The TSX has proposed amendments to Section 319 of the Company Manual which would create a new subcategory of minimum listing requirements for oil & gas development stage companies.

The TSX has recognized that there are some producers (for example, oil sands developers which do not have proven reserves) which do not meet present Section 319 listing criteria but which are being listed pursuant to existing exemptions. The proposed listing criteria for the new subcategory would establish a set of standards to be met for such companies. The proposed standards are:

  1. contingent resources of $500 million
  2. a minimum market value of the issued securities to be listed of $200 million  
  3. a clearly defined development plan which will advance the property  
  4. sufficient funds for an 18-month period or to bring the property into commercial production  
  5. an appropriate capital structure.

In addition, the TSX is proposing that the discount rate to be applied to future cash flows should be 10%, instead of 20% as presently provided in Section 319 of the Company Manual.

The TSX is seeking comments on whether the proved reserves requirements in Sections 319 and 319.1 should be increased in conjunction with a decrease in discount rate.