2021 YEAR-END RESERVES

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