Operations

In 1982, Brinco’s average oil
production was 315 barrels per
day, with the Joffre, Lobstick and
Chigwell areas being the major
contributors to oil production in
Alberta; the McAden property
in Texas is the major producer in
the United States. Natural gas
production in 1982 averaged
2,130 MCF per day, with nor-
theastern British Columbia and
east central Alberta being the
major production regions. Weak
demand, particularly in export
markets, continues to be a major
problem for Canadian natural
gas producers.

Brinco’s oil and gas reserves, as
estimated by an independent
consulting engineering firm in
mid-1982, are tabulated below.
Oil reserves show a decline from
estimates a year earlier due to
production and reinterpretation.
Gas reserves showed a modest
improvement, indicating new
reserve development exceeded
production.

Exploration ¢
Development
I

During 1982, Brinco Oil & Gas
Limited adopted a conservative
strategy emphasizing low risk,
high quality development op-
portunities. A total of 30 wells
were drilled on company land
resulting in 17 oil wells, nine gas
wells and four dry and abandon-
ed holes. Of these, 21 were drill-
ed at no cost to the company,
three were wildcat wells drilled
with funds raised under the
Brinco 1981 Energy Program.
leaving six in which the company
had direct financial participa-
tion. The success rate on these
three categories was 90%, 33%.
and 100% respectively. Major
areas of drilling activity were in
Pembina (Lobstick), Chauvin and
east central Alberta.

Development highlights include
two new gas plants and a
waterflood project. The Bellshill
Lake Gas Plant (Brinco Oil & Gas
Limited - 3.3%) went on stream
in March 1982 and contributes
350 MCF per day to our produc-
tion. The Hotchkiss Gas Plant
(Brinco Oil & Gas Limited - 7.3%)
went on stream in September
1982, producing 230 MCF per
day for the company. The

Brinco Oil & Gas
Limited

OIL AND GAS"

Major oil and gas producing areas in \Western Canada.

DRILLING RESULTS

1982 1981
Success Rate 87% 70%
Total Wells Drilled 30 54
Crude Oil 17 10
Natural Gas 9 28
PRODUCTION
(average daily)

1982 1981
Crude Oil (barrels) 315 333
Natural Gas (MCF) 2,130 1.910
COMPANY SHARE OF RESERVES
(After deducting royalties)

July 1, 1982 July 1, 1981

Crude Oil (barrels) 2,334,000 2.877.000
Natural Gas (BCF) 33.7 32.7