Grown Rogue International (GRUSF) 20-F 2012 FY Annual report (foreign)

EXHIBIT 4.22

Ref.: 3391.18806

October 11, 2012

Eagleford Energy Inc.

c/o Mr. James Cassina, President

Suite 1505, 1 King Street West

Toronto, ON M5H 1A1

Re: Evaluation of the P&NG Reserves of Eagleford Energy Inc.

(As of August 31, 2012) using Constant Prices and Costs

Dear Sir:

As requested, Sproule Associates Limited has prepared this letter report for Eagleford Energy Inc. which consists of an evaluation of the P&NG reserves of Eagleford Energy (As of August 31, 2012) using Constant Prices and Costs.

The constant price used in this report complies with the Securities & Exchange Commission’s (SEC) regulations. It was 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 end of the reporting period.

Table C-1, on the following page, summarizes our evaluation, based on constant prices and costs, before income taxes, of the P&NG reserves of Eagleford Energy Inc., as of August 31, 2012. The table presents summaries of the P&NG reserves for the various reserves categories valuation.

Table C-2 is also included and summarizes the reserves and values by property for the constant price case, before income taxes. Tables C-3 through C-3B show the cash flow forecasts for the constant price case for the various reserves categories.

The constant price used in this report is as follows:

Natural Gas:

AECO-C Spot 2.57 $/MMbtu

Exchange Rate 0.99 $US/Cdn

Appropriate adjustments have been made to the natural gas price to account for quality and transportation, and to reflect actual historical prices received for each property. This blending of constant prices may result in the appearance of varying constant prices in the Corporate cash flows.

The remaining assumptions relating to the calculation and evaluation of the reserves are the same as those presented in the detailed evaluation.

It is important to note that the estimate of the reserves to be recovered from a gas field is the sum of all the cumulative production until an economic limit is reached. The economic limit is a function of the production forecast, future prices and operating costs (including royalties and taxes) to maintain production.Consequently, when estimates of future prices and costs are changed, economic limits are also altered. In the evaluation process, production forecasts are truncated at the economic limits and thus, reserves estimates vary with price and cost sensitivities, as is the case between forecast and constant prices and cost forecasts.

1

Also, some entities may have reserves assigned to them under one price and cost scenario, but under less favourable price and cost projections, the net present values of the hydrocarbons that could be recovered may not be sufficient to offset the capital investment. Those entities whose undiscounted net present value became negative under less favourable price and cost projections were not included in the summary tables.

The values of the reserves presented in this constant price and cost evaluation should not be taken out of context, as they were prepared to comply with the Securities & Exchange Commission’s (SEC) regulations; therefore, they do not reflect our opinion of the market value of these reserves.

Table C-4 presents the summary of pricing assumptions for constant prices and costs.

Should you have any questions regarding this letter report, please do not hesitate to contact us.

Sincerely,

SPROULE ASSOCIATES LIMITED

/s/ Attila A. Szabo

Attila A. Szabo, P.Eng.

Manager, Engineering and Partner

/s/ Cameron P. Six

Cameron P. Six, P.Eng.

Vice-President, Engineering and Partner

Enclosure

AAS:smr

P:\EAGLEFORD ENERGY 18806\LETTER REPORT\LETTERREPORT.DOC

900, 140 Fourth Avenue SW Calgary AB T2P 3N3 Canada Telephone: 1-403-294-5500 Fax: 1-403-294-5590
Toll-Free: 1-877-777-6135

info@sproule.comwww.Sproule.com

2

Table C-1

Eagleford Energy Inc.

Consolidation

SUMMARY OF THE EVALUATION OF THE P.&N.G. RESERVES

(As of Date: 2012-08-31)

	Remaining Reserves						Net Present Values Before Income Taxes
	Gross		Company
	100%		Gross		Net		@0%		@5%		@10%		@15%		@20%
							M$		M$		M$		M$		M$
Non-Assoc, Assoc Gas (MMcf)
Proved Developed Producing		2233		116		100		3		4		4		3		3
Probable Developed Producing		783		41		35		2		2		2		1		1
Total Proved + Probable		3016		157		135		6		6		5		5		4
Grand Total (Mboe)
Proved Developed Producing		372.1		19.3		16.6		3		4		4		3		3
Probable Developed Producing		130.5		6.8		5.8		2		2		2		1		1
Total Proved + Probable		502.6		26.1		22.4		6		6		6		5		4

Table C-2

Eagleford Energy Inc.

