AB-2025-07838 - 447-RFP Oil, Gas, and In Situ Bitumen Operating Expenses Data

The Liability Management branch, specifically in support of the Licensee Capability Assessment (LCA) as described in section 2 of Directive 088. The LCA uses various factors to assess risk, including crossover timeline parameter, which requires estimated production cost data to accurately assess a licensee’s liability risk and their ability to complete required closure of licenses. Crossover timeline parameter is an estimate of the timeframe when magnitude of inactive liability will exceed the forecasted operating cash flow from remaining proven and developed reserves. Currently, the AER’s estimated production costs data only encompasses years 2019 to 2022. Due to a significant increase in inflation in recent years, an update to this data set is required. The AER is seeking updated production costs for 2025, followed by 3 additional years of updated data. Data provided must be in an acceptable format to the AER, anonymized but include sufficient detail to include region within the province and product specific information.