.6 SUBTOTAL 1671.5 - - - 4782.6 4612.9 4385.1 VIKING 00/16-14-048-12-W4 W-50.000 SPKY P 213.8 - - - 688.1 667.7 639.5 00/03-12-049-11-W4 W-50.000 SPKY L P 214.3 - - - 717.0 696.9 669.1 00/03-12-049-11-W4 W-50.000 CAM/B QTZ/SPKY NP 48.0 - - - 107.7 99.7 89.1 00/04-22-049-12-W4 W-47.500 B QTZ U/B QTZ L P 26.6 - - - 110.6 109.9 108.7
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 4 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE --------------------------------- ----------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------------ VIKING (CONT'D) 00/08-31-049-12-W4 W-50.000 LLOYD/WAS NRA - - - - -7.4 -6.9 -6.2 00/09-32-049-12-W4 W-50.000 LLOYD P 40.6 - - - 153.4 151.1 147.9 00/06-28-049-13-W4 W-50.000 CLY P 1.1 - - - -5.3 -5.3 -5.2 00/16-34-049-13-W4 W-50.000 SPKY P 156.8 - - - 243.5 222.8 197.5 00/10-36-049-13-W4 W-50.000 WAB P 4.5 - - - 6.7 7.2 7.8 00/02-24-049-14-W4 W-50.000 WAB NRA - - - - -6.9 -6.3 -5.5 00/08-04-050-12-W4 W-42.500 B QTZ U/B QTZ L P 40.1 - - - 134.1 131.5 127.9 00/11-13-050-13-W4 W-34.375 VIK P 10.1 - - - 15.6 15.6 15.4 R- 0.625 SUBTOTAL 755.9 - - - 2157.2 2083.9 1986.1 WARWICK 02/06-16-053-15-W4 W-50.000 SPKY/B QTZ/CUMM P 53.2 - - - 185.2 182.0 177.4 02/06-35-053-15-W4 W-50.000 CLY P 291.5 - - - 940.8 915.8 881.1 00/11-36-053-15-W4 W-50.000 VIK NP 101.2 - - - 353.2 348.7 342.2 00/07-19-054-15-W4 W-50.000 WAS NP 245.1 - - - 665.0 641.0 608.2 00/14-34-054-15-W4 W-50.000 WAS P 167.3 - - - 506.7 491.8 471.4 00/14-34-054-15-W4 W-50.000 NIS/CLY P 256.2 - - - 769.4 748.2 719.0 02/06-14-054-16-W4 W-50.000 WAS NRA - - - - -7.8 -7.4 -6.8 00/13-06-055-14-W4 W-50.000 CLY/NIS NRA - - - - -8.0 -7.6 -7.0 00/07-01-055-15-W4 GLAUC/NIS NRA - - - - -6.0 -5.7 -5.2 00/01-02-055-15-W4 W-50.000 NIS NRA - - - - -9.3 -9.1 -8.8 SUBTOTAL 1114.5 - - - 3389.1 3297.7 3171.5 WARWICK EAST 00/16-30-052-14-W4 W-50.000 SPKY L/SPKY U P 260.4 - - - 888.5 865.7 834.1 00/08-32-052-14-W4 W-50.000 NIS/SPKY P 350.4 - - - 996.7 954.4 898.0 00/06-33-052-14-W4 W-48.360 NIS P 497.6 - - - 1130.6 1047.7 943.9 00/09-33-052-14-W4 W-48.360 CLY/GLAUC/ELL P 352.2 - - - 1045.8 1002.7 944.9 00/14-34-052-14-W4 W-50.000 CUMM L/ELL/ GLAUC P 259.2 - - - 647.4 625.4 595.3 00/06-35-052-14-W4 W-12.500 GLAUC P 31.0 - - - 81.3 77.9 73.4 00/04-04-053-14-W4 W-50.000 LLOYD/ELL P 53.6 - - - 123.1 120.7 117.1 00/03-05-053-14-W4 W-50.000 SPKY U/GLAUC P 29.3 - - - 73.7 73.0 71.9 00/08-06-053-14-W4 W-50.000 GLAUC/CLY P 81.1 - - - 236.3 231.8 225.4 00/06-07-056-14-W4 W-25.000 SPKY P 84.9 - - - 283.5 276.2 266.1 SUBTOTAL 1999.6 - - - 5506.8 5275.5 4970.0 WEST LAVOY 00/11-19-051-13-W4 W-50.000 VIK P 440.1 - - - 1087.6 1023.1 940.9 00/15-15-051-14-W4 W-50.000 CLY P 51.5 - - - 185.1 182.2 178.0 00/11-21-051-14-W4 W-50.000 CLY/WAS P 7.3 - - - 21.7 21.6 21.4 00/11-22-051-14-W4 W-50.000 VIK P 133.5 - - - 315.4 298.7 276.9 00/10-24-051-14-W4 W-50.000 CLY/GLAUC P 526.8 - - - 1021.6 954.7 870.7 00/14-29-051-14-W4 W-50.000 CLY P 209.3 - - - 645.0 622.4 591.7 00/08-31-051-14-W4 W-50.000 CLY NP 63.2 - - - 132.1 129.6 126.1 00/07-34-051-14-W4 W-50.000 VIK P 3.9 - - - 2.9 3.3 3.9 00/16-10-051-15-W4 R- 6.250 BR P 11.5 - - - 48.9 47.3 45.2 00/09-11-051-15-W4 R- 6.250 BR P 12.4 - - - 45.9 43.7 40.8 00/10-14-051-15-W4 W-13.184 B BR P 28.6 - - - 67.4 64.5 60.5 R- 3.105 00/07-15-051-15-W4 W-12.500 CLY NRA - - - - -2.3 -2.3 -2.2 02/07-15-051-15-W4 W-12.500 B BR M P 70.0 - - - 211.0 202.5 191.1 00/12-15-051-15-W4 W-12.500 CLY NP 179.3 - - - 517.4 490.5 455.6 00/09-16-051-15-W4 W-50.000 CLY P 644.3 - - - 1669.9 1579.3 1462.4 00/10-21-051-15-W4 W-37,500 CLY P 79.0 - - - 223.0 215.5 205.2 02/10-21-051-15-W4 W-37.500 B BR M NRA - - - - -6.5 -6.2 -5.9 00/16-21-051-15-W4 W-37.500 B BR M P 383.0 - - - 1072.6 1015.3 941.2 02/10-22-051-15-W4 W-18,809 BR P 122.7 - - - 312.0 294.6 272.1 00/07-26-051-15-W4 W-22.500 VIK A P 8.4 - - - 12.8 12.6 12.4 00/14-29-051-15-W4 W-50.000 CLY NRA - - - - -5.5 -4.7 -3.8 00/11-19-052-15-W4 R- 0.388 U MN P 1.0 - - - 4.1 3.9 3.7 00/14-14-054-15-W4 W-50.000 MCLAR/VIK NP 307.0 - - - 915.5 887.1 848.1 SUBTOTAL 3282.8 - - - 8497.4 8079.1 7536.0 WILLINGDON 02/10-24-054-16-W4 W-50.000 WAS/CLY P 485.9 - - - 1416.2 1361.5 1288.4 00/13-23-056-16-W4 W-25.000 SPKY/CLY P 329.1 - - - 737.9 681.9 612.3 02/13-23-056-16-W4 W-25.000 GLAUC/B QTZ P 168.5 - - - 521.3 503.1 478.5 00/10-29-056-16-W4 W-50.000 GLAUC NP 297.3 - - - 928.6 900.8 862.5 00/10-29-056-16-W4 W-50.000 CLY NP 100.2 - - - 173.4 154.8 131.1
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 5 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
COMPANY GROSS INTEREST RESERVES PRESENT WORTH VALUE --------------------------------- ----------------------------- COMPANY RESERVE GAS OIL NGL SULPHUR BEFORE TAX (M$) AREA AND PROPERTY INTEREST % ZONES CLASS MMCF MBBL MBBL MLT @10.0% @12.0% @15.0% - ------------------------------------------------------------------------------------------------------------------------------------ WILLINGDON (CONT'D) 02/12-29-056-16-W4 W-50.000 CLY NRA - - - - -9.3 -9.1 -8.8 00/12-03-057-16-W4 W-50.000 GLAUC P 135.4 - - - 331.9 322.1 308.6 00/12-03-057-16-W4 W-50.000 CLY/WAS NP 150.5 - - - 200.3 182.4 158.9 00/07-15-057-16-W4 W-50.000 WAS/SPKY/ LSPKY/C NP 362.0 - - - 745.8 722.8 690.9 SUBTOTAL 2028.9 - - - 5046.1 4820.3 4522.4 SUBTOTAL ALBERTA 30587.9 - - - 79704.3 76413.3 72003.7 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 30587.9 - - - 79704.3 76413.3 72003.7 - ------------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 1 SUMMARY OF RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
Net Reserves Company Interest Reserves After Royalty Present Worth Value ------------------------------------------------------- ------------------------------------- Gas Oil NGL Sulphur Gas Oil NGL Sulphur Before Tax (ME) Area bcf mbbl mbbl mlt bcf mbbl mbbl mlt @10.0% @12.0% @15.0% @20.0% - ---------------------------------------------------------------------------------------------------------------------- ALBERTA Birch 2.98 2.27 8844.4 8553.5 8158.0 7590.0 Bonnyville 1.62 1.41 3687.2 3510.5 3279.0 2963.3 Cold Lake 1.55 1.21 4344.0 4192.1 3986.8 3694.2 Hairy Hill 0.21 0.18 690.0 678.9 663.1 638.6 Hedge 477.7 467.4 452.7 430.1 Holden 1.03 0.90 2007.7 1880.2 1718.6 1508.3 Jarrow 0.73 0.54 1263.3 1162.7 1042.8 898.0 Lavoy 6.42 4.52 14997.8 14322.8 13447.0 12261.3 Mannville 0.24 0.20 525.9 493.2 451.5 397.1 Mundare 1.33 1.05 3593.0 3462.9 3289.6 3046.8 Plain 1.27 0.96 3430.5 3313.5 3155.2 2929.3 Ranfurly 2.33 1.77 6417.1 6160.3 5823.0 5357.1 St. Paul 0.02 0.02 46.5 46.1 45.4 44.3 Vegreville 1.67 1.27 4782.6 4612.9 4385.1 4062.9 Viking 0.76 0.62 2157.2 2083.9 1986.1 1848.3 Warwick 1.11 0.91 3389.1 3297.7 3171.5 2985.6 Warwick East 2.00 1.54 5506.8 5275.5 4970.0 4548.0 West Lavoy 3.28 2.60 8497.4 8079.1 7536.0 6803.4 Willingdon 2.03 1.46 5046.1 4820.3 4522.4 4111.9 Subtotal Alberta 30.59 23.44 79704.3 76413.3 72083.7 66118.5 - ---------------------------------------------------------------------------------------------------------------------- TOTAL 30.59 -- -- -- 23.44 -- -- -- 79704.3 76413.3 72083.7 66118.5 - ----------------------------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 3 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES SORTED BY COMPANY GAS RESERVES
Company Interest Reserves Present Worth Value Company Gas Reserves ------------------------------------------------ ----------------------------- -------------------- Gas Oil NGL Sulphur BOE(1) Before Tax(M$) % of Cumulative Rank bcf mbbl mbbl mlt mbbl @10.0% @12.0% @15.0% Total % - ----------------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 6.42 -- -- -- 1070.2 14997.8 14322.8 13447.0 20.99 20.99 2 West Lavoy 3.28 -- -- -- 547.1 8497.4 8079.1 7536.0 10.73 31.73 3 Birch 2.98 -- -- -- 497.2 8844.4 8553.5 8158.0 9.75 41.48 4 Ranfurly 2.33 -- -- -- 387.6 6417.1 6160.3 5823.0 7.60 49.08 5 Willingdon 2.03 -- -- -- 338.2 5046.1 4820.3 4522.4 6.63 55.71 6 Warwick East 2.00 -- -- -- 333.3 5506.8 5275.5 4970.0 6.54 62.25 7 Vegreville 1.67 -- -- -- 278.6 4782.6 4612.9 4385.1 5.46 67.72 8 Bonnyville 1.62 -- -- -- 269.8 3687.2 3510.5 3279.0 5.29 73.01 9 Cold Lake 1.55 -- -- -- 258.6 4344.0 4192.1 3986.8 5.07 78.08 10 Mundare 1.33 -- -- -- 222.1 3593.0 3462.9 3289.6 4.36 82.44 11 Plain 1.27 -- -- -- 212.3 3430.5 3313.5 3155.2 4.17 86.60 12 Warwick 1.11 -- -- -- 185.7 3389.1 3297.7 3171.5 3.64 90.25 13 Holden 1.03 -- -- -- 171.6 2007.7 1880.2 1718.6 3.37 93.61 14 Viking 0.76 -- -- -- 126.0 2157.2 2083.9 1986.1 2.47 96.09 15 Jarrow 0.73 -- -- -- 120.9 1263.3 1162.7 1042.8 2.37 98.46 16 Mannville 0.24 -- -- -- 39.6 525.9 493.2 451.5 0.78 99.23 17 Hairy Hill 0.21 -- -- -- 35.7 690.0 678.9 663.1 0.70 99.93 18 St. Paul 0.02 -- -- -- 3.4 46.5 46.1 45.4 0.07 100.00 19 Hedge -- -- -- 477.7 467.4 452.7 100.00 Total 30.59 -- -- 5098.0 79704.3 76413.3 72083.7 100.00
(1) Barrels of Oil Equivalent based on 6:0:1 for Natural Gas, 1:00:1 for Condensate and C5+, 1:00:1 for Ethane, 1:00:1 for Propane, 1:00:1 for Butanes, 1:001 for NGL Mix, 1:00:1 for Sulphur, PWV/BOE base HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 4 RESERVES AND PRESENT WORTH VALUES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES SORTED BY COMPANY BOE RESERVES
Company Interest Reserves Present Worth Value Company BOE Reserves -------------------------------------- --------------------------- --------------------- Gas Oil NGL Sulphur BOE(1) Before Tax (M$) % of Cumulative Rank bcf mbbl mbbl mlt mbbl @10.0% @12.0% @15.0% Total % - ---------------------------------------------------------------------------------------------------------------------- 1 Lavoy 6.42 1070.2 14997.8 14322.8 13447.0 20.99 20.99 2 West Lavoy 3.28 547.1 8497.4 8079.1 7536.0 10.73 31.73 3 Birch 2.98 497.2 8844.4 8553.5 8158.0 9.75 41.48 4 Ranfurly 2.33 387.6 6417.1 6160.3 5823.0 7.60 49.08 5 Willingdon 2.03 338.2 5046.1 4820.3 4522.4 6.63 55.71 6 Warwick East 2.00 333.3 5506.8 5275.5 4970.0 6.54 62.25 7 Vegreville 1.67 278.6 4782.6 4612.9 4385.1 5.46 67.72 8 Bonnyville 1.62 269.8 3687.2 3510.5 3279.0 5.29 73.01 9 Cold Lake 1.55 258.6 4344.0 4192.1 3986.8 5.07 78.08 10 Mundare 1.33 222.1 3593.0 3462.9 3289.6 4.36 82.44 11 Plain 1.27 212.3 3430.5 3313.5 3155.2 4.17 86.60 12 Warwick 1.11 185.7 3389.1 3297.7 3171.5 3.64 90.25 13 Holden 1.03 171.6 2007.7 1880.2 1718.6 3.37 93.61 14 Viking 0.76 126.0 2157.2 2083.9 1986.1 2.47 96.09 15 Jarrow 0.73 120.9 1263.3 1162.7 1042.8 2.37 98.46 16 Mannville 0.24 39.6 525.9 493.2 451.5 0.78 99.23 17 Hairy Hill 0.21 35.7 690.0 678.9 663.1 0.70 99.93 18 St. Paul 0.02 3.4 46.5 46.1 45.4 0.07 100.00 19 Hedge 477.7 467.4 452.7 100.00 TOTAL 30.59 5098.0 79704.3 76413.3 72083.7 100.00
(1) Barrels of Oil Equivalent based on 6.01 for Natural Gas, 1:00:1 for Condensate and C5+, 1:00:1 for Ethane, 1:00:1 for Propane, 1:00:1 for Butanes, 1:001 for NGL Mix, 1:00:1 for Sulphur, PWV/BOE base HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 3 Page 5 RESERVES AND PRESENT AND WORTH VALUES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES SORTED BY 815.0% PRESENT WORTH VALUE
------------------------------------------------------------------------------------------------- Company Interest Reserves Present Worth Value 015.0% Present Worth Value -------------------------------------- --------------------------- -------------------------- Gas Oil NGL Sulphur BOE(1) Before Tax (M$) % of Cumulative Rank bcf mbbl mbbl mlt mbbl @10.0% @12.0% @15.0% Total % - ------------------------------------------------------------------------------------------------------------------------- 1 Lavoy 6.42 -- -- 1070.2 14997.8 14322.8 13447.0 18.65 18.65 2 Birch 2.98 -- -- 497.2 8844.4 8553.5 8158.0 11.32 29.97 3 West Lavoy 3.28 -- -- 547.1 8497.4 8079.1 7536.0 10.45 40.43 4 Ranfurly 2.33 -- -- 387.6 6417.1 6160.3 5823.0 8.08 48.50 5 Warwick East 2.00 -- -- 333.3 5506.8 5275.5 4970.0 6.89 55.40 6 Willingdon 2.03 -- -- 338.2 5046.1 4820.3 4522.4 6.27 61.67 7 Vegreville 1.67 -- -- 278.6 4782.6 4612.9 4385.1 6.08 67.76 8 Cold Lake 1.55 -- -- 258.6 4344.0 4192.1 3986.8 5.53 73.29 9 Mundane 1.33 -- -- 222.1 3593.0 3462.9 3289.6 4.56 77.85 10 Bonnyville 1.62 -- -- 269.8 3687.2 3510.5 3279.0 4.55 82.40 11 Warwick 1.11 -- -- 185.7 3389.1 3297.7 3171.5 4.40 86.80 12 Plain 1.27 -- -- 212.3 3430.5 3313.5 3155.2 4.38 91.18 13 Viking 0.76 -- -- 126.0 2157.2 2083.9 1986.1 2.76 93.93 14 Holden 1.03 -- -- 171.6 2007.7 1880.2 1718.6 2.38 96.32 15 Jarrow 0.73 -- -- 120.9 1263.3 1162.7 1042.8 1.45 97.76 16 Hairy Hill 0.21 -- -- 35.7 690.0 678.9 663.1 0.92 98.68 17 Hedge 477.7 467.4 452.7 0.63 99.31 18 Mannville 0.24 -- -- 39.6 525.9 493.2 451.5 0.63 99.94 19 St. Paul 0.02 -- -- 3.4 46.5 46.1 45.4 0.06 100.00 Total 30.59 -- 5098.0 79704.3 76413.3 72083.7 100.00
(1) Barrels of Oil Equivalent based on 6.01 for Natural Gas, 1:00:1 for Condensate and C5+, 1:00:1 for Ethane, 1:00:1 for Propane, 1:00:1 for Butanes, 1:001 for NGL Mix, 1:00:1 for Sulphur, PWV/BOE base HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 4 Page 1 FIVE YEAR PRODUCTION, REVENUE AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES 2003 SUMMARY
Production Revenue and Expenses Average Values $/BOE (1) ----------------------------------------------------------------------------------------------------------- Gross Oper. Net Oil Gar NGL Sulphur BOE(1) Revenue Encumb. Exp Rev.(2) Gross Oper Net Area bopd mcf/d bpd lt/d boepd $M $M $M $M Revenue Encumb. Exp Rev(2) - ----------------------------------------------------------------------------------------------------------------------------- ALBERTA Birch -- 2753.4 -- 458.8 4709 1158 312 3239 42.18 10.37 2.80 29.01 Bonnyville -- 753.9 -- 125.5 1266 205 154 907 41.43 6.71 5.03 29.70 Cold Lake -- 1239.1 -- 206.3 2080 535 156 1389 41.44 10.67 3.11 27.67 Hairy Hill -- 300.6 -- 50.0 515 96 67 352 42.30 7.88 5.47 28.96 Hedge -23 -23 Holden -- 313.7 -- 52.3 537 73 75 389 42.24 5.71 5.91 30.62 Jarrow -- 218.8 -- 36.4 375 100 32 243 42.34 11.29 3.60 27.45 Lavoy -- 3958.1 -- 659.2 6753 2141 337 4274 42.10 13.35 2.10 26.65 Mannville -- 87.3 -- 14.5 147 29 15 103 41.40 8.21 4.18 29.01 Mundare -- 1108.6 -- 184.7 1886 458 184 1245 41.97 10.18 4.09 27.70 Plain -- 1067.2 -- 177.7 1825 499 159 1167 42.19 11.54 3.68 26.98 Ranfurly -- 1503.5 -- 250.3 2569 597 130 1842 42.18 9.81 2.14 30.23 St. Paul -- 21.2 -- 3.5 36 2 10 23 41.84 2.85 11.73 27.26 Vegreville -- 1297.8 -- 216.1 2218 606 107 1505 42.18 11.53 2.04 28.61 Viking -- 645.5 -- 107.4 1099 254 80 765 42.03 9.71 3.07 29.26 Warwick -- 1211.1 -- 201.7 2050 451 195 1404 41.75 9.18 3.98 28.61 Warwick East -- 1362.7 -- 226.9 2317 655 113 1549 41.95 11.86 2.04 28.05 West Lavoy -- 1880.1 -- 313.0 3210 801 163 2246 42.14 10.52 2.14 29.41 Willingdon -- 1368.5 -- 228.0 2331 756 90 1485 42.01 13.63 1.62 26.77 SUBTOTAL ALBERTA -- 21091.2 -- 3512.5 35899 9417 2379 24103 42.00 11.02 2.78 28.20 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL -- 21091.2 -- 3512.5 35899 9417 2379 24103 42.00 11.02 2.78 28.20 - ----------------------------------------------------------------------------------------------------------------------------
(1) Barrels of Oil Equivalent based on 6.01 for Natural Gas, 1:00:1 for Condensate and C5+, 1:001 for Ethane, 1:00:1 for Propane, 1:00:1 for Butanes, 1:001 for NGL Mix, 1:00:1 for Sulphur, PWV/BOE based on Gross BOE reserves. (2) Excludes capital and abandonment expenses. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES GAS PRODUCTION FORECAST (mmcf)(1)
Area 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Subtotal Remainder Total - ------------------------------------------------------------------------------------------------------------- ALBERTA Birch 670 713 464 362 229 257 165 88 31 2 2983 -- 2983 Bonnyville 183 240 206 176 152 130 109 81 71 61 1409 210 1619 Cold Lake 302 346 257 195 148 114 79 48 22 15 1525 27 1552 Hairy Hill 73 73 45 11 9 1 -- -- -- -- 214 -- 214 Hedge -- -- -- -- -- -- -- -- -- -- -- -- -- Holden 76 106 97 89 82 75 69 63 58 53 768 262 1030 Jarrow 53 65 56 52 48 44 41 36 31 28 455 270 725 Lavoy 963 1151 925 702 542 430 341 321 231 160 5765 656 6421 Mannville 21 29 26 23 20 18 16 15 13 12 193 45 238 Mundare 270 281 243 150 109 77 41 29 26 23 1248 84 1332 Plain 260 287 206 148 115 91 70 40 28 23 1268 6 1274 Ranfurly 366 536 398 294 205 141 91 56 42 20 2148 177 2326 St. Paul 5 7 4 3 0 -- -- -- -- -- 20 -- 20 Vegreville 316 394 271 192 125 116 83 59 41 32 1629 43 1672 Viking 157 165 110 75 94 45 21 9 9 9 694 62 756 Warwick 295 301 192 127 89 65 41 6 -- -- 1114 -- 1114 Warwick East 332 398 308 236 183 136 107 78 66 41 1885 114 2000 West Lavoy 457 552 439 349 284 237 198 165 129 105 2915 367 3283 Willingdon 333 394 286 211 217 200 125 90 54 34 1943 86 2029 Subtotal Alberta 5132 6041 4532 3396 2650 2178 1597 1183 851 618 28178 2410 30588 - ------------------------------------------------------------------------------------------------------------- TOTAL 5132 6041 4532 3396 2650 2178 1597 1183 851 618 28178 2410 30588 - -------------------------------------------------------------------------------------------------------------
(1) Company gross share of production before royalty deductions HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES GROSS REVENUE FORECAST (M$)
Area 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Subtotal Remainder Total - ------------------------------------------------------------------------------------------------------------------------------- ALBERTA Birch 4709 4103 2388 1772 1087 1232 809 442 159 10 16711 -- 16711 Bonnyville 1266 1357 1039 847 705 613 523 396 353 310 7408 1134 8541 Cold Lake 2080 1955 1296 935 688 536 379 236 108 77 8290 146 8436 Hairy Hill 515 429 233 55 42 5 -- -- -- -- 1280 -- 1280 Hedge -23 558 -- -- -- -- -- -- -- -- 536 -- 536 Holden 537 613 502 437 388 359 336 314 293 274 4053 1463 5516 Jarrow 375 377 289 254 226 211 200 182 159 148 2420 1592 4012 Lavoy 6753 6604 4743 3422 2557 2051 1658 1594 1169 825 31376 3691 35066 Mannville 147 163 130 110 95 86 78 71 65 60 1004 242 1246 Mundare 1886 1612 1251 731 517 369 200 145 130 117 6959 463 7422 Plain 1825 1650 1061 723 543 433 342 199 144 120 7040 30 7070 Ranfurly 2569 3084 2045 1435 973 677 443 282 215 102 11826 1049 12875 St. Paul 36 41 21 16 1 -- -- -- -- -- 115 -- 115 Vegreville 2218 2269 1395 941 593 556 406 293 207 169 9049 228 9276 Viking 1099 946 561 365 442 216 103 46 46 45 3868 351 4219 Warwick 2050 1714 974 612 414 308 198 28 6298 6298 Warwick East 2317 2280 1576 1147 861 650 523 387 337 213 10291 625 10916 West Lavoy 3210 3173 2258 1704 1343 1133 969 823 658 548 15818 2030 17848 Willingdon 2331 2258 1463 1027 1026 954 610 448 274 176 10567 472 11038 Subtotal Alberta 35899 35186 23225 16535 12500 10389 7778 5885 4318 3194 154908 13514 168422 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL 35899 35186 23225 16535 12500 10389 7778 5885 4318 3194 154908 13514 168422 - -------------------------------------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 5 Page 1 TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES ENCUMBRANCE FORECAST (M$)
Area 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Subtotal Remainder Total - --------------------------------------------------------------------------------------------------------------------- ALBERTA Birch 1158 938 511 361 200 253 148 68 23 1 3663 -- 3663 Bonnyville 205 201 139 103 79 64 51 40 34 28 943 87 1031 Cold Lake 535 474 282 175 113 77 49 28 12 8 1754 11 1765 Hairy Hill 96 72 37 6 5 1 -- -- -- -- 217 -- 217 Hedge -- -- -- -- -- -- -- -- -- -- -- -- -- Holden 73 80 63 55 47 42 39 36 33 31 498 153 651 Jarrow 100 100 76 66 58 54 51 47 42 39 633 399 1032 Lavoy 2141 2005 1349 943 688 542 434 430 315 222 9068 1009 10077 Mannville 29 30 22 17 14 12 10 9 7 6 156 22 178 Mundare 451 327 252 137 86 58 29 20 17 14 1392 46 1438 Plain 499 424 248 156 104 74 54 32 23 19 1632 5 1637 Ranfurly 594 861 506 306 186 121 78 51 37 11 2754 96 2850 St. Paul 2 3 1 1 0 -- -- -- -- -- 7 -- 7 Vegreville 605 579 344 222 144 151 102 72 53 42 2314 53 2367 Viking 246 182 92 52 67 23 9 4 4 4 683 27 710 Warwick 451 317 154 88 54 36 21 3 1124 1124 Warwick East 652 591 367 242 168 125 100 67 57 36 2405 118 2524 West Lavoy 801 748 493 346 257 204 166 135 108 89 3348 319 3667 Willingdon 756 714 427 271 279 226 120 83 37 25 2937 71 3007 SUBTOTAL ALBERTA 9395 8646 5363 3548 2548 2064 1461 1126 803 573 35528 2419 37947 - -------------------------------------------------------------------------------------------------------------------- TOTAL 9395 8646 5363 3548 2548 2064 1461 1126 803 573 35528 2419 37947 - --------------------------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES CAPITAL EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------- ------ ALBERTA Birch 318 -- -- 27 -- 83 -- -- -- -- 428 -- 428 Bonnyville -- -- -- -- -- -- -- -- -- -- -- -- -- Cold Lake 15 -- -- -- -- -- -- -- -- 15 -- 15 Hairy Hill -- -- -- -- -- -- -- -- -- -- -- -- -- Hedge -- -- -- -- -- -- -- -- -- -- -- -- -- Holden -- -- -- -- -- -- -- -- -- -- -- -- -- Jarrow -- -- -- -- -- -- -- -- -- -- -- -- -- Lavoy 102 -- 27 -- -- -- -- 29 -- -- 157 -- 157 Mannville -- -- -- -- -- -- -- -- -- -- -- -- -- Mundare 101 -- -- -- -- -- -- -- -- -- 101 -- 101 Plain 34 -- -- -- -- -- -- -- -- -- 34 -- 34 Ranfurly 34 156 27 -- -- -- -- -- -- 217 -- 217 St. Paul -- -- -- -- -- -- -- -- -- -- -- -- -- Vegreville -- 20 -- -- -- 14 -- -- -- -- 33 -- 33 Viking -- -- -- -- -- -- -- -- -- -- -- -- -- Warwick 150 -- -- -- -- -- -- -- -- -- 150 -- 150 Warwick East -- -- -- -- -- -- -- -- -- -- -- -- -- West Lavoy 139 -- -- -- -- -- -- -- -- -- 139 -- 139 Willingdon 225 -- -- -- 54 28 -- -- -- -- 307 -- 307 Subtotal Alberta 1117 176 53 27 54 124 -- 29 -- -- 1580 -- 1580 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------- ------ TOTAL 1117 176 53 27 54 124 -- 29 -- -- 1580 -- 1580 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------- ------
HAWKER RESOURCES INC. - MECHANICAL UPDATE TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES OPERATING EXPENSE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Subtotal Remainder Total ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------- ----- ALBERTA Birch 312 365 271 239 166 161 117 65 21 1 1718 -- 1718 Bonnyville 154 218 209 203 197 193 181 127 125 120 1726 592 2318 Cold Lake 156 200 171 151 131 117 96 72 38 20 1151 61 1212 Hairy Hill 67 87 70 24 24 4 -- -- -- -- 276 -- 276 Hedge Holden 75 113 113 105 105 105 105 106 97 98 1022 706 1728 Jarrow 32 39 33 33 30 30 30 27 20 18 292 310 602 Lavoy 337 471 456 390 343 319 280 280 217 147 3241 648 3889 Mannville 15 21 20 20 19 18 18 17 17 17 182 85 267 Mundare 184 218 201 135 111 83 42 31 29 28 1061 135 1197 Plain 159 196 159 123 109 100 89 57 44 42 1079 12 1091 Ranfurly 130 178 154 139 112 83 57 39 33 16 941 238 1180 St. Paul 10 15 9 8 1 -- -- -- -- -- 43 -- 43 Vegreville 107 157 133 110 67 67 53 40 29 29 791 41 833 Viking 80 97 80 66 70 55 32 17 17 18 531 154 685 Warwick 195 226 166 123 99 88 65 10 -- -- 971 -- 971 Warwick East 113 162 153 134 119 95 79 61 59 37 1013 92 1104 West Lavoy 163 219 206 182 161 159 157 153 122 107 1628 551 2179 Willingdon 90 122 108 98 114 127 87 71 49 31 897 67 964 Subtotal Alberta 2379 3105 2711 2282 1978 1803 1489 1172 917 729 18564 3693 22257 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL 2379 3105 2711 2282 1978 1803 1489 1172 917 729 18564 3693 22257 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
HAWKER RESOURCES INC. - MECHANICAL UPDATE TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES ABANDONMENT COST FORECAST (M$)
