These FAQ’s have been compiled by ASC staff to provide assistance with NI 51-101 disclosure requirements, and is not intended to be exhaustive. Reporting issuers and any other parties subject to securities law requirements should obtain their own legal advice.
For complete securities requirements, click here to find the applicable section of NI 51-101.
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Where do I find information on calculation of unit values?
Unit values appear in two areas of Form 51-101 F1 (as a component of section 2.1.2 and paragraph 2.1.3(c) of Form 51-101 F1). The unit value associated with section 2.1.2 is calculated based on the future net revenue before tax discounted at 10% divided by the net reserves for each reserve category. The unit value associated with paragraph 2.1.3(c) is calculated based on the future net revenue before tax discounted at 10% associated with each identified production group, divided by the net reserves of each production group. When calculating unit values for product types, reporting issuers should allocate costs between product types and when calculating unit costs for production groups, ensure processing income has been eliminated from the production groups’ costs.
Where do I find information about production groups?
Production groups are defined in paragraph 1.1(u) of NI 51-101. A production group is considered to be the defined primary product type and its associated by-products (e.g. light and medium crude oil may contain natural gas in solution and natural gas liquids). In other words a production group can be considered as the combination of all products produced at the wellhead, while product types are the individual products ultimately sold.
Where do I find information on determining whether I have oil and gas activities?
Oil and gas activities, whether directly (owning property rights with known petroleum accumulations or with the intent of exploring for oil and gas) or indirectly (material investment in an investees’ oil and gas activities) owned by the reporting issuer are defined in paragraph 1.1(s) of NI 51-101. It is important to note, that indirect activities can include an equity interest in an oil and gas company, whether public or private or a joint venture. Additionally, being involved in oil and gas activities does not necessarily require the reporting issuer to have reserves or production in order to be identified as being involved in oil and gas activities.
Where can I find information on who needs to file NI 51-101?
NI 51-101 is applicable to all reporting issuers engaged in oil and gas activities, whether directly or indirectly (section 1.3 of NI 51-101) involved. A reporting issuer could still be engaged in oil and gas activities even if it did not have assigned reserves or production. Oil and gas activities must be reported if they are material (see section 1.4 of NI 51-101) to the company’s business operations.
Where do I find information to help me determine if I have to file Form 51-101 F4?
Form 51-101 F4 is only applicable to reporting issuers who publish their annual NI 51-101 information inside their annual information form (AIF). If the reporting issuer files their 51-101 information as separate documents under the SEDAR categories beginning with “Oil and gas annual disclosure filing …” they are not required to file the Form 51-101 F4. Form 51-101 F4 itself, is a notice to the public that the reporting issuer has provided NI 51-101 information within the AIF.
Where do I find information about price forecasts?
Price decks used in conjunction with generating the reporting issuer’s evaluation are discussed in Form 51-101 F1 Part 3 for both forecast and supplementary constant pricing. Paragraph 1.1(2) of NI 51-101 CP discusses additional requirements when applying price forecasts.
Where do I find information on filing an Interim NI 51-101?
An Interim oil and gas filing is a new SEDAR category created for those instances that a reporting issuer wants to file Form 51-101 F1 style information outside of the annual requirement for a time period other than the reporting issuer’s most recent financial year. For instance, an interim filing may be considered to mechanically update the information in the reporting issuer’s annual NI 51-101 information due to pricing or to combine a recent acquisition with the assets identified at the reporting issuer’s year end. An Interim NI 51-101 filing may be based on forms associated with an annual filing but must not be identified as such.