Harvest retained an Independent Qualified Reserves Evaluator to evaluate and prepare reports on 100% of Harvest's Reserves as of December 31, 2015. Harvest's Reserves were evaluated by GLJ. Possible Reserves were not evaluated, with the exception of the BlackGold oil sands project where GLJ evaluated Possible Reserves and Contingent Resources. Harvest’s investment in Deep Basin Partnership (“DBP”) is accounted for using the equity method of accounting and pursuant to NI 51‐101, Harvest is required to separately disclose information concerning DBP’s oil and gas reserves, future net revenue and costs incurred based on Harvest’s equity interest in DBP. Accordingly, in certain tables that follow, information is first provided in respect of Harvest and its Operating Subsidiaries, which are consolidated for financial reporting purposes (under the heading “Consolidated Entities”) and then in respect of DBP (under the heading “Equity Investment”). GLJ evaluated 100% of DBP’s natural gas and NGLs reserves as at December 31, 2015. All information with respect to DBP reflects Harvest’s 81.71% equity interest in DBP as at December 31, 2015, except for per unit information. Readers are cautioned that Harvest does not have any direct interest in, or right to, the reserves or future net revenue of DBP disclosed herein nor does Harvest have any direct obligations in respect of, or liability for, the costs incurred by DBP. The reserves data and associated tables contained in this report summarize the reserves of crude oil, natural gas liquids and natural gas and the net present values of future net revenues associated with the reserves of Harvest’s Consolidated Entities and Equity Investment as evaluated in the report prepared by GLJ (the “Reserves Reports”), based on forecast price assumptions presented in accordance with the standards contained in the COGE Handbook and the reserves definitions and other requirements contained in NI 51‐101.
The tables presented herein summarize the data contained in the Reserves Reports and as a result may contain slight rounding differences although they are substantively the same as the data in the Reserves Reports. Totals may not add due to rounding. All Reserves are located in Canada and, in the provinces of Alberta, British Columbia and Saskatchewan. The future net revenue numbers presented throughout this Statement, whether calculated without discount or using a discount rate, are estimated values and do not represent fair market value of the Reserves. Actual crude oil, natural gas and natural gas liquid reserves may be greater than or less than the estimates provided herein. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material.
Reserves Data (Forecast Prices and Costs)
The following tables detail the aggregate gross and net Reserves of Harvest’s Consolidated Entities and Equity Investment, at December 31, 2015, using forecast prices and costs as well as the aggregate net present value (“NPV”) of future net revenue attributable to the reserves estimated using forecast prices and costs, calculated without discount and using discount rates of 5%, 10%, 15% and 20%.