EX-99.11 12 exh99_11.htm EXHIBIT 99.11 SUPPL


Exhibit 99.11
Crescent Point Energy Corp.
Supplemental Disclosures about Extractive Activities - Oil & Gas (unaudited)
December 31, 2015
The following disclosures have been prepared by Crescent Point Energy Corp. ("Crescent Point" or the "Company") in accordance with Accounting Standards Codification 932 "Extractive Activities — Oil & Gas" ("ASC 932") issued by the Financial Accounting Standards Board ("FASB") and where applicable, financial information is prepared in accordance with International Financial Reporting Standards (“IFRS”).
For the years ended December 31, 2015 and 2014 the Company filed its reserves information under National Instrument 51-101 – “Standards of Disclosure of Oil and Gas Activities” (“NI 51-101”), which prescribes the standards for the preparation and disclosure of reserves and related information for companies listed in Canada.
There are significant differences to the type of volumes disclosed and the basis from which the volumes are economically determined under the United States Securities and Exchange Commission (“SEC”) requirements and NI 51-101. The SEC requires disclosure of net reserves, after royalties, using trailing 12-month average prices and current costs; whereas NI 51-101 requires Company gross reserves, before royalties, using forecast pricing and costs. Therefore the difference between the reported numbers under the two disclosure standards can be material.
Petroleum and Natural Gas Reserve Information
Proved petroleum and natural gas reserves are the estimated quantities of crude oil, natural gas and natural gas liquids ("NGL") that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.
Proved developed petroleum and natural gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods, which may require future expenditures. Additional future expenditures would be minor compared to the cost of drilling a new well.
Proved undeveloped petroleum and natural gas reserves are reserves that are expected to be recovered from known accumulations where significant future expenditure is required.
Reserves are estimated quantities of crude oil, NGL and natural gas anticipated from geological and engineering data to be recoverable from known accumulations, from a given date forward, by known technology, under existing operating conditions and considered to be economic at average commodity prices based upon the prior 12-month period. Estimates of petroleum and natural gas reserves are subject to uncertainty and will change as additional information regarding the producing fields and technology becomes available and as future economic conditions change. Net reserves presented in this section represent the Company's working interest and overriding royalty share of the gross remaining reserves, after deduction of any crown, freehold and overriding royalties. Such royalties are subject to change by legislation or regulation and can also vary depending on production rates, selling prices and timing of initial production.

CRESCENT POINT ENERGY CORP.
1



The changes in Crescent Point's net proved crude oil and NGL and natural gas reserves under constant prices and costs for the two-year period ended December 31, 2015 were as follows:
 
Canada
 
United States
 
Total
Net Proved Reserves (1)
Crude Oil & NGL (Mbbls)
Natural Gas (MMcf)
Total (Mboe)
 
Crude Oil & NGL (Mbbls)
Natural Gas (MMcf)
Total (Mboe)
 
Crude Oil & NGL (Mbbls)
Natural Gas (MMcf)
Total (Mboe)
December 31, 2013
308,382

153,363

333,942

 
48,041

36,047

54,049

 
356,423

189,410

387,991

Revisions of previous estimates
23,251

4,379

23,981

 
(424
)
9,272

1,121

 
22,827

13,651

25,102

Improved recovery
19,119

6,927

20,273

 
1,481

661

1,591

 
20,600

7,588

21,864

Purchases of reserves in place
49,918

10,013

51,587

 
2,341

603

2,441

 
52,259

10,615

54,028

Extensions and discoveries
16,364

3,910

17,016

 
7,971

6,622

9,074

 
24,335

10,533

26,090

Production
(34,119
)
(19,883
)
(37,433
)
 
(4,290
)
(3,924
)
(4,944
)
 
(38,408
)
(23,807
)
(42,376
)
Sales of reserves in place
(56
)
(31
)
(61
)
 
-

-

-

 
(56
)
(31
)
(61
)
December 31, 2014
382,859

158,678

409,305

 
55,120

49,281

63,333

 
437,979

207,959

472,638

Revisions of previous estimates
(52,582
)
25,389

(48,351
)
 
(20,974
)
(8,476
)
(22,386
)
 
(73,556
)
16,914

(70,737
)
Improved recovery
14,128

3,302

14,678

 
1,904

-

1,904

 
16,033

3,302

16,583

Purchases of reserves in place
34,568

16,647

37,343

 
1,968

-

1,968

 
36,536

16,647

39,311

Extensions and discoveries
8,797

2,248

9,172

 
2,285

-

2,285

 
11,082

2,248

11,457

Production
(40,259
)
(25,671
)
(44,537
)
 
(5,163
)
(5,398
)
(6,063
)
 
(45,422
)
(31,068
)
(50,600
)
Sales of reserves in place
(51
)
-

(51
)
 
(46
)
-

(46
)
 
(98
)
-

(98
)
December 31, 2015
347,460

180,593

377,559

 
35,094

35,408

40,995

 
382,554

216,001

418,554

 
 
