Reserves

Summary of Reserves

In 2015 and beginning with our 2014 year end reserves, we engaged Sproule Associates Limited (“Sproule”), an independent, qualified engineering firm, to evaluate one hundred percent of our proved and proved plus probable reserves. Sproule conducted an independent reserves evaluation of Penn West’s reserves effective December 31, 2015. This evaluation was prepared in accordance with definitions, standards, and procedures set out in the Canadian Oil and Gas Evaluation Handbook (“COGEH”) and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). The Sproule reserves evaluation was based on Sproule’s December 31, 2015 product price forecast.

Under NI 51-101, proved reserves estimates are defined as having a high degree of certainty to be recoverable with a targeted 90 percent probability in aggregate that actual reserves recovered over time will equal or exceed proved reserve estimates. For proved plus probable reserves under NI 51-101, the targeted probability is an equal (50 percent) likelihood that the actual reserves to be recovered will be equal to or greater than the proved plus probable reserves estimate. The reserves estimates set forth below are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.

The above noted Reserves Highlights and Summary of Reserves tables below are based on Sproule’s evaluation at December 31, 2015 using Sproule’s December 31, 2015 product price forecast. All reserve volumes are company gross unless otherwise noted.

Total Company Gross (WI) Reserves
As at December 31, 2015
Reserves Estimates Category(1)(2)
Light & Medium Oil (mmbbl) Heavy Oil & Bitumen (mmbbl) Natural Gas Liquids (mmbbl) Natural Gas
(bcf)
Barrels of Oil Equivalent (mmboe)
Proved
Developed producing 85 30 11 306 177
Developed non-producing 3 0 0 16 6
Undeveloped 16 2 1 32 25
Total Proved 104 33 12 353 208
Probable 36 37 4 120 97
Total Proved plus Probable 141 70 16 473 306

(1) Company gross (WI) reserves are before royalty burdens and exclude royalty interests.
(2) Columns and rows may not add due to rounding.

Total Company Net after Royalty Interest Reserves
As at December 31, 2015
Reserves Estimates Category(1)(2)
Light & Medium Oil (mmbbl) Heavy Oil & Bitumen (mmbbl) Natural Gas Liquids (mmbbl) Natural Gas
(bcf)
Barrels of Oil Equivalent (mmboe)
Proved
Developed producing 77 28 8 271 158
Developed non-producing 3 0 0 14 5
Undeveloped 15 2 1 29 22
Total Proved 94 30 9 314 186
Probable 31 32 3 107 84
Total Proved plus Probable 126 62 12 421 270

(1) Net after royalty reserves are working interest reserves including royalty interests and deducting royalty burdens.
(2) Columns and rows may not add due to rounding.

Additional reserve disclosures, as required under NI 51-101, will be contained in our Annual Information Form that will be filed on SEDAR at www.sedar.com.