Following is a summary of the independent reserve evaluation for the year ended December 31, 2020 as prepared by Sproule Associates Ltd. (“Sproule”)1,2. Please see Crew's reserves press release issued on February 8, 2021 for further details.

2020 Reserves Highlights

Highlights of our proved developed producing (“PDP”), total proved (“1P”) and total proved plus probable (“2P”) reserves from the Sproule Report are provided below. All finding, development and acquisition (“FD&A”)1,2 costs and finding and development (“F&D”)1,2 costs below include changes in future development capital (“FDC”) unless otherwise noted.  

In response to low commodity prices caused by a price war between OPEC+ members in the first half of the year coupled with global oil demand destruction related to the COVID-19 pandemic, Crew executed a modest capital program for the majority of 2020. After formulating our two-year asset development initiative, as first outlined in Crew's December 10, 2020 news release, we began executing our plan designed to efficiently calibrate production to match infrastructure and transportation commitments and expand margins. As a result, Crew’s net capital expenditures3 for the year after the impact of the strategic infrastructure transactions (as announced Feb. 27 and Nov. 5, 2020) totaled $28.1 million ($86.3 million gross1), with 48% of the total gross capital invested during Q4/20. Capital was primarily allocated to the drilling of 12.0 net extended reach horizontal (“ERH”) wells and the completion of 7.0 net wells at Greater Septimus.

  • Record Low PDP F&D and FD&A Costs1,2: With the funds received from the infrastructure transactions combined with operational improvements and declining capital costs, Crew achieved a record low PDP F&D costs1,2 of $6.83 per boe and FD&A costs1,2 of $2.00 per boe in 2020, resulting in recycle ratios1,2 of 1.77x and 6.05x, respectively. Further, the Company achieved our seventh consecutive year of declining average three-year 2P F&D costs of $2.26 per boe and FD&A costs of $0.92 per boe, with corresponding reductions of 60% and 82%, respectively, from the three-year averages posted in 2019. 
  • Strong Capital Efficiencies and Recycle Ratios1,2: The bulk of Crew's Q4/20 development activity occurred at the Company's 9-5 pad, where per well costs averaged 12% below forecasts. Lower costs and improved liquids pricing set the 9-5 pad on track to become the most efficient in our history, with improved completions design, longer ERH wells and faster drill times generating strong capital efficiencies and recycle ratios. 2P F&D costs2 for the 9-5 pad totaled $3.05 per boe compared to $4.90 per boe when the wells were originally booked in West Septimus. Improved capital efficiencies supported the reduction of FDC costs by $95 million and $180 million for 1P reserves and 2P reserves, respectively, with decreases of 11% and 10% compared to year-end 2019, respectively, creating negative finding costs when the change in future capital is included.
  • Significant PDP Reserves Growth: In 2020, Crew added 12.0 MMboe of PDP reserves, prior to accounting for production, representing approximately 19% of 2019 PDP reserves with a reserve replacement ratio of 150%, bringing the total to 67.1 MMboe at year-end after accounting for production, a 6% increase over 2019.
  • 1P and 2P Reserves Stable Year-Over-Year: Crew’s 1P and 2P reserves in 2020 remained stable year-over-year, as reserve additions in both categories offset the negative impact of weaker pricing following the onset of the COVID-19 pandemic. With 8.6 MMboe of 1P reserves added, production was effectively replaced by 106%, resulting in 202.5 MMboe of 1P reserves at year end, while 2P reserves replaced 93% of production and remained at 410.0 MMboe.


2020 F&D and FD&A Costs1,2


F&D per boe

F&D recycle2,4

FD&A per boe

FD&A recycle2,4

















1 All 2020 financial amounts are unaudited. See advisories.

2 "Finding, Development and Acquisitions costs" or "FD&A costs", "Finding and Development costs" or "F&D costs" and “recycle ratio” do not have standardized meanings. See the tables under “Capital Program Efficiency” and "Information Regarding Disclosure on Oil and Gas Reserves, Operational Information and Non-IFRS measures" contained in this news release.

3 Non-IFRS Measure. “Operating netback” and “net capital expenditures” do not have standardized measures prescribed by International Financial Reporting Standards (“IFRS”), and therefore may not be comparable with the calculations of similar measures for other companies. See “Information Regarding Disclosure on Oil and Gas Reserves, Operational Information and Non-IFRS Measures” within this press release and the Company’s MD&A for details including reasons for use.

4 Crew’s estimated operating netback in fourth quarter 2020, used in the above calculations, averaged $12.08 per boe (unaudited), while the Company’s estimated full year 2020 operating netback averaged $9.03 per boe (unaudited). See ‘Unaudited Financial Information’ and ‘Information Regarding Disclosure on Oil and Gas Reserves, Operational Information and Non-IFRS Measures’ in the advisories.

Crew's full NI 51-101 Reserves Disclosure for year ended December 31, 2020 will be available within our 2020 Annual Information Form (and also available on SEDAR).

(1)    See "Advisories" (Cautionary Statements and Advisories)