The following pages give the full assessment of each company. (ASR), it should be signed by the Chief Executive Officer.

Transcription

1 Oslo Stock Exchange released in 2007 guidelines for disclosure of hydrocarbon reserves, contingent resources and results from exploration activities. In 2007, the Norwegian Society of Financial Analysts evaluated the performance in this matter for 9 companies. This report is an extended evaluation of all listed oil & gas companies on Oslo Stock Exchange (OSE) and Oslo Axess. The output from this report is based on published information either through OSE, company sites, SEDAR or SEC 1 databases. Artumas Group AGI Noreco NOR DNO Internatioal ASA DNO Interoil E & P IOX Norse Energy Co. NEC PA Resources PAR CanArgo Energy Co. CNR StatoilHydro STL Revus Energy REVUS Rocksource RGT Trefoil TREF Transeuro TSU Det Norske DETNOR Petrobank E & R Ltd PBG Questerre Energy Co. QEC Aker Exploration AKX 11 of 16 companies filed an Annual Statement of Reserves. Four of the remaining companies follow SEC 1 or COGE 2 Regulations. Reserves are mainly divided between 1P/P90 and 2P/P50 estimates, some companies have only resources (According to SEC regulations, only 1P estimates are allowed). 15 of 16 companies disclose which set of assumptions they have used. This is better compared to last year (NFF, Financial Reporting). 10 of 16 companies use table format for reporting of reserves development. Only three companies (DNO, RGT, AKX) do not disclose or have a third party reviewer. All companies should report through Newsweb > Petroleum Reserves. A minority of the companies do not have a signature on the Annual Statement of Reserves (ASR), it should be signed by the Chief Executive Officer. Few companies refer to the ASR in interim updates. Not all companies have a Management s Discussion and Analysis in their ASR. The following pages give the full assessment of each company. 1 Securities & Exchange Commision (US) 2 Canadian Oil & Gas Evaluation

2 ÁÂÃÄÅÆÇ ÈÉ ÁÅÉÉÅÉÂÆ ÉÂÆÉÄÂ ÄÂÂ ÂÄÃÆ Artumas Group AGI Yes SPE Each field Only resources Only resources Noreco NOR Yes SPE Each field 1P, 2P Only cumulative production CanArgo Energy Co. CNR SEC SEC Each field 1P Yes, in table format DNO International ASA DNO Yes SPE Each field 1P, 2P Yes, in table format Interoil E & P IOX Yes SPE Each region 1P, 2P Yes, in table format Norse Energy Co. NEC Yes SPE Each field 1P, 2P, 3P Yes, in table format StatoilHydro STL SEC SEC Each region 1P Yes, in table format PA Resources PAR Yes SPE Each region 1P, 2P Yes, in table format Petrobank Energy PBG COGE COGEH Each region 1P, 2P, 3P Yes, in table format Questerre Energy QEC COGE COGEH Total figures 1P, 2P Yes, in table format Revus Energy REVUS Yes NPD Each field 1P, 2P Yes, in table format Rocksource RGT Yes SPE Each field 1P, 2P Yes, in text format Trefoil TREF Yes SPE Each field 1P, 2P, 3P No Transeuro TSU Yes COGEH Each field 1P, 2P, 3P Only gas development Det Norske DETNOR Yes NPD Each field 1P, 2P Yes, in table format Aker Exploration AKX No No Each field Only resources Only resources *) Definitions and assumptions of each column are given in the Annex 1: Definitions and assumptions Companies reporting a relevant substitute document to the ASR (like an annual information form) should still file the relevant extracted information in the disclosure category Petroleum Reserves in the Company Disclosure System. If the full report (like the annual information form) is filed and published through the Company Disclosure System, the disclosure notice to which the report is attached should contain detailed and precise references to where the contents substituting the ASR may be found. The MD&A should in any case be signed by the company s Chief Executive Officer! " The ASR should set out how reserves have developed throughout the calendar year, including an opening balance, produced volumes, acquisitions, additions, new developments and revisions of previous estimates given; as well as a closing balance at year end.

