CSA adopt enhanced oil and gas disclosure rules

December 5, 2014

The CSA today released amendments to NI 51-101 Standards of Disclosure for Oil and Gas Activities intended to promote the disclosure of resources other than reserves, while also improving flexibility for issuers. 

As discussed on our securities law blog when the changes were first proposed in October 2013, the amendments will, among other things, permit, in certain circumstances, disclosure prepared under an alternative resources evaluation standard such as the SEC's reserves disclosure regime, provide clearer guidance for the disclosure of contingent and prospective resources, introduce a principle-based approach to the disclosure of oil and gas metrics and clarify the concept of marketability in the reporting of oil and gas volumes.

Assuming Ministerial approvals, the amendments will come into force on July 1, 2015. Reporting issuers are nonetheless expected to immediately adhere to the latest requirements of the COGE Handbook pursuant to NI 51-101, including guidelines for the estimation and classification of resources (other than reserves), which became effective July 17, 2014 and guidelines for the estimation and classification of bitumen resources, which became effective April 1, 2014.

The CSA also released amended versions of CSA Staff Notice 51-324 to revise defined terms to conform to the amended COGE Handbook and CSA Staff Notice 51-327 in respect of disclosure guidance, in each case in order to provide consistency with the amendments to NI 51-101.

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