On December 4, 2014, the Canadian Securities Administrators introduced amendments to National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and related forms, aimed at improving and clarifying the disclosure of reporting issuers in the oil and gas industry. The amendments seek to:
- promote improved disclosure of resources other than reserves;
- provide increased flexibility for oil and gas issuers that operate and report in different jurisdictions or recover product types not previously recognized by NI 51-101; and
- align NI 51-101 with the amended Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”).
While NI 51-101 requires reporting issuers to adhere to the latest requirements established in the COGE Handbook, compliance with the amendments will not be required until July 1, 2015, when they come into effect. The delayed effective date has been implemented to provide sufficient time for the industry to become familiar with the amendments and recent changes to the COGE Handbook, the latter of which includes the publication of guidelines for the estimation and classification of resources other than reserves.
Revised versions of Companion Policy 51-101 Standards of Disclosure for Oil and Gas Activities, CSA Staff Notice 51-324 Revised Glossary to NI 51-101 Standards of Disclosure for Oil and Gas Activities, and CSA Staff Notice 51-327Revised Guidance on Oil and Gas Disclosure have also been published.