Area 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Subtotal Remainder Total ------ ------ ------ ------ ------ ------ -------- ------ ------ ------ -------- ---------- ------ Alberta Birch -- -- 10 21 33 11 34 11 -- 24 146 13 160 Bonnyville -- -- 18 16 -- 7 23 -- 12 -- 76 136 212 Cold Lake -- 10 -- -- 11 11 5 18 18 -- 73 13 85 Hairy Hill -- -- 11 -- -- 23 -- -- -- -- 33 -- 33 Hedge -- -- -- -- -- -- -- -- -- -- -- -- -- Holden -- -- -- -- -- -- -- -- -- -- -- 89 89 Jarrow -- -- -- -- -- 6 17 9 7 -- 39 15 54 Lavoy 5 26 95 111 45 98 48 70 51 36 586 67 653 Mannville -- -- -- -- -- -- -- -- -- -- -- 10 10 Mundare -- -- 10 11 11 22 23 12 -- 12 101 28 129 Plain -- 10 -- 11 22 11 11 12 -- -- 77 25 102 Ranfurly -- 28 -- 11 40 26 11 23 12 18 169 15 184 St. Paul -- -- -- -- 17 -- -- -- -- -- 17 -- 17 Vegreville -- 10 -- 11 13 -- 20 23 6 -- 84 13 97 Viking 10 -- 11 9 33 19 11 -- -- -- 93 27 120 Warwick -- 10 -- 40 -- -- 11 11 -- 12 86 12 98 Warwick East -- -- -- 11 -- 22 -- -- 24 18 75 29 104 West Lavoy 10 3 18 16 11 -- -- 21 24 3 106 77 182 Willingdon -- 10 -- -- -- 11 11 -- 18 12 62 19 82 Subtotal Alberta 26 108 174 268 235 267 227 210 171 137 1822 589 2411 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL 26 108 174 268 235 267 227 210 171 137 1822 589 2411 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
HAWKER RESOURCES INC. - MECHANICAL UPDATE TEN YEAR PRODUCTION, REVENUES AND EXPENSES BY AREA MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES NET REVENUE FORECAST (M$)
AREA 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SUBTOTAL REMAINDER TOTAL ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------- ------ ALBERTA Birch 2920 2800 1597 1123 688 724 510 296 115 -17 10756 -13 10743 Bonnyville 907 938 672 525 429 350 268 229 183 162 4663 317 4980 Cold Lake 1374 1270 844 609 434 330 229 119 40 49 5298 61 5359 Hairy Hill 352 270 115 25 13 -22 -- -- -- -- 753 -- 753 Hedge -23 558 -- -- -- -- -- -- -- -- 536 -- 536 Holden 389 421 326 278 236 211 192 173 163 146 2533 514 3047 Jarrow 243 237 180 155 137 121 102 99 90 91 1456 868 2323 Lavoy 4167 4102 2816 1977 1481 1092 897 785 586 420 18324 1966 20290 Mannville 103 112 87 73 62 56 50 45 41 37 666 125 790 Mundare 1144 1061 782 445 305 202 103 79 82 61 4264 246 4510 Plain 1133 1020 654 433 308 248 189 98 77 59 4218 -12 4207 Ranfurly 1808 1856 1355 976 632 445 295 167 131 54 7719 679 8398 St. Paul 23 23 11 7 -16 -- -- -- -- -- 48 -- 48 Vegreville 1505 1502 918 598 369 323 230 157 119 98 5818 121 5939 Viking 755 660 375 237 272 119 49 24 24 23 2538 138 2676 Warwick 1254 1161 654 361 262 184 100 4 -- -12 3968 -12 3956 Warwick East 1549 1524 1054 759 574 407 344 259 198 122 6789 386 7175 West Lavoy 2097 2203 1541 1161 913 769 646 515 405 349 10598 1083 11681 Willingdon 1260 1411 929 658 579 563 392 293 170 108 6363 314 6678 SUBTOTAL ALBERTA 22960 23131 14910 10400 7678 6123 4594 3343 2421 1750 97309 6780 104090 ----- ----- ----- ----- ---- ---- ---- ---- ---- ---- ----- ---- ------ TOTAL 22960 23131 14910 10400 7678 6123 4594 3343 2421 1750 97309 6780 104090 ----- ----- ----- ----- ---- ---- ---- ---- ---- ---- ----- ---- ------
HAWKER RESOURCES INC. - MECHANICAL UPDATE Forecast of Production and Revenue - Company Share March Escalating Prices as of May 1, 2003 Total Probable Reserves - Unrisked Total of All Areas
Natural Gas ------------------------------ Annual Sales Sales Gross No. Of Volume Price Revenue Revenue Year Wells mmcf $/mcf M$ M$ ---- ------ ------ ------ ------- -------- 2003 2.1 466.6 6.99 3263.7 3263.7 2004 3.1 896.1 5.73 5133.3 5133.3 2005 7.0 997.2 5.13 5113.6 5113.6 2006 8.5 935.4 4.87 4559.9 4559.9 2007 8.7 882.1 4.72 4164.0 4164.0 2008 14.2 963.6 4.77 4600.3 4600.3 2009 13.9 749.1 4.87 3651.8 3651.8 2010 12.1 581.6 4.98 2896.1 2896.1 2011 8.4 382.2 5.08 1940.1 1940.1 2012 4.9 233.4 5.17 1205.8 1205.8 2013 3.4 187.2 5.27 986.6 986.6 2014 5.2 199.7 5.37 1072.9 1072.9 2015 6.9 192.5 5.47 1053.3 1053.3 2016 7.4 174.5 5.58 973.6 973.6 2017 9.6 158.0 5.69 898.9 898.9 REM. 1.7 389.0 6.08 2363.7 2363.7 TOTAL 8388.3 5.23 43877.4 43877.4 ---- ------ ---- ------- -------
Crown Royalties Freehold Royalties Overriding Royalties -------------------------- ------------------------ --------------------------- Total Total Unadj. Royalty Adj. Unadj. Royalty Adj. Unadj. Royalty Adj. Mineral Royalty Royalty NPI Royalty Adj. Royalty Royalty Adj. Royalty Royalty Adj. Royalty Tax & Taxes & Taxes Pymts. Year MS M$ M$ ME M$ M$ MS M$ M$ MS ME % MS ------- -------- ------- ------- ------ ------- ------- -------- ------- ------- -------- -------- ------- 2003 623.0 43.6 579.4 198.0 11.5 186.5 186.8 10.8 176.0 64.4 1006.4 30.84 0.6 2004 1042.0 89.1 952.9 258.3 19.3 239.0 246.9 18.0 228.9 86.4 1507.2 29.36 1.0 2005 947.0 88.5 858.4 257.8 22.3 235.4 213.9 17.9 196.0 73.7 1363.7 26.67 1.1 2006 822.1 85.0 737.2 217.5 20.6 196.9 177.5 15.9 161.6 54.3 1150.0 25.22 1.1 2007 658.5 71.3 587.3 219.0 22.6 196.4 183.2 17.3 165.9 49.1 998.7 23.98 1.2 2008 710.4 80.5 629.9 186.9 22.3 164.7 163.4 15.7 147.8 36.9 979.2 21.29 1.3 2009 510.7 56.3 454.5 120.8 15.4 105.4 117.0 11.1 105.9 25.1 690.9 18.92 1.0 2010 369.2 38.8 330.4 103.8 10.9 92.9 165.0 15.4 149.6 20.5 593.3 20.49 1.0 2011 230.4 23.4 207.0 62.5 5.9 56.6 115.7 10.8 104.9 13.9 382.4 19.71 1.0 2012 136.5 13.4 123.1 37.2 3.5 33.7 62.8 5.9 56.9 9.6 223.4 18.52 1.1 2013 90.0 9.0 81.0 55.1 5.2 49.9 57.2 5.4 51.8 10.6 193.4 19.60 1.1 2014 78.3 7.9 70.3 75.1 7.1 68.0 50.7 4.8 45.9 12.0 196.3 18.30 1.1 2015 78.6 8.4 70.2 54.0 5.1 48.9 48.0 4.6 43.5 9.3 171.9 16.32 2.0 2016 70.0 7.5 62.5 46.8 4.4 42.4 41.2 3.9 37.3 7.5 149.7 15.38 1.8 2017 66.2 7.0 59.3 31.3 2.9 28.4 20.7 1.9 18.7 4.6 110.8 12.33 2.0 REM. 170.2 16.5 153.7 107.1 10.1 97.0 177.3 16.9 160.4 17.4 428.6 18.13 9.2 TOTAL 6603.2 646.2 5957.0 2031.2 189.0 1842.2 2027.4 176.1 1851.3 495.2 10146.0 3.12 27.5 ------- ------- ------ ------- ------ ------- ------- -------- ------- ------ -------- ------- -------
Capital Costs Net Revenues After Costs ------------------------------- -------------------------------- Operating Abd. Net Op. Drilling Equip & Total PWV costs costs Income & Compl Facility Capital Annual Cum 015.0% Year ME M$ M$ M$ MS M$ M$ ME ME --------- ------- -------- --------- -------- ------- ------- --------- --------- 2003 151.9 2104.7 167.5 201.0 368.5 1736.2 1736.2 1657.2 2004 309.2 -20.8 3336.6 3336.6 5072.8 2834.6 2005 428.9 -63.4 3383.2 53.1 53.1 3330.1 8402.9 2460.1 2006 445.4 37.5 2925.8 27.1 27.1 2898.8 11301.7 1862.1 2007 445.7 -70.4 -2788.9 54.1 54.1 2734.7 14036.4 1527.6 2008 622.5 -106.2 3103.6 110.4 110.4 2993.2 17029.6 1453.8 2009 564.3 -32 2427.8 2427.8 19457.4 1025.5 2010 472.2 38.3 1791.3 28.7 28.7 1762.6 21220.0 647.4 2011 338.1 68.1 1150.5 1150.5 22370.7 367.5 2012 205.6 72.7 703.2 703.2 23073.7 195.3 2013 149.6 30.8 611.7 611.7 23685.5 147.8 2014 210.3 -112.1 777.4 777.4 24462.8 163.3 2015 270.5 0.0 608.9 608.9 25071.8 111.2 2016 288.7 -9.6 543.0 543.0 25614.7 86.2 2017 355.0 -91.4 522.5 522.5 26137.2 72.1 REM. 730.9 329.0 866.1 866.1 27003.3 52.8 TOTAL 5988.7 70.4 27645.2 440.9 201.0 641.9 27003.3 14664.3 ------- ------- -------- ------- -------- ------- ------- --------- ---------
REMAINING RESERVES REMAINING PRESENT WORTH VALUE - M$ ------------------- ----------------------------------------------- PRODUCT GROSS NET 010.0% @12.0% 015.0% 820.00% ------ ------ ------- ------- ------- ------- Natural Gas (mmcf) 8388.6 6361.5 17355.7 16172.5 14664.2 12681.3 Total 17355.7 16172.5 14664.2 12681.3
TABLE 2 PAGE 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROBABLE RESERVES
Company Gross Interest Reserves Present Worth Value ------------------------------- ------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax (M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt @10.0% @12.0% @15.0% - ----------------- ---------- ----- ------- ---- ---- ---- ----------- ------ ------ ------ ALBERTA BIRCH 00/06-32-050-10-W4 W-50.000 SPKY PA 57.6 -- -- -- 143.1 139.2 133.6 00/13-32-050-11-W4 W-50.000 VIK PA 48.4 -- -- -- 81.7 78.4 73.8 02/10-07-050-12-W4 W-50.000 GLAUUCLY PA 23.3 -- -- -- 60.6 57.8 54.0 02/01-14-050-12-W4 W-50.000 SPKY UCUMM PA 125.4 -- -- -- 289.7 271.1 246.6 00/14-16-050-12-W4 W-50.000 NIS PA 27.1 -- -- -- 87.5 85.1 81.7 00/15-17-050-12-W4 W-50.000 NIS PA 36.9 -- -- -- 101.8 97.6 91.8 00/07-21-050-12-W4 W-50.000 GLAUUC/B QTZ PA 52.3 -- -- -- 143.9 136.3 126.2 00/02-22-050-12-W4 W-50.000 SPKY/LLOYD /B Q PA 56.2 -- -- -- 160.5 154.4 145.9 00/02-22-050-12-W4 W-50.000 WAS PA 163.4 -- -- -- 334.0 308.4 274.6 00/08-22-050-12-W4 W-50.000 ELL/CUMM PA 27.5 -- -- -- 61.3 58.4 54.4 00/02-04-051-10-W4 W-50.000 SPKYKUMM PA 314.9 -- -- -- 818.6 778.6 724.8 00/02-04-051-10-W4 W-50.000 CLY/WAS/WABIS PA 273.0 -- -- -- 446.7 399.5 339.3 00/05-04-051-11-W4 W-50.000 SPKY PA 11.3 -- -- -- 41.3 40.4 39.0 SUBTOTAL 1217.5 2770.6 2605.0 2385.8 BONNYVILLE Bonnyville Grand W-50.000 GRD RP PA 354.3 -- -- -- 571.7 512.9 440.5 Rapids C Pool Group Run Ptn Fort Kent Colony W-50.000 CLY PA 46.7 -- -- -- 103.8 98.1 90.4 C Pool-10-36 & 6-6 00/10-22-061-06-W4 W-50.000 CLY PA 23.5 -- -- -- 43.8 40.5 36.3 SUBTOTAL 424.5 719.2 651.5 567.2 COLD LAKE CLEARWATER A POOL W-25.000 CLWTR PA 65.0 -- -- -- 163.8 156.2 146.0 GROUP RUN SECS 27&28-62-3W4 00/11-34-062-03-W4 W-25.000 CLY PA 11.8 -- -- -- 18.0 17.0 15.5 00/09-35-062-03-W4 W-25.000 CLY A PA 35.4 -- -- -- 72.8 67.1 59.7 00/05-36-062-03-W4 W-25.000 LLOYD PA 46.9 -- -- -- 96.4 89.2 79.9 02/14-23-063-03-W4 W-25.000 CLWTR D PA 8.9 -- -- -- 25.3 24.4 23.2 02/14-23-063-03-W4 W-25.000 CLY B PA 95.0 -- -- -- 285.6 276.9 265.0 00/16-23-063-03-W4 W-23.750 CLY NLLOYD PA 66.9 -- -- -- 127.0 116.1 102.2 02/02-26-063-03-W4 W-25.000 CLY B PA 41.6 -- -- -- 69.3 62.3 53.7 02/09-26-063-03-W4 W-23.750 CLY NLLOYD PA 49.5 -- -- -- 116.8 110.7 102.5 00/08-36-063-03-W4 W-23.750 CLY NLLOYD PA 11.1 -- -- -- 25.5 24.2 22.4 SUBTOTAL 432.1 1000.4 944.0 870.1 HAIRY HILL 00/06-21-055-14-W4 W-50.000 CLY/GLAUC/NIS PA 16.4 -- -- -- 45.6 44.4 42.6 02/10-21-055-14-W4 W-50.000 B QTUCLY PA 34.0 -- -- -- 90.8 88.4 85.2 00/11-30-055-14-W4 W-50.000 GLAUC PA 21.8 -- -- -- 71.3 69.9 67.8 SUBTOTAL 72.2 207.7 202.7 195.6 HOLDEN HOLDEN VIKING GAS W-35.500 VIK PA 168.5 -- -- -- 214.8 186.0 152.2 UNIT NO. 3 JARROW 00/10-13-045-11-W4 W-50.000 GLAUC PA 118.6 -- -- -- 111.5 91.7 70.7 00/06-30-045-11-W4 W-12.500 VIK PA 5.9 -- -- -- 13.2 12.3 11.2 SUBTOTAL 124.5 124.6 104.0 81.9 LAVOY 00/12-28-051-13-W4 W-50.000 CLY/NIS PA 106.5 -- -- -- 200.9 188.2 171.6 00/10-29-051-13-W4 W-50.000 NIS/ELL PA 47.2 -- -- -- 88.6 80.5 70.3 00110-29-051-13-W4 W-50.000 ELL/NIS PA 118.7 -- -- -- 77.1 58.6 40.4 00/02-31-051-13-W4 W-50.000 ELL PA 17.8 -- -- -- 33.4 31.4 28.7 00/14-31-051-13-W4 W-50.000 WAS PA 26.3 -- -- -- 84.2 81.8 78.3 00/01-32-051-13-W4 W-50.000 NIS L/NIS U PA 116.4 -- -- -- 281.3 263.5 240.1 00/01-32-051-13-W4 W-50.000 SPKY ULLOYD PA 68.3 -- -- -- 174.3 164.8 152.1 00/11-32-051-13-W4 W-50.000 NIS PA 47.3 -- -- -- 74.5 65.8 55.3 00/11-05-052-13-W4 W-50.000 VIKCLY PA 69.9 -- -- -- 142.2 133.5 122.0 00/06-15-052-14-W4 W-50.000 CLY PA 59.7 -- -- -- 157.2 150.3 141.0
TABLE 2 PAGE 2 HAWKER RESOURCES INC. - MECHANICAL UPDATE RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROBABLE RESERVES
Company Gross Interest Reserves Present Worth Value -------------------------------- ------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax (M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt @10.0% @12.0% @15.0% - ----------------- ---------- ----- ------ ---- ---- ---- ------- ------ ------ ------ LAVOY (CONT'D) 02/10-15-052-14-W4 W-50.000 CLY PA 61.8 -- -- -- 127.5 119.8 109.7 00/06-22-052-14-W4 W-50.000 CLY PA 71.2 -- -- -- 122.4 113.0 100.8 00/06-22-052-14-W4 W-50.000 VIK PA 118.7 -- -- -- 137.1 118.0 94.7 00/08-22-052-14-W4 W-50.000 LLOYD/SPKY USPK PA 29.5 -- -- -- 93.5 90.5 86.4 00/08-22-052-14-W4 W-50.000 VIK PA 96.4 -- -- -- 211.4 199.6 183.6 00/12-26-052-14-W4 W-50.000 SPKY/GLAUC PA 42.1 -- -- -- 84.2 78.9 71.8 00/06-27-052-14-W4 W-50.000 VIK PA 23.6 -- -- -- 41.1 37.4 32.8 00/15-27-052-14-W4 W-50.000 ELL PA 222.0 -- -- -- 374.9 338.4 293.5 02/06-28-052-14-W4 W-50.000 SPKY/LLOYD/NIS PA 22.4 -- -- -- 58.8 57.1 54.7 00/08-28-052-14-W4 W-50.000 CLY/ELL PA 174.4 -- -- -- 250.7 224.6 192.9 00/16-29-052-14-W4 W-50.000 ELL PA 22.9 -- -- -- 57.2 55.4 52.8 02/07-34-052-14-W4 W-50.000 GLAUC U PA 68.6 -- -- -- 166.0 156.0 142.9 SUBTOTAL 1631.7 -- -- -- 3038.4 2807.0 2516.6 MUNDARE 00/04-06-054-16-W4 W-50.000 VIK/CLY/SPKY PA 53.0 -- -- -- 168.9 165.5 160.6 00/11-02-054-17-W4 W-50.000 GLAUC PA 118.0 -- -- -- 177.4 156.2 131.1 00/01-10-054-17-W4 W-50.000 SPKY PA 30.2 -- -- -- 79.2 76.1 71.7 00/01-13-054-17-W4 W-50.000 GLAUC PA 68.4 -- -- -- 168.5 160.6 149.9 00/02-19-054-17-W4 W-50.000 GLAUC PA 45.4 -- -- -- 160.8 158.3 154.6 00/04-20-054-17-W4 W-50.000 GLAUC L/B QTZ PA 43.9 -- -- -- 130.6 126.9 121.7 00/04-20-054-17-W4 W-50.000 GLAUC PA 38.0 -- -- -- 74.0 68.4 60.9 SUBTOTAL 396.9 -- -- -- 959.5 912.0 850.5 PLAIN 00/12-34-052-10-W4 W-50.000 CLY PA 53.7 -- -- -- 127.1 120.3 111.3 00/10-14-052-12-W4 W-50.000 CLY PA 57.3 -- -- -- 138.0 131.1 121.9 00/12-28-052-12-W4 W-50.000 SPKY M/B QTZ PA 132.0 -- -- -- 272.6 253.4 228.7 00/15-32-052-12-W4 W-50.000 WAS/SPKY U PA 11.4 -- -- -- 35.2 34.2 32.8 00/07-04-053-12-W4 W-50.000 SPKY PA 47.1 -- -- -- 64.4 58.8 51.7 SUBTOTAL 301.5 -- -- -- 637.2 597.8 546.4 RANFURLY 02/09-35-050-13-W4 W-50.000 VIK PA 82.2 -- -- -- 196.6 185.2 169.8 00/03-32-050-14-W4 W-50.000 B QTUDET PA 132.9 -- -- -- 330.7 310.8 284.4 00/03-34-050-15-W4 W-50.000 B QTUCLY PA 48.7 -- -- -- 123.6 116.5 106.9 00/05-18-051-07-W4 W-25.000 WAS/SPKY PA 50.0 -- -- -- 130.9 123.6 114.0 00/16-20-051-12-W4 W-50.000 SPKY PA 23.0 -- -- -- 73.3 70.7 67.2 00/11-34-051-12-W4 W-50.000 GLAUC L/B QTZ PA 111.1 -- -- -- 196.5 181.5 162.1 00/15-06-051-13-W4 W-50.000 WAS U PA 23.6 -- -- -- 68.2 65.1 60.8 00/04-11-051-13-W4 W-13.542 GLAUUWAB PA 6.3 -- -- -- 17.6 16.7 15.5 00/15-04-051-14-W4 W-50.000 CUMM UCUMM PA 94.8 -- -- -- 102.0 83.9 64.9 SUBTOTAL 572.6 -- -- -- 1239.5 1154.1 1045.6 VEGREVILLE 00/06-07-052-13-W4 W-50.000 CLY/GLAUC PA 22.0 -- -- -- 64.9 63.1 60.7 02/06-07-052-13-W4 W-50.000 SPKY WAS PA 69.6 -- -- -- 172.5 165.2 155.3 00/01-13-052-14-W4 W-50.000 LLOYD/GLAUC PA 27.3 -- -- -- 71.4 69.0 65.7 00/06-13-052-14-W4 W-50.000 NIS/SPKY L PA 117.6 -- -- -- 237.0 215.9 189.6 00/12-13-052-14-W4 W-50.000 LLOYD/SPKY PA 32.2 -- -- -- 126.5 124.4 121.4 00/03-24-052-14-W4 W-50.000 DET/NIS/LLOYD/SP PA 39.4 -- -- -- 92.3 85.8 77.3 00/09-24-052-14-W4 W-50.000 SPKY M/LLOYD/GLA PA 25.2 74.8 72.3 68.8 SUBTOTAL 333.2 839.4 795.8 738.9 VIKING 00/16-14-048-12-W4 W-50.000 SPKY PA 88.3 -- -- -- 234.6 223.2 207.9 00/03-12-049-11-W4 W-50.000 SPKY L PA 60.7 -- -- -- 163.1 155.2 144.5 00/03-12-049-11-W4 W-50.000 CAM/B QTUSPKY PA 48.0 -- -- -- 107.7 99.7 89.1 00/16-34-049-13-W4 W-50.000 SPKY PA 35.6 -- -- -- 31.7 25.7 19.2 SUBTOTAL 232.5 -- -- -- 537.0 503.8 460.7 WARWICK 02/06-16-053-15-W4 W-50.000 SPKY/B QTUCUMM PA 13.6 -- -- -- 40.2 39.0 37.3 02/06-35-053-15-W4 W-50.000 CLY PA 125.2 -- -- -- 342.2 327.9 308.5 00/07-19-054-15-W4 W-50.000 WAS PA 73.6 -- -- -- 168.6 158.1 144.2 00/14-34-054-15-W4 W-50.000 WAS PA 39.7 -- -- -- 92.0 87.1 80.6 00/14-34-054-15-W4 W-50.000 NIS/CLY PA 92.4 -- -- -- 230.3 220.0 206.2 SUBTOTAL 344.6 -- -- -- 873.2 832.2 776.8
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROBABLE RESERVES
Company Gross Interest Reserves Present Worth Value ------------------------- -------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax(M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt @10.0% @12.0% @15.0% - ---------------------------------------------------------------------------------------------------------------------------- WARWICK EAST 00/16-30-052-14-W4 W- 50.000 SPKY L/SPKY U PA 40.6 - - - 108.3 103.1 96.1 00/08-32-052-14-W4 W- 50.000 NIS/SPKY PA 59.1 - - - 124.7 114.5 101.6 00/06-33-052-14-W4 W- 48.360 NIS PA 114.7 - - - 167.5 142.3 113.1 00/09-33-052-14-W4 W- 48.360 CLY/GLAUC/ELL PA 95.3 - - - 218.6 202.2 181.1 00/14-34-052-14-W4 W- 50.000 CUMM UELUGLAUC PA 69.6 - - - 136.4 128.1 117.1 00/06-35-052-14-W4 W- 12.500 GLAUC PA 5.9 - - - 11.4 10.5 9.3 00/04-04-053-14-W4 W- 50.000 LLOYD/ELL PA 9.3 - - - 17.9 17.1 16.0 00/08-06-053-14-W4 W- 50.000 GLAUUCLY PA 22.6 - - - 55.7 53.9 51.4 00/06-07-056-14-W4 W- 25.000 SPKY PA 23.0 - - - 63.8 61.0 57.2 SUBTOTAL 440.1 - - - 904.3 832.8 742.8 WEST LAVOY 00/11-19-051-13-W4 W- 50.000 VIK PA 118.2 - - - 204.9 182.0 154.4 00/11-22-051-14-W4 W- 50.000 VIK PA 23.7 - - - 39.5 35.2 29.8 00/10-24-051-14-W4 W- 50.000 CLY/GLAUC PA 118.2 - - - 155.1 135.6 112.8 00/14-29-051-14-W4 W- 50.000 CLY PA 49.9 - - - 120.3 112.6 102.5 00/09-11-051-15-W4 R- 6.250 BR PA 2.9 - - - 8.0 7.2 6.3 02/07-15-051-15-W4 W- 12.500 8 BR M PA 17.6 - - - 41.2 38.1 34.3 00/12-15-051-15-W4 W- 12.500 CLY PA 52.7 - - - 112.0 101.3 88.2 00/09-16-051-15-W4 W- 50.000 CLY PA 198.0 - - - 377.4 340.5 295.2 00/10-21-051-15-W4 W- 37.500 CLY PA 26.4 - - - 59.6 56.0 51.2 00/16-21-051-15-W4 W- 37.500 B BR M PA 106.4 - - - 216.4 195.0 168.6 02/10-22-051-15-W4 W- 18.809 BR PA 26.6 - - - 47.7 42.5 36.3 00/14-14-054-15-W4 W- 50.000 MCLAR/VIK PA 77.7 - - - 195.8 185.4 171.6 SUBTOTAL 818.3 - - - 1577.8 1431.5 1251.3 WILLINGDON 02/10-24-054-16-W4 W- 50.000 WAS/CLY PA 60.2 - - - 135.8 126.3 114.1 00/13-23-056-16-W4 W- 25.000 SPKY/CLY PA 32.0 - - - 42.2 35.1 27.2 02/11-23-056-16-W4 W- 25.000 GLAUC/B QTZ PA 40.6 - - - 99.5 93.4 85.5 00/10-29-056-16-W4 W- 50.000 GLAUC PA 85.0 - - - 217.5 205.8 190.2 00/10-29-056-16-W4 W- 50.000 CLY PA 100.2 - - - 173.4 154.8 131.1 00/12-03-057-16-W4 W- 50.000 GLAUC PA 47.4 - - - 91.8 86.7 79.9 00/12-03-057-16-W4 W- 50.000 CLY/WAS PA 150.5 - - - 200.3 182.4 158.9 00/07-15-057-16-W4 W- 50.000 WAS/SPKY/LSPKY/C PA 362.0 - - - 751.6 727.9 695.2 SUBTOTAL 078.0 - - - 1712.0 1612.4 1482.0 SUBTOTAL ALBERTA 8388.7 - 17355.8 16172.6 14664.3 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL 8388.7 - 17355.8 16172.6 14664.3 - ----------------------------------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE TABLE 1 FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES TOTAL OF ALL AREAS
NATURAL GAS -------------------------------------- ANNUAL SALES SALES GROSS NO.OF VOLUME PRICE REVENUE REVENUE YEAR WELLS mmcf $/mcf M$ M$ ------------------------------------------------------------------------------------ 2003 63.1 3876.2 7.00 27119.5 27119.5 2004 57.5 4229.0 5.73 24231.9 24231.9 2005 50.6 2948.3 5.12 15098.9 15098.9 2006 43.3 2096.6 4.87 10203.6 10203.6 2007 37.5 1534.3 4.72 7236.0 7236.0 2008 29.7 1063.4 4.77 5071.6 5071.6 2009 24.4 753.3 4.87 3668.3 3668.3 2010 18.6 540.2 4.97 2685.7 2685.7 2011 15.5 417.0 5.08 2117.1 2117.1 2012 13.9 337.7 5.18 1749.2 1749.2 2013 12.6 261.5 5.29 1382.5 1382.5 2014 9.3 171.8 5.39 926.5 926.5 2015 6.4 112.7 5.50 619.9 619.9 2016 5.6 91.1 5.60 510.2 510.2 2017 2.3 44.1 5.69 251.0 251.O REM. 0.9 129.4 6.10 789.4 789.4 TOTAL 18606.7 5.57 103661.3 103661.3 ------------------------------------------------------------------------------------
Crown Royalties Freehold Royalties Overriding Royalties -------------------------- ------------------------ ------------------------ Total Total Unadj. Royalty Adj. Unadj. Royalty Adj. Unadj. Royalty Adj. Mineral Royalty Royalty NPI Royalty Adj. Royalty Royalty Adj. Royalty Royalty Adj. Royalty Tax & Taxes & Taxes Pymts. Year M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ ME % M$ - -------------------------------------------------------------------------------------------------------------------------------- 2003 4926.8 314.3 4612.5 1081.8 67.7 1014.2 1061.5 62.3 999.2 316.6 6942.4 25.60 21.5 2004 3993.7 314.7 3679.0 1000.3 77.7 922.6 973.1 71.1 902.1 259.4 5763.0 23.78 19.7 2005 2176.6 196.2 1980.3 639.7 56.5 583.2 617.7 51.4 566.2 148.4 3278.1 21.71 12.6 2006 1302.8 126.3 1176.5 425.7 40.2 385.5 410.9 36.8 374.2 92.0 2028.2 19.88 9.0 2007 819.8 82.4 737.4 297.9 28.8 269.1 301.8 28.4 273.4 60.7 1340.7 18.53 6.7 2008 513.7 51.2 462.6 225.8 21.5 204.3 221.6 21.0 200.6 43.0 910.6 17.95 5.4 2009 331.8 33.0 298.8 178.0 16.7 161.3 170.1 16.0 154.1 31.3 645.5 17.60 4.9 2010 235.2 23.5 211.6 127.9 12.1 115.8 109.3 10.3 99.0 21.8 448.3 16.69 4.4 2011 168.3 17.0 151.3 111.6 10.5 101.1 85.5 8.0 77.4 17.4 347.2 16.40 4.0 2012 128.0 13.0 115.0 97.1 9.1 87.9 73.4 6.9 66.5 14.0 283.5 16.21 3.6 2013 102.8 10.4 92.4 63.9 6.0 57.9 51.6 4.8 46.8 9.0 206.1 14.91 3.3 2014 71.8 7.4 64.4 32.6 3.1 29.5 37.1 3.5 33.6 4.7 132.2 14.27 2.9 2015 45.0 4.3 40.7 23.9 2.2 21.6 26.5 2.5 24.1 3.3 89.7 14.48 1.8 2016 35.6 3.4 32.2 20.7 1.9 18.7 19.6 1.8 17.7 2.8 71.4 14.00 1.7 2017 14.9 1.5 13.5 13.3 1.3 12.1 11.4 1.1 10.3 1.9 37.7 15.02 1.1 REM. 32.3 3.0 29.3 62.1 5.8 56.3 57.4 5.4 52.0 7.7 145.2 18.40 5.0 TOTAL 14899.0 1201.5 13697.5 4402.3 361.1 4041.3 4228.4 331.3 3897.1 1033.9 22670.0 21.87 107.6 - --------------------------------------------------------------------------------------------------------------------------------
Capital Costs Net Revenues After Costs ----------------------------- ----------------------------------- Operating Abd. Net Op. Drilling Equip & Total PWV costs costs Income & Compl Facility Capital Annual Cum 015.0% Year M$ M$ M$ M$ ME M$ M$ M$ M$ ------------------------------------------------------------------------------------------------------ 2003 1883.4 20.4 18251.7 68.0 68.0 18183.8 18183.8 17356.0 2004 2369.6 46.3 16033.2 16033.2 34216.9 13620.8 2005 1934.8 126.9 9746.3 9746.3 43963.3 7199.9 2006 1582.2 130.4 6453.8 6453.8 50417.1 4145.8 2007 1336.5 173.1 4379.1 4379.1 54796.2 2446.0 2008 1053.4 235.1 2867.2 2867.2 57663.4 1392.7 2009 859.5 168.9 1989.6 1989.6 59653.0 840.4 2010 653.6 107.9 1471.6 1471.6 61124.5 540.6 2011 536.8 75.8 1153.4 1153.4 62277.9 368.4 2012 480.9 64.2 917.0 917.0 63194.9 254.7 2013 433.0 49.7 690.4 690.4 63885.3 166.7 2014 319.2 156.5 315.6 315.6 64200.9 66.3 2015 213.8 12.9 301.6 301.6 64502.6 55.1 2016 185.9 39.3 211.9 211.9 64714.4 33.7 2017 76.7 119.7 15.8 15.8 64730.3 2.2 REM. 210.5 54.9 373.8 373.8 65104.1 34.2 TOTAL 14129.8 1581.9 65172.0 68.0 68.0 65104.1 48523.2 - ----------------------------------------------------------------------------------------------------------------
Remaining Reserves Remaining Present Worth Value - M$ --------------------- ---------------------------------------- Product Gross Net @10.0% @12.0% @15.0% @20.0% - ------------------------------------------------------------------------------------------------- Natural Gas (mmcf) 18607.0 14450.2 52720.6 50927.4 48522.9 45123.9 Total 52720.6 50927.4 48522.9 45123.9 - -------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