SAL X120831 Constant-0

SUMMARY OF THE EVALUATION OF THE P.&N.G. RESERVES

(As of Date: 2012-08-31)

	Lt, Med, Heavy Oil			Non-Assoc., Assoc. Gas/ Solution Gas						Natural Gas Liquids/Sulphur			Net Present Values Before Income Taxes
	Remaining Reserves	Company Reserves		Remaining Reserves		Company Reserves				Remaining Reserves	Company Reserves
		Gross	Net			Gross		Net			Gross	Net	@0%		@5%		@10%		@15%
	Mbbl	Mbbl	Mbbl	MMcf		MMcf		MMcf		Mbbl	Mbbl	Mbbl	M$		M$		M$		M$
				MMcf		MMcf		MMcf		MLt	MLt	MLt
Eagleford Energy Inc.
PDP					2233		116		100					3		4		4		3
TP					2233		116		100					3		4		4		3
PBDP					783		41		35					2		2		2		1
TPP					3016		157		135					6		6		5		5
Botha
PDP					2233		116		100					3		4		4		3
TP					2233		116		100					3		4		4		3
PBDP					783		41		35					2		2		2		1
TPP					3016		157		135					6		6		5		5

3

Table C-3

Proved + Probable

Eagleford Energy Inc.

Prod. Start: 2012-09-01

SUMMARY OF RESERVES AND NET PRESENT VALUE

(As of Date: 2012-08-31)

	Reserves
	Lt Med Oil		Heavy Oil		Solution Gas		Non-Assoc Assoc Gas		Ethane		Propane		Butane		Pentanes Plus		Total NGL		Sulphur		Equiv Oil
	Mbbl		Mbbl		MMcf		MMcf		Mbbl		Mbbl		Mbbl		Mbbl		Mbbl		MLt		Mboe
Gross		0.0		0.0		0		3016		0.0		0.0		0.0		0.0		0.0		0.0		502.6
Co Grs		0.0		0.0		0		157		0.0		0.0		0.0		0.0		0.0		0.0		26.1
Co Net		0.0		0.0		0		135		0.0		0.0		0.0		0.0		0.0		0.0		22.4

Net Present Value
Discount Rate		Total Net Capital		Before Tax Net Rev		ARTC Cap GCA		Aband Cost		SK Tax Overhead		Before Tax Cash Flow
%		M$		M$		M$		M$		M$		M$
	0.0		0		9		0		3		0		6
	5.0		0		7		0		2		0		6
	8.0		0		7		0		1		0		5
	10.0		0		6		0		1		0		5
	12.0		0		6		0		1		0		5
	15.0		0		5		0		1		0		5
	20.0		0		5		0		0		0		4
	25.0		0		4		0		0		0		4

Reserve Life = 13.8 yrs Reserve Half Life = 4.8 yrs BOE Reserve Index = 8.5

YEARLY SUMMARY OF RESERVES AND NET PRESENT VALUE

Proved + Probable
(As of Date: 2012-08-31)
Year	Oil Comp Grs			Gas Comp Grs		BOE Comp Grs		Oil Rev		Gas Rev		Other Rev		Total Crown		Non- Crown		Lease Expen		Other Expen		Total Cap		Aband Etc		BTax Cash Flow
	Bb/d			Mcf/d		Boe/d		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		0			52		9		0		14		0		2		0		11		0		0		0		1
2013		0			49		8		0		41		0		7		0		33		0		0		0		1
2014		0			46		8		0		38		0		6		0		31		0		0		0		1
2015		0			43		7		0		36		0		5		0		29		0		0		0		1
2016		0			40		7		0		33		0		5		0		28		0		0		0		1
2017		0			37		6		0		31		0		4		0		26		0		0		0		1
2018		0			35		6		0		29		0		4		0		25		0		0		0		1
2019		0			32		5		0		27		0		3		0		23		0		0		0		1
2020		0			30		5		0		25		0		2		0		22		0		0		0		1
2021		0			28		5		0		23		0		2		0		21		0		0		2		1
2022		0			26		4		0		22		0		1		0		20		0		0		0		-1
2023		0			14		2		0		11		0		1		0		10		0		0		0		0
2024		0			13		2		0		11		0		1		0		10		0		0		0		0
2025		0			12		2		0		10		0		0		0		9		0		0		0		0
2026		0			11		2		0		5		0		0		0		5		0		0		2		-2
Total									0		356		0		44		0		303		0		0		3		6
Discounted		5	%						0		278		0		36		0		235		0		0		2		6
Cash		10	%						0		226		0		31		0		190		0		0		1		5
Stream		15	%						0		190		0		27		0		158		0		0		1		5
		20	%						0		163		0		23		0		135		0		0		0		4

