ex10-8.htm


 


Exhibit 10.8















 


THIRD PARTY REPORT ON RESERVES


 


By GLJ Petroleum Consultants - (Independent Qualified Reserves Evaluator)


 


This report is provided to satisfy the requirements contained in Item 1202(a)(8) of U.S. Securities and Exchange Commission Regulation S-K.


 


The numbering of items below corresponds to the requirements set out in Item 1202(a)(8) of Regulation S-K. Terms to which a meaning is ascribed in Regulation
S-K and Regulation S-X have the same meaning in this report.


 



	 	
i.

	
We have prepared an independent evaluation of the reserves of Cougar Oil and Gas Canada Inc. (the “Company“) for the management and the board of directors of the Company. The primary purpose of our evaluation report was to provide estimates of reserves information in support of the Company’s year-end reserves reporting requirements under US Securities Regulation S-K and for other internal business and financial needs of the Company.


	 	  	  
	 	
ii.

	
We  have  evaluated  the  reserves  of  the  Company  as  at  December  31,  2010  The completion date of our report is March 8, 2011.


	 	  	  
	 	
iii.

	
The following table sets forth the geographic area covered by our report, proved reserves estimated using constant prices and costs, and the proportion of the total company that we have evaluated.


	 	  	  












	 	 	 	 
Company Net Proved Reserves

	 	 
	 	 	 	


Natural

	 	 	


Natural Gas

	 	 	


Oil

	 	 	


Proportion

	 
	
Location of Reserves 

	 	
Crude Oil

	 	 	
Gas

	 	 	
Liquids

	 	 	
Equivalent

	 	 	
of Oil Eq.

	 
	 Country 	 
Region   

	 	Mbbl	 	 	MMcf	 	 	Mbbl	 	 	Mbbl	 	 	Reserves	 
	Canada  	Alberta    	 	 	372	 	 	 	0	 	 	 	0	 	 	 	372	 	 	 	100	% 
	Total Company	 	 	372	 	 	 	0	 	 	 	0	 	 	 	372	 	 	 	100	%





                                                   



1 Oil equivalence factors: Crude Oil 1 bbl/bbl , Natural Gas 6 Mcf/bbl , NGL 1 bbl/bbl


    



	
  

	
iv.

	
As required under SEC Regulation S-K, reserves are those quantities of oil and gas that are estimated to be economically producible under existing economic conditions. As specified, in determining economic production, constant product reference prices have been based on a 12-month average price, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the effective date of our report. In our economic analysis, operating and capital costs are those costs estimated as applicable at the effective date of our report, with no future escalation.  Where deemed  appropriate, the  capital  costs  and  revised  operating costs associated with the
implementation of committed projects designed to modify specific field operations in the future may be included in economic projections.







 




  





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v.

	
Our report has been prepared assuming the continuation existing regulatory and fiscal conditions subject to the guidance in the COGE Handbook and SEC regulations. Notwithstanding that the Company currently has regulatory approval to produce the reserves identified in our report, there is no assurance that changes in regulation will not occur; such changes, which cannot reliably be predicted, could impact the Company’s ability to recovery the estimated reserves.







 



	
  

	
vi.

	
Oil and gas reserves estimates have an inherent degree of associated uncertainty the degree of which is affected by many factors. Reserves estimates will vary due to the limited and imprecise nature of data upon which the estimates of reserves are predicated. Moreover, the methods and data used in estimating reserves are often necessarily indirect or  analogical  in  character  rather  than  direct  or  deductive.  Furthermore, the  persons involved in the preparation of reserves estimates and associated information are required, in applying geosciences, petroleum engineering and evaluation principles, to make numerous unbiased judgments based upon their educational background, professional
training, and professional experience. The extent and significance of the judgments to be made are, in themselves, sufficient to render reserves estimates inherently imprecise. Reserves estimates may change substantially as additional data becomes available and as economic conditions impacting oil and gas prices and costs change. Reserves estimates will also change over time due to other factors such as knowledge and technology, fiscal and economic conditions, contractual, statutory and regulatory provisions.







 



	
  

	
vii.

	
In our opinion, the reserves information evaluated by us have, in all material respects, been determined in accordance with all appropriate industry standards, methods and procedures applicable for the filing of reserves information under U.S. SEC Regulation S-K.







 



	 	
viii.

	
A summary of the Company reserves evaluated by us is provided in item iii. GLJ Petroleum Consultants Ltd.







 


    GLJ Petroleum Consultants Ltd.


Calgary, Alberta, Canada


March 8, 2011







  “Originally Signed by”  


Bruce E. Madu


Manager, Engineering


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