Company Gross Interest Reserves Present Worth Value ------------------------- -------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax(M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt @10.0% @12.0% @15.0% - -------------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 02/10-07-050-12-W4 W- 50.000 GLAUUCLY PP 43.1 - - - 149.9 147.4 143.8 02/01-14-050-12-W4 W- 50.000 SPKY UCUMM PP 344.2 - - - 1135.2 1105.9 1065.0 00/09-15-050-12-W4 W- 50.000 CUMM PP 115.6 - - - 388.8 380.3 368.3 00109-16-050-12-W4 W- 50.000 LLOYD/CUMM /NIS PP 7.5 - - - 32.8 33.3 33.9 00/15-17-050-12-W4 W- 50.000 NIS PP 82.4 - - - 298.7 293.1 285.2 00/07-21-050-12-W4 W- 50.000 GLAUUB QTZ PP 200.4 - - - 725.3 707.1 681.8 00/02-22-050-12-W4 W- 50.000 SPKY/LLOYD /B Q PP 128.2 - - - 479.7 471.2 459.1 00/08-22-050-12-W4 W- 50.000 ELUCUMM PP 99.7 - - - 291.1 284.6 275.4 00/15-24-050-12-W4 WAS/SPKY/LLOYD NRA - - - -8.0 -7.6 -7.0 00/05-04-051-11-W4 W- 50.000 SPKY PP 23.5 - - - 99.2 98.6 97.6 SUBTOTAL 1044.6 - - - 3592.5 3513.8 3403.2 BONNYVILLE Bonnyville Grand W- 50.000 GRD RP PP 907.2 - - - 2190.2 2101.0 1981.2 Rapids C Pool Group Run Ptn Fort Kent Colony W- 50.000 CLY PP 137.6 - - - 412.0 402.4 389.1 C Pool - 10-36 & 6-6 00111-19-060-04-W4 W- 50.000 CLY PP 73.2 - - - 195.5 189.4 180.9 00/10-22-061-06-W4 W- 50.000 CLY PP 75.2 - - - 196.4 190.7 182.7 00/07-34-061-06-W4 W- 25.000 CLY A PP 1.2 - - - 0.1 0.3 0.5 SUBTOTAL 1194.4 - - - 2994.1 2803.7 2734.5 COLD LAKE Clearwater A Pool W- 25.000 CLWTR PP 353.7 - - - 1123.5 1095.6 1057.1 Group Run Secs 27&28-62-3W4 00/11-34-062-03-W4 W- 25.000 CLY PP 72.1 - - - 157.7 153.7 148.2 00/09-35-062-03-W4 W- 25.000 CLY A PP 77.3 - - - 239.4 232.2 222.3 00/05-36-062-03-W4 W- 25.000 LLOYD PP 136.0 - - - 404.8 392.2 374.7 02/14-23-063-03-W4 W- 25.000 CLWTR D PP 33.4 - - - 119.9 117.9 115.0 00/16-23-063-03-W4 W- 23.750 CLY NLLOYD PP 169.2 - - - 476.3 459.0 435.5 00/07-25-063-03-W4 W- 23.750 CLY A NRA - - - -3.5 -3.3 -2.9 02/09-26-063-03-W4 W- 23.750 CLY NLLOYD PP 131.9 - - - 423.3 413.3 399.3 00/08-36-063-03-W4 W- 23.750 CLY NLLOYD PP 28.9 - - - 90.0 88.0 85.1 8 Gorr Wells R- 2.125 CLY PP 18.6 - - - 74.0 71.3 67.6 SUBTOTAL 1021.0 - - - 3105.4 3020.0 2901.9 HAIRY HILL 00/10-18-053-14-W4 R- 4.167 GLAUC PP 7.0 - - - 30.4 29.5 28.3 00/06-21-055-14-W4 W- 50.000 CLY/GLAUC/NIS PP 62.7 - - - 210.0 207.4 203.7 02/10-21-055-14-W4 W- 50.000 B QTUCLY PP 41.2 - - - 125.5 124.0 121.9 00/11-30-055-14-W4 W- 50.000 GLAUC PP 31.0 - - - 116.4 115.3 113.6 SUBTOTAL 141.9 - - - 482.3 476.2 467.5 HOLDEN Holden Viking Gas W- 35.500 VIK PP 861.4 - - - 1792.9 1694.2 1566.3 Unit No.3 JARROW 00/03-33-044-11-W4 W- 25.000 B QTUGLAUC PP 11.6 - - - 42.4 42.3 42.1 00/07-34-045-10-W4 W- 30.000 VIK PP 36.8 - - - 65.1 62.6 59.2 00/14-01-045-11-W4 W- 50.000 CLY PP 1.8 - - - 0.8 1.4 2.2 00110-13-045-11-W4 W- 50.000 GLAUC PP 531.8 - - - 983.2 905.8 811.7 00/10-15-045-11-W4 F- 0.750 CLY/VIK PP 0.1 - - - 0.3 0.3 0.3 00/06-19-045-11-W4 R- 0.750 VIK PP 0.2 - - - 1.1 1.0 1.0 02/10-27-045-11-W4 W- 12.500 SPKY PP 1.4 - - - 1.4 1.5 1.7 00/04-29-045-11-W4 W- 12.500 VIK PP 3.7 - - - 5.6 5.6 5.6 00/06-30-045-11-W4 W- 12.500 VIK PP 13.5 - - - 42.3 41.2 39.7 00/11-31-045-11-W4 R- 0.750 VIK NRA - - - SUBTOTAL 600.9 - - - 1142.1 1061.9 963.6
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
Company Gross Interest Reserves Present Worth Value ------------------------- -------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax(M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt @10.0% @12.0% @15.0% - ---------------------------------------------------------------------------------------------------------------------------------- LAVOY CAPITAL TO PURCHASE P- 50.000 PP - - - -65.9 -65.5 -64.9 COMPRESSOR 00/07-21-051-13-W4 W- 50.000 CLY/WAB PP 3.1 - - - -0.5 -0.3 0.1 00/12-28-051-13-W4 W- 50.000 CLY/NIS PP 273.4 - - - 700.6 680.5 652.9 00/10-29-051-13-W4 W- 50.000 NIS/ELL PP 106.4 - - - 297.0 286.6 272.3 00/02-31-051-13-W4 W- 50.000 ELL PP 107.2 - - - 260.1 253.0 243.2 00/14-31-051-13-W4 W- 50.000 WAS PP 41.5 - - - 165.2 163.1 160.1 00/01-32-051-13-W4 W- 50.000 NIS L/NIS U PP 299.0 - - - 992.2 964.2 925.5 00/01-32-051-13-W4 W- 50.000 SPKY L/LLOYD PP 234.5 - - - 802.2 781.0 751.6 00/11-32-051-13-W4 W- 50.000 NIS PP 151.6 - - - 377.6 359.4 335.5 00/12-04-052-13-W4 W- 50.000 CLY/VIK NRA - - - -8.0 -7.6 -7.0 00/11-05-052-13-W4 W- 50.000 VIK/CLY PP 160.2 - - - 435.7 424.1 408.0 00/06-12-052-14-W4 W- 50.000 LLOYD/SPKY M PP 16.7 - - - 37.1 36.8 36.4 00/11-12-052-14-W4 W- 50.000 SPKY L/CUMM L NRA - - - -8.0 -7.6 -7.0 00/15-12-052-14-W4 W- 50.000 GLAUC/CUMM L/SPK PP 147.2 - - - 515.2 502.6 484.9 00/06-15-052-14-W4 W- 50.000 CLY PP 67.4 - - - 236.3 232.3 226.6 02/10-15-052-14-W4 W- 50.000 CLY PP 204.9 - - - 561.8 546.4 525.1 00/06-22-052-14-W4 W- 50.000 CLY PP 268.7 - - - 669.0 647.4 617.9 00/08-22-052-14-W4 W- 50.000 LLOYD/SPKY L/SPK PP 59.0 - - - 225.8 222.5 217.7 00/12-26-052-14-W4 W- 50.000 SPKY/GLAUC PP 166.3 - - - 443.4 430.5 412.8 00/06-27-052-14-W4 W- 50.000 VIK PP 78.0 - - - 195.2 188.3 178.9 00/12-27-052-14-W4 W- 50.000 GLAUC/NIS PP 65.9 - - - 219.9 217.1 213.0 00/15-27-052-14-W4 W- 50.000 ELL PP 568.7 - - - 1434.5 1374.6 1294.6 02/06-28-052-14-W4 W- 50.000 SPKY/LLOYD /NIS PP 60.8 - - - 193.8 191.4 187.9 00/08-28-052-14-W4 W- 50.000 CLY/ELL PP 726.7 - - - 1564.0 1490.2 1393.1 00/16-29-052-14-W4 W- 50.000 ELL PP 40.6 - - - 124.9 123.2 120.8 00/10-32-052-14-W4 W- 50.000 VIK/CLY PP 0.8 - - - -5.5 -5.0 -4.3 02/07-34-052-14-W4 W- 50.000 GLAUC U PP 142.1 - - - 464.2 451.6 434.3 00/10-07-053-14-W4 F- 2.917 GLAUC PP 26.4 - - - 89.9 84.9 78.2 SUBTOTAL 4017.2 - - - 10917.6 10565.8 10088.3 MANNVILLE 00/09-16-052-07-W4 W- 37.500 CLY PP 237.8 - - - 525.9 493.2 451.5 MUNDARE 00/11-02-054-17-W4 W- 50.000 GLAUC PP 375.7 - - - 916.0 869.9 809.5 00/01-10-054-17-W4 W- 50.000 SPKY PP 82.3 - - - 285.5 280.5 273.4 00/10-10-054-17-W4 CLY NRA - - - -5.9 -5.2 -4.3 00/02-19-054-17-W4 W- 50.000 GLAUC PP 60.6 - - - 246.7 245.1 242.6 00/04-20-054-17-W4 W- 50.000 GLAUC L/B QTZ PP 93.9 - - - 357.4 353.0 346.7 SUBTOTAL 612.5 - - - 1799.7 1743.3 1667.9 PLAIN 00/12-34-052-10-W4 W- 50.000 CLY PP 274.0 - - - 863.4 841.2 810.4 00/12-28-052-12-W4 W- 50.000 SPKY M/B QTZ PP 396.7 - - - 1146.4 1109.6 1059.4 00/15-32-052-12-W4 W- 50.000 WAS/SPKY U PP 34.0 - - - 129.8 128.5 126.6 00/12-09-052-13-W4 W- 50.000 VIK NRA - - - -8.0 -7.6 -7.0 00/07-04-053-12-W4 W- 50.000 SPKY PP 124.6 - - - 252.0 243.3 231.4 SUBTOTAL 829.3 - - - 2383.6 2315.0 2220.9 RANFURLY RANFURLY GAS UNIT W- 13.542 ALL ZONES PP 10.5 - - - 35.4 35.8 36.2 02/09-35-050-13-W4 W- 50.000 CLY/MCLAR PP 13.4 - - - 57.1 56.7 56.1 00/06-36-050-13-W4 W- 50.000 MCLAR PP 8.0 - - - 34.5 34.7 34.9 02/09-36-050-13-W4 W- 50.000 B QTZ U PP 22.2 - - - 98.6 98.0 97.2 00/11-30-050-14-W4 R- 6.900 VIK L PP 10.9 - - - 43.8 42.1 39.9 00/03-32-050-14-W4 W- 50.000 8 QTZ/DET PP 277.3 - - - 974.7 951.1 918.3 00/16-23-050-15-W4 W- 50.000 CLY PP 149.9 - - - 527.1 514.3 496.2 00/03-34-050-15-W4 W- 50.000 B QTZ/CLY PP 258.0 - - - 890.9 867.7 835.3 00/16-20-051-12-W4 W- 50.000 SPKY PP 37.9 - - - 152.0 149.6 146.3 00/06-29-051-12-W4 W- 50.000 CLY/SPKY PP 2.8 - - - 6.6 7.0 7.6 02/08-04-051-13-W4 W- 50.000 CLY PP 54.6 - - - 179.0 174.2 167.5 00/15-06-051-13-W4 W- 50.000 WAS U PP 40.7 - - - 161.5 159.0 155.3 00/04-11-051-13-W4 W- 13.542 GLAUC/WAB PP 31.6 - - - 116.8 114.0 110.0 00/06-22-051-13-W4 W- 22.500 VIK PP 3.5 - - - 8.6 8.5 8.5 00/15-04-051-14-W4 W- 50.000 CUMM L/CUMM PP 317.7 - - - 686.8 633.3 568.2 00/02-09-051-14-W4 F- 1.343 BR PP 0.5 - - - 2.6 2.6 2.5 00/06-10-051-14-W4 R- 9.943 BR PP 5.6 - - - 28.3 27.8 27.1 SUBTOTAL 1245.2 - - - 4004.2 3876.4 3707.1
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 3 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
Company Gross Interest Reserves Present Worth Value ---------------------------- -------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax(M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt @10.0% @12.0% @15.0% - ---------------------------------------------------------------------------------------------------------------------------------- ST. PAUL 00/05-03-058-09-W4 W- 37.500 MN PP 13.5 29.7 29.2 28.5 00/12-03-058-09-W4 W- 37.500 VIK PP 6.8 16.8 16.9 17.0 SUBTOTAL 20.2 46.5 46.1 45.4 VEGREVILLE 00/06-07-052-13-W4 W- 50.000 CLY/GLAUC PP 78.2 - - - 268.1 264.7 259.8 02/06-07-052-13-W4 W- 50.000 SPKY L/WAS PP 174.0 - - - 541.4 530.3 514.7 00/01-18-052-13-W4 W- 24.750 GLAUC PP 61.3 - - - 139.7 136.4 131.6 00/06-19-052-13-W4 W- 10.026 GLAUC PP 1.6 - - - 4.3 4.4 4.5 00/01-13-052-14-W4 W- 50.000 LLOYD/GLAUC PP 41.1 - - - 133.2 131.3 128.5 00/06-13-052-14-W4 W- 50.000 NIS/SPKY L PP 651.3 - - - 1869.8 1792.4 1689.2 00/12-13-052-14-W4 W- 50.000 LLOYD/SPKY PP 27.2 - - - 121.9 121.1 119.9 00/03-24-052-14-W4 W- 50.000 DET/NIS/LLOYD/SP PP 153.1 - - - 501.4 486.0 464.9 00/09-24-052-14-W4 W- 50.000 SPKY M/LLOYD/GLA PP 24.8 - - - 96.9 95.7 94.0 00/10-09-053-14-W4 W- 37.500 NIS PP 4.1 - - - 20.4 20.3 20.1 SUBTOTAL 11216.6 - - - 3697.2 3582.7 3427.2 VIKING 00/16-14-048-12-W4 W- 50.000 SPKY PP 125.5 - - - 453.6 444.5 431.6 00/03-12-049-11-W4 W- 50.000 SPKY L PP 153.7 - - - 553.9 541.7 524.5 00/04-22-049-12-W4 W- 47.500 B QTZ U/B QTZ L PP 26.6 - - - 110.6 109.9 108.7 00/09-32-049-12-W4 W- 50.000 LLOYD PP 40.6 - - - 153.4 151.1 147.9 00/06-28-049-13-W4 W- 50.000 CLY PP 1.1 - - - -5.3 -5.3 -5.2 00/16-34-049-13-W4 W- 50.000 SPKY PP 121.2 - - - 211.9 197.0 178.3 00/10-36-049-13-W4 W- 50.000 WAB PP 4.5 - - - 6.7 7.2 7.8 00/02-24-049-14-W4 W- 50.000 WAB NRA - - - -6.9 -6.3 -5.5 00/08-04-050-12-W4 W- 42.500 B QTZ U/B QTZ L PP 40.1 - - - 134.1 131.5 127.9 00/11-13-050-13-W4 W- 34.375 VIK PP 10.1 - - - 15.6 15.6 15.4 R- 0.625 SUBTOTAL 523.4 1627.6 1587.0 1531.5 WARWICK 02/06-16-053-15-W4 W- 50.000 SPKY/B QTZ/CUMM PP 39.6 145.0 143.0 140.1 02/06-35-053-15-W4 W- 50.000 CLY PP 166.3 598.6 587.9 572.6 00/14-34-054-15-W4 W- 50.000 WAS PP 127.6 414.7 404.7 390.8 00/14-34-054-15-W4 W- 50.000 NIS/CLY PP 163.8 539.1 528.2 512.7 00/07-01-055-15-W4 GLAUC/NIS NRA -6.0 -5.7 -5.2 SUBTOTAL 497.2 1691.4 1658.1 1611.1 WARWICK EAST 00/16-30-052-14-W4 W- 50.000 SPKY L/SPKY U PP 219.7 - - - 780.1 762.6 738.0 00/08-32-052-14-W4 W- 50.000 NIS/SPKY PP 291.2 - - - 871.9 839.9 796.5 00/06-33-052-14-W4 W- 48.360 NIS PP 382.9 - - - 963.1 905.4 830.8 00/09-33-052-14-W4 W- 48.360 CLY/GLAUC/ELL PP 256.9 - - - 827.2 800.4 763.8 00/14-34-052-14-W4 W- 50.000 CUMM L/ELL/GLAUC PP 189.6 - - - 511.0 497.3 478.2 00/06-35-052-14-W4 W- 12.500 GLAUC PP 25.1 - - - 69.9 67.5 64.2 00/04-04-053-14-W4 W- 50.000 LLOYD/ELL PP 44.3 - - - 105.3 103.6 101.1 00/03-05-053-14-W4 W- 50.000 SPKY U/GLAUC PP 29.3 - - - 73.7 73.0 71.9 00/08-06-053-14-W4 W- 50.000 GLAUC/CLY PP 58.5 - - - 180.6 177.9 173.9 00/06-07-056-14-W4 W- 25.000 SPKY PP 62.0 - - - 219.7 215.2 208.9 SUBTOTAL 1559.5 - - - 4602.5 4442.7 4227.2 WEST LAVOY 00/11-19-051-13-W4 W- 50.000 VIK PP 321.9 882.7 841.2 786.5 00/15-15-051-14-W4 W- 50.000 CLY PP 51.5 185.1 182.2 178.0 00/11-21-051-14-W4 W- 50.000 CLY/WAS PP 7.3 21.7 21.6 21.4 00/11-22-051-14-W4 W- 50.000 VIK PP 109.8 275.9 263.6 247.1 00/10-24-051-14-W4 W- 50.000 CLY/GLAUC PP 408.6 866.4 819.1 757.9 00/14-29-051-14-W4 W- 50.000 CLY PP 159.4 524.7 509.8 489.2 00/07-34-051-14-W4 W- 50.000 VIK PP 3.9 2.9 3.3 3.9 00/16-10-051-15-W4 R- 6.250 BR PP 11.5 48.9 47.3 45.2 00/09-11-051-15-W4 R- 6.250 BR PP 9.4 37.9 36.5 34.5 00/10-14-051-15-W4 W- 13.184 B BR PP 28.6 67.4 64.5 60.5 R- 3.105 02/07-15-051-15-W4 W- 12.500 B BR M PP 52.4 169.8 164.3 156.8 00/09-16-051-15-W4 W- 50.000 CLY PP 446.3 1292.6 1238.8 1167.2 00/10-21-051-15-W4 W- 37.500 CLY PP 52.6 163.4 159.5 153.9 00/16-21-051-15-W4 W- 37.500 B BR M PP 276.6 856.l 820.3 772.6
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 4 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED PRODUCING RESERVES
Company Gross Interest Reserves Present Worth Value ---------------------------- -------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax(M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt 810.0% 812.0% 815.0% - ------------------------------------------------------------------------------------------------------------------------------- WEST LAVOY (CONT'D) 02/10-22-051-15-W4 W-18.809 BR PP 96.1 - 264.3 252.0 235.9 00/07-26-051-15-W4 W-22.500 VIK A PP 8.4 12.8 12.6 12.4 00/11-19-052-15-W4 R-0.388 U MN PP 1.0 4.1 3.9 3.7 SUBTOTAL 2045.5 - 5676.7 5440.4 5126.5 WILLINGDON 02/10-24-054-16-W4 W-50.000 WAS/CLY PP 425.7 - 1280.4 1235.2 1174.2 00/13-23-056-16-W4 W-25.000 SPKY/CLY PP 297.1 - 695.7 646.8 585.1 02/13-23-056-16-W4 W-25.000 GLAUUB QTZ PP 127.9 - 421.8 409.7 393.0 00/12-03-057-16-W4 W-50.000 GLAUC PP 88.0 - 240.2 235.4 228.7 SUBTOTAL 938.6 - 2638.1 2527.1 2381.0 SUBTOTAL ALBERTA 18607.1 - 52720.4 50927.4 48522.8 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL 18607.1 - - - 52720.4 50927.4 48522.8 - -------------------------------------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE TABLE 1 FORECAST OF PRODUCTION AND REVENUE - COMPANY SHARE MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED NON-PRODUCING RESERVES TOTAL OF ALL AREAS
NATURAL GAS -------------------------------------- TOTAL ANNUAL SALES SALES OTHER GROSS NO.OF VOLUME PRICE REVENUE REVENUES REVENUE YEAR WELLS mmcf $/mcf M$ M$ MS ------------------------------------------------------------------------------------------------ 2003 6.6 789.2 7.02 5538.0 -22.5 5515.5 2004 7.5 915.7 5.75 5262.3 558.3 5820.5 2005 7.2 586.8 5.13 3012.3 3012.3 2006 6.1 363.4 4.87 1771.3 1771.3 2007 5.3 233.3 4.72 1100.1 1100.1 2008 3.6 150.6 4.76 716.7 716.7 2009 2.0 94.4 4.85 457.5 457.5 2010 1.2 61.6 4.93 303.5 303.5 2011 1.1 51.8 5.02 260.2 260.2 2012 1.1 46.7 5.12 239.0 239.0 2013 0.9 40.4 5.21 210.4 210.4 2014 0.7 34.7 5.30 183.9 183.9 2015 0.5 31.1 5.40 168.0 168.0 2016 0.5 29.9 5.50 164.4 164.4 2017 0.5 28.7 5.60 160.9 160.9 REM. 0.5 133.9 5.96 798.0 798.0 TOTAL 3592.0 5.66 20346.5 535.7 20882.2 ------------------------------------------------------------------------------------------------
Crown Royalties Freehold Royalties Overriding Royalties -------------------------- ------------------------ ------------------------ TOTAL TOTAL UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. UNADJ. ROYALTY ADJ. MINERAL ROYALTY ROYALTY NPI ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY ROYALTY ADJ. ROYALTY TAX & TAXES & TAXES PYMTS. YEAR M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ % M$ - -------------------------------------------------------------------------------------------------------------------------------- 2003 1292.6 100.2 1192.4 142.3 16.3 125.9 86.6 6.0 80.6 47.3 1446.3 26.12 2004 1146.3 104.4 1041.9 125.6 18.8 106.9 206.6 15.9 190.7 36.0 1375.4 26.14 2005 589.6 57.3 532.4 76.9 13.9 63.0 118.1 10.4 107.7 18.3 721.4 23.95 2006 275.4 27.4 247.9 51.4 10.6 40.8 77.3 7.3 70.1 10.7 369.5 20.86 2007 138.4 14.2 124.2 32.1 7.6 24.5 59.0 5.7 53.3 6.5 208.6 18.96 2008 92.7 7.7 85.0 17.4 2.6 14.8 75.8 5.4 70.3 4.5 174.6 24.36 0.9 2009 55.6 4.7 50.9 13.4 1.3 12.2 62.7 4.8 57.9 3.7 124.7 27.26 0.9 2010 33.7 3.0 30.7 12.4 1.2 11.2 42.1 3.2 38.9 3.3 84.1 27.70 0.6 2011 27.7 2.6 25.1 11.5 1.1 10.4 37.7 3.0 34.7 2.9 73.1 28.10 0.4 2012 24.9 2.4 22.5 10.7 1.0 9.7 34.5 2.9 31.6 2.7 66.4 27.79 0.2 2013 21.9 2.2 19.7 10.1 1.0 9.1 29.1 2.7 26.4 2.5 57.7 27.40 0.0 2014 19.9 2.0 18.0 8.7 0.8 7.8 27.5 2.6 24.8 2.2 52.8 28.74 2015 18.5 1.8 16.7 8.0 0.8 7.2 26.9 2.6 24.3 2.0 50.2 29.90 2016 17.6 1.7 15.9 7.8 0.8 7.1 26.3 2.5 23.8 1.9 48.7 29.64 2017 16.9 1.6 15.2 7.6 0.7 6.9 25.7 2.5 23.3 1.8 47.2 29.37 REM 78.0 7.5 70.5 37.9 3.6 34.3 127.7 12.2 115.4 8.5 228.7 28.66 TOTAL 3849.5 340.5 3509.0 573.8 82.1 491.7 1063.5 89.7 973.9 154.9 5129.5 25.21 3.0 - --------------------------------------------------------------------------------------------------------------------------------
Capital Costs Net Revenues After Costs ----------------------------- ----------------------------------- Operating Abd. Net Op. Drilling Equip & Total PWV costs costs Income & Compl Facility Capital Annual Cum 815.0% YEAR M$ M$ M$ MS MS M$ M$ MS MS ------------------------------------------------------------------------------------------------------ 2003 343.2 5.1 3720.9 680.5 680.5 3040.4 3040.4 2902.1 2004 425.7 83.0 3936.5 19.5 156.1 175.6 3760.9 6801.3 3196.1 2005 347.3 110.3 1833.2 1833.2 8634.5 1356.1 2006 254.8 99.8 1047.3 1047.3 9681.8 674.4 2007 195.1 132.6 563.8 563.8 10245.7 315.5 2008 126.5 138.0 276.8 13.9 13.9 262.9 10508.5 128.8 2009 65.2 90.2 176.6 176.6 10685.1 75.2 2010 45.7 64.3 108.9 108.9 10794.0 40.8 2011 42.4 26.9 117.4 117.4 10911.4 37.7 2012 42.5 129.9 129.9 11041.3 36.1 2013 36.2 116.6 116.6 11157.9 28.1 2014 27.0 9.5 94.5 94.5 11252.4 19.9 2015 21.5 96.3 96.3 11348.7 17.6 2016 21.8 93.9 93.9 11442.7 14.9 2017 22.0 91.6 91.6 11534.3 12.6 REM. 120.6 448.7 448.7 11983.0 41.1 TOTAL 2137.5 759.7 12852.9 33.5 836.5 870. 11983.0 8897.0 - ----------------------------------------------------------------------------------------------------------------
Remaining Reserves Remaining Present Worth Value - M$ --------------------- ---------------------------------------- Product Gross Net @10.0% 812.0% 015.0% 820.0% - ------------------------------------------------------------------------------------------------- Crude Oil (mbbl) -14.8 -13.7 -12.3 -10.3 Natural Gas (mmcf) 3592.1 2628.8 9643.1 9327.4 8909.2 8323.8 TOTAL 9628.3 9313.7 8896.8 8313.5 - -------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 1 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED NON-PRODUCING RESERVES
Company Gross Interest Reserves Present Worth Value ------------------------- -------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax(M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt 810.0% 012.0% 015.0% - -------------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 00/06-32-050-10-W4 W-50.000 B QTZ NRA - - - -7.4 -6.9 -6.2 00/06-32-050-10-W4 W-50.000 SPKY NRA - - - 00/13-32-050-11-W4 W-50.000 VIK - - - -7.3 -6.8 -6.0 00/14-16-050-12-W4 W-50.000 NIS PNP 95.0 - - - 315.0 310.9 305.2 00/02-22-050-12-W4 W-50.000 WAS NRA - - - 00/02-04-051-10-W4 W-50.000 SPKY/CUMM PNP 626.0 - - - 2180.9 2137.3 2076.1 00/02-04-051-10-W4 W-50.000 CLY/WAS/WABLS NRA - - - SUBTOTAL 721.0 - - - 2481.2 2434.6 2369.0 BONNYVILLE 00/01-24-059-05-W4 W-35.000 GRD RP NRA - - - -6.0 -5.8 -5.5 NRA Wells NRA - - - -20.1 -18.9 -17.3 SUBTOTAL - - - -26.2 -24.7 -22.8 COLD LAKE 02/11-34-062-03-W4 W-25.000 LLOYD NRA - - - -4.7 -4.6 -4.4 02/14-23-063-03-W4 W-25.000 CLY B NRA - - - 00/10-25-063-03-W4 W-23.750 LLOYD NRA - - - -3.3 -3.0 -2.6 00/11-25-063-03-W4 W-23.750 CLY B NRA - - - -4.4 -4.3 -4.2 02/02-26-063-03-W4 W-25.000 CLY B PNP 98.6 - - - 250.5 240.0 226.0 SUBTOTAL 98.6 - - - 238.2 228.1 214.8 HEDGE Natural Gas Hedge P-50.000 PNP - - - 477.7 467.4 452.7 JARROW 00/09-36-046-12-W4 W-25.000 VIK A,B NRA - - - -3.4 -3.1 -2.7 LAVOY 00/10-29-051-13-W4 W-50.000 ELL/NIS PNP 695.5 - - - 1041.7 938.1 815.6 00/10-33-051-13-W4 W-50.000 CLY NRA - - - -6.9 -6.3 -5.5 00/13-18-052-13-W4 W-24.750 CLY NRA - - - -3.2 -2.8 -2.4 00/07-30-052-13-W4 W-50.000 2 WS PNP 18.0 - - - 43.6 43.1 42.5 00/10-11-052-14-W4 W-50.000 CLYR WS NRA - - - -8.5 -8.1 -7.1 00/06-22-052-14-W4 W-50.000 VIK NRA - - - 00/08-22-052-14-W4 W-50.000 VIK NRA - - - 02/12-27-052-14-W4 W-50.000 LLOYD/SPKY NRA - - - -6.9 -6.3 -5.5 00/06-34-052-14-W4 W-50.000 ELL/NIS NRA - - - -8.6 -8.3 -7.8 00/06-06-053-14-W4 W-50.000 VIK NRA - - - -7.4 -6.9 -6.2 00/07-29-053-14-W4 W-50.000 2WS PNP 58.9 - - - 178.1 174.1 168.4 LAVOY NRA Wells ALL ZONES NRA - - - -180.0 -166.7 -149.3 SUBTOTAL 772.5 - - - 1041.9 950.0 842.1 MUNDARE 00/04-06-054-16-W4 W-50.000 GLAUC L/GLAUC NRA - - - -7.4 -6.9 -6.2 00/04-06-054-16-W4 W-50.000 VIK/CLY/SPKY - - - -7.4 -6.9 -6.2 00/01-13-054-17-W4 W-50.000 GLAUC PNP 171.0 - - - 513.2 502.6 487.5 00/02-19-054-17-W4 W-50.000 B QTZ/GLAUC L NRA - - - -8.0 -7.6 -7.0 00/04-20-054-17-W4 W-50.000 GLAUC PNP 152.0 - - - 349.6 331.9 307.7 00/02-17-055-18-W4 W-50.000 U MN NRA - - - -6.3 -5.6 -4.8 SUBTOTAL 323.0 - - - 833.8 807.6 771.2 PLAIN 00/12-34-052-10-W4 W-50.000 VIK NRA - - - -7.3 -6.8 -6.0 00/10-14-052-12-W4 W-50.000 CLY PNP 143.2 - - - 433.7 423.4 409.0 00/13-36-052-13-W4 W-50.000 SPKY NRA - - - -9.3 -9.1 -8.8 00/14-18-053-11-W4 W-50.000 B QTZ NRA - - - -7.4 -6.9 -6.2 SUBTOTAL 143.2 - - - 409.7 400.6 387.9 RANFURLY 02/09-35-050-13-W4 W-50.000 VIK NRA - - - 00/05-18-051-07-W4 W-25.000 WAS/SPKY PNP 167.6 - - - 540.5 524.9 503.6 00/11-34-051-12-W4 W-50.000 GLAUC L/B QTZ PNP 340.5 - - - 644.5 616.3 577.8 00/12-01-051-13-W4 W-12.500 SPKY U NRA - - - -2.3 -2.3 -2.2
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 2 Page 2 RESERVES AND PRESENT WORTH VALUES BY PROPERTY MARCH ESCALATING PRICES AS OF MAY 1, 2003 PROVED NON-PRODUCING RESERVES
Company Gross Interest Reserves Present Worth Value ------------------------- -------------------------------- Company Reserve Gas Oil NGL Sulphur Before Tax(M$) Area and Property Interest % Zones Class mmcf mbbl mbbl mlt 010.0% 812.0% @15.0% - -------------------------------------------------------------------------------------------------------------------------------- RANFURLY (CONT'D) 00/16-12-051-14-W4 W-50.000 WAB NRA - - - -9.3 -9.1 -8.8 SUBTOTAL 508.1 - - - 1173.4 1129.8 1070.3 VEGREVILLE 00/01-18-052-13-W4 W-24.750 SPKY L PNP 57.6 - - - 56.3 50.2 42.4 00/10-09-053-14-W4 W-37.500 SPKY PNP 64.1 - - - 189.7 184.2 176.6 SUBTOTAL 121.7 - - - 246.0 234.4 219.0 VIKING 00/03-12-049-11-W4 W-50.000 CAM/B QTZ/SPKY NRA - - - 00/08-31-049-12-W4 W-50.000 LLOYD/WAS NRA - - - -7.4 -6.9 -6.2 SUBTOTAL - - - -7.4 -6.9 -6.2 WARWICK 00/11-36-053-15-W4 W-50.000 VIK PNP 101.2 - - - 353.2 348.7 342.2 00/07-19-054-15-W4 W-50.000 WAS PNP 171.5 - - - 496.4 482.9 463.9 02/06-14-054-16-W4 W-50.000 WAS NRA - - - -7.8 -7.4 -6.8 00/13-06-055-14-W4 W-50.000 CLY/NIS NRA - - - -8.0 -7.6 -7.0 00/01-02-055-15-W4 W-50.000 NIS NRA - - - -9.3 -9.1 -8.8 SUBTOTAL 272.6 - - - 824.5 807.5 783.6 WEST LAVOY 00/08-31-051-14-W4 W-50.000 CLY PNP 63.2 - - - 132.1 129.6 126.1 00/07-15-051-15-W4 W-12.500 CLY NRA - - - -2.3 -2.3 -2.2 00/12-15-051-15-W4 W-12.500 CLY PNP 126.6 - - - 405.4 389.1 367.5 02/10-21-051-15-W4 W-37.500 B BR M NRA - - - -6.5 -6.2 -5.9 00/14-29-051-15-W4 W-50.000 CLY NRA - - - -5.5 -4.7 -3.8 00/14-14-054-15-W4 W-50.000 MCLAR/VIK PNP 229.3 - - - 719.8 701.7 676.5 SUBTOTAL 419.0 - - - 1242.9 1207.2 1158.2 WILLINGDON 00/10-29-056-16-W4 W-50.000 GLAUC PNP 212.3 - - - 711.1 695.0 672.4 00/10-29-056-16-W4 W-50.000 CLY NRA - - - 02/12-29-056-16-W4 W-50.000 CLY NRA - - - -9.3 -9.1 -8.8 00/12-03-057-16-W4 W-50.000 CLY/WAS NRA - - - 00/07-15-057-16-W4 W-50.000 WAS/SPKY/LSPKY/C - - - - -5.8 -5.1 -4.2 SUBTOTAL 212.3 - - - 696.0 680.8 659.3 SUBTOTAL ALBERTA 3592.1 - - - 9628.0 9313.3 8896.6 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL 3592.1 9628.0 9313.3 8896.6 - --------------------------------------------------------------------------------------------------------------------------------
HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 1 SUMMARY OF CRUDE OIL RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1,2003 TOTAL PROVED & PROBABLE RESERVES
Property Gross Company Volumetric Factors Crude Oil Reserves Share --------------------------- ----------------------------- ----------- Net Orig. Orig. Cum. Rem. Rem. 2003 Reserves Company Reserve Area PAY POR. SW SG OIL OIP Rec. Res. Prod. Res. Res. Rate based Area and Property Interest % Zones Class acre ft % % & SHR. mbbl % mbbl mbbl mbbl mbbl bopd on - ------------------------------------------------------------------------------------------------------------------------------------ ALBERTA Birch 00/06-32-050-10-W4 W-50.000 B QTZ 0.0 0.00 Lavoy 00/06-06-053-14-W4 W-50.000 VIK 0.0 0.00 SUBTOTAL ALBERTA - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL - ------------------------------------------------------------------------------------------------------------------------------------
Table 1 Page 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - --------------------------------------------------------------------------------------------------------------------------------- ALBERTA BIRCH 00/06-32-050-10-W4 W-50.000 SPKY PA 160 4.9 26.0 50.0 653 544 0.917 00/13-32-050-11-W4 W-50.000 VIK PA 320 3.3 26.0 60.0 435 537 0.940 02/10-07-050-12-W4 W-50.000 02/10-07-050-12-W4/0 GLAUC/GLAUC PR 14.1 22.5 45.0 585 542 PA 02/10-07-050-12-W4/2 CLY PR 20.0 24.0 55.0 435 536 Subtotal PR PA 02/01-14-050-12-W4 W-50.000 SPKY L PR 160 9.8 33.0 40.0 780 537 PA CUMM PR 427 4.3 29.0 45.0 780 539 PA Subtotal PR PA 00/09-15-050-12-W4 W-50.000 CUMM PR 480 4.3 23.0 40.0 415 539 0.940 00/09-16-050-12-W4 W-50.000 00/09-16-050-12-W4/2 LLOYD/CUMM PR 13.4 24.2 50.0 580 555 00/09-16-050-12-W4/0 NIS PR 160 16.7 24.0 35.0 580 555 Subtotal PR 00/14-16-050-12-W4 W-50.000 NIS PR 160 16.4 25.0 35.0 452 555 0.940 PA 00/15-17-050-12-W4/0 W-50.000 NIS PR 160 8.2 25.0 35.0 680 542 0.900 PA 40 680 542 0.900 00/07-21-050-12-W4 W-50.000 00/07-21-050-12-W4/2 GLAUC/GLAUC PR 7.9 27.0 43.0 653 550 00/07-21-050-12-W4/0 B QTZ PR 320 12.1 23.0 35.0 696 553