4

Table C-3

Proved + Probable

Eagleford Energy Inc.

Prod. Start: 2012-09-01

PRODUCTION AND PRICE FORECAST

(As of Date: 2012-08-31)

Year	Gas Wells		Gas Daily		Gas Gross		Gas Co Gross		Gas Co Net		Gas Price
			Mcf/d		MMcf		MMcf		MMcf		$/Mcf
2012		2		993		121		6		5		2.27
2013		2		948		346		18		15		2.27
2014		2		884		323		17		14		2.27
2015		2		825		301		16		13		2.27
2016		2		769		282		15		12		2.27
2017		2		717		262		14		11		2.27
2018		2		669		244		13		11		2.27
2019		2		624		228		12		10		2.27
2020		2		583		213		11		10		2.27
2021		2		544		198		10		9		2.27
2022		2		507		185		10		9		2.27
2023		1		263		96		5		5		2.27
2024		1		248		91		5		4		2.27
2025		1		233		85		4		4		2.27
2026		1		218		40		2		2		2.27
Total						3016		157		135

5

Table C-3

Proved + Probable

Eagleford Energy Inc.

Prod. Start: 2012-09-01

YEARLY SUMMARY OF RESERVES AND NET PRESENT VALUE

(As of Date: 2012-08-31)

	Revenue												Royalties
Year	Oil		Gas		NGL		Sul		Roy		Other Income		Crown		Adjust		FH/ Indian		ORR		Min Taxes		Opex		NPI/ Other Expense
	M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		0		14		0		0		0		0		3		0		0		0		0		11		0
2013		0		41		0		0		0		0		8		1		0		0		0		33		0
2014		0		38		0		0		0		0		7		1		0		0		0		31		0
2015		0		36		0		0		0		0		6		1		0		0		0		29		0
2016		0		33		0		0		0		0		5		1		0		0		0		28		0
2017		0		31		0		0		0		0		5		1		0		0		0		26		0
2018		0		29		0		0		0		0		4		0		0		0		0		25		0
2019		0		27		0		0		0		0		3		0		0		0		0		23		0
2020		0		25		0		0		0		0		3		0		0		0		0		22		0
2021		0		23		0		0		0		0		2		0		0		0		0		21		0
2022		0		22		0		0		0		0		2		0		0		0		0		20		0
2023		0		11		0		0		0		0		1		0		0		0		0		10		0
2024		0		11		0		0		0		0		1		0		0		0		0		10		0
2025		0		10		0		0		0		0		0		0		0		0		0		9		0
2026		0		5		0		0		0		0		0		0		0		0		0		5		0
Total				356		0		0		0		0		49		6		0		0		0		303		0

			Capital
Year	Oper Inc		CEE		CDE		CCA		COGPE		Total Capital		Net Rev		Cum Net Revenue		ARTC		Aband Cost		SK Tax		Cash Flow		Cum Cash  Flow
	M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		1		0		0		0		0		0		1		1		0		0		0		1		1
2013		1		0		0		0		0		0		1		2		0		0		0		1		2
2014		1		0		0		0		0		0		1		3		0		0		0		1		3
2015		1		0		0		0		0		0		1		4		0		0		0		1		4
2016		1		0		0		0		0		0		1		5		0		0		0		1		5
2017		1		0		0		0		0		0		1		6		0		0		0		1		6
2018		1		0		0		0		0		0		1		6		0		0		0		1		6
2019		1		0		0		0		0		0		1		7		0		0		0		1		7
2020		1		0		0		0		0		0		1		7		0		0		0		1		7
2021		1		0		0		0		0		0		1		8		0		0		0		1		8
2022		0		0		0		0		0		0		0		8		0		2		0		-1		7
2023		0		0		0		0		0		0		0		9		0		0		0		0		7
2024		0		0		0		0		0		0		0		9		0		0		0		0		7
2025		0		0		0		0		0		0		0		9		0		0		0		0		7
2026		0		0		0		0		0		0		0		9		0		2		0		-2		6
Total		9		0		0		0		0		0		9				0		3		0		6

