Exploration & Production

Northern Spirit Sees Upswing in Canadian Reserve Potential

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Northern Spirit Resources Inc. has reported the results of its independent reserve evaluation for the year ended December 31, 2013 as prepared by Deloitte LLP.

• Northern Spirit's proved plus probable reserves (Company interest) as evaluated by Deloitte as at December 31, 2013 increased 9.2% to 3,816.9 Mboe from 3,494.3 Mboe at December 31, 2012. The Company's proved reserves (Company interest) as at December 31, 2013 increased 25.9% to 1,642.5 Mboe from 1,304.4 Mboe.
• The net present value of Northern Spirit's estimated future net revenue before income taxes from proved plus probable reserves as at December 31, 2013 and utilizing Deloitte's December 31, 2013 price forecast and discounted at 10%, is $68.1 million and the net present value of total proved reserves as at December 31, 2013 is $31.8 million. 
• Reserve replacement was 843% on proved reserves and 989% on proved plus probable reserves.
• Total future development capital for Northern Spirit's proved plus probable reserves at December 31, 2013 is $26.9 million scheduled over two years. Total future development capital for Northern Spirit's total proved reserves at December 31, 2013 is $13.5 million scheduled over two years. 
• Northern Spirit's proved plus probable (10% discount rate) net asset value per share as at December 31, 2013 is calculated at $0.21 per share (basic) including an internal land value of $2.7 million and $0.20 per share (basic) excluding land value. 

Reserves Summary

The Company's total proved plus probable reserves increased by 9.2% in fiscal 2013 to 3,816.9 Mboe. Proved reserves increased by 25.9% to 1,642.5 Mboe and comprised 45.1% of the Company's total proved plus probable reserves. Proved undeveloped reserves are 67.5% of the total proved reserves. The future capital in the Deloitte Report (undiscounted) is $26.9 million for the proved and probable reserves and is $13.4 million for total proved reserves. The future capital is programmed over a two year time period for proved plus probable reserves and two year time period for proved reserves.