3 ÁÂÃÄÅÆÇ ÈÅÉÂÃÅ ÂÅÆ ÈÄÅÇÆÆÅ ÈÄÅÇÄÂÂ Artumas Group Only resources Contingent, GIIP RPS Energy Canada Ltd & Petrel Robertson Consulting Ltd No, upon written request Noreco Yes Contingent, mmboe in table DeGolyer & MacNaughton (danish fields) + Own professionals (norwegian fields) No CanArgo Energy Co. Yes No Oilfield Production Consultants No DNO International ASA Yes Contingent, mmbbl Reserve Board (internal) No Interoil E & P Yes Contingent, mmbbl Gaffney, Cline & Associates Inc. No Norse Energy Co. Yes Contingent, mmboe in table Gaffney, Cline & Associates Inc. & Schlumberger Tech. Co. No, but references are made StatoilHydro Yes No DeGolyer & MacNaughton Yes PA Resources Yes Contingent, mmboe RyderScott + RPS + Operator No Petrobank Energy Yes Contingent, NPV McDaniel & Associates Consultants Ltd + D & M+Sproule Associates Ltd Yes Questerre Energy Yes No McDaniel & Associates Consultants Ltd Yes Revus Energy Yes Contingent, mmboe Senergy Ltd (2P estimate) + own professionals (1P estimate) No Rocksource Yes Contingent, mmboe in table Own professionals + non-disclosed third party (auditor) No Trefoil Yes No Gaffney, Cline & Associates Inc. Yes (only) Transeuro Yes Contingent, bcf/mmbbl in table McDaniel & Associates Consultants Ltd. + Fekete Associates Inc. No Det Norske Yes Contingent, mmbbl/mmboe Partner agreements + operator estimates No Aker Exploration Only resources Prospective, mmbbl Own professionals No Reserves should be reported in table format whereas resources should not be presented in table format (may however be quantified in the MD&A).!! Resources should not be presented in table format. Contingent resources may however be quantified in the narrative (MD&A) wherever relevant to the discussion of existing reserves. Prospective resources should not be the subject of any form of quantified discussion in the MD&A. (Also leads, resources under evaluation, and resources whose development is considered unlikely based on current conditions, should not be discussed anywhere in the ASR). " # #! $%&'! The MD&A should include an introductory statement of responsibility clearly identifying the third party experts that has supervised and/or prepared the reserves data, or alternatively; the internal organisation responsible for the preparation of reserves data as well as the relevant supervisory body and/or control systems on a corporate level.

4 ÁÂÃÄÅÆÇ ÈÉÉÃÄÂÆÉ ÅÆÅÉÄÉ É È È Artumas Group SPE No disclosure No disclosure Annual report Agreements disclosed Noreco SPE No disclosure No disclosure ASR No info CanArgo Energy Co. SEC Period-end prices (2007) 86,5 USD / boe Annual report Agreements disclosed DNO International ASA Circular no.2 Period-end prices (2007) 90 USD / boe ASR Agreements disclosed Interoil E & P Circular no.2 Average price received in ,47 (Peru), 64,99 (Colombia) USD / boe ASR None Norse Energy Co. Circular no.2 Period-end pricing forecasts (2007) 87,3 (5y forward average) USD / boe ASR None StatoilHydro SEC Period-end prices (2007) No disclosure Annual report Agreements disclosed PA Resources Circular no.2 No disclosure No disclosure ASR No info Petrobank Energy COGE Handbook Period-end pricing forecasts (2007) Forecasts for each field (forward curves) Annual Info form None Questerre Energy COGE Handbook Period-end pricing forecasts (2007) Forward curves Annual Info form None Revus Energy NPD, Circular no.2 Constant price 60 USD / boe ASR No info Rocksource Circular no.2 Constant price 80 USD / boe ASR None Trefoil SPE Average net price received (2007) 38,09 USD / boe (net price received) External Agreements disclosed Transeuro COGE Handbook Constant price Different prices for each grade Annual report Agreements disclosed Det Norske NPD, Circular no.2 No disclosure No disclosure ASR Agreements disclosed Aker Exploration No disclosure No disclosure No disclosure Annual report Agreements disclosed All main quantitative input, including key assumptions made in the process of reserves calculation, should be disclosed as notes to tables and, where appropriate, in the MD&A.!" #!" The ASR should contain a Management s Discussion and Analysis (MD&A) of the figures presented, including a comprehensive discussion covering the technical and economic assumptions on which the reserve estimates are made $ % %& As a general principle all reporting should include information as to the reporting company s rights in respect of the asset or licence in question. Reserves figures should be stated as net or gross, always with accompanying information about the company s corresponding working interest. Reserves covered by a Production Sharing Contracts (PSCs or PSAs), as well as other forms of contract regimes, should be calculated on an entitlement basis.