	Discounted Cash Streams NPV (M$)
discR%		5	10	12	15	18	20	25
BT Net		7	6	6	5	5	5	4
BT Cash Flow		6	5	5	5	4	4	4

6

Table C-3A

Proved Developed Producing

Eagleford Energy Inc.

Prod. Start: 2012-09-01

SUMMARY OF RESERVES AND NET PRESENT VALUE

(As of Date: 2012-08-31)

	Reserves
	Lt Med Oil		Heavy Oil		Solution Gas		Non-Assoc Assoc Gas		Ethane		Propane		Butane		Pentanes Plus		Total NGL		Sulphur		Equiv Oil
	Mbbl		Mbbl		MMcf		MMcf		Mbbl		Mbbl		Mbbl		Mbbl		Mbbl		MLt		Mboe
Gross		0.0		0.0		0		2233		0.0		0.0		0.0		0.0		0.0		0.0		372.1
Co Grs		0.0		0.0		0		116		0.0		0.0		0.0		0.0		0.0		0.0		19.3
Co Net		0.0		0.0		0		100		0.0		0.0		0.0		0.0		0.0		0.0		16.6

Net Present Value
Discount Rate		Total Net Capital		Before Tax Net Rev		ARTC Cap GCA		Aband Cost		SK Tax Overhead		Before Tax Cash Flow
%		M$		M$		M$		M$		M$		M$
	0.0		0		7		0		3		0		3
	5.0		0		6		0		2		0		4
	8.0		0		5		0		2		0		4
	10.0		0		5		0		1		0		4
	12.0		0		5		0		1		0		3
	15.0		0		4		0		1		0		3
	20.0		0		4		0		1		0		3
	25.0		0		4		0		0		0		3

Reserve Life = 10.7 yrs Reserve Half Life = 3.5 yrs BOE Reserve Index = 6.4

YEARLY SUMMARY OF RESERVES AND NET PRESENT VALUE

Proved Developed Producing
(As of Date: 2012-08-31)
Year	Oil  Comp Grs			Gas Comp Grs		BOE Comp Grs		Oil Rev		Gas Rev		Other Rev		Total Crown		Non- Crown		Lease Expen		Other Expen		Total Cap		Aband Etc		BTax Cash Flow
	Bb/d			Mcf/d		Boe/d		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		0			51		9		0		14		0		2		0		11		0		0		0		1
2013		0			48		8		0		40		0		7		0		32		0		0		0		1
2014		0			44		7		0		36		0		6		0		30		0		0		0		1
2015		0			40		7		0		33		0		5		0		27		0		0		0		1
2016		0			36		6		0		30		0		4		0		25		0		0		0		1
2017		0			33		5		0		27		0		3		0		24		0		0		0		1
2018		0			30		5		0		25		0		2		0		22		0		0		0		1
2019		0			26		4		0		22		0		2		0		20		0		0		2		-1
2020		0			14		2		0		12		0		1		0		11		0		0		0		0
2021		0			13		2		0		11		0		1		0		10		0		0		0		0
2022		0			12		2		0		10		0		0		0		9		0		0		0		0
2023		0			12		2		0		3		0		0		0		3		0		0		2		-2
Total									0		263		0		32		0		224		0		0		3		3
Discounted		5	%						0		218		0		28		0		185		0		0		2		4
Cash		10	%						0		186		0		25		0		156		0		0		1		4
Streams		15	%						0		161		0		22		0		135		0		0		1		3
		20	%						0		142		0		20		0		118		0		0		1		3

7

Table C-3A

Proved Developed Producing

Eagleford Energy Inc.