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- ---------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------ ALBERTA BIRCH 00/06-32-050-10-W4 206 70.0 144 144 5.0 137 57.6 72 Vol 00/13-32-050-11-W4 146 70.0 102 102 5.0 97 48.4 63 Vol 02/10-07-050-12-W4 02/10-07-050-12-W4/0 200 109 91 5.0 86 Decl 50 50 5.0 48 Decl 02/10-07-050-12-W4/2 21 21 221 130 91 4.9 86 43.1 51 50 50 4.0 48 23.3 5 02/01-14-050-12-W4 775 50.0 388 14 374 5.0 355 Vol 20.0 155 155 5.0 147 Vol 728 50.0 364 14 350 5.0 333 Vol 15.0 109 109 5.0 104 Vol 1503 50.0 752 28 724 4.9 688 344.2 376 264 264 4.9 251 125.4 16 00/09-15-050-12-W4 361 70.0 253 10 243 5.0 231 115.6 132 Vol 00/09-16-050-12-W4 00/09-16-050-12-W4/2 44 44 00/09-16-050-12-W4/0 724 250 234 16 5.0 15 Decl 724 40.6 294 278 16 5.4 15 7.5 31 00/14-16-050-12-W4 571 35.0 200 200 5.0 190 95.0 217 Vol 10.0 57 57 5.0 54 27.1 13 Vol 00/15-17-050-12-W4/0 459 70.0 321 147 174 5.0 165 82.4 113 Vol 115 70.0 81 81 5.0 77 36.9 14 Vol 00/07-21-050-12-W4 00/07-21-050-12-W4/2 1 1 00/07-21-050-12-W4/0 1210 75.0 908 486 422 5.0 401 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES Page 2 MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ PA 40 Subtotal PR PA 00/02-22-050-12-W4 W- 50.000 00/02-22-050-12-W4/2 SPKY PR 160 21.0 30.0 40.0 653 540 PA 00/02-22-050-12-W4/0 B QTZ/CUMM PR 6.9 23.0 45.0 725 542 00/02-22-050-12-W4/3 LLOYD PR 640 6.6 27.0 50.0 479 540 Subtotal PR PA 00/02-22-050-12-W4 W- 50.000 WAS PA 80 23.0 26.0 50.0 653 539 0.910 00/08-22-050-12-W4/0 W- 50.000 ELL/CUMM PR 320 15.4 23.7 48.0 627 532 0.920 PA 00/15-24-050-12-W4 00/15-24-050-12-W4/4 WAS/SPKY U PR 14.1 26.2 50.0 696 524 00/15-24-050-12-W4/3 SPKY M/LLOYD PR 6.5 29.4 52.0 696 524 Subtotal PR 00/02-04-051-10-W4 W- 50.000 SPKY PR 213 7.2 30.0 30.0 667 531 PA 107 667 531 CUMM PR 213 12.1 27.0 30.0 682 533 PA 107 682 533 Subtotal PR PA 00/02-04-051-10-W4 W- 50.000 CLY PA 160 3.3 31.0 55.0 595 528 WAS PA 160 3.9 29.0 35.0 624 531 WABIS PA 80 19.4 27.0 30.0 812 533 Subtotal PA 00/05-04-051-11-W4/0 W- 50.000 SPKY PR 80 8.2 27.0 35.0 776 540 0.900 PA SUBTOTAL PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- ------------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - --------------------------------------------------------------------------------------------------- --------- -------- 75.0 113 113 5.0 107 Vol 1210 75.1 909 487 422 5.0 401 200.4 212 113 113 5.3 107 52.3 14 00/02-22-050-12-W4 00/02-22-050-12-W4/2 1240 50.0 620 388 232 5.0 220 Vol 10.0 124 124 5.0 118 Vol 00/02-22-050-12-W4/0 60 60 00/02-22-050-12-W4/3 835 200 162 38 5.0 36 Perf 2075 42.4 880 610 270 5.1 256 128.2 195 124 124 4.8 118 56.2 25 00/02-22-050-12-W4 492 70.0 344 344 5.0 327 163.4 Vol 00/08-22-050-12-W4/0 1200 40.0 480 270 210 5.0 200 99.7 114 Vol 5.0 60 60 5.0 57 27.5 9 Vol 00/15-24-050-12-W4 00/15-24-050-12-W4/4 65 65 5.0 Perf 00/15-24-050-12-W4/3 29 29 94 94 7.7 00/02-04-051-10-W4 687 75.0 515 515 5.0 489 Vol 345 75.0 259 259 5.0 246 Vol 1070 75.0 803 803 5.0 763 Vol 538 75.0 404 404 5.0 384 Vol 1757 75.0 1318 1318 5.0 1252 626.0 958 883 75.1 663 663 5.0 630 314.9 69 00/02-04-051-10-W4 139 50.0 70 70 5.0 67 Vol 232 50.0 116 116 5.0 110 Vol 776 50.0 388 388 5.0 369 Vol 1147 50.0 574 574 4.9 546 273.0 00/05-04-051-11-W4/0 284 175 126 49 5.0 47 23.5 53 Decl 25 25 5.0 24 11.3 6 Decl SUBTOTAL 10144 5897 2180 3717 3531 1765.6 2453 2989 2601 2601 2473 1217.5 306
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. -- MECHANICAL UPDATE Table 1 Page 3 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- ----- ------- ---- ---- ---- --- --- ----- ------ ---- BONNYVILLE Bonnyville Grand W-50.000 GRD RP PR Rapids C Pool PA Group Run Ptn Fort Kent Colony W-50.000 CLY PR C Pool-10-36 & 6-6 PA 00/01-24-059-05-W4/0 W-35.000 GRD RP PR 00/11-19-060-04-W4/0 W-50.000 CLY PR 00/10-22-061-04-W4/0 W-50.000 CLY PR 00/07-34-061-06-W4/0 W-25.000 CLY A PA 8.2 31.0 30.0 232 522 0.966 SUBTOTAL PR PA COLD LAKE Clearwater A Pool W-25.000 CLWTR PR 12.0 33.0 30.0 392 524 0.940 Group Run PA 392 524 0.940 Secs 2728-62-3W4 00/11-34-062-03-W4/2 W-25.000 CLY PR 9.8 30.0 40.0 339 520 0.949 PA 02/11-34-062-03-W4 W-25.000 LLOYD PR 4.9 33.0 35.0 414 524 0.942 00/09-35-062-03-W4/3 W-25.000 CLY A PR 8.5 35.0 20.0 156 518 0.970 PA 00/05-36-062-03-W4/2 W-25.000 LLOYD PR 5.2 34.0 45.0 428 519 0.940 PA 02/14-23-063-03-W4/2 W-25.000 CLWTR D PR 640 4.3 33.0 35.0 417 524 0.943 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------------- ----------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- --- ---- ---- ---- ---- ----- ----- ----- -------- BONNYVILLE Bonnyville Grand 19000 17090 1910 5.0 1815 907.2 483 Decl Rapids C Pool 750 750 5.0 713 354.3 22 Decl Group Run Ptn Fort Kent Colony 3100 2810 290 5.0 275 137.6 132 Perf C Pool-10-36 & 6-6 100 100 5.0 95 46.7 9 Perf 00/01-24-059-05-W4/0 249 249 00/11-19-060-04-W4/0 2100 1946 154 5.0 146 73.2 47 Decl 00/10-22-061-04-W4/0 1150 992 158 5.0 151 75.2 52 Decl 50 50 5.0 48 23.5 2 Decl 00/07-34-061-06-W4/0 275 270 5 5.0 4 1.2 6 Decl SUBTOTAL 25874 23357 2517 2391 1194.4 722 900 900 856 424.5 33 COLD LAKE Clearwater A Pool 5700 85.0 4845 3356 1489 5.0 1415 353.7 433 MB Group Run 5700 5.0 285 285 5.0 271 65.0 28 MB Secs 27&28-62-3W4 00/11-34-062-03-W4/2 4600 4297 303 5.0 228 72.1 53 Decl 50 50 5.0 48 11.8 1 Decl 02/11-34-062-03-W4 00/09-35-062-03-W4/3 1000 675 325 5.0 309 77.3 59 Perf 150 150 5.0 143 35.4 2 Perf 00/05-36-062-03-W4/2 1800 1228 572 5.0 544 136.0 112 Perf 200 200 5.0 190 46.9 6 Perf 02/14-23-063-03-W4/2 769 60.0 461 320 141 5.0 134 33.4 49 Vol 5.0 39 39 5.0 37 8.9 4 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 4 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ COLD LAKE (CONT'D) 02/14-23-063-03-W4 W-25.000 CLY B PR PA 160 44.3 33.0 30.0 119 519 0.982 00/16-23-063-03-W4 W-23.750 00/16-23-063-03-W4/2 CLY A PR 10.0 34.0 30.0 150 522 PA 00/16-23-063-03-W4/0 LLOYD PR 29.5 34.0 30.0 415 524 PA Subtotal PR PA 00/07-25-063-03-W4/0 W-23.750 CLY A PR 8.2 34.0 30.0 150 523 0.960 00/10-25-063-03-W4/0 W-23.750 LLOYD PR 5.9 34.0 30.0 422 524 0.094 00/11-25-063-03-W4/2 W-23.750 CLY B PR 9.2 34.0 30.0 319 520 0.951 02/02-26-063-03-W4 W-25.000 CLY B PR 9.2 33.0 30.0 92 519 0.986 PA 02/09-26-063-03-W4 W-23.750 02/09-26-063-03-W4/2 CLY A PR 29.5 34.0 35.0 135 521 PA 02/09-26-063-03-W4/0 LLOYD PR 5.9 34.0 30.0 415 524 PA Subtotal PR PA 00/08-36-063-03-W4 W-23.750 00/08-36-063-03-W4/2 CLY A PR 8.2 34.0 30.0 135 521 PA 00/08-36-063-03-W4/0 LLOYD PR 6.6 34.0 30.0 413 524 Subtotal PR PA 8 Gorr Wells R-2.125 CLY PR SUBTOTAL PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - -------------------------------------------------------------------------------------------------------------------- COLD LAKE (CONT'D) 02/14-23-063-03-W4 589 70.0 412 412 5.0 391 95.0 83 Vol 00/16-23-063-03-W4 00/16/23-063-03-W4/2 650 605 45 5.0 43 Perf 50 50 5.0 48 Perf 00/16-23-063-03-W4/0 2850 2145 705 5.0 670 Decl 250 250 5.0 238 Decl 3500 2750 750 5.1 712 169.2 125 300 300 4.7 286 66.9 8 00/07-25-063-03-W4/0 150 150 00/10-25-063-03-W4/0 930 930 00/11-25-063-03-W4/2 82 82 02/02-26-063-03-W4 425 10 415 5.0 395 98.6 66 Perf 175 175 5.0 166 41.6 3 Perf 02/09-26-063-03-W4 02/09-26-063-03-W4/2 475 403 72 5.0 68 Perf 25 25 5.0 24 Perf 02/09-26-063-03-W4/0 3100 2587 513 5.0 487 Decl 200 200 5.0 190 Decl 3575 2990 585 5.1 555 131.9 150 225 225 4.9 214 49.5 12 00/08-36-063-03-W4 00/08-36-063-03-W4/2 600 473 127 5.0 121 Decl 50 50 5.0 48 Decl 00/08-36-063-03-W4/0 326 326 926 799 128 4.8 122 28.9 29 50 50 4.0 48 11.1 2 8 Gorr Wells 9500 8579 921 5.0 875 18.6 13 Decl SUBTOTAL 6469 31794 26166 5629 5349 1119.6 1089 6289 1886 1886 1794 432.1 150
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 5 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ----------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ HAIRY HILL 00/10-18-053-14-W4/0 R- 4.167 GLAUC PR 40.0 30.0 30.0 687 542 0.918 00/06-21-055-14-W4 W- 50.000 00/06-21-055-14-W4/3 CLY PR 640 5.9 31.0 45.0 364 535 PA 00/06-21-055-14-W4/0 NIS PR 11.5 13.0 45.0 334 544 00/06-21-055-14-W4/2 GLAUC PR 160 9.2 31.0 40.0 524 542 Subtotal PR PA 02/10-21-055-14-W4 W- 50.000 02/10-21-055-14-W4/0 B QTZ PR 6.6 24.0 40.0 283 542 02/10-21-055-14-W4/4 CLY PR 320 3.3 28.0 50.0 458 530 PA 160 458 530 Subtotal PR PA 00/11-30-055-14-W4/0 W- 50.000 GLAUC PR 160 6.6 25.0 50.0 618 531 0.920 PA SUBTOTAL PR PA HOLDEN Holden Viking Gas W- 35.500 VIK PR 4.9 18.0 50.0 635 540 0.917 Unit No. 3 PA JARROW 00/03-33-044-11-W4 W- 25.000 00/03-33-044-11-W4/0 B QTZ PR 3.0 29.0 35.0 694 538 00/03-33-044-11-W4/2 GLAUC PR 2.6 30.0 40.0 799 537 Subtotal PR 00/07-34-045-10-W4/2 W- 30.000 VIK PR 640 4.0 24.0 40.0 705 532 0.909 00/14-01-045-11-W4/0 W- 50.000 CLY PR 160 2.0 28.0 40.0 785 535 0.896
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------ HAIRY HILL 00/10-18-053-14-W4/0 10000 9824 176 5.0 167 7.0 6 Decl 00/06-21-055-14-W4 00/06-21-055-14-W4/3 716 80.0 573 457 116 5.0 110 Vol 5.0 36 36 5.0 34 Perf 00/06-21-055-14-W4/0 151 151 00/06-21-055-14-W4/2 438 210 194 16 5.0 15 Perf 1154 80.9 934 802 132 4.9 125 62.7 107 36 36 5.6 34 16.4 7 02/10-21-055-14-W4 02/10-21-055-14-W4/0 214 214 02/10-21-055-14-W4/4 210 75.0 158 71 87 5.0 83 Vol 105 75.0 79 79 5.0 75 Vol 210 177.1 372 285 87 4.8 82 41.2 67 105 75.2 79 79 5.1 75 34.0 22 00/11-30-055-14-W4/0 257 250 185 65 5.0 62 31.0 74 Perf 50 50 5.0 48 21.8 17 Perf SUBTOTAL 1621 11556 11096 460 436 141.9 254 105 165 165 157 72.2 46 HOLDEN Holden Viking Gas 13500 10946 2554 5.0 2426 861.4 310 Decl Unit No. 3 500 500 5.0 475 168.5 3 Decl JARROW 00/03-33-044-11-W4 00/03-33-044-11-W4/0 900 851 49 5.0 47 Perf 00/03-33-044-11-W4/2 5 5 905 856 49 4.8 46 11.6 31 00/07-34-045-10-W4/2 831 700 571 129 5.0 123 36.8 17 Decl 00/14-01-045-11-W4/0 136 75 71 4 5.0 3 1.8 20 Decl
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 6 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------ JARROW (CONT'D) 00/10-13-045-11-W4/0 W-50.000 GLAUC PR 21.0 30.0 60.0 790 535 0.896 PA 00/10-15-045-11-W4 F-0.750 00/10-15-045-11-W4/0 CLY PR 2.3 20.0 30.0 810 537 00/10-15-045-11-W4/2 VIK PR 3.9 15.0 55.0 10.0 736 535 Subtotal PR 00/06-19-045-11-W4/0 R-0.750 VIK PR 3.9 18.4 41.0 10.0 784 535 0.893 02/10-27-045-11-W4/0 W-12.500 SPKY PR 9.8 26.0 50.0 506 542 0.894 00/04-29-045-11-W4/0 W-12.500 VIK PR 3.9 21.0 34.0 10.0 701 535 0.859 00/06-30-045-11-W4/0 W-12.500 VIK PR 2.3 23.0 30.0 10.0 696 535 0.859 PA 00/11-31-045-11-W4/0 R-0.750 VIK PR 4.0 18.5 41.0 10.0 854 535 0.893 00/09-36-046-12-W4 W-25.000 VIK A,B PR 4.9 22.0 45.0 SUBTOTAL PR PA LAVOY 00/07-21-051-13-W4 W-50.000 00/07-21-051-13-W4/2 CLY PR 7.2 31.0 30.0 761 542 00/07-21-051-13-W4/0 WAB PR 80 13.1 22.0 30.0 561 549 Subtotal PR 00/12-28-051-13-W4 W-50.000 CLY PR 320 4.3 29.0 45.0 604 533 PA 107 604 533 NIS PR 160 24.9 24.0 30.0 424 540 PA Subtotal PR PA 00/10-29-051-13-W4/0 W-50.000 NIS/ELL PR 5.5 16.0 40.0 691 538 0.913 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - --------------------------------------------------------------------------------------------------------------- JARROW (CONT'D) 00/10-13-045-11-W4/0 8700 7580 1120 5.0 1063 531.8 143 Decl 250 250 5.0 238 118.6 2 Decl 00/10-15-045-11-W4 00/10-15-045-11-W4/0 485 477 8 5.0 8 Perf 00/10-15-045-11-W4/2 301 301 786 778 8 5.6 7 0.1 0 00/06-19-045-11-W4/0 1415 1385 30 5.0 28 0.2 0 Decl 02/10-27-045-11-W4/0 165 153 12 5.0 11 1.4 3 Perf 00/04-29-045-11-W4/0 775 744 31 5.0 30 3.7 3 Decl 00/06-30-045-11-W4/0 2700 2586 114 5.0 108 13.5 11 Perf 50 50 5.0 48 5.9 1 Perf 00/11-31-045-11-W4/0 256 256 00/09-36-046-12-W4 SUBTOTAL 967 16477 14980 1497 1419 600.9 228 300 300 286 124.5 3 LAVOY 00/07-21-051-13-W4 00/07-21-051-13-W4/2 9 9 00/07-21-051-13-W4/0 274 145 138 7 5.0 7 Decl 274 56.2 154 147 7 5.9 6 3.1 17 00/12-28-051-13-W4 423 70.0 296 151 145 5.0 138 Vol 141 70.0 99 99 5.0 94 Vol 860 50.0 430 430 5.0 409 Vol 15.0 129 129 5.0 123 Vol 1283 56.6 726 151 575 4.9 547 273.4 280 228 228 4.8 217 106.5 27 00/10-29-051-13-W4/0 3850 3626 224 5.0 213 106.4 65 Decl 100 100 5.0 95 47.2 3 Decl
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. -- MECHANICAL UPDATE Table 1 Page 7 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- ----- ------- ---- ---- ---- --- --- ----- ------ ---- LAVOY (CONT'D) 00/10-29-051-13-W4 W-50.000 ELL/NIS PR PA 00/02-31-051-13-W4/0 W-50.000 ELL PR 320 25.6 13.0 35.0 10.0 423 544 0.918 PA 00/14-31-051-13-W4/2 W-50.000 WAS PR 427 3.3 27.0 60.0 798 542 0.892 PA 00/01-32-051-13-W4 W-50.000 00/01-32-051-13-W4/0 NIS L PR 15.4 19.0 30.0 508 551 00/01-32-051-13-W4/2 NIS U PR 6.6 23.0 35.0 508 551 PA Subtotal PR PA 00/01-32-051-13-W4/3 W-50.000 SPKY L/LLOYD PR 320 11.5 30.0 42.0 720 537 0.900 PA 00/11-32-051-13-W4/0 W-50.000 NIS PR 18.0 18.0 35.0 684 547 0.922 PA 00/10-33-051-13-W4/0 W-50.000 CLY PR 4.9 29.0 30.0 765 535 0.902 00/12-04-052-013-W4 W-50.000 00/12-04-052-13-W4/0 CLY PR 18.4 24.0 55.0 780 539 00/12-04-052-13-W4/2 VIK PR 1.6 18.0 50.0 266 537 Subtotal PR 00/11-05-052-13-W4 W-50.000 00/11-05-052-13-W4/2 VIK PR 2.0 19.0 50.0 361 533 00/11-05-052-13-W4/0 CLY PR 320 19.7 27.0 50.0 781 533 PA Subtotal PR PA 00/13-18-052-13-W4 W-24.750 CLY PR 8.2 30.0 50.0 790 545 0.887 00/07-30-052-13-W4 W-50.000 2 WS PR 80 4.9 19.0 50.0 539 521 0.925
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------------- ----------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- --- ---- ---- ---- ---- ----- ----- ----- -------- LAVOY (CONT'D) 00/10-29-051-13-W4 1500 36 1464 5.0 1391 695.5 137 Perf 250 250 5.0 238 118.7 1 Perf 00/02-31-051-13-W4/0 767 65.0 499 273 226 5.0 214 107.2 86 Vol 5.0 38 38 5.0 36 17.8 3 Vol 00/14-31-051-13-W4/2 388 50.0 194 107 87 5.0 83 41.5 77 Vol 15.0 58 58 5.0 55 26.3 12 Vol 00/01-32-051-13-W4 00/01-32-051-13-W4/0 248 248 00/01-32-051-13-W4/2 1250 620 630 5.0 599 Perf 250 250 5.0 238 Perf 1498 868 630 5.0 598 299.0 294 250 250 4.8 238 116.4 24 00/01-32-051-13-W4/3 1480 50.0 740 246 494 5.0 469 234.5 257 Vol 10.0 148 148 5.0 141 68.3 20 Vol 00/11-32-051-13-W4/0 6000 5681 319 5.0 303 151.6 67 Decl 100 100 5.0 95 47.3 2 Decl 00/10-33-051-13-W4/0 29 29 00/12-04-052-013-W4 00/12-04-052-13-W4/0 162 162 00/12-04-052-13-W4/2 8 8 170 170 00/11-05-052-13-W4 00/11-05-052-13-W4/2 117 117 00/11-05-052-13-W4/0 2170 1150 812 338 5.0 321 Decl 150 150 5.0 143 Decl 2170 58.4 1267 929 338 5.1 320 160.2 146 150 150 4.7 143 69.9 13 00/13-18-052-13-W4 00/07-30-052-13-W4 64 60.0 38 38 5.0 36 18.0 22 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 8 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ LAVOY (CONT'D) 00/10-11-052-14-W4 W- 50.000 00/10-11-052-14-W4/0 CLY PR 15.1 23.0 55.0 778 539 00/10-11-052-14-W4/2 2 WS PR 15.1 29.0 50.0 580 535 Subtotal PR 00/06-12-052-14-W4 W- 50.000 00/06-12-052-14-W4/2 LLOYD PR 15.7 31.0 35.0 729 551 00/06-12-052-14-W4/3 SPKY M PR 5.6 28.0 45.0 794 549 Subtotal PR 00/11-12-052-14-W4/4 W- 50.000 SPKY L/CUMM PR 5.0 28.0 45.0 718 546 0.916 00/15-12-052-14-W4 W- 50.000 00/15-12-052-14-W4/0 GLAUC/CUMM L PR 213 13.1 26.0 36.3 417 549 00/15-12-052-14-W4/2 SPKY L PR 320 9.8 30.0 45.0 573 546 Subtotal PR 00/06-15-052-14-W4/2 W- 50.000 CLY PR 320 4.9 26.0 30.0 714 544 0.897 PA 80 714 544 0.897 02/10-15-052-14-W4 W- 50.000 CLY PR 320 6.6 26.0 30.0 544 531 0.925 PA 80 544 531 0.925 00/06-22-052-14-W4 W- 50.000 CLY PR 40 65.0 24.0 40.0 723 537 0.910 PA 10 723 537 0.910 00/06-22-052-14-W4 W- 50.000 VIK PA 320 3.3 24.0 40.0 740 535 0.910 00/08-22-052-14-W4 W- 50.000 00/08-22-052-14-W4/2 LLOYD/SPKY L PR 20.7 26.3 42.0 734 555 PA 00/08-22-052-14-W4/3 SPKY U PR 213 4.9 27.0 40.0 788 555 PA Subtotal PR PA 00/08-22-052-14-W4 W-50.000 VIK PA 320 3.3 24.0 50.0 738 547 0.908 00/12-26-052-14-W4 W-50.000 00/12-26-052-14-W4/2 SPKY U & L PR 18.0 31.0 50.0 589 538
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - -------------------------------------------------------------------------------------------------------------------- LAVOY (CONT'D) 00/10-11-052-14-W4 00/10-11-052-14-W4/0 71 71 00/10-11-052-14-W4/2 71 71 00/06-12-052-14-W4 00/06-12-052-14-W4/2 325 322 3 5.0 3 Perf 00/06-12-052-14-W4/3 125 93 32 5.0 30 Decl 450 415 35 3.6 33 16.7 29 00/11-12-052-14-W4/4 40 40 00/15-12-052-14-W4 00/15-12-052-14-W4/0 573 75.0 430 227 203 5.0 193 Vol 00/15-12-052-14-W4/2 904 400 293 107 5.0 102 Decl 1477 56.2 830 520 310 5.0 294 147.2 160 00/06-15-052-14-W4/2 646 80.0 517 375 142 5.0 135 67.4 94 Vol 161 80.0 129 129 5.0 123 59.7 16 Vol 02/10-15-052-14-W4 658 80.0 526 95 431 5.0 410 204.9 195 Vol 165 80.0 132 132 5.0 125 61.8 13 Vol 00/06-22-052-14-W4 856 70.0 599 33 566 5.0 537 268.7 229 Vol 214 70.0 150 150 5.0 143 71.2 7 Vol 00/06-22-052-14-W4 357 70.0 250 250 5.0 238 118.7 Vol 00/08-22-052-14-W4 00/08-22-052-14-W4/2 225 198 27 5.0 26 Decl 25 25 5.0 24 Decl 00/08-22-052-14-W4/3 410 60.0 246 149 97 5.0 92 Vol 10.0 41 41 5.0 39 Vol 471 347 124 5.1 118 59.0 96 66 66 4.5 63 29.5 14 00/08-22-052-14-W4 290 70.0 203 203 5.0 193 96.4 Vol 00/12-26-052-14-W4 00/12-26-052-14-W4/2 67 67
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 9 HAWKER RESOURCES INC.- MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - --------------------------------------------------------------------------------------------------------------------------------- LAVOY (CONT'D) 00/12-26-052-14-W4/0 GLAUC PR 320 24.6 26.0 45.0 522 540 PA Subtotal PR PA 00/06-27-052-14-W4/4 W-50.000 VIK PR 2.0 21.0 50.0 PA 00/12-27-052-14-W4 W-50.000 00/12-27-052-14-W4/2 GLAUC PR 5.6 25.0 35.0 532 548 00/12-27-052-14-W4/0 NIS PR 36.7 19.0 35.0 504 548 Subtotal PR 02/12-27-052-14-W4 W-50.000 02/12/27-052-14-W4/0 LLOYD PR 26.2 30.0 45.0 549 540 02/12-27-052-14-W4/2 SPKY L PR 3.9 32.0 45.0 612 540 Subtotal PR 00/15-27-052-14-W4 W-50.000 ELL PR 320 32.5 25.0 35.0 402 549 0.950 PA 107 402 549 0.950 02/06-28-052-14-W4 W-50.000 02/06-28-052-14-W4/2 SPKY L/LLOYD PR PA 02/06-28-052-14-W4/0 NIS PR 23.0 25.0 30.0 537 548 Subtotal PR PA 00/08-28-052-14-W4 W-50.000 00/08-28-052-14-W4/2 CLY PR 160 14.8 23.0 45.0 750 539 PA 00/08-28-052-14-W4/0 ELL PR 480 24.0 24.0 20.0 450 549 PA Subtotal PR PA 00/16-29-052-14-W4/0 W-50.000 ELL PR 26.2 27.0 50.0 475 551 0.945 PA 00/10-32-052-14-W4 W-50.000 00/10-32-052-14-W4/2 VIK PR 4.6 21.0 40.0 683 537
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE --------------------------------------------------------------- ------------------ ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------ LAVOY (CONT'D) 00/12-26-052-14-W4/0 1790 50.0 895 545 350 5.0 333 Vol 5.0 90 90 5.0 86 Vol 1790 53.7 962 612 350 5.0 333 166.3 138 90 90 4.4 86 42.1 7 00/06-27-052-14-W4/4 1700 1536 164 5.0 157 78.0 43 Decl 50 50 5.0 48 23.6 1 Decl 00/12-27-052-14-W4 00/12-27-052-14-W4/2 900 861 39 5.0 37 Perf 00/12-27-052-14-W4/0 700 600 100 5.0 95 Decl 1600 1461 139 5.0 132 65.9 126 02/12-27-052-14-W4 02/12/27-052-14-W4/0 42 42 02/12-27-052-14-W4/2 19 19 61 61 00/15-27-052-14-W4 2010 70.0 1407 210 1197 5.0 1138 568.7 355 Vol 673 70.0 471 471 5.0 447 222.0 19 Vol 02/06-28-052-14-W4 02/06-28-052-14-W4/2 500 372 128 5.0 122 Perf 50 50 5.0 48 Perf 02/06-28-052-14-W4/0 80 80 580 452 128 4.8 122 60.8 108 50 50 4.0 48 22.4 13 00/08-28-052-14-W4 00/08-28-052-14-W4/2 715 70.0 501 230 271 5.0 257 Vol 10.0 72 72 5.0 68 Vol 00/08-28-052-14-W4/0 2980 75.0 2235 976 1259 5.0 1196 Vol 10.0 298 298 5.0 283 Vol 3695 74.0 2736 1206 1530 5.0 1453 726.7 421 370 370 5.1 351 174.4 15 00/16-29-052-14-W4/0 400 314 86 5.0 81 40.6 67 Decl 50 50 5.0 48 22.9 8 Decl 00/10-32-052-14-W4 00/10-32-052-14-W4/2 3 3
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 10 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - -------------------------------------------------------------------------------------------------------- LAVOY (CONT'D) 00/10-32-052-14-W4/0 CLY PR 9.2 23.0 55.0 710 540 Subtotal PR 00/06-34-052-14-W4/0 W-50.000 ELL/NIS PR 38.4 19.7 35.7 518 548 0.942 02/07-34-052-14-W4/2 W-50.000 GLAUC U PR 1.6 23.0 40.0 805 549 0.907 PA 00/10-07-053-14-W4/0 F-2.917 GLAUC PR 25.9 30.0 35.0 681 542 0.900 00/07-29-053-14-W4 W-50.000 2 WS PR 160 7.9 17.0 50.0 583 517 0.910 SUBTOTAL PR PA MANNVILLE 00/09-16-052-07-W4/0 W-37.500 CLY PR MUNDARE 00/04-06-054-16-W4 W-50.000 00/04-06-054-16-W4/2 GLAUC PR 6.6 24.0 45.0 5.0 740 540 00/04-06-054-16-W4/0 GLAUC L PR 3.3 26.0 40.0 5.0 748 540 Subtotal PR 00/04-06-054-16-W4 W-50.000 VIK PA 320 2.3 23.0 40.0 493 533 CLY PR 3.3 21.0 45.0 725 533 SPKY PR 6.9 24.0 40.0 709 537 Subtotal PR PA 00/11-02-054-17-W4/0 W-50.000 GLAUC PR 23.0 24.0 45.0 745 539 0.903 PA 00/01-10-054-17-W4/3 W-50.000 SPKY PR 160 9.8 24.0 45.0 580 537 0.920 PA 40 00/10-10-054-17-W4/3 CLY PR 428 4.9 28.0 40.0 783 535 0.887
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE -------------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------ LAVOY (CONT'D) 00/10-32-052-14-W4/0 45 43 2 5.0 2 Perf 48 46 2 9.1 2 0.8 13 00/06-34-052-14-W4/0 79 79 02/07-34-052-14-W4/2 450 151 299 5.0 285 142.1 144 Perf 150 150 5.0 143 68.6 21 Perf 00/10-07-053-14-W4/0 11500 10549 951 5.0 903 26.4 11 Perf 00/07-29-053-14-W4 206 60.0 124 124 5.0 118 58.9 54 Vol SUBTOTAL 17764 41816 30836 10980 10431 4789.7 3729 1860 3483 3483 3314 1631.7 240 MANNVILLE 00/09-16-052-07-W4/0 2400 1733 667 5.0 634 237.8 87 Decl MUNDARE 00/04-06-054-16-W4 00/04-06-054-16-W4/2 12 12 00/04-06-054-16-W4/0 34 34 46 46 00/04-06-054-16-W4 160 70.0 112 112 5.0 106 Vol 160 70.0 112 112 5.4 106 53.0 65 00/11-02-054-17-W4/0 2000 1209 791 5.0 752 375.7 193 Decl 250 250 5.0 238 118.0 8 Decl 00/01-10-054-17-W4/3 376 70.0 263 90 173 5.0 164 82.3 112 Vol 70.0 66 66 5.0 63 30.2 11 Vol 00/10-10-054-17-W4/3 902 105 105 5.0 Perf
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 11 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ MUNDARE (CONT'D) 00/01-13-054-17-W4 W- 50.000 GLAUC PR 320 7.0 23.0 40.0 763 552 0.917 PA 00/02-19-054-17-W4 W- 50.000 00/02-19-054-17-W4/0 B QTZ PR 17.7 26.0 40.0 808 538 00/02-19-054-17-W4/2 GLAUC L PR 8.5 25.0 25.0 760 537 Subtotal PR 00/02-19-054-17-W4/3 W- 50.000 GLAUC PR 160 8.9 27.0 25.0 754 537 0.900 PA 00/04-20-054-17-W4 W- 50.000 GLAUC LB/QT PR 213 9.2 22.5 50.0 684 552 0.910 PA 00/04-20-054-17-W4 W- 50.000 GLAUC PR 320 3.6 33.0 35.0 699 551 0.910 PA 00/02/17-055-18-W4/2 W- 50.000 U MN PR 3.9 28.0 45.0 761 540 0.910 SUBTOTAL PR PA PLAIN 00/12-34-052-10-W4/0 W- 50.000 CLY PR 320 10.5 26.0 30.0 595 531 0.920 PA 00/12-34-052-10-W4 W- 50.000 VIK PR 3.9 24.0 50.0 145 528 0.980 00/10-14-052-12-W4 W- 50.000 CLY PR 320 4.3 28.0 40.0 718 535 0.902 PA 107 718 535 0.902 00/12-28-052-12-W4 W- 50.000 00/12-28-052-12-W4/2 SPKY M PR 320 9.8 30.0 45.0 493 524 PA 00/12-28-052-12-W4/0 B QTZ PR 213 14.8 30.0 20.0 624 531 PA 40 624 531 Subtotal PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------ ------------------ ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - --------------------------------------------------------------------------------------------------------------------------- MUNDARE (CONT'D) 00/01-13-054-17-W4 720 50.0 360 360 5.0 342 171.0 239 Vol 20.0 144 144 5.0 137 68.4 12 Vol 00/02-19-054-17-W4 00/02-19-054-17-W4/0 43 43 00/02-19-054-17-W4/2 238 238 281 281 00/02-19-054-17-W4/3 696 35.0 244 116 128 5.0 121 60.6 192 Vol 15.0 104 104 5.0 99 45.4 56 Vol 00/04-20-054-17-W4 464 50.0 232 34 198 5.0 187 93.9 199 Vol 20.0 93 93 5.0 88 43.9 21 Vol 00/04-20-054-17-W4 533 60.0 320 320 5.0 304 152.0 Vol 15.0 80 80 5.0 76 38.0 Vol 00/02/17-055-18-W4/2 40 40 SUBTOTAL 3691 3891 1921 1970 1870 935.5 934 160 849 849 807 396.9 174 PLAIN 00/12-34-052-10-W4/0 1150 60.0 690 113 577 5.0 548 274.0 319 Vol 10.0 115 115 5.0 109 53.7 19 Vol 00/12-34-052-10-W4 00/10-14-052-12-W4 528 70.0 370 68 302 5.0 287 143.2 182 Vol 176 70.0 123 123 5.0 117 57.3 23 Vol 00/12-28-052-12-W4 00/12-28-052-12-W4/2 792 45.0 356 171 185 5.0 176 Vol 10.0 79 79 5.0 75 Vol 00/12-28-052-12-W4/0 1450 75.0 1088 438 650 5.0 618 Vol 272 75.0 204 204 5.0 194 Vol 2242 64.4 1444 609 835 5.0 793 396.7 349 283 283 4.9 269 132.0 25