5 ÁÂÃÄÅÆÇ ÁÂÆÈÉÆÉÆÉÂ ÂÈÉÂÆÈÉÃÅÈ ÆÈÃÆÈÈÉÃÅÈ Artumas Group Included in 2008Q1 Interim upddate None No disclosure Noreco Refers to reserves as per in Q1 presentation, but not directly to the ASR Boed and number of wells No disclosure CanArgo Energy Co. No ASR Boed and number of wells Capex DNO International ASA Included in 2008Q1 Interim upddate Boed and number of wells No disclosure Interoil E & P Refers to reserves as per in 2008Q1 presentation, but not directly to the ASR Boed and number of wells No disclosure Norse Energy Co. Refers to reserves as per in 2008Q1 presentation and as of ASR 2007 Guidance for 2008 No disclosure StatoilHydro No ASR Boed and number of wells Capex PA Resources No references made, no discussion about reserves in 2008Q1 report Boed and number of wells No disclosure Petrobank Energy Refers to 3P reserves in Corporate Presentation of June 2008 Revenue and number of wells Capex Questerre Energy Refers to 1P reservers in Corporate Presentation of June 2008 Boed and number of wells Capex Revus Energy Refers to reserves as per in 2008Q1 presentation, but not directly to the ASR Boed and number of wells No disclosure Rocksource Refers to reserves and resources as of in Press Release, but not to the ASR Boed and number of wells No disclosure Trefoil No references made, no discussion about reserves in 2008Q1 report Boed and number of wells Capex Transeuro Included in 2008Q1 Interim upddate Boed and number of wells No disclosure Det Norske Included in 2008Q1 Interim upddate Boed and number of wells No disclosure Aker Exploration No ASR Number of wells N/A When discussing resources and reserves in its on-going communication with the market (e.g. in news releases and presentation material) listed companies should always incorporate a reference to the most recently filed ASR.! "! #$%& It is optional for the company to include quantitative information regarding the company s investments included in the ASR as well as production estimates. This information, although not directly related to reserves estimation, will provide investors and the market at large with information of high analytical value to the estimation of the present value of existing reserves. (Actual production figures on the other hand would appear from the information detailing the development of the reserves during the year) (ref section Quantitative information concerning Reserves).