Prod. Start: 2012-09-01

PRODUCTION AND PRICE FORECAST

(As of Date: 2012-08-31)

Year	Gas Wells		Gas Daily		Gas Gross		Gas Co Gross		Gas Co Net		Gas Price
			Mcf/d		MMcf		MMcf		MMcf		$/Mcf
2012		2		987		120		6		5		2.27
2013		2		926		338		18		14		2.27
2014		2		842		307		16		13		2.27
2015		2		766		280		15		12		2.27
2016		2		697		255		13		11		2.27
2017		2		634		231		12		10		2.27
2018		2		577		211		11		10		2.27
2019		2		507		185		10		9		2.27
2020		1		274		100		5		5		2.27
2021		1		254		93		5		4		2.27
2022		1		235		86		4		4		2.27
2023		1		217		26		1		1		2.27
Total						2233		116		100

8

Table C-3A

Proved Developed Producing

Eagleford Energy Inc.

Prod. Start: 2012-09-01

SUMMARY OF RESERVES AND NET PRESENT VALUE

(As of Date: 2012-08-31)

	Revenue												Royalties
Year	Oil		Gas		NGL		Sul		Roy		Other Income		Crown		Adjust		FH/ Indian		ORR		Min Taxes		Opex		NPI/ Other Expense
	M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		0		14		0		0		0		0		3		0		0		0		0		11		0
2013		0		40		0		0		0		0		7		1		0		0		0		32		0
2014		0		36		0		0		0		0		6		1		0		0		0		30		0
2015		0		33		0		0		0		0		5		1		0		0		0		27		0
2016		0		30		0		0		0		0		4		0		0		0		0		25		0
2017		0		27		0		0		0		0		3		0		0		0		0		24		0
2018		0		25		0		0		0		0		3		0		0		0		0		22		0
2019		0		22		0		0		0		0		2		0		0		0		0		20		0
2020		0		12		0		0		0		0		1		0		0		0		0		11		0
2021		0		11		0		0		0		0		1		0		0		0		0		10		0
2022		0		10		0		0		0		0		0		0		0		0		0		9		0
2023		0		3		0		0		0		0		0		0		0		0		0		3		0
Total				263		0		0		0		0		37		4		0		0		0		224		0

			Capital
Year	Oper Inc		CEE		CDE		CCA		COGPE		Total Capital		Net Rev		Cum Net Revenue		ARTC		Aband Cost		SK Tax		Cash Flow		Cum Cash  Flow
	M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		1		0		0		0		0		0		1		1		0		0		0		1		1
2013		1		0		0		0		0		0		1		2		0		0		0		1		2
2014		1		0		0		0		0		0		1		3		0		0		0		1		3
2015		1		0		0		0		0		0		1		4		0		0		0		1		4
2016		1		0		0		0		0		0		1		4		0		0		0		1		4
2017		1		0		0		0		0		0		1		5		0		0		0		1		5
2018		1		0		0		0		0		0		1		6		0		0		0		1		6
2019		0		0		0		0		0		0		0		6		0		2		0		-1		4
2020		0		0		0		0		0		0		0		6		0		0		0		0		5
2021		0		0		0		0		0		0		0		6		0		0		0		0		5
2022		0		0		0		0		0		0		0		7		0		0		0		0		5
2023		0		0		0		0		0		0		0		7		0		2		0		-2		3
Total		7		0		0		0		0		0		7				0		3		0		6

	Discounted Cash Streams NPV (M$)
discR%		5	10	12	15	18	20	25
BT Net		6	5	5	4	4	4	4
BT Cash Flow		4	5	3	3	3	3	3

9

Table C-3B

Probable

Eagleford Energy Inc.

Prod. Start: 2012-09-01

SUMMARY OF RESERVES AND NET PRESENT VALUE

(As of Date: 2012-08-31)

	Reserves
	Lt Med Oil		Heavy Oil		Solution Gas		Non-Assoc Assoc Gas		Ethane		Propane		Butane		Pentanes Plus		Total NGL		Sulphur		Equiv Oil
	Mbbl		Mbbl		MMcf		MMcf		Mbbl		Mbbl		Mbbl		Mbbl		Mbbl		MLt		Mboe
Gross		0.0		0.0		0		783		0.0		0.0		0.0		0.0		0.0		0.0		130.5
Co Grs		0.0		0.0		0		41		0.0		0.0		0.0		0.0		0.0		0.0		6.8
Co Net		0.0		0.0		0		35		0.0		0.0		0.0		0.0		0.0		0.0		5.8

