Talking Responsibly About Your Contingent Resource Oil Sands Project (Presented by B. Spackman)

Abstract

As of July 1 2015, publicly traded companies choosing voluntarily to disclose oil sands project contingent resource volumes and valuations have a new set of rules before them - NI 51-101 amendments published by the securities regulator. For December 31, 2015 and looking forward, reporting issuers are required, first, to sub-classify their contingent resources according to project maturity and, second, to risk their projects for the chance of commerciality. Unlike reserves, which have “effectively 100% chance of commerciality”(1), contingent resources are, by definition, subject to contingencies and, therefore, the risk of development. The Canadian Oil and Gas Evaluation Handbook (COGEH) provides what may be viewed as the most comprehensive published guidance on the assessment of what is commonly referred to as Resources Other Than Reserves or ROTR. Technology status, project evaluation scenario status, economic status, development timeframes and contingencies beyond the control of the developer, all come into play when assessing sub-classes and risk. This presentation outlines a framework for understanding and assessing your oil sand project's maturity and chance of commerciality with reference to examples. The goal? Meaningful disclosure that is not misleading.

AAPG Datapages/Search and Discovery Article #90259 ©2016 AAPG Annual Convention and Exhibition, Calgary, Alberta, Canada, June 19-22, 2016