 
 
 
 
 
 
 
 
 
 
Net Proved Developed Reserves
 
 
 
 
 
 
 
 
 
 
December 31, 2013
186,459

94,194

202,158

 
17,470

14,234

19,842

 
203,929

108,428

222,001

December 31, 2014
240,806

103,109

257,990

 
23,213

19,522

26,466

 
264,019

122,631

284,457

December 31, 2015
247,126

135,553

269,718

 
18,950

18,103

21,968

 
266,077

153,655

291,686

Net Proved Undeveloped Reserves
 
 
 
 
 
 
 
 
 
 
December 31, 2013
121,923

59,169

131,784

 
30,571

21,813

34,206

 
152,494

80,982

165,990

December 31, 2014
142,053

55,569

151,314

 
31,907

29,759

36,867

 
173,960

85,328

188,181

December 31, 2015
100,334

45,040

107,841

 
16,143

17,305

19,028

 
116,478

62,345

126,869

(1) Numbers may not add due to rounding.
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Petroleum and Natural Gas Reserves
The following information has been developed utilizing procedures prescribed by ASC 932, as updated by Accounting Standards Update 2010-03 "Oil and Gas Reserve Estimation and Disclosures", and based on crude oil, NGL and natural gas reserve and production volumes estimated by Crescent Point's independent reserves evaluators, GLJ Petroleum Consultants Ltd. and Sproule Associates Limited. The methodology used in calculating our price and cost assumptions for the standardized measure of discounted future net cash flows for reserve estimation is based upon the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period.
Future production and development costs are based on constant price assumptions and assume the continuation of existing economic, operating and regulatory conditions. Future income taxes are calculated by applying statutory income tax rates to future pre-tax cash flows after provision for the tax cost of the petroleum and natural gas properties based upon existing laws and regulations. A 10% discount factor was applied to the future net cash flows.
The information contained in the following table should not be considered as representative of realistic assessments of future cash flows, nor should the standardized measure of discounted future net cash flows be viewed as representative of the fair market value of Crescent Point's petroleum and natural gas properties. Management does not rely upon the following information in making investment and operating decisions. Such decisions are based upon a wide range of factors, including estimates of probable as well as proved reserves, and varying price and cost assumptions considered more representative of a range of possible economic conditions that may be anticipated. The prescribed discount rate of 10% may not appropriately reflect interest rates.

CRESCENT POINT ENERGY CORP.
2



Commodity Pricing
 
2015

 
2014

 
WTI at Cushing Oklahoma ($US/bbl)
 
50.28

 
95.28

 
Edmonton ($Cdn/bbl)
 
58.81

 
94.74

 
Exchange Rate ($US/$Cdn)
 
0.7866

 
0.9099

 
AECO/NIT Spot ($Cdn/MMBTU)
 
2.68

 
4.58

 
Henry Hub NYMEX ($US/MMBTU)
 
2.63

 
4.35

 
The standardized measure of discounted future net cash flows relating to net proved oil, NGL and natural gas reserves are as follows:
December 31, 2015 (millions of Canadian dollars) (1)
Canada
 
United States
 
Total
Future cash inflows
17,037

 
1,699

 
18,736

Future production costs
(7,524
)
 
(795
)
 
(8,319
)
Future development costs and asset retirement obligations
(2,696
)
 
(423
)
 
(3,118
)
Future income taxes
(43
)
 
(24
)
 
(66
)
Future net cash flows
6,774

 
458

 
7,232

Deduct: 10% annual discount factor for timing of future cash flows
(2,277
)
 
(181
)
 
(2,458
)
Standardized measure of future net cash flows
4,497

 
277

 
4,774

(1) Numbers may not add due to rounding.
December 31, 2014 (millions of Canadian dollars) (1)
Canada
 
United States
 
Total
Future cash inflows
32,660

 
4,755

 
37,415

Future production costs
(9,683
)
 
(1,646
)
 
(11,329
)
Future development costs and asset retirement obligations
(4,079
)
 
(970
)
 
(5,049
)
Future income taxes
(3,412
)
 
(120
)
 
(3,532
)
Future net cash flows
15,487

 
2,019

 
17,506

Deduct: 10% annual discount factor for timing of future cash flows
(6,326
)
 
(852
)
 
(7,177
)
Standardized measure of future net cash flows
9,161

 
1,168

 
10,329

(1) Numbers may not add due to rounding.