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 12 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ---------------------------------------------------------------------------------------------------------------------------------- PLAIN (CONT'D) 00/15-32-052-12-W4/2 W-50.000 WAS/SPKY U PR 29.8 26.4 48.0 500 545 0.940 PA 00/12-09-052-13-W4/0 W-50.000 VIK PR 1.6 15.0 50.0 757 537 0.872 00/13-36-052-13-W4 W-50.000 SPKY PR 4.9 30.0 50.0 669 542 0.918 00/14-18-053-11-W4 W-50.000 B QTZ PR 3.3 23.0 30.0 754 544 0.890 00/07-04-053-12-W4/2 W-50.000 SPKY PR 29.0 28.0 40.0 670 532 0.931 PA SUBTOTAL PR PA RANFURLY Ranfurly Gas Unit W-13.542 ALL ZONES PR 02/09-35-050-13-W4 W-50.000 02/09-35-050-13-W4/2 CLY PR 10.5 20.0 60.0 725 539 02/09-35-050-13-W4/0 MCLAR PR 25.6 22.0 50.0 798 539 Subtotal PR 02/09-35-050-13-W4 W-50.000 VIK PA 160 5.6 21.0 40.0 653 537 0.920 00/06-36-050-13-W4/3 W-50.000 MCLAR PR 80 34.4 26.0 50.0 725 535 0.900 02/09-36-050-13-W4/0 W-50.000 B QTZ U PR 428 3.3 25.0 40.0 550 545 0.930 00/11-30-050-14-W4/2 R-6.900 VIK L PR 6.6 11.0 45.0 789 533 0.900 00/03-32-050-14-W4 W-50.000 B QTZ PR 213 9.8 24.0 25.0 624 541 PA DET PR 160 15.4 24.0 50.0 725 542 PA Subtotal PR PA 00/16-23-050-15-W4/3 W-50.000 CLY PR 320 6.6 23.0 45.0 753 540 0.920 - ----------------------------------------------------------------------------------------------------------------------------------
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------- ----------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ---------------------------------------------------------------------------------------------------------------------------------- PLAIN (CONT'D) 00/15-32-052-12-W4/2 225 153 72 5.0 68 34.0 62 Perf 25 25 5.0 24 11.4 5 Perf 00/12-09-052-13-W4/0 32 32 00/13-36-052-13-W4 00/14-18-053-11-W4 00/07-04-053-12-W4/2 2500 2238 262 5.0 250 124.6 79 Decl 100 100 5.0 95 47.1 4 Decl SUBTOTAL 3920 5261 3213 2048 1946 972.5 992 176 646 646 614 301.5 75 RANFURLY Ranfurly Gas Unit 18300 18218 82 5.0 78 10.5 26 Decl 02/09-35-050-13-W4 02/09-35-050-13-W4/2 12 12 02/09-35-050-13-W4/0 150 122 28 5.0 27 Decl 162 134 28 4.8 27 13.4 41 02/09-35-050-13-W4 231 75.0 173 173 5.0 164 82.2 Vol 00/06-36-050-13-W4/3 833 100 83 17 5.0 16 8.0 33 Perf 02/09-36-050-13-W4/0 355 180 133 47 5.0 45 22.2 54 Perf 00/11-30-050-14-W4/2 1200 1033 167 5.0 158 10.9 7 Decl 00/03-32-050-14-W4 728 50.0 364 29 335 5.0 318 Vol 20.0 146 146 5.0 139 Vol 672 40.0 269 21 248 5.0 236 Vol 20.0 134 134 5.0 127 Vol 1400 45.2 633 50 583 4.9 555 277.3 326 280 280 5.0 266 132.9 22 00/16-23-050-15-W4/3 626 70.0 438 122 316 5.0 300 149.9 162 Vol - ----------------------------------------------------------------------------------------------------------------------------------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. -- MECHANICAL UPDATE Table 1 Page 13 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- ----- ------- ---- ---- ---- --- --- ----- ----- ---- RANFURLY (CONT'D) 00/03-34-050-15-W4/2 W-50.000 B QTZ PR 6.6 28.0 25.0 715 544 00/03-34-050-15-W4/3 CLY PR 320 8.9 28.0 50.0 788 535 PA Subtotal PR PA 00/05-18-051-07-W4 W-25.000 WAS PR 160 13.1 33.0 50.0 624 540 PA 40 624 540 SPKY PR 320 4.9 30.0 40.0 653 540 PA 80 653 540 Subtotal PR PA 00/16-20-051-12-W4/0 W-50.000 SPKY PR PA 00/06-29-051-12-W4 W-50.000 00/06-29-051-12-W4/3 CLY PR 160 4.9 29.0 40.0 609 538 00/06-29-051-12-W4/2 SPKY/SPKY U PR 16.4 25.8 47.0 725 540 Subtotal PR 00/11-34-051-12-W4 W-50.000 GLAUC L PR 427 5.9 27.0 35.0 609 544 PA B QTZ PR 80 23.3 24.0 40.0 653 546 PA Subtotal PR PA 00/12-01-051-13-W4 W-12.500 SPKY U PR 2.3 24.0 60.0 02/08-04-051-13-W4/0 W-50.000 CLY PR 9.8 30.0 35.0 769 539 0.890 00/15-06-051-13-W4/2 W-50.000 WAS U PR 160 13.1 23.0 60.0 785 542 0.900 PA 00/04-11-051-13-W4 W-13.542 00/04-11-051-13-W4/2 GLAUC PR 3.3 30.0 25.0 250 546 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------------------- ---------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- --- ---- ---- ---- ---- ----- ----- ----- -------- 00/03-34-050-15-W4/2 58 58 00/03-34-050-15-W4/3 1030 60.0 618 75 543 5.0 516 Vol 10.0 103 103 5.0 98 Vol 1030 65.6 676 133 543 5.0 516 258.0 277 103 103 4.9 98 48.7 9 00/05-18-051-07-W4 664 70.0 465 465 5.0 442 Vol 166 70.0 116 116 5.0 110 Vol 567 70.0 397 397 5.0 377 Vol 142 70.0 99 99 5.0 94 Vol 1231 70.0 862 156 706 5.0 670 167.6 203 308 69.8 215 215 5.1 204 50.0 21 00/16-20-051-12-W4/0 300 220 80 5.0 76 37.9 58 Decl 50 50 5.0 48 23.0 7 Decl 00/06-29-051-12-W4 00/06-29-051-12-W4/3 260 110 104 6 5.0 6 Decl 00/06-29-051-12-W4/2 36 36 260 56.2 146 140 6 4.2 6 2.8 23 00/11-34-051-12-W4 832 60.0 499 499 5.0 474 Vol 15.0 125 125 5.0 119 Vol 545 40.0 218 218 5.0 207 Vol 20.0 109 109 5.0 104 Vol 1377 52.1 717 717 5.0 681 340.5 234 234 4.7 223 111.1 00/12-01-051-13-W4 02/08-04-051-13-W4/0 275 160 115 5.0 110 54.6 46 Decl 00/15-06-051-13-W4/2 480 225 139 86 5.0 81 40.7 51 Decl 50 50 5.0 48 23.6 2 Perf 00/04-11-051-13-W4 700 460 240 5.0 228 Decl 00/04-11-051-13-W4/2 50 50 5.0 48 Decl
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 SUMMARY OF NATURAL GAS RESERVE ESTIMATES Page 14 MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ RANFURLY (CONT'D) 00/04-11-051-13-W4/0 WAB PR 15.1 30.0 35.0 592 546 Subtotal PR PA 00/06-22-051-13-W4/3 W- 22.500 VIK PR 2.6 24.0 40.0 706 536 0.908 00/15-04-051-14-W4/0 W- 50.000 CUMM L/CUMM PR 160 27.9 25.0 32.5 730 546 0.914 PA 00/02-09-051-14-W4/0 F- 1.343 BR PR 640 11.5 32.0 60.0 165 509 0.974 00/06-10-051-14-W4/0 R- 9.943 BR PR 640 19.7 34.0 60.0 140 510 0.977 00/16-12-051-14-W4/0 W- 50.000 WAB PR 24.6 22.0 40.0 5.0 604 546 0.928 SUBTOTAL PR PA ST. PAUL 00/05-03-058-09-W4/0 W- 37.500 MN PR 00/12-03-058-09-W4/2 W- 37.500 VIK PR 5.0 25.0 50.0 516 528 0.920 SUBTOTAL PR VEGREVILLE 00/06-07-052-13-W4 W- 50.000 00/06-07-052-13-W4/2 CLY PR 8.5 28.0 40.0 798 533 PA 00/06-07-052-13-W4/0 GLAUC PR 3.3 25.0 40.0 447 543 Subtotal PR PA 02/06-07-052-13-W4 W- 50.000 02/06-07-052-13-W4/0 SPKY L PR 13.1 30.0 45.0 595 533 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------- ------------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - --------------------------------------------------------------------------------------------------- --------- -------- RANFURLY (CONT'D) 00/04-11-051-13-W4/0 150 145 5 5.0 5 Perf 850 605 245 4.9 233 31.6 33 50 50 4.0 48 6.3 1 00/06-22-051-13-W4/3 250 233 17 5.0 15 3.5 10 Decl 00/15-04-051-14-W4/0 1700 1400 731 669 5.0 635 317.7 91 Decl 200 200 5.0 190 94.8 2 Decl 00/02-09-051-14-W4/0 483 450 412 38 5.0 36 0.5 1 Decl 00/06-10-051-14-W4/0 744 500 441 59 5.0 56 5.6 7 Decl 00/16-12-051-14-W4/0 15 15 SUBTOTAL 10519 27679 23158 4521 4294 1753.3 1449 539 1355 1355 1289 572.6 65 ST. PAUL 00/05-03-058-09-W4/0 3950 3912 38 5.0 36 13.5 11 Decl 00/12-03-058-09-W4/2 60 41 19 5.0 18 6.8 11 Decl SUBTOTAL 4010 3953 57 54 20.2 21 VEGREVILLE 00/06-07-052-13-W4 00/06-07-052-13-W4/2 950 785 165 5.0 157 Decl 50 50 5.0 48 Decl 00/06-07-052-13-W4/0 276 276 1226 1061 165 5.1 156 78.2 139 50 50 4.0 48 22.0 14 02/06-07-052-13-W4 02/06-07-052-13-W4/0 1050 792 258 5.0 245 Decl 100 100 5.0 95 Decl
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 15 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS --------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ---------------------- ---------- ----------- -------- ---- ----- ---- ---- ---- ----- ----- ----- VEGREVILLE (CONT'D) 02/06-07-052-13-W4/2 WAS PR 80 19.7 23.0 40.0 778 542 PA SUBTOTAL PR PA 00/01-18-052-13-W4/0 W- 24.750 GLAUC PR 26.6 25.0 25.0 620 548 0.920 00/01-18-052-13-W4 W- 24.750 SPKY L PR 213 4.3 30.0 45.0 737 546 0.893 00/06-19-052-13-W4/0 W- 10.026 GLAUC PR 30.2 23.0 25.0 00/01-13-052-14-W4 W- 50.000 00/01-13-052-14-W4/2 LLOYD PR 4.9 33.0 30.0 329 551 00/01-13-052-1-W4/0 GLAUC PR 320 13.1 22.0 35.0 335 553 PA SUBTOTAL PR PA 00/06-13052-14-W4 W- 50.000 00/06-13-052-14-W4/0 NIS PR 4.6 22.0 30.0 274 PA 00/06-13-052-14-W4/2 SPKY L PR 3.9 26.0 40.0 639 551 SUBTOTAL PR PA 00/12-13-052-14-W4 W- 50.000 00/12-13-052-14-W4/2 LLOYD PR 80 7.2 33.0 30.0 648 531 PA 20 648 531 00/12-13-052-14-W4/3 SPKY U/SPKY Y PR 80 11.1 25.3 36.8 754 530 PA SUBTOTAL PR PA 00/03-24-052-14-W4 W- 50.000 00/03-24-052-14-W4/0 DET/NIS PR 15.1 23.7 31.1 482 544 00/03-24-052-14-W4/2 LLOYD/SPKY LIPR 320 12.7 22.2 46.0 557 539 PA SUBTOTAL PR PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVE GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ---------------------- ----- ----- ----- ----- ---- ----- ----- ----- ----- ------- VEGREVILLE (CONT'D) 02/06-07-052-13-W4/2 533 70.0 373 264 109 5.0 104 Vol 10.0 53 53 5.0 50 Vol 1423 1056 367 5.1 348 174.0 225 153 153 5.2 145 69.6 27 00/01-18-052-13-W4/0 3600 3339 261 5.0 248 61.3 60 Perf 00/01-18-052-13-W4 350 70.0 245 245 5.0 233 57.6 Vol 00/06-19-052-13-W4/0 2400 2383 17 5.0 15 1.6 5 Decl 00/01-13-052-14-W4 00/01-13-052-14-W4/2 3 3 00/01-13-052-14-W4/0 588 55.0 323 237 86 5.0 82 Vol 10.0 59 59 5.0 56 Vol 588 55.4 326 240 86 4.7 82 41.1 63 59 59 5.1 56 27.3 8 00/06-13052-14-W4 00/06-13-052-14-W4/0 13750 12922 828 5.0 787 Perf 250 250 5.0 238 Perf 00/06-13-052-14-W4/2 1530 80.0 1224 681 543 5.0 516 Vol 14974 13603 1371 5.0 1303 651.3 417 250 250 4.8 238 117.6 13 00/12-13-052-14-W4 00/12-13-052-14-W4/2 276 60.0 166 140 26 5.0 25 Vol 69 60.0 41 41 5.0 39 Vol 00/12-13-052-14-W4/3 345 35.0 121 90 31 5.0 29 Vol 10.0 35 35 5.0 33 Vol 621 46.2 287 230 57 4.9 54 27.2 96 76 76 5.3 72 32.2 32 00/03-24-052-14-W4 00/03-24-052-14-W4/0 254 254 00/03-24-052-14-W4/2 842 70.0 589 267 322 5.0 306 Vol 10.0 84 84 5.0 80 Vol 842 100.1 843 521 322 5.0 306 153.1 125 84 84 4.8 80 39.4 5
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 16 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ----------------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------- ---------- -------- ------- ---- ---- ---- --- --- ----- ----- ----- VEGREVILLE (CONT'D) 00/09-24-052-14-W4 W- 50.000 00/09-24-052-14-W4/2 SPKY M/LLOYD PR 160 15.7 27.4 50.0 516 546 PA 00/09-24-052-14-W4/0 GLAUC U/CUM PR 7.2 24.5 40.4 537 549 Subtotal PR PA 00/10-09-053-14-W4/0 W- 37.500 NIS PR 19.7 17.0 20.0 5.0 573 542 0.930 00/10-09-053-14-W4 W- 37.500 SPKY PR 160 4.9 28.0 45.0 776 539 0.896 SUBTOTAL PR PA VIKING 00/16-14-048-12-W4 W- 50.000 SPKY PR 320 4.9 27.0 50.0 773 542 0.900 PA 160 773 542 0.900 00/03-12-049-11-W4/4 W- 50.000 SPKY L PR 320 9.8 26.0 40.0 566 533 0.921 PA 00/03-12-049-11-W/4 W- 50.000 00/03-12-049-11-W4/2 B QTZ PR 3.3 25.0 45.0 696 535 00/03-12-049-11-W4/0 CAM PR 9.8 13.0 40.0 629 535 PA 00/03-12-049-11-W4/3 GLAUC PR 4.3 25.0 35.0 535 PA Subtotal PR PA 00/04-22-049-12-W/4 W- 47.500 00/04-22-049-12-W4/0 B QTZ L PR 4.3 19.5 35.0 711 538 00/04-22-049-12-W4/2 B QTZ U PR 4.9 24.0 30.0 758 538 Subtotal PR 00/08-31-049-12-W4 W- 50.000 00/08-31-049-12-W4/2 LLOYD PR 9.8 27.0 55.0 787 544 00/08-31-049-12-W4/3 WAS PR 6.6 25.0 55.0 808 542
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------- ---- ----- ---- ----- ---- ----- ---- ----- ----- -------- VEGREVILLE (CONT'D) 00/09-24-052-14-W4 Vol 00/09-24-052-14-W4/2 538 30.0 161 109 52 5.0 49 Vol 10.0 54 54 5.0 51 Vol 00/09-24-052-14-W4/0 153 538 29.9 161 262 52 5.0 50 24.8 45 54 54 5.6 51 25.2 5 00/10-09-053-14-W4/0 800 789 11 5.0 11 4.1 27 Perf 00/10-09-053-14-W4 300 60.0 180 180 5.0 171 64.1 Vol SUBTOTAL 3239 26465 23484 3134 2977 1338.3 1202 726 726 690 333.2 105 VIKING 00/16-14-048-12-W4 519 75.0 389 125 264 5.0 252 125.5 165 Vol 259 75.0 194 194 5.0 184 88.3 33 Vol 00/03-12-049-11-W4/4 872 50.0 436 112 324 5.0 307 153.7 190 Vol 15.0 131 131 5.0 124 60.7 19 Vol 00/03-12-049-11-W/4 00/03-12-049-11-W4/2 9 9 00/03-12-049-11-W4/0 63 63 50 50 5.0 48 Perf 00/03-12-049-11-W4/3 30 30 50 50 5.0 48 Perf 102 102 100 100 4.0 96 48.0 00/04-22-049-12-W/4 00/04-22-049-12-W4/0 900 868 32 5.0 30 Perf 00/04-22-049-12-W4/2 115 89 26 26 Perf 1015 957 58 2.9 56 26.6 66 00/08-31-049-12-W4 00/08-31-049-12-W4/2 492 492 00/08-31-049-12-W4/3 15 15
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 17 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z ----------------- --------- ----- ----- ---- -- - - - ---- ----- - VIKING (CONT'D) Subtotal PR 00/09-32-049-12-W4/2 W- 50.000 LLOYD PR 4.9 30.0 40.0 801 542 0.897 00/06-28-049-13-W4/0 W- 50.000 CLY PR 24.3 26.0 45.0 609 537 0.910 00/16-34-049-13-W4/2 W- 50.000 SPKY PR 320 9.2 22.0 55.0 830 544 0.882 PA 00/10-36-049-13-W4/0 W- 50.000 WAB PR 160 11.8 21.0 25.0 486 535 0.950 00/02-24-049-14-W4/0 W- 50.000 WAB PR 8.9 18.0 45.0 755 553 0.917 00/08-04-050-12-W4 W- 42.500 00/08-04-050-12-W4/0 B QTZ U PR 11.5 26.0 50.0 797 538 00/08-04-050-12-W4/2 B QTZ L PR 640 2.6 21.0 45.0 740 539 Subtotal PR 00/11-13-050-13-W4/0 W- 34.375 VIK PR 3.3 20.0 35.0 808 537 0.897 R- 0.625 SUBTOTAL PR PA WARWICK 02/06-16-053-15-W4 W- 50.000 02/06-16-053-15-W4/2 SPKY PR 17.1 23.0 45.0 749 546 02/06-16-053-15-W4/0 B QTZ PR 3.9 26.0 60.0 637 546 02/06-16-053-15-W4/4 CUMM PR 160 6.6 27.0 45.0 587 546 PA Subtotal PR PA 02/06-35-053-15-W4/0 W- 50.000 CLY PR 213 11.5 25.0 45.0 719 533 0.898 PA 107 719 533 0.898 00/11-36-053-15-W4 W- 50.000 VIK PR 320 2.6 28.0 40.0 653 540 0.920 00/07-19-054-15-W4 W- 50.000 WAS PR 160 22.3 27.0 50.0 681 539 0.910 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE --------------------------------------------- -------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON ----------------- ---- - ---- ---- ---- - ---- ---- ----- -- VIKING (CONT'D) 507 507 00/09-32-049-12-W4/2 1700 1615 85 5.0 82 40.6 64 Perf 00/06-28-049-13-W4/0 180 178 2 5.0 2 1.1 18 Perf 00/16-34-049-13-W4/2 778 650 395 255 5.0 242 121.2 30 Decl 75 75 5.0 71 35.6 0 Decl 00/10-36-049-13-W4/0 440 30.0 132 123 9 5.0 8 4.5 30 Vol 00/02-24-049-14-W4/0 1090 1090 00/0804-050-12-W4 00/08-04-050-12-W4/0 447 447 00/08-04-050-12-W4/2 458 65.0 298 199 99 5.0 94 Vol 458 162.7 745 646 99 5.2 94 40.1 46 00/11-13-050-13-W4/0 790 760 30 5.0 29 10.1 9 Decl SUBTOTAL 3067 7736 6610 1126 1072 523.4 618 259 500 500 475 232.5 52 WARWICK 02/06-16-053-15-W4 02/06-16-053-15-W4/2 99 99 02/06-16-053-15-W4/0 86 86 02/06-16-053-15-W4/4 290 35.0 102 19 83 5.0 79 Vol 10.0 29 29 5.0 28 Vol 290 99.0 287 204 83 5.0 79 39.6 67 29 29 3.4 28 13.6 5 02/06-35-053-15-W4/0 782 70.0 547 197 350 5.0 333 166.3 241 Vol 393 70.0 275 275 5.0 261 125.2 50 Vol 00/11-36-053-15-W4 284 75.0 213 213 5.0 202 101.2 217 Vol 00/07-19-054-15-W4 1030 35.0 361 361 5.0 343 171.5 188 Vol 15.0 155 155 5.O 147 73.6 7 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 18 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------------- ---------- -------- ------- ---- ----- ---- ---- ---- ----- ----- ------- WARWICK (CONT'D) 00/14-34-054-15-W4/3 W- 50.000 WAS PR 160 10.2 23.0 40.0 725 539 0.900 PA 40 725 539 0.900 00/14-34-054-15-W4 W- 50.000 00/14-34-054-15-W4/2 NIS U PR 160 7.5 12.0 35.0 452 544 00/14-34-054-15-W4/4 CLY PR 213 8.2 26.0 40.0 660 530 PA 107 660 530 Subtotal PR PA 02/06-14-054-16-W4 W- 50.000 WAS PR 3.3 25.0 50.0 674 00/13-06-055-14-W4 W- 50.000 00/13-06-055-14-W4/2 CLY PR 8.2 29.0 60.0 597 531 00/13-06-055-14-W4/0 NIS U PR 16.4 19.0 20.0 498 535 Subtotal PR 00/07-01-055-15-W4 00/07-01-055-15-W4/2 GLAUC U PR 7.2 26.0 50.0 654 528 00/07-01-055-15-W4/0 NIS PR 16.4 15.0 25.0 5.0 267 531 Subtotal PR 00/01-02-055-15-W4 W- 50.000 NIS PR 16.4 20.0 20.0 410 533 0.950 SUBTOTAL PR PA WARWICK EAST 00/16-30-052-14-W4 W- 50.000 00/16-30-052-14-W4/4 SPKY U PR 80 3.9 28.5 35.0 696 546 00/16-30-052-14-W4/3 SPKY L PR 427 4.9 28.5 35.0 708 546 PA Subtotal PR PA 00/08-32-052-14-W4 W- 50.000 00/08-32-052-14-W4/0 NIS PR 320 13.1 30.0 25.0 446 548 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------------- ----- ----- ----- ----- ---- ----- ----- ----- ----- -------- WARWICK (CONT'D) 00/14-34-054-15-W4/3 520 65.0 338 69 269 5.0 255 127.6 143 Vol 130 65.0 85 85 5.0 81 39.7 10 Vol 00/14-34-054-15-W4 00/14-34-054-15-W4/2 127 50.0 64 17 47 5.0 45 Vol 00/14-34-054-15-W4/4 575 70.0 403 105 298 5.0 283 Vol 289 70.0 202 202 5.0 192 Vol 702 66.5 467 122 345 4.9 328 163.8 235 289 69.9 202 202 5.0 192 92.4 48 02/06-14-054-16-W4 00/13-06-055-14-W4 00/13-06-055-14-W4/2 312 312 00/13-06-055-14-W4/0 2854 2854 3166 3166 00/07-01-055-15-W4 00/07-01-055-15-W4/2 40 40 5.0 Perf 00/07-01-055-15-W4/0 100 100 5.0 Perf 140 140 0.0 00/01-02-055-15-W4 SUBTOTAL 3608 5519 3898 1621 1540 769.9 1090 812 746 746 709 344.6 120 WARWICK EAST 00/16-30-052-14-W4 00/16-30-052-14-W4/4 126 35.0 44 12 32 5.0 30 Vol 00/16-30-052-14-W4/3 859 60.0 515 85 430 5.0 409 Vol 10.0 86 86 5.0 82 Vol 985 56.8 559 97 462 4.9 439 219.7 275 86 86 4.7 82 40.6 10 00/08-32-052-14-W4 00/08-32-052-14-W4/0 1260 60.0 756 143 613 5.0 582 Vol 10.0 126 126 5.0 120 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 19 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------------- ---------- -------- ------- ---- ---- ---- ---- ---- ----- ----- ----- WARWICK EAST (CONT'D) 00/08-32-052-14-W4/2 LLOYD PR 6.6 27.0 50.0 740 546 Subtotal PR PA 00/06-33-052-14-W4/0 W- 48.360 NIS PR 11.0 19.0 35.0 374 538 0.951 PA 00/09-33-052-14-W4 W- 48.360 00/09-33-052-14-W4/2 CLY PR 60 21.0 23.0 40.0 735 533 PA 00/09-33-052-14-W4/0 GLAUC/ELL PR 320 23.0 26.5 42.5 491 539 PA Subtotal PR PA 00/14-34-052-14-W4 W- 50.000 00/14-34-052-14-W4/0 GLAUC/ELL PR 640 6.6 22.4 48.0 492 540 PA 00/14-34-052-14-W4/2 CUMM L PR 320 10.2 23.0 50.0 653 540 PA Subtotal PR PA 00/06-35-052-14-W4/0 W- 12.500 GLAUC PR 20.0 18.0 35.0 538 678 0.908 PA 00/04-04-053-14-W4 W- 50.000 00/04-04-053-14-W4/2 LLOYD PR 4.6 31.0 35.0 727 540 00/04-04-053-14-W4/0 ELL PR 80 16.4 28.0 30.0 522 548 PA Subtotal PR PA 00/03-05-053-14-W4 W- 50.000 00/03-05-053-14-W4/2 SPKY U PR 80 9.8 13.0 40.0 674 531 00/03-05-053-14-W4/0 GLAUC PR 80 17.4 23.0 25.0 453 548 Subtotal PR 00/08-06-053-14-W4 W- 50.000 00/08-06-053-14-W4/0 GLAUC PR 160 32.8 28.0 30.0 501 540
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE --------------------------------------------- ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ----------------------- ----- ---- ----- ----- ---- ----- ----- ----- ----- -------- WARWICK EAST (CONT'D) 00/08-32-052-14-W4/2 13 13 1260 61.0 769 156 613 5.0 583 291.2 213 126 126 4.8 120 59.1 8 00/06-33-052-14-W4/0 4000 3167 833 5.0 791 382.9 139 Decl 250 250 5.0 238 114.7 2 Decl 00/09-33-052-14-W4 00/09-33-052-14-W4/2 407 55.0 224 104 120 5.0 114 Vol 10.0 41 41 5.0 39 Vol 00/09-33-052-14-W4/0 1690 55.0 930 491 439 5.0 417 Vol 10.0 169 169 5.0 161 Vol 2097 55.0 1154 595 559 4.9 531 256.9 203 210 210 4.8 200 95.3 13 00/14-34-052-14-W4 00/14-34-052-14-W4/0 738 65.0 480 342 138 5.0 131 Vol 10.0 74 74 5.0 70 Vol 00/14-34-052-14-W4/2 766 60.0 460 199 261 5.0 248 Vol 10.0 77 77 5.0 73 Vol 1504 62.5 940 541 399 4.9 379 189.6 190 151 151 5.3 143 69.6 19 00/06-35-052-14-W4/0 3800 3588 212 5.0 201 25.1 16 Decl 50 50 5.0 48 5.9 0 Decl 00/04-04-053-14-W4 00/04-04-053-14-W4/2 96 96 00/04-04-053-14-W4/0 403 50.0 202 109 93 5.0 88 Vol 5.0 20 20 5.0 19 Vol 403 73.9 298 205 93 5.0 89 44.3 45 20 20 5.0 19 9.3 2 00/03-05-053-14-W4 00/03-05-053-14-W4/2 132 45.0 59 42 17 5.0 16 Vol 00/03-05-053-14-W4/0 325 45.0 146 102 44 5.0 42 Vol 457 44.9 205 144 61 4.7 59 29.3 41 00/08-06-053-14-W4 00/08-06-053-14-W4/0 1550 500 428 72 5.0 68 Perf
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 20 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH CONSTANT PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ WARWICK EAST (CONT'D) PA 00/08-06-053-14-W4/2 CLY PR 80 8.9 21.0 45.0 687 531 Subtotal PR PA 00/06-07-056-14-W4 W- 25.000 SPKY PR 213 8.2 30.0 35.0 636 535 0.940 PA Subtotal PR PA WEST LAVOY 00/11-19-051-13-W4/0 W- 50.000 VIK PR PA 00/15-15-051-14-W4/0 W- 50.000 CLY PR 640 4.9 28.0 35.0 377 501 0.947 00/11-21-051-14-W4 W- 50.000 00/11-21-051-14-W4/3 CLY PR 7.0 22.8 40.0 850 540 00/11-21-051-14-W4/2 WAS PR 14.0 25.0 60.0 837 547 Subtotal PR 00/11-22-051-14-W4/2 W- 50.000 VIK PR 2.0 24.0 30.0 712 536 0.905 PA 00/10-24-051-14-W4 W-50.000 00/10-24-051-14-W4/0 GLAUC PR 16.0 26.0 20.0 706 543 PA 00/10-24-051-14-W4/2 CLY PR 2.0 25.0 50.0 Subtotal PR PA 00/14-29-051-14-W4/0 W- 50.000 CLY PR 560 6.0 25.0 40.0 639 540 0.920 PA 80 639 540 0.920 00/08-31-051-14-W4 W- 50.000 CLY PR 160 4.9 27.0 45.0 555 571 0.920 00/07-34-051-14-W4/0 W- 50.000 VIK PR
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE --------------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW SURF. SALES SALES 2003 RESERVES GIP REC RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ------------------------------------------------------------------------------------------------------------------------------------ WARWICK EAST (CONT'D) 50 50 5.0 48 Perf 00/08-06-053-14-W4/2 183 80.0 146 94 52 5.0 49 Vol 1733 37.3 646 522 124 5.2 117 58.5 93 50 50 4.0 48 22.6 10 00/06-07-056-14-W4 666 55.0 366 105 261 5.0 248 62.0 76 Vol 15.0 100 100 5.0 95 23.0 8 Vol Subtotal 9105 12737 9120 3617 3437 1559.5 1290 1043 1043 993 440.1 72 WEST LAVOY 00/11-19-051-13-W4/0 145000 13822 678 5.0 644 321.9 176 Decl 250 250 5.0 238 118.2 8 Decl 00/15-15-051-14-W4/0 701 45.0 316 207 109 5.0 103 51.5 74 Vol 00/11-21-051-14-W4 00/11-21-051-14-W4/3 1125 1110 15 5.0 14 Perf 00/11-21-051-14-W4/2 177 177 1302 1287 15 6.1 15 7.3 30 00/11-22-051-14-W4/2 2800 2569 231 5.0 220 109.8 50 Decl 50 50 5.0 48 23.7 1 Decl 00/10-24-051-14-W4 00/10-24-051-14-W4/0 10000 8500 7640 860 5.0 817 Perf 250 250 5.0 238 Perf 00/10-24-051-14-W4/2 19 19 10000 85.2 8519 7659 860 5.0 817 408.6 189 250 250 4.8 238 118.2 7 00/14-29-051-14-W4/0 1000 75.0 750 414 336 5.0 319 159.4 146 Vol 143 75.0 107 107 5.0 102 49.9 10 Vol 00/08-31-051-14-W4 190 70.0 133 133 5.0 126 63.2 114 Vol 00/07-34-051-14-W4/0 620 612 8 5.0 7 3.9 8 Perf
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 21 HAWKER RESOURCES INC. - MECHANICAL UPDATE SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ---------------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ----------------------------------------------------------------------------------------------------------------------- WEST LAVOY (CONT'D) 00/16-10-051-15-W4/0 R-6.250 BR PR 00/09-11-051-15-W4/0 R-6.250 BR PR PA 00/10-14-051-15-W4/0 W-13.184 B BR PR 13.1 30.0 50.0 177 526 0.970 R-3.105 00/07-15-051-15-W4/0 W-12.500 CLY PR 3.9 28.0 35.0 875 535 0.880 02/07-15-051-15-W4/0 W-12.500 B BR M PR 8.5 34.0 45.0 182 528 0.975 PA 00/12-15-051-15-W4/0 W-12.500 CLY PR 5.6 28.0 40.0 600 537 0.925 PA 00/09-16-051-15-W4/2 W-50.000 CLY PR 427 8.9 26.0 40.0 687 538 0.917 PA 00/10-21-051-15-W4/3 W-37.500 CLY PR 3.0 24.0 50.0 768 541 0.899 PA 02/10-21-051-15-W4/2 W-37.500 B BR M PR 9.8 24.0 60.0 00/16-21-051-15-W4 W-37.500 B BR M PR PA 02/10-22-051-15-W4/0 W-18.809 BR PR 19.7 34.0 30.0 157 519 0.977 PA 00/07-26-051-15-W4/0 W-22.500 VIK A PR 3.0 17.5 45.0 00/14-29-051-15-W4 W-50.000 CLY PR 4.3 24.0 40.0 865 531 0.892 00/11-19-052-15-W4/0 R-0.388 U MN PR 00/14-14-054-15-W4 W-50.000 MCLAR PR 213 5.2 31.0 40.0 702 530 PA 107 702 530 00/14-14-054-15-W4/4 VIK PR 640 2.3 20.0 35.0 574 528
