Hedging

As part of the Company's ongoing risk management program, Crew enters into derivative and physical hedging contracts. Crew’s risk management program incorporates the use of puts, costless collars, swaps and fixed price contracts to limit exposure to fluctuations in commodity prices, interest rates and foreign exchange rates while allowing for participation in commodity price increases.

There are key benefits to implementing a disciplined and consistent risk management strategy:

Hedging can reduce volatility of funds flow from operations and underpin the capital expenditure program
Establishing a floor or fixed price for commodities can impart an enhanced degree of predictability in the funds flow, which contributes to greater accuracy in growth planning

The Company’s financial derivative trading activities are conducted pursuant to the Company’s Risk Management Policy approved by the Board of Directors

Hedging Summary as of August 1, 2018

Volume	Period	Derivative	Reference	Price
Natural Gas
2,500 GJ/Day	2018	Swap	AECO	$2.62/GJ
22,500 mmbtu/Day	2018	Swap	Chicago	C$3.58/mmbtu
5,000 mmbtu/Day	2018	Swap	NYMEX	US$3.05/mmbtu
7,500 mmbtu/Day	2019	Swap	Chicago	C$3.19/mmbtu
2,500 mmbtu/Day	2019	Swap	Dawn	C$3.30/mmbtu
Oil
2,250 bopd	2018	Swap	$C WTI / bbl	C$72.92
500 bopd	2018	Collar	$C WTI / bbl	C$64.50 x $71.95
750 bopd	Jul - Dec 2018	Swap	$C WCS / bbl	C$56.62
250 bopd	Jan - Jun 2019	Swap	$C WCS / bbl	C$52.10
1,624 bopd	2019	Swap	$C WTI / bbl	C$73.72
Propane
400 bopd	2018	Swap	OPIS Conway $US/Gallon	US$0.79/Gallon

Quick Links

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2017 Annual Report

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Glossary

Abbreviations

AECO

the natural gas storage facility located at Suffield, Alberta.
API

American Petroleum Institute
°API

an indication of the specific gravity of crude oil measured on the API gravity scale.
Bbl

barrel
bbl/d

barrels per day
Bcf

billion cubic feet
BOE or boe

barrel of oil equivalent on the basis of 6 Mcf/BOE for natural gas and 1 bbl/BOE for crude oil and natural gas liquids
BOPD

barrels of oil per day
CSA

Canadian Securities Administrators
DPIIP

Discovered Petroleum Initially In Place
Gj

Gigajoule
M$

thousands of dollars
m3

cubic metres
Mbbl

thousand barrels
Mboe

1,000 barrels of oil equivalent
Mcf

thousand cubic feet
Mcf/d

thousand cubic feet per day
Mmbbl

million barrels
Mmbtu

million British Thermal Units
Mmcf

million cubic feet
Mmcf/d

million cubic feet per day
NGLs or ngls

natural gas liquids
Tcf

trillion cubic feet
TCFE

trillion cubic feet equivalent
TPIIP

Total Petroleum Initially in Place
UPIIP

Undiscovered Petroleum Initially In Place
WTI

West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for crude oil of standard grade

Definitions

Contingent Resources

Contingent Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable... Read more

Contingent Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable. It is recognized that some ambiguity may exist between the definitions of contingent resources and unproved reserves. This is a reflection of variations in current industry practice. It is recommended that if the degree of commitment is not such that the accumulation is expected to be developed and placed on production within a reasonable timeframe, the estimated recoverable volumes for the accumulation be classified as contingent resources. Contingent Resources may include, for example, accumulations for which there is currently no viable market, or where commercial recovery is dependent on the development of new technology, or where evaluation of the accumulation is still at an early stage.
Discovered-Petroleum-Initially-In-Place (DPIIP)

Discovered Petroleum-Initially-In-Place (DPIIP) is that quantity of petroleum which is estimated, on a given date, to be contained in known accumulations, plus those quantities already produced therefrom. DPIIP may be... Read more

Discovered Petroleum-Initially-In-Place (DPIIP) is that quantity of petroleum which is estimated, on a given date, to be contained in known accumulations, plus those quantities already produced therefrom. DPIIP may be subdivided into Commercial and Sub-commercial categories, with the estimated potentially recoverable portion being classified as Reserves and Contingent Resources respectively, as defined elsewhere in this Glossary.
Gross or gross

Relating to production / reserves: Crew’s working interest (operating and non-operating) share before deduction of royalties and without including any royalty interestRelating to wells: the total number of wells in... Read more

Relating to production / reserves: Crew’s working interest (operating and non-operating) share before deduction of royalties and without including any royalty interestRelating to wells: the total number of wells in which Crew has an interestRelating to properties: the total area of properties in which the Corporation has an interest
Net or net

Relating to production / reserves: Crew’s working interest (operating and non-operating) share after deduction of royalty obligations, plus Crew’s royalty interests in production or reservesRelating to wells: the number... Read more

Relating to production / reserves: Crew’s working interest (operating and non-operating) share after deduction of royalty obligations, plus Crew’s royalty interests in production or reservesRelating to wells: the number of wells obtained by aggregating Crew’s working interest in each of its gross wellsRelating to properties: the total area in which Crew has an interest multiplied by the working interest owned by Crew
NI 51-101

National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.
Operating Netback

A measure of oil and gas sales net of royalties, production and transportation expenses. This is a non-GAAP measure used specifically in the oil and gas industry as a benchmark to compare performance between different... Read more

A measure of oil and gas sales net of royalties, production and transportation expenses. This is a non-GAAP measure used specifically in the oil and gas industry as a benchmark to compare performance between different areas of operations and different peer companies.
Prospective Resource

Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.

Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.
Total-Petroleum-Initially-In-Place (TPIIP)

Total Petroleum-initially-in-place (TPIIP) is that quantity of petroleum which is estimated to exist originally in naturally occurring accumulations. TPIIP is that quantity of petroleum which is estimated, on a given... Read more

Total Petroleum-initially-in-place (TPIIP) is that quantity of petroleum which is estimated to exist originally in naturally occurring accumulations. TPIIP is that quantity of petroleum which is estimated, on a given date, to be contained in known accumulations, plus quantities already produced therefrom, plus estimated quantities in accumulations yet to be discovered. TPIIP may be subdivided into Discovered Petroleum-initially-in place and Undiscovered Petroleum-initially-in-place, with Discovered Petroleum-initially-in-place being limited to known accumulations. It is recognized that all Petroleum-initially-in-place quantities may constitute potentially recoverable resources since the estimation of the proportion which may be recoverable can be subject to significant uncertainty and will change with variations in commercial circumstances, technological developments and data availability. A portion of those quantities classified as Unrecoverable may become recoverable resources in the future as commercial circumstances change, technological developments occur, or additional data are acquired.
Undiscovered Petroleum-Initially-In-Place (UPIIP)

Undiscovered Petroleum-initially-in-place (UPIIP) is that quantity of petroleum which is estimated, on a given date, to be contained in accumulations yet to be discovered. The estimated potentially recoverable portion... Read more

Undiscovered Petroleum-initially-in-place (UPIIP) is that quantity of petroleum which is estimated, on a given date, to be contained in accumulations yet to be discovered. The estimated potentially recoverable portion of UPIIP is classified as Prospective Resources, as defined elsewhere in this Glossary.