Two Years of Experience with the New Canadian Oil and Gas Disclosure Legislation, National Instrument 51-101

David C. Elliott
Alberta Securities Commission, Calgary, AB

New Canadian Oil and Gas disclosure legislation came into force in September 2003. Most companies report this disclosure information to the regulatory authorities in Canada at the end of the year. One of the requirements of the disclosure is a reconciliation of changes in reserves from one year to the next. There are several components to this reconciliation, but a key element is "Technical Revisions". Unlike its SEC equivalent, "Changes in Reserves Quantities", which includes other factors, Technical Revisions is a "pure" measure of the quality of reserves estimates. This paper will describe the result of the analysis of two years of Technical Revisions. Of particular note in this analysis is the "Portfolio Effect" which results in decreased variance in revisions as the volume of reserves increases.

AAPG Search and Discovery Article #90039©2005 AAPG Calgary, Alberta, June 16-19, 2005