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------ ------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC. RES. PROD. RES. Loss RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ---------------------------------------------------------------------------------------------------------------- WEST LAVOY (CONT'D) 00/16-10-051-15-W4/0 1500 1307 193 5.0 184 11.5 9 Perf 00/09-11-051-15-W4/0 800 641 159 5.0 152 9.4 6 Decl 50 50 5.0 48 2.9 0 Decl 00/10-14-051-15-W4/0 1050 865 185 5.0 176 28.6 13 Perf 00/07-15-051-15-W4/0 2040 2040 5.0 02/07-15-051-15-W4/0 1350 909 441 5.0 419 52.4 41 Perf 150 150 5.0 143 17.6 2 Perf 00/12-15-051-15-W4/0 1165 99 1066 5.0 1013 126.6 85 MB 445 445 5.0 423 52.7 4 MB 00/09-16-051-15-W4/2 1280 1385 445 940 5.0 892 446.3 299 MB 420 420 5.0 399 198.0 19 MB 00/10-21-051-15-W4/3 1025 877 148 5.0 141 52.6 47 Decl 75 75 5.0 71 26.4 4 Decl O2/10-21-051-15-W4/2 6 6 00/16-21-051-15-W4 875 99 776 5.0 737 276.6 169 MB 300 300 5.0 285 106.4 8 MB 02/10-22-051-15-W4/0 2550 2012 538 5.0 511 96.1 51 Decl 150 150 5.0 143 26.6 2 Decl 00/07-26-051-15-W4/0 575 536 39 5.0 38 8.4 7 Decl 00/14-29-051-15-W4 00/11-19-052-15-W4/0 1850 1567 283 5.0 270 1.0 1 Perf 00/14-14-054-15-W4 467 70.0 327 327 5.0 311 Vol 235 70.0 165 165 5.0 157 Vol 00/14-14-054-15-W4/4 350 70.0 245 245 5.0 233 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 22 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------------------------ NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z - ------------------------------------------------------------------------------------------------------------------------------------ WEST LAVOY (CONT'D) Subtotal PR PA Subtotal PR PA WILLINGDON 02/10-24-054-16-W4 W- 50.000 02/10-24-054-16-W4/0 WAS PR 160 27.6 24.0 45.0 712 542 PA 02/10-24-054-16-W4/2 CLY PR 480 5.6 26.0 50.0 645 542 Subtotal PR PA 00/13-23-056-16-W4 W- 25.000 00/13-23-056-16-W4/0 CLY PR 13.8 26.0 40.0 646 535 00/13-23-056-16-W4/2 SPKY PR 13.8 30.0 35.0 659 536 PA Subtotal PR PA 02/13-23-056-16-W4 W- 25.000 02/13-23-056-16-W4/2 GLAUC PR 6.6 29.0 40.0 629 544 PA 02/13-23-056-16-W4/0 B QTZ PR 6.6 27.0 30.0 623 546 PA Subtotal PR PA 00/10-29-056-16-W4 W- 50.000 GLAUC PR 320 13.1 24.0 50.0 570 539 0.920 PA 00/10-29-056-16-W4 W- 50.000 CLY PA 320 8.2 27.0 35.0 218 531 0.970 00/12-29-056-16-W4 W- 50.000 CLY PR 5.9 31.0 40.0 157 531 0.976 00/12-03-057-16-W4 W- 50.000 GLAUC PR 160 11.2 24.0 40.0 624 542 0.920 PA
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ---------------------------------------------------------------- --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW SURF. SALES SALES 2003 RESERVES GIP REC RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON - ---------------------------------------------------------------------------------------------------------------------------------- WEST LAVOY (CONT'D) 817 70.0 572 90 482 4.9 459 229.3 276 235 70.2 165 165 4.8 157 77.7 20 Subtotal 13988 45683 38063 7620 7243 2464.5 1794 378 2412 2412 2295 818.3 85 WILLINGDON 02/10-24-054-16-W4 02/10-24-054-16-W4/0 1300 50.0 650 141 509 5.0 484 Vol 10.0 130 130 5.0 124 Vol 02/10-24-054-16-W4/2 707 70.0 495 108 387 5.0 368 Vol 2007 57.1 1145 249 896 5.0 851 425.7 363 130 130 4.6 124 60.2 15 00/13-23-056-16-W4 00/13-23-056-16-W4/0 1969 1969 00/13-23-056-16-W4/2 2415 1164 1251 5.0 1188 MB 135 135 5.0 128 MB 4384 3133 1251 5.0 1188 297.1 96 135 135 5.2 128 32.0 1 02/13-23-056-16-W4 02/13-23-056-16-W4/2 625 447 178 5.0 169 Decl 75 75 5.0 71 Decl 02/13-23-056-16-W4/0 1400 1040 360 5.0 342 Perf 100 100 5.0 95 Perf 2025 1487 538 4.9 512 127.9 131 175 175 5.1 166 40.6 11 00/10-29-056-16-W4 894 50.0 447 447 5.0 425 212.3 281 Vol 20.0 179 179 5.0 170 85.0 14 Vol 00/10-29-056-16-W4 301 70.0 211 211 5.0 200 100.2 Vol 00/12-29-056-16-W4 5.0 00/12-03-057-16-W4 499 40.0 200 15 185 5.0 176 88.0 101 Vol 20.0 100 100 5.0 95 47.4 6 Vol
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 HAWKER RESOURCES INC. - MECHANICAL UPDATE Page 23 SUMMARY OF NATURAL GAS RESERVE ESTIMATES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL PROVED & PROBABLE RESERVES
VOLUMETRIC FACTORS ------------------------------------------------- NET COMPANY RESERVE AREA PAY POR. SW SO PRES. TEMP. AREA AND PROPERTY INTEREST % ZONES CLASS ACRE FT % % % PSIA DEG R Z ----------------- ---------- ----- ----- ---- -- - - - ---- ----- - WILLINGDON (CONT'D) 00/12-03-057-16-W4 W- 50.000 CLY PA 160 1.6 27.0 40.0 624 535 WAS PA 160 7.2 30.0 45.0 624 537 Subtotal PA 00/07-15-057-16-W4 W- 50.000 WAS PA 160 4.9 33.0 50.0 551 542 SPKY PA 160 13.1 31.0 50.0 566 544 L SPKY PA 160 6.9 30.0 50.0 573 544 CUMM PA 160 6.6 29.0 60.0 580 546 Subtotal PA SUBTOTAL PR PA SUBTOTAL ALBERTA PR PA --------- -------- ------- ---- ---- ---- ---- --- ----- ----- --- TOTAL PR PA --------- -------- ------- ---- ---- ---- ---- --- ----- ----- ---
PROPERTY GROSS NATURAL GAS RESERVES COMPANY SHARE ------------------------------------------------------ --------------- ORIG. ORIG. REM. REM. REM. RAW RAW CUM. RAW. SURF. SALES SALES 2003 RESERVES GIP REC RES. PROD. RES. LOSS RES. RES. RATE BASED AREA AND PROPERTY MMCF % MMCF MMCF MMCF % MMCF MMCF MCF/D ON ----------------- ---- - ---- ---- ---- - ---- ---- ----- -- WILLINGDON (CONT'D) 00/12-03-057-16-W4 81 70.0 57 57 5.0 54 Vol 371 70.0 260 260 5.0 247 Vol 452 70.1 317 317 5.0 301 150.5 00/07-15-057-16-W4 221 50.0 111 111 5.0 105 Vol 568 60.0 341 341 5.0 324 Vol 296 60.0 178 178 5.0 169 Vol 221 60.0 133 133 5.0 126 Vol 1306 58.4 763 763 5.1 724 362.0 401 SUBTOTAL 3400 8201 4884 3317 3152 1150.9 971 2059 2010 2010 1908 878.0 447 SUBTOTAL ALBERTA 91502 296496 239598 57052 54202 22199.2 19234 15626 20122 20122 19135 8388.7 1975 ----- ---- ------ ------ ----- ----- ----- ------- ----- -------- TOTAL 91502 296496 239598 57052 54202 22199.2 19234 15626 20122 20122 19135 8388.7 1975 ----- ---- ------ ------ ----- ----- ----- ------- ----- --------
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 1 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION ALBERTA BIRCH Southward Mannville OWNED BY COMPANY 6-32-50-10 Working Interest 100.00000 % SW-32-50-10 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Mannville OWNED BY COMPANY 6-32-50-10 Working Interest 100.00000 % Sec 32-50-10W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Birch OWNED BY COMPANY 13-32-50-11 Working Interest 100.00000 % Sec 32-50-11W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 10-7-50-12 Working Interest 100.00000 % Sec 7-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Southward 102 OWNED BY COMPANY Ranfurly 1-14-50-12 Working Interest 100.00000 % Sec 14-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 9-15-50-12 Working Interest 100.00000 % Sec 15-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Southward Ranfurly OWNED BY COMPANY 9-16-50-12 Working Interest 100.00000 % Sec 16-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 14-16-50-12 Working Interest 100.00000 % Sec 16-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 15-17-50-12 Working Interest 100.00000 % Sec 17-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 2 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION Southward Ranfurly OWNED BY COMPANY 7-21-50-12 Working Interest 100.00000 % Sec 21-50-12W14 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Southward Ranfurly OWNED BY COMPANY 2-22-50-12 Working Interest 100.00000 % Sec 22-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 2-22-50-12 Working Interest 100.00000 % Sec 22-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 8-22-50-12 Working Interest 100.00000 % Sec 22-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 12.50000 % Southward Ranfurly OWNED BY COMPANY 15-24-50-12 Working Interest 100.00000 % Sec 24-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Mannville OWNED BY COMPANY 2-4-51-10 Working Interest 100.00000 % Sec 4-51-10W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Mannville OWNED BY COMPANY 2-4-51-10 Working Interest 100.00000 % Sec 4-51-10W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Birch OWNED BY COMPANY 5-4-51-11 Working Interest 100.00000 % Sec 4-51-11W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN BONNYVILLE Bonnyville Grand Rapids C Pool Group Run INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 80.00000 % Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA OLD CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 3 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION BONNYVILLE (CONT'D) INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 20.00000 % Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Ptn Fort Kent Colony OWNED BY COMPANY C Pool - 10-36 & 6-6 Working Interest 100.00000 % Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA OLD CROWN Southward Goal OWNED BY COMPANY Muriellk 1-24-59-5 Working Interest 70.00000 % Sec 24-59-5W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Bonnyville Working Interest 100.00000 % 11-19-60-4 Percentage of production 50.00000 % Sec 19-60-4W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Bonnyville Working Interest 100.00000 % 10-22-61-6 Percentage of production 50.00000 % Sec 22-61-6W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Bonnyville 7-34-61-6 Working Interest 50.00000 % Sec 34-61-6W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN COLD LAKE Clearwater A Pool OWNED BY COMPANY Group Run Working Interest 50.00000 % Secs 27&28-62-3W4 Percentage of production 50.00000 % Secs 27 & 28-62-3W4 ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Kent OWNED BY COMPANY 11-34-62-3 Working Interest 50.00000 % Sec 34-62-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Kent 11-34-62-3 Working Interest 50.00000 % Sec 34-62-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 4 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION COLD LAKE (CONT'D) Southward Goal OWNED BY COMPANY Kent 9-35-62-3 Working Interest 50.00000 % Sec 35-62-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Elan 5A Beaverdam OWNED BY COMPANY 5-36-62-3 Working Interest 50.00000 % Sec 36-62-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Tappit OWNED BY COMPANY Coldlk 14-23-63-3 Working Interest 50.00000 % Sec 23-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Tappit OWNED BY COMPANY Coldlk 14-23-63-3 Working Interest 50.00000 % Sec 23-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Cold OWNED BY COMPANY Lake 16-23-63-3 Working Interest 47.50000 % Sec 23-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Cold OWNED BY COMPANY Lake 7-25-63-3 Working Interest 47.50000 % Sec 25-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal Cold OWNED BY COMPANY Lake 10-25-63-3 Working Interest 47.50000 % Sec 25-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Goal OWNED BY COMPANY Cold Lake 11-25-63-3 Working Interest 47.50000 % Sec 25-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Tappit OWNED BY COMPANY Cold Lake 2-26-63-3 Working Interest 50.00000 % Sec 26-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Cold OWNED BY COMPANY Lake 9-26-63-3 Working Interest 47.50000 % Sec 26-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 5 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION COLD LAKE (CONT'D) Southward Goal Cold OWNED BY COMPANY Lake 8-36-63-3 Working Interest 47.50000 % Sec 36-63-3W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN 8 Gorr Wells OWNED BY COMPANY Gross Overriding Royalty 4.25000 % Percentage of production 50.00000 % HAIRY HILL Decl et al Warwick OWNED BY COMPANY 10-18-53-14 Gross Overriding Royalty 8.33500 % Sec 18-53-14W4 Percentage of production 50.00000 % Southward Hairy Hill 6-21-55-14 E&SW-21-55-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 75.00000 % ENCUMBRANCES Freehold Royalty Payable 16.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 5.00000 % NW-21-55-14W4 INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 25.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Southward Hairy Hill OWNED BY COMPANY 10-21-55-14 Working Interest 100.00000 % Sec 21-55-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Southward Hairy Hill OWNED BY COMPANY 11-30-55-14 Working Interest 100.00000 % Sec 11-30-55-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN HEDGE Natural Gas Hedge OWNED BY COMPANY Working Interest 100.00000 % Percentage of production 50.00000 % HOLDEN
MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 6 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION HOLDEN (CONT'D) Holden Viking Gas Unit No. 3 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 71.00000 % Tract Factor 50.00000 % Percentage of production 67.16000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.75000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 71.00000 % Tract Factor 50.00000 % Percentage of production 32.84000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 1.75000 % JARROW Southward etal OWNED BY COMPANY Killam 3-33-44-11 Working Interest 50.00000 % Sec 33-44-11W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 25.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 0.50000 % Merland et al Jarrow OWNED BY COMPANY 7-34-45-10 Working Interest 60.00000 % Sec 34-45-10W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.00000 % Southward Jarrow OWNED BY COMPANY 14-1-45-11 Working Interest 100.00000 % Sec 1-45-11W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 17.00000 % Mineral Tax ALTA MIN. TAX Southward Jarrow 10-13-45-11 Sec 13-45-11W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 13.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 11.47600 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.000 % Tract Factor 50.00000 % Percentage of production 87.00000 % ENCUMBRANCES Freehold Royalty Payable 14.28300 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 11.47600 %
MCDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 7 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION JARROW (CONT'D) Zargon Jarrow OWNED BY COMPANY 10-15-45-11 Freehold Royalty Interest 1.50000 % Sec 15-45-11W4 Percentage of production 50.00000 % ENCUMBRANCES Mineral Tax ALTA MIN. TAX Voyager Jarrow OWNED BY COMPANY 6-19-45-11 Gross Overriding Royalty 1.50000 % Sec 19-45-11W4 Percentage of production 50.00000 % ENCUMBRANCES Mineral Tax ALTA MIN. TAX Merland et al OWNED BY COMPANY Kinsella 10-27LM Working Interest 25.00000 % - -45-11 Percentage of production 50.00000 % Sec 27-45-11W4 ENCUMBRANCES Freehold Royalty Payable 17.00000 % Mineral Tax ALTA MIN. TAX Merland et al OWNED BY COMPANY Kinsella 4-29-45-11 Working Interest 25.00000 % Sec 29-45-11W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.56300 % Merland Canso Viking OWNED BY COMPANY 6-30-45-11 Working Interest 25.00000 % Sec 30-45-11W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.56300 % Voyager Viking OWNED BY COMPANY 11-31-45-11 Gross Overriding Royalty 1.50000 % Sec 31-45-11W4 Percentage of production 50.00000 % Merland Paloma OWNED BY COMPANY Viking 9-36-46-12 Working Interest 50.00000 % Sec 36-46-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.50000 % LAVOY Capital to purchase OWNED BY COMPANY compressor Working Interest 100.00000 % Percentage of production 50.00000 % Southward Warwick OWNED BY COMPANY 7-21-51-13 Working Interest 100.00000 % Sec 21-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 8 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 12-28-51-13 Working Interest 100.00000 % Sec 28-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 10-29-51-13W4 Working Interest 100.00000 % Sec 29-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick 10-29-51-13 Sec 29-51-13W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 62.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.00000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 38.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000 % Southward Warwick OWNED BY COMPANY 2-31-51-13 Working Interest 100.00000 % Sec 31-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 14-31-51-13 Working Interest 100.00000 % Sec 31-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 1-32-51-13 Working Interest 100.00000 % Sec 32-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 1-32-51-13 Working Interest 100.00000 % Sec 32-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 9 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 11-32-51-13W4 Working Interest 100.00000 % Sec 32-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 10-33-51-13 Working Interest 100.00000 % Sec 33-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward Plain OWNED BY COMPANY 12-4-52-13 Working Interest 100.00000 % Sec 4-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 11-5-52-13 Working Interest 100.00000 % Sec 5-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000 % Southward et at OWNED BY COMPANY Warwick 13-18-52-13 Working Interest 49.50000 % Sec-18-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000 % Net Profits Interests 2.83000 % Southward Warwick OWNED BY COMPANY 7-30-52-13 Working Interest 100.00000 % Sec 30-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 10-11-52-14 Working Interest 100.00000 % Sec 11-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 6-12-52-14 Working Interest 100.00000 % Sec 12-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 11-12-52-14 Working Interest 100.00000 % Sec 12-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 10 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 15-12-52-14 Working Interest 100.00000 % Sec 12-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick 6-15-52-14 Sec 15-52-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 55.60000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 44.40000 % ENCUMBRANCES Freehold Royalty Payable 6.95000 % Mineral Tax ALTA MIN. TAX Southward 102 Warwick 10-15-52-14 Sec 15-52-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 55.40000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 44.60000 % ENCUMBRANCES Freehold Royalty Payable 16.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 6-22-52-14 Working Interest 100.00000 % Sec 22-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 6-22-52-14 Working Interest 100.00000 % Sec 22-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 11 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 8-22-52-14 Working Interest 100.00000 % Sec 22-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 16.67000 % Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 8-22-52-14 Working Interest 100.00000 % Sec 22-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 16.67000 % Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 12-26-52-14 Working Interest 100.00000 % Sec 26-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000 % Southward Warwick OWNED BY COMPANY 6-27-52-14 Working Interest 100.00000 % Sec 27-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 12-27-52-14 Working Interest 100.00000 % Sec 27-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward 102 OWNED BY COMPANY Warwick 12-27-52-14 Working Interest 100.00000 % Sec 27-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 15-27-52-14 Working Interest 100.00000 % Sec 27-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward 102 OWNED BY COMPANY Warwick 6-28-52-14 Working Interest 100.00000 % Sec 28-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 12 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 8-28-52-14 Working Interest 100.00000 % Sec 28-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 16-29-52-14 Working Interest 100.00000 % Sec 29-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 10-32-52-14 Working Interest 100.00000 % Sec 32-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 6-34-52-14 Working Interest 100.00000 % Sec 34-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward 102 OWNED BY COMPANY Warwick 7-34-52-14 Working Interest 100.00000 % Sec 34-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 6-6-53-14 Working Interest 100.00000% Sec 6-53-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1/150 MIN 5.00 % MAX 15.00 % DECL et al Warwick OWNED BY COMPANY 10-7-53-14 Freehold Royalty Interest 11.66900 % Sec 7-53-14 Tract Factor 50.00000 % Percentage of production 50.00000 % Southward Warwick OWNED BY COMPANY 7-29-53-14 Working Interest 100.00000 % Sec 29-53-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN MANNVILLE Nco Manville OWNED BY COMPANY 9-16-52-7 Working Interest 75.00000 % Sec 16-52-7W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 13 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION MUNDARE Southward Pinedale OWNED BY COMPANY 4-6-54-16 Working Interest 100.00000 % Sec 6-54-16W4 Percentage OF production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Pinedale OWNED BY COMPANY 4-6-54-16 Working Interest 100.00000 % Sec 6-54-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 11-2-54-17 Working Interest 100.00000 % Sec 2-54-17W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000 % Southward Norris OWNED BY COMPANY 1-10-54-17 Working Interest 100.00000 % Sec 10-54-17W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 10-10-54-17 Working Interest 100.00000 % Sec 10-54-17W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 1-13-54-17 Working Interest 100.00000 % Sec 13-54-17W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 15.