The reserves data outlined below is based upon an evaluation by Netherland, Sewell & Associates, Inc. (“NSAI”) with an effective date of December 31, 2018.  The reserves data summarizes PetroShale’s crude oil and natural gas reserves and the net present value of future net revenue for these reserves using forecast prices and costs. All references to reserves are to gross Company reserves, meaning PetroShale’s working interest reserves before consideration of royalty interests. The reserve report has been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in National Instrument 51‑101 (“NI 51-101”) and CSA Staff Notice 51‑324.  No attempt was made to evaluate possible reserves.  Please see PetroShale’s Annual Information Form for the year ended December 31, 2018 for complete reserves disclosure.


Gross and Net Company Interest Reserves

Tight Oil Shale Gas (2) Natural Gas Liquids (2) BOE
Gross Net Gross Net Gross Net Gross Net
Reserves Category (Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mbbl) (Mbbl) (Mboe) (Mboe)
Developed Producing 8,757.3 7,133.6 11,701.3 9,558.6 1,556.6 1,247.8 12,264.1 9,974.5
Developed Non-Producing
Undeveloped 28,715.8 23,618.5 25,961.3 21,397.0 3,875.0 3,128.5 36,917.7 30,313.2
TOTAL PROVED 37,473.1 30,752.1 37,662.6 30,955.5 5,431.6 4,376.3 49,181.8 40,287.7
PROBABLE 10,407.2 8,420.8 10,301.6 8,367.1 1,490.5 1,191.3 13,614.6 11,006.6
TOTAL PROVED PLUS PROBABLE 47,880.3 39,172.9 47,964.3 39,322.7 6,922.1 5,567.6 62,796.5 51,294.3

(1) Columns may not add due to rounding.
(2) All of our shale gas reserves represent solution gas associated with our tight oil reserves.


Net Present Value of Future Net Revenue ($ US)

Before Income Taxes Discounted at (%/year)
Reserves Category 0%
($US 000s)
($US 000s)
($US 000s)
($US 000s)
($US 000s)
Developed Producing 360,580.9 263,316.2 208,352.3 173,847.8 150,378.8
Developed Non-Producing
Undeveloped 1,045,930.3 650,037.4 446,462.2 324,574.1 245,064.3
TOTAL PROVED 1,406,511.2 915,353.6 654,994.5 498,421.8 395,443.2
PROBABLE 469,547.3 285,215.4 195,621.9 144,834.9 112,792.6
TOTAL PROVED PLUS PROBABLE 1,876,058.4 1,200,569.0 850,616.4 643,256.7 508,235.8

(1) Columns may not add due to rounding.

As a reporting issuer in Canada, PetroShale is required to report its reserves and NPV10 using forecast pricing and costs, as stipulated under NI 51-101. The forecast prices are reflected in the Net Present Values shown above.


Reserves Reconciliation

Total (Mboe)
Total Proved Probable Total Proved Plus Probable
December 31, 2017 30,602.5 6,134.6 36,737.0
    Extensions and Improved Recovery
    Product Type Transfers(1) 2,613.0 415.6 3,028.6
    Technical Revisions(2) 313.3 4,438.4 4,751.7
    Acquisitions(3) 17,769.3 2,636.4 20,405.8
    Economic Factors (61.6) (10.4) (72.0)
    Production (2,054.7) (2,054.7)
December 31, 2018(4) 49,181.9 13,614.6 62,796.5

(1) Product type transfers reflects the initial inclusion of NGLs in the Company’s reserves beginning on January 1st, 2018, and the offsetting adjustment to wellhead gas as a result of NGL recovery.

(2) Technical revisions include removal of locations based on development permitting and activity of our operators on non-operated properties and probable reserve assignments to proved well locations. Additionally, it reflects changes to reserves based on estimates from further production information gathered in 2018 from our wells and analogous wells near our lands, and revisions to interest on certain non-operated wells.(1) Product type transfers reflects the initial inclusion of NGLs in the Company’s reserves beginning on January 1st, 2018, and the offsetting adjustment to wellhead gas as a result of NGL recovery.

(3) The acquisitions amount is the estimate of reserves at December 31, 2018, adjusted for production associated with the acquired properties from the related acquisition date to December 31, 2018.

(4) Columns may not add due to rounding.

Net Asset Value (“NAV”) per Share as at December 31, 2018

($ thousands, except share and per share amounts)

Proved Plus Probable Reserve Value (NPV10 Before Tax) $ 1,156,838
Undeveloped Land Value 11,098
Net Debt (including Decommissioning Obligation)(1) (181,912)
Total Net Assets $ 986,023
Common Shares Outstanding 191,758,236
Estimated Net Asset Value per Basic Common Share(2) $ 5.14
Estimated Net Asset Value per Diluted Common Share $5.04
Estimated Net Asset Value per Diluted Common Share (assuming exchange of Preferred Shares) $4.20

(1) See “Non-IFRS Measures”.
(2) Net asset value is calculated as at a particular date and is, by its nature, historical, and may not be reflective of PetroShale’s future performance. The NAV reflects the NPV10 of the Company’s reserves at an exchange rate of US$1.00 = Cdn$1.36, which was the market rate at December 31, 2018.