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CSA Provides Further Guidance on Compliance with Disclosure Standards for Oil and Gas Activities

Posted by: Axium Law · December 29th, 2011

The Canadian Securities Administrators (“CSA”) issued a revision to Staff Notice 51-327 Guidance on Oil and Gas Disclosure (“Staff Notice”) on December 29, 2011. The Staff Notice is meant to guide reporting issuers directly or indirectly engaged in oil and gas activities (“Oil and Gas Issuers”) with disclosure requirements mandated by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101).

The Staff Notice was first issued on February 27, 2009 and was revised subsequently December 30, 2010. The most current revisions provides further guidance in light of recent amendments to NI 51-101 and broaden the scope of topics (“2011 Revisions”).

The 2011 Revisions include new guidance on several new topics including general responsibilities of Oil and Gas Issuers and the experts on whom they rely in formulating disclosure of oil and gas information, disclosure of after-tax net present value of future net revenue, use of Barrels of Oil Equivalents (“BOEs”), and disclosure of well-flow test results.

The 2011 Revisions provide expanded guidance on disclosure topics regarding evaluation, classification and disclosure of unconventional hydrocarbons, disclosure of contingent resources, and classification to the most specific class and category of resource.

The CSA did not provide significantly more guidance than in its earlier versions of the Staff Notice on disclosure topics concerning stand-alone possible reserves, aggregation of resource estimates for several properties, use of the term “best estimate”, or prospective resources.



This blog discusses issues relevant to mining exploration and development companies carrying on business in Canada and around the world. Topics include acquiring and developing mineral projects, organizing and financing resource companies and mergers and acquisitions.

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