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 5.00000 % Southward Norris OWNED BY COMPANY 2-19-54-17 Working Interest 100.00000 % Sec 19-54-17W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 2-19-54-17 Working Interest 100.00000 % Sec 19-54-17W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Norris OWNED BY COMPANY 4-20-54-17 Working Interest 100.00000 % Sec 20-54-17W4 Percentage OF production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 14 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION MUNDARE (CONT'D) Southward Norris OWNED BY COMPANY 4-20-54-17 Working Interest 100.00000 % Sec 20-54-17W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Astotin OWNED BY COMPANY 2-17-55-18 Working Interest 100.00000 % Sec 17-55-18\1114 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 16.67000 % Mineral Tax ALTA MIN. TAX PLAIN Southward Misidora OWNED BY COMPANY 12-34-52-10 Working Interest 100.00000 % Sec 34-52-1OW4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Misidora OWNED BY COMPANY 12-34-52-10 Working Interest 100.00000 % Sec 34-52-1OW4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY 10-14-52-12 Working Interest 100.00000 % Sec 14-52-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY 12-28-52-12 Working Interest 100.00000 % Sec 28-52-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY 15-32-52-12 Working Interest 100.00000 % Sec 32-52-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY BEFORE PAYOUT AFTER PAYOUT 12-9-52-13 Working Interest 100.00000 % 50.00000 % Sec 9-52-13W4 Percentage of production 50.00000 % 50.00000 % ENCUMBRANCES Freehold Royalty Payable 19.00000 % 19.00000 % Mineral Tax ALTA MIN. TAX ALTA MIN. TAX Gross Overriding Royalty 15.00000 % Net Profits Interests 2.83000 % 2.83000 % PAYOUT STATUS AT 2002/9 $ 200000 Southward Plain OWNED BY COMPANY 13-36-52-13 Working Interest 100.00000 % Sec 36-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 15 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION PLAIN (CONT'D) Southward Plain OWNED BY COMPANY 14-18-53-11 Working Interest 100.00000 % Sec 18-53-11W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY 7-4-53-12 Working Interest 100.00000 % Sec 4-53-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % RANFURLY Ranfurly Gas Unit INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 27.08500 % Tract Factor 50.00000 % Percentage of production 50.55840 % ENCUMBRANCES Government Royalty ALTA NEW CROWN INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 27.08500 % Tract Factor 50.00000 % Percentage of production 49.44160 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 9-35-50-13 Working Interest 100.00000 % Sec 35-50-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 9-35-50-13 Working Interest 100.00000 % Sec 35-50-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 6-36-50-13 Working Interest 100.00000 % Sec 36-50-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 9-36-50-13 Working Interest 100.00000 % Sec 36-50-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Amoco Warwick OWNED BY COMPANY 11-30-50-14 Gross Overriding Royalty 13.80000 % Sec 30-50-14W4 Percentage of production 50.00000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. HAWKER RESOURCES INC. - MECHANICAL UPDATE Table 1 Page 16 LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION RANFURLY (CONT'D) Southward Warwick OWNED BY COMPANY 3-32-50-14 Working Interest 100.00000 % Sec 32-50-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Signalta et al OWNED BY COMPANY Warwick 16-23-50-15 Working Interest 100.00000 % Sec 23-50-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Inland OWNED BY COMPANY 3-34-50-15 Working Interest 100.00000 % Sec 34-50-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN AVN Mannville OWNED BY COMPANY BEFORE PAYOUT AFTER PAYOUT 5-18-51-7 Working Interest 50.00000 % Sec 18-51-7W4 Gross Overriding Royalty 15.00000 % Percentage of production 50.00000 % 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN ALTA NEW CROWN PAYOUT STATUS AT 2002/9 $ 400000 Ogy Ranfurly OWNED BY COMPANY 16-20-51-12 Working Interest 100.00000 % Sec 20-51-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ranfurly OWNED BY COMPANY 6-29-51-12 Working Interest 100.00000 % Sec 29-51-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Plain OWNED BY COMPANY 11-34-51-12 Working Interest 100.00000 % Sec 34-51-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.00000 % Paloma et al OWNED BY COMPANY Warwick 12-1-51-13 Working Interest 25.00000 % Sec 1-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 4.75000 % Mineral Tax ALTA MIN. TAX Net Profits Interests 2.83000 % Southward Warwick OWNED BY COMPANY 8-4-51-13 Working Interest 100.00000 % Sec 4-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 17 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION RANFURLY (CONT'D) Southward Warwick OWNED BY COMPANY 15-6-51-13 Working Interest 100.00000 % Sec 6-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Signalta et al Warwick 4-11-51-13 Sec 11-51-13W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 27.08500 % Tract Factor 50.00000 % Percentage of production 50.55840 % ENCUMBRANCES Government Royalty ALTA NEW CROWN INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 27.08500 % Tract Factor 50.00000 % Percentage of production 49.44160 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Encal Warwick OWNED BY COMPANY 6-22-51-13 Working Interest 45.00000 % Sec 22-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 15-4-51-14 Working Interest 100.00000 % Sec 4-51-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000 % Signalta et al OWNED BY COMPANY Warwick 2-9-51-14 Freehold Royalty Interest 2.68620 % Sec 9-51-14W4 Percentage of production 50.00000 % Voyager Warwick OWNED BY COMPANY 6-10-51-14 Gross Overriding Royalty 20.00000 % Sec 10-51-14W4 Tract Factor 50.00000 % Percentage of production 99.43400 % Southward Warwick OWNED BY COMPANY 16-12-51-14 Working Interest 100.00000 % Sec 12-51-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000 % ST. PAUL Centra St. Paul OWNED BY COMPANY 5-3-58-9 Working Interest 75.00000 % Sec 3-58-9W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 18 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION ST. PAUL (CONT'D) Centra St. Paul OWNED BY COMPANY 12-3-58-9 Working Interest 75.00000 % Sec 3-58-9W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN VEGREVILLE Southward Warwick OWNED BY COMPANY 6-7-52-13 Working Interest 100.00000 % Sec 7-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000 % Southward 102 OWNED BY COMPANY Warwick 6-7-52-13 Working Interest 100.00000 % Sec 7-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward et al OWNED BY COMPANY Warwick 1-18-52-13 Working Interest 49.50000 % Sec -18-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000 % Net Profits Interests 2.83000 % Southward et al OWNED BY COMPANY Warwick 1-18-52-13 Working Interest 49.50000 % Sec 18-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000 % Net Profits Interests 2.83000 % Southward et al OWNED BY COMPANY Warwick 6-19-52-13 Working Interest 20.05250 % Sec 19-52-13W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Net Profits Interests 2.83000 % Southward Warwick OWNED BY COMPANY 1-13-52-14 Working Interest 100.00000 % Sec 13-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 23.00000 % Mineral Tax ALTA MIN. TAX Amoco Warwick OWNED BY COMPANY 6-13-52-14 Working Interest 100.00000 % Sec 13-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 23.00000 % Mineral Tax ALTA MIN. TAX
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 19 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION VEGREVILLE (CONT'D) Southward Warwick OWNED BY COMPANY 12-13-52-14 Working Interest 100.00000 % Sec 13-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 3-24-52-14 Working Interest 100.00000 % Sec 24-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 9-24-52-14 Working Interest 100.00000 % Sec 24-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al OWNED BY COMPANY Warwick 10-9-53-14 Working Interest 75.00000 % Sec 9-53-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al OWNED BY COMPANY Warwick 10-9-53-14 Working Interest 75.00000 % Sec 9-53-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN VIKING Merland Kinsella OWNED BY COMPANY 16-14-48-12 Working Interest 100.00000 % Sec 14-48-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Viking OWNED BY COMPANY Kinsella 3-12-49-11 Working Interest 100.00000 % Sec 12-49-11W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Viking OWNED BY COMPANY Kinsella 3-12-49-11 Working Interest 100.00000 % Sec 12-49-11W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al OWNED BY COMPANY Viking 4-22-49-12 Working Interest 95.00000 % Sec 22-49-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.57890 % Net Profits Interests 2.63158 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 20 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION VIKING (CONT'D) Southward Kinsella OWNED BY COMPANY 8-31-49-12 Working Interest 100.00000 % Sec 31-49-12W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 15.50000 % Mineral Tax ALTA MIN. TAX Net Profits Interests 2.83000 % Southward Viking OWNED BY COMPANY 9-32-49-12 Working Interest 100.00000 % Sec 32-49-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000 % Southward Viking OWNED BY COMPANY 6-28-49-13 Working Interest 100.00000 % Sec 28-49-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Kinsella OWNED BY COMPANY 16-34-49-13 Working Interest 100.00000 % Sec 34-49-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000 % Southward Viking OWNED BY COMPANY 10-36-49-13 Working Interest 100.00000 % Sec 36-49-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 25.00000 % Net Profits Interests 2.83000 % Southward et al OWNED BY COMPANY Viking 2-24-49-14 Working Interest 100.00000 % Sec 24-49-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000 % Southward Ranfurly OWNED BY COMPANY 8-4-50-12 Working Interest 85.00000 % Sec 4-50-12W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.83000 % Southward et al OWNED BY COMPANY Warwick 11-13-50-13 Working Interest 68.75000 % Sec 13-50-13W4 Gross Overriding Royalty 1.25005 % Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 28.99900 % Mineral Tax ALTA MIN. TAX Net Profits Interests 2.50000 % WARWICK
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 21 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WARWICK (CONT'D) Southward Royal OWNED BY COMPANY 6-16-53-15 Working Interest 100.00000 % Sec 16-53-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward 102 OWNED BY COMPANY Warwick 6-35-53-15 Working Interest 100.00000 % Sec 35-53-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 15.00000 % Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 11-36-53-15 Working Interest 100.00000 % Sec 36-53-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 7-19-54-15 Working Interest 100.00000 % Sec 19-54-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 16.00000 % Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 14-34-54-15 Working Interest 100.00000 % Sec 34-54-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 14-34-54-15 Working Interest 100.00000 % Sec 34-54-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward 102 OWNED BY COMPANY Pinedale 6-14-54-16 Working Interest 100.00000 % Sec 14-54-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward hairy OWNED BY COMPANY BEFORE PAYOUT AFTER PAYOUT 13-6-55- 14 Working Interest 100.00000 % 75.00000 % Sec 6-55-14W4 Percentage of production 50.00000 % 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN ALTA NEW CROWN PAYOUT STATUS AT 2002/9 $ 450000 Southward Hairy Hill OWNED BY COMPANY 7-1-55-15 Working Interest 75.00000 % Sec 1-55-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Willingdon OWNED BY COMPANY 1-2-55-15 Working Interest 100.00000 % Sec 2-55-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 22 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WARWICK EAST Southward Warwick OWNED BY COMPANY 16-30-52-14 Working Interest 100.00000 % Sec 30-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 8-32-52-14 Working Interest 100.00000 % Sec 32-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Aegis Warwick OWNED BY COMPANY 6-33-52-14 Working Interest 96.72020 % Sec 33-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 18.00000 % Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 9-33-52-14 Working Interest 96.72020 % Sec 33-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 18.00000 % Mineral Tax ALTA MIN. TAX Southward Warwick OWNED BY COMPANY 14-34-52-14 Working Interest 100.00000 % Sec 34-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.00000 % DECL et al Warwick OWNED BY COMPANY 6-35-52-14 Working Interest 25.00000 % Sec 35-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 4-4-53-14 Working Interest 100.00000 % Sec 4-53-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 3-5-53-14 Working Interest 100.00000 % Sec 34-52-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000% Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % Southward Warwick OWNED BY COMPANY 8-6-53-14 Working Interest 100.00000 % Sec 6-53-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 23 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WARWICK EAST (CONT'D) Voyager Paloma Willingdon 6-7-56-14 Sec 7-56-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 50.00000 % Tract Factor 50.00000 % Percentage of production 5.72000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Net Profits Interests 2.50000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 50.00000 % Tract Factor 50.00000 % Percentage of production 94.28000 % ENCUMBRANCES Freehold Royalty Payable 15.76200 % Mineral Tax ALTA MIN. TAX Net Profits Interests 2.50000 % WEST LAVOY Southward Warwick OWNED BY COMPANY 11-19-51-13 Working Interest 100.00000 % Sec 19-51-13W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 15-15-51-14 Working Interest 100.00000 % Sec 15-51-14W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Southward Warwick 11-21-51-14 Sec 21-51-13W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 25.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.67000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX INTEREST NUMBER 3 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 25.00000 % ENCUMBRANCES Freehold Royalty Payable 7.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 1.56250 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 24 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WEST LAVOY (CONT'D) Southward Warwick OWNED BY COMPANY 11-22-51-14 Working Interest 100.00000 % Sec 22-51-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick 10-24-51-14 Sec 24-51-14W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 62.00000 % Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.00000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 38.00000 % Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 16.00000 % Southward Warwick OWNED BY COMPANY 14-29-51-14 Working Interest 100.00000 % Sec 29-51-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Warwick OWNED BY COMPANY 8-31-51-14 Working Interest 100.00000 % Sec 31-51-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 15.00000 % Southward Warwick OWNED BY COMPANY 7-34-51-14 Working Interest 100.00000 % Sec 34-51-14W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 16.67000 % Poco et al Inland OWNED BY COMPANY 16-10-51-15 Gross Overriding Royalty 12.50000 % Sec 10-51-15W4 Percentage of production 50.00000 % Poco et al Inland OWNED BY COMPANY 9-11-51-15 Gross Overriding Royalty 12.50000 % Sec 11-51-15W4 Percentage of production 50.00000 % Voyager et al Inland OWNED BY COMPANY 10-14-51-15 Working Interest 26.36760 % Sec 14-51-15W4 Gross Overriding Royalty 6.21000 % Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 1.50000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 25 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WEST LAVOY (CONT'D) Amoco Canpar Inland OWNED BY COMPANY 7-15-51-15 Working Interest 25.00000 % Sec 15-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Amoco Inland OWNED BY COMPANY 7-15BR-51-15 Working Interest 25.00000 % Sec 15-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Signalta et al OWNED BY COMPANY Inland 12-15-51-15 Working Interest 25.00000 % Sec 15-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Southward Inland OWNED BY COMPANY 9-16-51-15 Working Interest 100.00000 % Sec 16-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Amoco Inland OWNED BY COMPANY 10-21-51-15 Working Interest 75.00000 % Sec 21-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Amoco Inland OWNED BY COMPANY 10-21BR-51-15 Working Interest 75.00000 % Sec 21-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Signalta et al OWNED BY COMPANY Inland 16-21-51-15 Working Interest 75.00000 % Sec 21-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 12.50000 % Mineral Tax ALTA MIN. TAX Signalta et al OWNED BY COMPANY Inland 10-22-51-15 Working Interest 37.61760 % Sec 22-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Gross Overriding Royalty 0.57830 % Signalta et al OWNED BY COMPANY Inland 7-26-51-15 Working Interest 45.00000 % Sec 26-51-15?W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 9.38000 % Mineral Tax ALTA MIN. TAX
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 26 HAWKER RESOURCES INC. - MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WEST LAVOY (CONT'D) Southward Inland OWNED BY COMPANY 14-29-51-15 Working Interest 100.00000 % Sec 29-51-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Decl et al Royal OWNED BY COMPANY 11-19-52-15 Gross Overriding Royalty 0.77630 % Sec 19-52-15W4 Percentage of production 50.00000 % Southward Warwick OWNED BY COMPANY 14-14-54-15 Working Interest 100.00000 % Sec 14-54-15W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN WILLINGDON Southward Pinedale OWNED BY COMPANY 10-24-54-16 Working Interest 100.00000 % Sec 24-54-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al OWNED BY COMPANY Ukalta 13-23-56-16 Working Interest 50.00000 % Sec 23-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward et al 102 OWNED BY COMPANY Ukalta 13-23-56-16 Working Interest 50.00000 % Sec 23-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta OWNED BY COMPANY 10-29-56-16 Working Interest 100.00000 % Sec 29-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta OWNED BY COMPANY 10-29-56-16 Working Interest 100.00000 % Sec 29-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward 102 Ukalta OWNED BY COMPANY 12-29-56-16 Working Interest 100.00000 % Sec 29-56-16W4 Percentage of production 50.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN
McDANIEL & ASSOCIATES CONSULTANTS LTD. Table 1 Page 27 HAWKER RESOURCES INC. MECHANICAL UPDATE LIST OF INTERESTS AND ENCUMBRANCES MARCH ESCALATING PRICES AS OF MAY 1, 2003 TOTAL RESERVES
ACREAGE DESCRIPTION OWNERSHIP INFORMATION WILLINGDON (CONT'D) Southward Ukalta 12-3-57-16 Sec 3-57-16W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 75.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 20.00000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 25.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta 12-3-57-16 Sec 3-57-16W4 INTEREST NUMBER 1 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 75.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 20.00000 % INTEREST NUMBER 2 OWNED BY COMPANY Working Interest 100.00000 % Tract Factor 50.00000 % Percentage of production 25.00000 % ENCUMBRANCES Government Royalty ALTA NEW CROWN Southward Ukalta OWNED BY COMPANY 7-15-57-16 Working Interest 100.00000 % Sec 15-57-16W4 Percentage of production 50.00000 % ENCUMBRANCES Freehold Royalty Payable 20.00000 % Mineral Tax ALTA MIN. TAX Gross Overriding Royalty 20.00000 %
McDANIEL & ASSOCIATES CONSULTANTS LTD. EX-4 6 o10068exv4.txt MATERIAL CHANGE REPORT DATED MAY 23, 2003 Exhibit 4 MATERIAL CHANGE REPORT UNDER SECTION 146(1) OF THE SECURITIES ACT (ALBERTA) (FORM 27) AND UNDER COMPARABLE PROVISIONS OF OTHER PROVINCIAL SECURITIES LEGISLATION 1. REPORTING ISSUER: Hawker Resources Inc. ("Hawker") 500, 340-12th Avenue S.W. Calgary, Alberta T2R 1L5 2. DATE OF MATERIAL CHANGE: April 30,2003 3. PRESS RELEASE: Hawker issued a press release disclosing the nature and substance of the material change on April 30, 2003 through the facilities of CCN Matthews. A copy of such press release is attached hereto as Schedule "A". 4. SUMMARY OF MATERIAL CHANGE: On April 30,2003, 1022971 Alberta Ltd. ("1022971"), a wholly-owned subsidiary of Hawker, completed a statutory arrangement (the "Arrangement") with Southward Energy Ltd. ("Southward") under the BUSINESS CORPORATIONS ACT (Alberta). Pursuant to the Arrangement, 1022971 acquired all of the outstanding common shares of Southward for a price of Cdn.$4.77 per share. A concurrent sale of substantially all of Southward's assets to an arm's length third party was also completed with Hawker retaining an option to acquire certain of the sold properties. 5. FULL DESCRIPTION OF MATERIAL CHANGE: On April 30, 2003, 1022971, a wholly-owned subsidiary of Hawker, completed a statutory arrangement (the "Arrangement") with Southward under the BUSINESS CORPORATIONS ACT (Alberta). Pursuant to the Arrangement, 1022971 acquired all of the outstanding common shares of Southward for a price of Cdn.$4.77 per share. The Arrangement was approved by the Court of Queen's Bench of Alberta following a special meeting of the shareholders and optionholders of Southward held on April 28, 2003 at which a special resolution approving the Arrangement was passed. Southward is now a wholly-owned subsidiary of 1022971 and applications have been made to cause Southward to cease to be a reporting issuer and to de-list Southward shares from the Toronto Stock Exchange. Concurrent with the acquisition of all of the outstanding common shares, Hawker sold substantially all of Southward's assets to an arm's length third party. Hawker retains an option to acquire an undivided interest in up to 50% of certain of the sold properties located east of Edmonton in the Lavoy and Cold Lake/Bonnyville areas of Alberta. 6. RELIANCE ON CONFIDENTIALITY PROVISION: Not applicable. -2- 7. OMITTED INFORMATION: Not applicable. 8. SENIOR OFFICER: Barry Herring Chief Financial Officer Phone: (403) 444-3330 Fax: (403) 266-1814 9. STATEMENT OF SENIOR OFFICER: The foregoing statement accurately discloses the material change referred to herein. DATED at Calgary, Alberta this 23rd day of May, 2003. HAWKER RESOURCES INC. Per: "Barry Herring" ------------------------------- Barry Herring Chief Financial Officer cc: Toronto Stock Exchange SCHEDULE "A" NEWS RELEASE VIA CCN MATTHEWS, VANCOUVER 604-6834066 NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS. ATTENTION BUSINESS/FINANCIAL EDITORS: HAWKER RESOURCES ACHIEVES MAJOR MILESTONES CALGARY, April 30, 2003 - Hawker Resources Inc. (HKR:TSX) announced today that the arrangement between Southward Energy Ltd. and a wholly owned subsidiary of Hawker has been completed. Pursuant to the arrangement, all of the outstanding common shares of Southward were acquired at a price of $4.77 per share. The previously announced concurrent sale of substantially all of Southward's assets to an arm's length third party has also closed. "The completion of the acquisition of Southward is a major milestone for Hawker," said David Tuer, CEO of Hawker. "This milestone was achieved by placing substantially all of Southward's assets with a third party on a basis which allows us to re-acquire up to 50% of what we consider to be the best assets of Southward. It is very difficult to secure assets of this quality on an option basis at the same price an informed arm's length party has agreed to pay for those assets, and even more difficult to secure a right to such assets which is subject to financing. Hawker has achieved both of these difficult objectives and is now moving ahead with its proposed financing and the execution of its business plan." The Hawker option is to re-acquire an interest in the properties of Southward located east of Edmonton in the Lavoy and Cold Lake/Bonnyville areas of Alberta together with other minor interests and expires July 29, 2003. Hawker intends to fully exercise the option to bring its aggregate interest in the properties to 50%. Hawker has filed a preliminary prospectus for a fully marketed $40,000,000 common share offering, the net proceeds of which will be used, together with bank financing, to fund the exercise price of the option. The exact number of common shares to be issued and the price per common share will be determined in approximately four weeks, following the marketing of the offering. Hawker's preliminary prospectus is available at www.sedar.com. ADVISORY: The Toronto Stock Exchange has neither approved nor disapproved the information contained herein. Certain information regarding the company, including management's assessment of future plans and operations, may constitute forwardlooking statements under applicable securities hw and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements. - -0- 04/30/2003 For further information: David A. Tuer, Chief Executive Officer, Telephone: (403) 294-0067, Fax: (403) 294-0062 EX-5 7 o10068exv5.txt PRESS RELEASE DATED MAY 29, 2003 Exhibit 5 NEWS RELEASE VIA CCN MATTHEWS, VANCOUVER 604-683-1066 NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS. ATTENTION BUSINESS/FINANCIAL EDITORS: HAWKER RESOURCES INC. ANNOUNCES PRICING OF EQUITY OFFERING CALGARY, May 29, 2003 - Hawker Resources Inc. (TSX:HKR) announced today that a syndicate of underwriters has purchased the entire amount of the company's first public offering of common shares since the oil and gas company was formed in April 2003. The syndicate, led by Peters & Co. Limited and including FirstEnergy Capital Corp., Griffiths McBurney & Partners and Tristone Capital Inc, has agreed to purchase 14,286,000 common shares of Hawker at a price of $3.15 for total proceeds of approximately $45.0 million. The common share offering was originally announced on April 24, 2002 and is described in Hawker's final prospectus dated May 29, 2003. Closing of the offering is expected to occur on or about June 12, 2003. The Corporation also announced that it has obtained a $28.0 million extendible revolving term credit facility from a Canadian chartered bank. Net