TSX Proposes New Subcategory for Development-Stage Oil and Gas Issuers
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:
(a) contingent resources of $500 million
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.