Net Present Value
Discount Rate		Total Net Capital		Before Tax Net Rev		ARTC Cap GCA		Aband Cost		SK Tax Overhead		Before Tax Cash  Flow
%		M$		M$		M$		M$		M$		M$
	0.0		0		2		0		0		0		2
	5.0		0		2		0		0		0		2
	8.0		0		1		0		0		0		2
	10.0		0		1		0		0		0		2
	12.0		0		1		0		0		0		1
	15.0		0		1		0		0		0		1
	20.0		0		1		0		0		0		1
	25.0		0		1		0		0		0		1

Reserve Life = 13.8 yrs Reserve Half Life = 9.2 yrs BOE Reserve Index = 150.4

YEARLY SUMMARY OF RESERVES AND NET PRESENT VALUE

Probable
(As of Date: 2012-08-31)
Year	Oil Comp Grs			Gas Comp Grs		BOE Comp Grs		Oil Rev		Gas Rev		Other Rev		Total Crown		Non- Crown		Lease Expen		Other Expen		Total Cap		Aband Etc		BTax Cash Flow
	Bb/d			Mcf/d		Boe/d		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		0			0		0		0		0		0		0		0		0		0		0		0		0
2013		0			1		0		0		1		0		0		0		1		0		0		0		0
2014		0			2		0		0		2		0		1		0		1		0		0		0		0
2015		0			3		1		0		3		0		1		0		2		0		0		0		0
2016		0			4		1		0		3		0		1		0		2		0		0		0		0
2017		0			4		1		0		4		0		1		0		2		0		0		0		0
2018		0			5		1		0		4		0		1		0		3		0		0		0		0
2019		0			6		1		0		5		0		1		0		4		0		0		-2		2
2020		0			16		3		0		13		0		1		0		12		0		0		0		0
2021		0			15		3		0		12		0		1		0		11		0		0		0		0
2022		0			14		2		0		12		0		1		0		11		0		0		2		-1
2023		0			10		2		0		8		0		1		0		7		0		0		-2		2
2024		0			13		2		0		11		0		1		0		10		0		0		0		0
2025		0			12		2		0		10		0		0		0		9		0		0		0		0
2026		0			11		2		0		5		0		0		0		5		0		0		2		-2
Total									0		92		0		11		0		79		0		0		0		2
Discounted		5	%						0		60		0		8		0		50		0		0		0		2
Cash		10	%						0		41		0		6		0		33		0		0		0		2
Stream		15	%						0		29		0		5		0		23		0		0		0		1
		20	%						0		21		0		4		0		17		0		0		0		1

10

Table C-3B

Probable

Eagleford Energy Inc.

Prod. Start: 2012-09-01

PRODUCTION AND PRICE FORECAST

(As of Date: 2012-08-31)

Year	Gas Wells		Gas Daily		Gas Gross		Gas Co Gross		Gas Co Net		Gas Price
			Mcf/d		MMcf		MMcf		MMcf		$/Mcf
2012		0		6		1		0		0		2.27
2013		0		22		8		0		0		2.27
2014		0		42		15		1		1		2.27
2015		0		59		21		1		1		2.27
2016		0		72		26		1		1		2.27
2017		0		83		30		2		1		2.27
2018		0		92		34		2		1		2.27
2019		0		118		43		2		2		2.27
2020		1		309		113		6		5		2.27
2021		1		290		106		6		5		2.27
2022		1		273		100		5		5		2.27
2023		0		191		70		4		3		2.27
2024		1		248		91		5		4		2.27
2025		1		233		85		4		4		2.27
2026		1		218		40		2		2		2.27
Total						783		41		35

11

Table C-3B

Probable

Eagleford Energy Inc.