proceeds of the offering, together with funds drawn on the credit facility, will be used to complete the previously announced acquisition of properties formerly held by Southward Energy Ltd. The properties include both producing assets and prospective exploration plays on lands located east of Edmonton in the Lavoy and Cold Lake/Bonnyville areas of Alberta. "The terms of the offering constitute a major vote of confidence in the Corporation's management and business plan" said David A. Tuer, Chief Executive Officer of the Corporation. "This offering will allow the Corporation to exercise the purchase option it holds and acquire a 50% interest in a very attractive package of producing gas properties." Hawker Resources was formed from the shell of the former biotech research company, Synsorb Biotech Inc. Since the transformation of Synsorb was announced in February 2003, shares in the company have risen from a low of $0.73 to a high of $3.57. The closing price of the Hawker common shares on May 29, 2003 was $3.45. The transaction is pursuant to an underwriting agreement dated May 29, 2003 and is subject to customary closing conditions. The common shares have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States without an exemption from the applicable registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in the United States. For further information: David A. Tuer, Chief Executive Officer, Telephone: (403) 294-0067, Fax: (403) 294-0062 ADVISORY: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain information regarding the company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements. EX-6 8 o10068exv6.txt PRESS RELEASE DATED MAY 30, 2003 EXHIBIT 6 NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS. ATTENTION BUSINESS/FINANCIAL EDITORS: HAWKER RESOURCES INC. RELEASES FIRST QUARTER RESULTS Calgary, May 30, 2003, Hawker Resources Inc. (formerly SYNSORB Biotech Inc.) (HKR-TSE) announces its financial results for the first quarter 2003. MANAGEMENT'S DISCUSSION AND ANALYSIS Management's discussion and analysis (MD&A) should be read in conjunction with the unaudited interim financial statements for the three months ended March 31, 2003 and the audited financial statements and MD&A for the year ended December 31, 2002. Prior to 2002, SYNSORB Biotech Inc. ("SYNSORB") conducted pharmaceutical drug development with respect to SYNSORB Cd(R) for the prevention of recurrent C.difficile associated diarrhea. On December 10, 2001 SYNSORB terminated development of SYNSORB Cd(R) including its phase III clinical trials. Subsequent to December 10, 2001 SYNSORB had no drug in active development. At the Annual and Special Meeting of SYNSORB shareholders held April 3, 2003, shareholders approved the planned conversion of the company into an oil and gas enterprise and changed the company's name to Hawker Resources Inc. ("Hawker" or "the Company"). REVENUE For the three months ended March 31, 2003, the Company recorded total revenue of $378,000 compared to $132,000 for the three months ended March 31, 2002. Interest income for the first quarter of 2003 was $3,000 as compared with $25,000 for the first quarter of 2002. This decrease was a result of the lower average cash on hand balances in the first quarter of 2003 compared to the same period in 2002. Other revenue received by the Company during the first quarter of 2003 related to an exclusive license agreement of certain of its patents regarding toxin binding sugars. Pursuant to this license agreement, the Company received net proceeds of $375,000. Other revenue received during the first quarter of 2002 of $107,000 related to a milestone payment received by the Company with respect to the previous sale of its INH Technologies Inc. subsidiary. No milestone payments were received in the first quarter of 2003. OPERATING EXPENSES Operating expenses totaled $476,000 for the three months ended March 31, 2003 as compared with $191,000 for the three months ended March 31, 2002. The increase in operating expenses for the first quarter of 2003 was due to increased insurance costs for the Company and professional fees related to the conversion of the Company into an oil and gas enterprise. INTEREST EXPENSE There was no interest paid on long-term debt for the quarter ended March 31, 2003 as compared with $71,000 for the quarter ended March 31, 2002. The decrease in interest expense reflects the repayment in early 2002 of the Company's outstanding debt. MAINTENANCE OF PATENTS Costs incurred to maintain existing patents of the Company are expensed as incurred. For the three months ended March 31, 2003, $11,000 was incurred for maintenance of patents, a decrease of 88% from the $95,000 incurred for the three months ended March 31, 2002. This decrease was due to a reduction in the number of patents maintained by the Company. AMORTIZATION Amortization for the quarter ended March 31, 2003 was $2,000 as compared with $20,000 for the same period in 2002. This decrease is a result of the reduced carrying value of the depreciable capital assets due to the asset disposals that occurred during the year ended December 31, 2002. CAPITAL EXPENDITURES AND CAPITAL ASSET DISPOSALS There were no capital expenditures in the either the first quarter of 2003 or the first quarter of 2002. During the three months ended March 31, 2003, the Company sold most of its manufacturing equipment for net proceeds of $939,000. During the three months ended March 31, 2002, the Company sold minor capital assets for net proceeds of $4,000. The lack of capital expenditures and the sale of capital assets in both 2003 and 2002 reflects the wind-down of the biotech operations of the Company. LIQUIDITY AND CAPITAL RESOURCES As at March 31, 2003, the Company's cash position was $1,430,000 and its working capital position was $1,365,000 compared to December 31, 2002 balances of $289,000 and $412,000, respectively. As at March 31, 2003 and December 31, 2002, the Company had no long-term or short-term debt. The Company's primary source of liquidity during the first quarter of 2003 was the liquidation of its assets and the license of certain of its patents. The Company continues to market its building and related land as commercial premises. The Company also holds miscellaneous intellectual property rights with respect to certain drug technologies, which it may license, dispose of or abandon. No assurance can be given as to whether any additional assets can be disposed of or what, if any, proceeds can or will be received with respect thereto. On April 3, 2003, the Company closed financing agreements entered into effective March 7, 2003 with unrelated parties. Under the agreements, the Company issued by way of private placement the following: 75,000 common shares for $45,364; 430,493 Series A Debentures for $3,616,141; 430,493 Series A Warrants for $11,873; 2,152,465 voting preferred shares for $6,196; 3,874,437 non-voting preferred shares for $11,153. Each Series A Warrant will entitle the holder thereof to purchase five common shares and nine Class A shares on the concurrent surrender of the warrant, five voting preferred shares, nine non-voting preferred shares and one Series A Debenture. The proceeds of the debentures along with an additional $460,000 of the Company's cash have been pledged as security for repayment of the debentures. Accordingly, the private placement will not be a source of additional capital resources and liquidity to the Company until the warrants issued in the private placement are exercised and the proceeds received as additional equity capital. Also on April 3, 2003, the board of directors of the Company ratified the acquisition of all of the shares of 1022971 Alberta Ltd. ("1022971") for a nominal amount and the Company was assigned an option to purchase up to 49% of certain oil and gas properties for $67.1 million. On April 30, 2003, 1022971 obtained a bank loan for $120,000,000 to acquire all of the shares of Southward Energy Ltd. ("Southward"). Immediately thereafter on April 30, 2003, Southward sold its oil and gas properties, excluding a 1% undivided interest in certain properties and a 100% interest in related seismic, to an independent third party for gross proceeds of $164,631,000. The gross proceeds were used to repay the bank loan obtained to acquire the shares and bank indebtedness of Southward. On May 28, 2003, the Company obtained an extendable revolving term credit facility amounting to $28,000,000 that bears interest at rates varying from Canadian prime rate or U.S. base rate of such bank to the Canadian prime rate or U.S. base rate plus 30 basis points, payable monthly in arrears. Pursuant to an underwriting agreement dated May 29, 2003, the Company proposes to raise net proceeds of $41.9 million through the issue and sale of 14,286,000 common shares. It is expected that the closing of the share offering will take place on or about June 12, 2003, and in any event not later than July 10, 2003. The Company will use $39.1 million of the net proceeds from the offering, together with up to $28 million of debt financing, to exercise the purchase option described above. The remainder of the net proceeds will be added to working capital and used for general corporate purposes. Immediately after the issuance of a receipt for the prospectus offering the Company's common shares for sale and issue, the warrants described above are to be exercised and the holder will be issued five common shares and nine Class A shares upon the surrender of five voting preferred shares, nine non-voting preferred shares and one Series A Debenture. Upon such an event $4,105,362 currently held as security on the Series A Debentures will be released and available for general corporate purposes. The oil and gas industry is capital intensive and the Company is likely to require significant additional capital resources in order to succeed in the oil and gas sector. At present, the Company has not identified any source of these additional capital resources and it is unlikely that such resources would be available to it unless particular oil and gas assets are identified to be acquired. The Company's ability to raise additional capital will depend upon a number of factors, such as general economic conditions and conditions in the oil and gas industry, that are beyond its control. If additional capital is required and is not available to the Company on acceptable terms, the Company's financial condition and prospects may be impaired. HAWKER RESOURCES INC. (Formerly SYNSORB Biotech Inc.) BALANCE SHEETS AS AT
- ------------------------------------------------------------------------------------------------ MARCH 31 December (in thousands of dollars) 2003 2002 - ------------------------------------------------------------------------------------------------ (UNAUDITED) (audited) ASSETS CURRENT Cash and cash equivalents $ 1,430 $ 289 Accounts receivable 29 27 Prepaids 50 176 - ------------------------------------------------------------------------------------------------ 1,509 492 CAPITAL ASSETS 2,582 3,523 - ------------------------------------------------------------------------------------------------ $ 4,091 $ 4,015 ================================================================================================ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT Accounts payable and accrued liabilities $ 144 $ 80 ALBERTA HERITAGE FOUNDATION GRANT 387 387 SHAREHOLDERS' EQUITY (Note 4) Share capital 12,864 12,741 Deficit (9,304) (9,193) - ------------------------------------------------------------------------------------------------ 3,560 3,548 - ------------------------------------------------------------------------------------------------ $ 4,091 $ 4,015 ================================================================================================
See accompanying notes HAWKER RESOURCES INC. (Formerly SYNSORB Biotech Inc.) STATEMENTS OF EARNINGS (LOSS) AND DEFICIT THREE MONTHS ENDED MARCH 31
- ---------------------------------------------------------------------------------------------- (in thousands of dollars, except per share amounts) 2003 2002 - ---------------------------------------------------------------------------------------------- (UNAUDITED) (unaudited) REVENUE Interest income $ 3 $ 25 Other 375 107 - --------------------------------------------------------------------------------------------- 378 132 EXPENSES Operating 476 191 Interest on long-term debt - 71 Maintenance of patents 11 95 Amortization 2 20 - --------------------------------------------------------------------------------------------- 489 377 - --------------------------------------------------------------------------------------------- LOSS BEFORE THE FOLLOWING (111) (245) GAIN ON SALE OF ONCOLYTICS SHARES (Note 3) - 4,077 SHARE OF LOSS FROM EQUITY INVESTMENT IN ONCOLYTICS - (314) - --------------------------------------------------------------------------------------------- NET EARNINGS (LOSS) FOR THE PERIOD (111) 3,518 DEFICIT, BEGINNING OF PERIOD (9,193) (72,855) - --------------------------------------------------------------------------------------------- DEFICIT, END OF PERIOD $ (9,304) $(69,337) ============================================================================================= BASIC AND DILUTED NET EARNINGS (LOSS) PER COMMON SHARE (Note 4) $ (0.02) $ 0.71 =============================================================================================
See accompanying notes HAWKER RESOURCES INC. (Formerly SYNSORB Biotech Inc.) STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31
- ---------------------------------------------------------------------------------------------- (in thousands of dollars) 2003 2002 - ---------------------------------------------------------------------------------------------- (UNAUDITED) (unaudited) OPERATING ACTIVITIES Net earnings (loss) for the period $ (111) $ 3,518 Add non-cash items Amortization 2 20 Gain on sale of Oncolytics shares (Note 3) - (4,077) Share of loss from equity investment in Oncolytics - 314 - -------------------------------------------------------------------------------------------- (109) (225) Increase in accounts receivable (2) (13) Decrease in prepaid expenses 126 70 Increase (decrease) in accounts payable and accrued liabilities 64 (2,930) - -------------------------------------------------------------------------------------------- 79 (3,098) - -------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Proceeds from sale of capital assets 939 4 Proceeds from sale of Oncolytics shares (Note 3) - 5,483 - -------------------------------------------------------------------------------------------- 939 5,487 - -------------------------------------------------------------------------------------------- FINANCING ACTIVITIES Common shares issued on exercise of options 123 - Repayment of long-term debt - (5,910) - -------------------------------------------------------------------------------------------- 123 (5,910) - -------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,141 (3,521) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 289 5,841 - -------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,430 $ 2,320 ============================================================================================ Cash interest paid - 71 Cash interest received 2 24 Cash taxes paid - 10
See accompanying notes HAWKER RESOURCES INC. (Formerly SYNSORB Biotech Inc.) NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2003 AND 2002 1. NATURE OF OPERATIONS Prior to 2002, SYNSORB Biotech Inc. ("SYNSORB") conducted pharmaceutical drug development with respect to SYNSORB Cd(R) for the prevention of recurrent C.difficile associated diarrhea. On December 10, 2001 SYNSORB terminated development of SYNSORB Cd(R) including its phase III clinical trials. Subsequent to December 10, 2001 SYNSORB had no drug in active development. At the Annual and Special Meeting of SYNSORB shareholders held April 3, 2003, shareholders approved the planned conversion of the company into an oil and gas enterprise and changed the company's name to Hawker Resources Inc. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim financial statements of Hawker Resources Inc. ("Hawker" or "the Company") have been prepared following the same accounting policies and methods of computation as the financial statements of the Company as at December 31, 2002. The interim financial statements contain disclosures which are supplemental to the Company's annual financial statements. Certain disclosures, which are normally required to be included in the notes to the annual financial statements, have been condensed or omitted. The interim financial statements should be read in conjunction with the Company's financial statements and notes thereto for the year ended December 31, 2002. 3. INVESTMENTS During the period ended March 31, 2002, the Company sold 1,530,800 common shares in Oncolytics Biotech Inc. ("Oncolytics") for net proceeds of $5,483,000 resulting in a gain on sale of $4,077,000. As at March 31, 2003 and December 31, 2002 the Company did not hold any common shares of Oncolytics. 4. SHARE CAPITAL COMMON SHARES
MARCH 31, 2003 - -------------------------------------------------------------------------------------------- NUMBER OF SHARES AMOUNT (IN 000's) - -------------------------------------------------------------------------------------------- Balance at January 1, 2003 4,959,937 $ 12,741 Issued for cash on exercise of options and warrants 175,000 123 - ---------------------------------------------------------------------------------------- Balance at March 31, 2003 5,134,937 $ 12,864 ========================================================================================
Reference is made to Note 5 with respect to the issue of common shares and convertible warrants. STOCK OPTIONS
MARCH 31, 2003 - -------------------------------------------------------------------------------------------- WEIGHTED AVERAGE EXERCISE PRICE SHARES $ - -------------------------------------------------------------------------------------------- Outstanding at January 1, 2003 330,565 9.80 Granted - - Exercised (175,000) 0.70 Expired (12,500) 87.20 Forfeited - - - -------------------------------------------------------------------------------------- Outstanding at March 31, 2003 143,065 14.16 ====================================================================================== Options exercisable at March 31, 2003 141,565 14.21 ======================================================================================
On April 3, 2003, stock options to acquire 100,000 shares were exercised to reduce the number of options outstanding to 43,065. PER SHARE AMOUNTS Earnings (loss) per common share calculations are based on earnings (loss) for the period as the numerator in the calculation and the weighted average number of common shares outstanding during the period (March 31, 2003: 4,966,881; March 31, 2002: 4,959,937) as the denominator. For the period ended March 31, 2003, options to purchase 143,065 common shares at an average price of $14.16 and warrants for the purchase of 10,625 common shares at a price of $36.00 were not included in the computation of diluted earnings per share because the exercise price of the options and warrants was greater than the average market price of the common shares. For the period ended March 31, 2002, options to purchase 165,679 common shares at an average price of $41.28 and warrants for the purchase of 15,625 common shares at a price of $42.40 were not included in the computation of diluted earnings per share because the exercise price of the options and warrants was greater than the average market price of the common shares. Per share amounts for March 31, 2002 have been restated to reflect the share consolidation that took place in May 2002. 5. SUBSEQUENT EVENTS (a) On April 3, 2003, stock options to acquire 100,000 common shares at $0.70 were exercised. (b) On April 3, 2003, the Company closed financing agreements entered into effective March 7, 2003 with unrelated parties. Under the agreements, the Company issued by way of private placement the following: 75,000 common shares for $45,364; 430,493 Series A Debentures for $3,616,141; 430,493 Series A Warrants for $11,873; 2,152,465 voting preferred shares for $6,196; 3,874,437 non-voting preferred shares for $11,153. The proceeds of the debentures along with an additional $460,000 of the Company's cash have been pledged as security for repayment of the debentures. Each Series A Warrant will entitle the holder thereof to purchase five common shares and nine Class A shares on the concurrent surrender of the warrant, five voting preferred shares, nine non-voting preferred shares and one Series A Debenture. Concurrent with the closing of the financing agreements, the Company issued 148,798 common shares with an attributed value of $90,000 to an unrelated party in payment of a success fee. (c) Also on April 3, 2003, the board of directors of the Company ratified the acquisition of all of the shares of 1022971 Alberta Ltd. ("1022971") for a nominal amount and the Company was assigned an option to purchase up to 49% of certain oil and gas properties for $67.1 million. (d) On April 30, 2003, 1022971 obtained a bank loan for $120,000,000 to acquire all of the shares of Southward Energy Ltd. ("Southward"). Immediately thereafter on April 30, 2003, Southward sold its oil and gas properties, excluding a 1% undivided interest in certain properties and a 100% interest in related seismic, to an independent third party for gross proceeds of $164,631,000. The gross proceeds were used to repay the bank loan obtained to acquire the shares and bank indebtedness of Southward. (e) On May 28, 2003, the Company obtained an extendable revolving term credit facility amounting to $28,000,000 that bears interest at rates varying from Canadian prime rate or U.S. base rate of such bank to the Canadian prime rate or U.S. base rate plus 30 basis points, payable monthly in arrears. (f) Pursuant to an underwriting agreement dated May 29, 2003, the Company proposes to raise net proceeds of $41.9 million through the issue and sale of 14,286,000 common shares. It is expected that the closing of the share offering will take place on or about June 12, 2003, and in any event not later than July 10, 2003. The Company will use $39.1 million of the net proceeds from the offering, together with up to $28 million of debt financing, to exercise the purchase option described in (c) above. The remainder of the net proceeds will be added to working capital and used for general corporate purposes. Immediately after the issuance of a receipt for the prospectus offering the Company's common shares for sale and issue, the warrants described in (b) above are to be exercised and the holder will be issued five common shares and nine Class A shares upon the surrender of five voting preferred shares, nine non-voting preferred shares and one Series A Debenture. Hawker is an Alberta-based corporation engaged in the business of exploring for and developing oil and natural gas reserves in western Canada and acquiring oil and natural gas properties. Hawker's common shares are listed on the Toronto Stock Exchange under the symbol "HKR." For further information please contact: Mr. David Tuer, President & CEO Phone: (403) 294-0067 or Mr. Barry Herring, Vice President & CFO Phone (403) 444-3330 ADVISORY: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain information regarding the company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements. -----END PRIVACY-ENHANCED MESSAGE-----