6 ÁÂÃÄÅÆÇ ÁÂÈÉÈÉÉ ÂÆÉÆÄÆÄÈ ÅÈÈÂÈ ÃÂÅÂÈÉÈ Artumas Group Each field Full cost Each country they operate Allocates PV Noreco Total figures Successful Effort Not fully covered (Norway only) Allocates PV CanArgo Energy Co. Total figures Full cost Each country they operate Allocates PV DNO International ASA Total figures Successful Effort Not fully covered (Norway only) Allocates PV Interoil E & P Each region Successful Effort Each country they operate Allocates PV Norse Energy Co. Each region Successful Effort Each country they operate Allocates PV StatoilHydro Segments Successful Effort Not fully covered (Norway only) Allocates PV PA Resources Each region Full cost Each country they operate Allocates PV Petrobank Energy Each region Full cost Each country they operate Allocates PV Questerre Energy Each region Full cost Each country they operate Allocates PV Revus Energy Segments Successful Effort Not fully covered (Norway only) Allocates PV Rocksource Segments Successful Effort Not fully covered (Norway only) Allocates PV Trefoil Total figures Full cost Each country they operate Allocates PV Transeuro Each region Full cost Each country they operate Allocates PV Det Norske Total figures Successful Effort Each country they operate Allocates PV Aker Exploration Total figures Successful Effort Each country they operate Allocates PV

7 - Yes, if a company has filed an ASR - No, if a company has not filed an ASR - SEC (Securities & Exchange Commission), filed an annual report according to US regulations - COGE (Canadian Oil and Gas Evaluation Handbook.), filed an annual report (financial statement) according to Canadian regulations - CEO, if the chief executive officer has signed the assigned document (ASR, SEC Filing or COGE filing) - External, the ASR is an external report and signed by the third party - VP Product, Vice President production facilities - SPE, classification of reserves according to the Petroleum Resources Management System of March SEC, classification according to SEC regulations and format - COGEH, classification according to Canadian Oil and Gas Handbook. - NPD, classification according to the Norwegian Petroleum Directorate guidelines. - Reserves and resources are segmented according to region, field, project or total figures. - Reserves are reported according to SPE, NPD, COGEH and SEC format. - Table format, follows Circular No.2/ Yes, reserves are reported in a table - No, reserves are not reported in a table - Only resources, no reserves are reported. - Contingent, according to SPE, NPD, COGEH and SEC standards. - GIIP = Gas Initially In Place - MMBOE = Million barrels of oil equivalents - MMBBL = Million barrels - NVP = Net Present Value - MMBOE in table = Resources are reported in table format, does not comply with Circular No.2/ BCF = Billion Cubic Feet! " " - External auditor named - Internal references made in ASR.! - Yes / No, if an external report is attached to the ASR, SEC filing or COGEH Filing. - Methodology and assumptions made in the ASR, SEC Filing or COGEH Filing - Circular No.2, The Oslo Stock Exchange guidelines given in Circular 2/2007 Guidelines for the disclosure of hydrocarbon reserves, contingent resources and results from exploration - SPE, according to definitions of the Society of Petroleum Engineers (SPE; March 2007) - NPD, according to Guidelines to Classification of the Petroleum Resources on the Norwegian Continental Shelf (NPD, July 2001)

8 - Information about which assumptions that have been made regarding prices in economic interpretations - The actual price assumption made in the ASR. - Information about the Management s Discussion & Analysis. - Production estimates included in the ASR, SEC Filing or COGEH Filing (Optional according to Circular 2/2007 Guidelines for the disclosure of hydrocarbon reserves, contingent resources and results from exploration ). - Guidance of capex in presentations, financial statements or ASR. - Referrals to the ASR; SEC Filing or COGEH Filing when communicating to the market. - -Information about Production Sharing Agreements in presentations, financial statements or ASR. - None = Has no PSA, No info = No information available - Successful effort, unsuccessful exploration and development investments (i.e., dry holes) are written-off in the year incurred. Successful exploration and development investments, (i.e., those that result in producible oil or natural gas reserves), are capitalized and amortized over the production life of those reserves. - Under the full cost method, all exploration and development investments, whether successful or not, are capitalized and amortized using the units-of-production technique. - Segmented information (costs). - Information about tax regime and rules applied. - Information about asset retirement obligations and liabilities in presentations, financial statements or ASR. - Allocates PV = Present value of future obligations.