Prod. Start: 2012-09-01

SUMMARY OF RESERVES AND NET PRESENT VALUE

(As of Date: 2012-08-31)

	Revenue												Royalties
Year	Oil		Gas		NGL		Sul		Roy		Other Income		Crown		Adjust		FH/ Indian		ORR		Min Taxes		Opex		NPI/ Other Expense
	M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		0		0		0		0		0		0		0		0		0		0		0		0		0
2013		0		1		0		0		0		0		0		0		0		0		0		1		0
2014		0		2		0		0		0		0		1		0		0		0		0		1		0
2015		0		3		0		0		0		0		1		0		0		0		0		2		0
2016		0		3		0		0		0		0		1		0		0		0		0		2		0
2017		0		4		0		0		0		0		1		0		0		0		0		2		0
2018		0		4		0		0		0		0		1		0		0		0		0		3		0
2019		0		5		0		0		0		0		2		0		0		0		0		4		0
2020		0		13		0		0		0		0		2		0		0		0		0		12		0
2021		0		12		0		0		0		0		1		0		0		0		0		11		0
2022		0		12		0		0		0		0		1		0		0		0		0		11		0
2023		0		8		0		0		0		0		1		0		0		0		0		7		0
2024		0		11		0		0		0		0		1		0		0		0		0		10		0
2025		0		10		0		0		0		0		0		0		0		0		0		9		0
2026		0		5		0		0		0		0		0		0		0		0		0		5		0
Total				92		0		0		0		0		13		1		0		0		0		79		0

			Capital
Year	Oper Inc		CEE		CDE		CCA		COGPE		Total Capital		Net Rev		Cum Net Revenue		ARTC		Aband Cost		SK Tax		Cash Flow		Cum Cash  Flow
	M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$		M$
2012		0		0		0		0		0		0		0		0		0		0		0		0		0
2013		0		0		0		0		0		0		0		0		0		0		0		0		0
2014		0		0		0		0		0		0		0		0		0		0		0		0		0
2015		0		0		0		0		0		0		0		0		0		0		0		0		0
2016		0		0		0		0		0		0		0		1		0		0		0		0		1
2017		0		0		0		0		0		0		0		1		0		0		0		0		1
2018		0		0		0		0		0		0		0		1		0		0		0		0		1
2019		0		0		0		0		0		0		0		1		0		-2		0		2		2
2020		0		0		0		0		0		0		0		1		0		0		0		0		3
2021		0		0		0		0		0		0		0		1		0		0		0		0		3
2022		0		0		0		0		0		0		0		2		0		2		0		-1		2
2023		0		0		0		0		0		0		0		2		0		-2		0		2		3
2024		0		0		0		0		0		0		0		2		0		0		0		0		4
2025		0		0		0		0		0		0		0		2		0		0		0		0		4
2026		0		0		0		0		0		0		0		2		0		2		0		-2		2
Total		2		0		0		0		0		0		2				0		0		0		2

	Discounted Cash Streams NPV (M$)
discR%		5	10	12	15	18	20	25
BT Net		2	1	1	1	1	1	1
BT Cash Flow		2	2	1	1	1	1	1

12

Table C4

NI 51-101

Summary of Pricing Assumptions

As of August 31, 2012

Constant Prices and Costs

	Oil						Gas		NGLs
Year	WTI Cushing Oklahoma ($US/bbl)		Edmonton Par Price 40o API ($Cdn/bbl)		Cromer Medium 29.3o API ($Cdn/bbl)		Natural Gas (1) AECO Gas Prices ($Cdn/MMBtu)		Pentanes Plus F.O.B. Field Gate ($Cdn/bbl)		Butanes F.O.B. Field Gate ($Cdn/bbl)		Exchange Rate ($US/$Cdn)
Historical
Aug. 31, 2005		68.95		87.14		57.68		11.09		81.36		47.48		0.842
Aug. 31, 2006		70.27		70.98		83.11		5.07		70.34		65.11		0.904
Aug. 31, 2007		74.04		76.44		73.52		4.65		79.19		63.52		0.947
Aug. 31, 2008		115.46		122.15		113.47		7.12		122.58		83.38		0.942
Aug. 31, 2009		69.96		73.41		67.48		2.34		73.90		57.97		0.913
Aug. 31, 2010		71.92		73.22		70.05		3.34		75.01		51.22		0.940
Aug. 31, 2011		96.20		90.95		87.74		3.77		96.73		69.59		1.010
Constant
Aug. 31, 2012		94.28		90.56		84.78		2.57		104.64		67.35		0.99

(1) This summary table indentifies benchmark reference pricing schedules that might apply to a reporting issuer.

Notes: Product sale prices will reflect these reference prices with further adjustments for quality and transportation to point of sale

13