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R E V I E W O F O P E R AT I O N S

AR 2005

REVIEW OF OPERATIONS A substantial portfolio of high quality, long-life assets has consistently provided ARC with a large inventory of development opportunities. ARC’s focus on opportunistically acquiring assets that have additional development potential embedded in them has proven itself time and time again. ARC has identified drilling and development opportunities within its asset base that are expected to sustain its production for the next 12 to 18 months and possibly longer, without being reliant on acquisitions. Proved Plus Probable Reserves

(company interest)

2005 Average Production

% of Total Production

22,350 50,540 83,398 45,682 57,432 24,393

22,665 51,872 84,433 45,733 57,899 24,395

7.9 18.1 29.4 15.9 20.2 8.5

8,041 11,298 18,286 10,676 7,789 164

14.3 20.1 32.5 19.0 13.8 0.3

283,795

286,997

100.0

56,254

100.0

(gross)

Total

For 2005, ARC averaged 56,254 boe per day of production, with 51 per cent coming from natural gas. Production increased during the year from 55,410 in the first quarter through to 59,120 in the fourth quarter as a result of ARC’s capital development program and several key acquisitions. Production averaged over 61,000 boe per day during the month of December. % of Total Proved plus Probable Reserves

Area Central Alberta SE Alberta/SW Saskatchewan Northern Alberta & BC SE Saskatchewan Pembina Redwater (1)

Production

Proved Plus Probable Reserves

(1) Redwater was acquired December 16, 2005. The December 2005 exit rate was 3,749 boe per day.

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2005  

Annual Report

2005  

Annual Report

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