The reserves data presented herein is based upon an evaluation by NSAI and summarizes Lucero’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 100% working interest Company reserves, meaning Lucero’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 Lucero’s Annual Information Form for the year ended December 31, 2021 for complete reserves disclosure.
Reserves Summary
| 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) | |
| PROVED: | |||||||||
| Developed Producing | 20,243 | 16,595 | 31,437 | 25,725 | 5,481 | 4,537 | 30,964 | 25,420 | |
| Developed Non-Producing | 1,015 | 866 | 1,294 | 1,094 | 285 | 243 | 1,516 | 1,291 | |
| Undeveloped | 17,518 | 14,302 | 15,736 | 12,818 | 2,935 | 2,402 | 23,076 | 18,840 | |
| TOTAL PROVED | 38,776 | 31,763 | 48,468 | 39,636 | 8,701 | 7,181 | 55,556 | 45,550 | |
| PROBABLE | 11,175 | 9,075 | 15,437 | 12,567 | 2,671 | 2,190 | 16,419 | 13,360 | |
| TOTAL PROVED PLUS PROBABLE | 49,951 | 40,838 | 63,905 | 52,203 | 11,372 | 9,371 | 71,974 | 58,910 | |
(1) Columns may not add due to rounding
(2) All of our shale gas and natural gas liquids reserves are produced in solution with our tight oil.
Net Present Value of Future Net Revenue ($ US)
|
Before Future Income Tax Expenses and Discounted at |
|||||
| 0% | 5% | 10% | 15% | 20% | |
| (US$mm) | (US$mm) | (US$mm) | (US$mm) | (US$mm) | |
| Proved | |||||
| Developed Producing | 911 | 633 | 493 | 410 | 356 |
| Developed Non-Producing | 42 | 28 | 21 | 16 | 13 |
| Undeveloped | 640 | 394 | 271 | 199 | 152 |
| Total Proved | 1,593 | 1,056 | 784 | 625 | 521 |
| Probable | 552 | 318 | 215 | 161 | 127 |
| Total Proved plus Probable | 2,145 | 1,374 | 999 | 786 | 649 |
(1) Columns may not add due to rounding.
As a reporting issuer in Canada, Lucero is required to report its reserves and NPV10 using forecast pricing and costs, as stipulated under NI 51-101. The forecast prices reflected in the NPV10 are included in the Company’s 2021 Annual Information Form, which is filed on SEDAR and posted to the Company’s website, and are based on an average of the prices decks from GLJ Ltd, Sproule Associates Limited and McDaniel & Associates Consultants Ltd.
Net Asset Value per Share as at December 31, 2021
| ($ millions except share and per share amounts) | |
| Proved Plus Probable Reserve Value NPV10 (before tax) | 1,263 |
| Net Debt | (196) |
| Total Net Assets (basic) | 1,067 |
| Basic Common Shares Outstanding (mm) | 523 |
| Estimated NAV per Basic Common Share | $2.04 |