CRESCENT POINT ENERGY CORP.
3



Reconciliation of Changes in Standardized Measure of Future Net Cash Flows Discounted at 10% per Year Relating to Proved Petroleum and Natural Gas Reserves
December 31, 2015 (millions of Canadian dollars) (1)
Canada
 
United States
 
Total
Balance, beginning of year
9,161

 
1,168

 
10,329

Sales, net of production costs and royalties 
(1,358
)
 
(161
)
 
(1,519
)
Net change in prices and royalties related to forecast production
(7,211
)
 
(991
)
 
(8,202
)
Development costs incurred during the period
1,173

 
275

 
1,448

Changes in estimated future development costs
164

 
196

 
360

Extensions, discoveries and improved recovery, net of related costs
260

 
24

 
285

Technical reserve revisions
(1,357
)
 
(383
)
 
(1,739
)
Purchases of reserves in place 
407

 
11

 
419

Sales of reserves in place
(1
)
 
-

 
(1
)
Accretion of discount 
1,132

 
120

 
1,252

Net change in income taxes
2,125

 
18

 
2,143

Balance, end of year
4,497

 
277

 
4,774

(1) Numbers may not add due to rounding.
December 31, 2014 (millions of Canadian dollars) (1)
Canada
 
United States
 
Total
Balance, beginning of year
7,218

 
887

 
8,105

Sales, net of production costs and royalties 
(2,424
)
 
(270
)
 
(2,694
)
Net change in prices and royalties related to forecast production
640

 
85

 
725

Development costs incurred during the period
1,445

 
322

 
1,768

Changes in estimated future development costs
(1,863
)
 
(315
)
 
(2,179
)
Extensions, discoveries and improved recovery, net of related costs
1,031

 
202

 
1,233

Technical reserve revisions
1,317

 
126

 
1,443

Purchases of reserves in place 
1,429

 
46

 
1,475

Sales of reserves in place
(2
)
 
-

 
(2
)
Accretion of discount 
886

 
91

 
977

Net change in income taxes
(516
)
 
(7
)
 
(522
)
Balance, end of year
9,161

 
1,168

 
10,329

(1) Numbers may not add due to rounding.
Capitalized Costs Relating to Petroleum and Natural Gas Producing Activities
As at December 31, 2015 (millions of Canadian dollars)
Canada
 
United States
 
Total
Proved properties
20,686

 
2,991

 
23,677

Unproved properties
1,356

 
606

 
1,962

Total capital costs
22,042

 
3,597

 
25,639

Accumulated depletion, amortization and impairment
(8,370
)
 
(1,846
)
 
(10,216
)
Net capitalized costs
13,672

 
1,751

 
15,423

As at December 31, 2014 (millions of Canadian dollars)
Canada
 
United States
 
Total
Proved properties
17,786

 
2,105

 
19,891

Unproved properties
1,229

 
561

 
1,790

Total capital costs
19,015

 
2,666

 
21,681

Accumulated depletion, amortization and impairment
(5,960
)
 
(915
)
 
(6,875
)
Net capitalized costs
13,055

 
1,751

 
14,806


CRESCENT POINT ENERGY CORP.
4



Costs Incurred in Petroleum and Natural Gas Property Acquisitions, Exploration and Development Activities
As at December 31, 2015 (millions of Canadian dollars)
Canada
 
United States
 
Total
Property acquisition costs
 
 
 
 
 
Proved properties
1,526

 
72

 
1,598

Unproved properties
163

 
(1
)
 
162

Development costs
1,173

 
275

 
1,448

Exploration costs
94

 
20

 
114

Total
2,956

 
366

 
3,322

(1) Costs incurred exclude capitalized administration.
As at December 31, 2014 (millions of Canadian dollars)
Canada
 
United States
 
Total
Property acquisition costs
 
 
 
 
 
Proved properties
2,036

 
92

 
2,128

Unproved properties
40

 
25

 
65

Development costs
1,445

 
322

 
1,767

Exploration costs
244

 
84

 
328

Total
3,765

 
523

 
4,288

(1) Costs incurred exclude capitalized administration.
Results of Operations From Crude Oil and Natural Gas Producing Activities
For the year ended December 31, 2015 (millions of Canadian dollars)
Canada
 
United States
 
Total
Petroleum and natural gas revenues, net of royalties
2,096

 
268

 
2,364

Less:
 
 
 
 
 
Operating expenses
609

 
98

 
707

Transportation expenses
129

 
9

 
138

Depletion, amortization and impairment
2,410

 
720

 
3,130

Accretion on decommissioning liability
24

 
1

 
25

Operating income (loss)
(1,076
)
 
(560
)
 
(1,636
)
Income taxes (recovery)
(2
)
 
-

 
(2
)
Results of operations
(1,074
)
 
(560
)
 
(1,634
)
For the year ended December 31, 2014 (millions of Canadian dollars)
Canada
 
United States
 
Total
Petroleum and natural gas revenues, net of royalties
3,096

 
364

 
3,460

Less:
 
 
 
 

Operating expenses
565

 
83

 
648

Transportation expenses
107

 
11

 
118

Depletion, amortization and impairment
1,704

 
514

 
2,218

Accretion on decommissioning liability
20

 
1

 
21

Operating income (loss)
700

 
(245
)
 
455

Income taxes
-

 
-

 
-

Results of operations
700

 
(245
)
 
455





CRESCENT POINT ENERGY CORP.
5