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We are an independent oil and gas exploration, development, and production company with operations in Canada. Our reserves, producing properties and exploration prospects are located in the provinces of Alberta, British Columbia, and Quebec and the Northwest Territories. We were incorporated under the laws of the State of Delaware on September 30, 2010 and, until the completion of our initial public offering on June 1, 2011, we were a wholly owned subsidiary of Forest Oil Corporation. On September 30, 2011, Forest distributed to its stockholders all of the shares of common stock of Lone Pine it owned and, as a result, we became a stand-alone public company. As of December 31, 2012, we had approximately 188 Bcfe of estimated proved reserves, of which approximately 59% were oil and natural gas liquids and approximately 63% were classified as proved developed reserves. As of December 31, 2012, we had approximately 1.2 million gross (0.9 million net) acres of land (approximately 83% of which is undeveloped) and 147 gross (134 net) proved undeveloped drilling locations. Our common stock is listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “LPR”.
We have a well-balanced portfolio of oil and gas properties, consisting of attractively priced light oil and low-risk natural gas resource plays, as well as significant undeveloped potential associated with two shale gas plays. Our primary area of focus is in the Western Canadian Sedimentary Basin, which includes our Evi area in the Peace River Arch and our Narraway/Ojay fields in the Deep Basin. In addition, we own significant acreage in the Utica Shale in Quebec and the Liard Basin in the Northwest Territories, which are shale gas prospects that we believe have significant future development potential.
As of December 31, 2012, we had approximately 82,015 net acres in and near the Evi field, located in the Peace River Arch area of northern Alberta. This position offers us a significant development opportunity for light oil. Through December 31, 2012, we have drilled a total of 103 horizontal wells in the Evi area since we entered the area in 2006. In 2012, we drilled 32 gross (28 net) horizontal wells in the Evi area. During 2012, we had average daily net sales volumes of 3,161 Bbls per day from production in the Evi area. We believe we can ultimately enhance production rates and recoveries in the Evi area through further development drilling, including further downspacing of our acreage, completion optimization and secondary recovery techniques, such as waterflooding. We intend to continue to expand our facilities in the Evi area to accommodate the growing crude oil volumes and continue to invest in our operated waterflood pilot project that we initiated in 2011.
As of December 31, 2012, we had approximately 120,329 net acres in the Narraway/Ojay fields, located in Alberta and British Columbia. We did not drill any new wells in the Narraway/Ojay area in 2012. From the fourth quarter of 2012, we have increased our net sales volumes from the Narraway/Ojay fields from 5 mmcf/d to 34 mmcf/d, with a peak rate of approximately 50 mmcf/d achieved in September 2009. Geologically, these fields have a minimum of ten different stacked producing intervals, and we are able to produce from multiple intervals within an individual wellbore. We currently have no significant near term expiries or drilling obligations in the Narraway/Ojay area, which has allowed us to be flexible with capital allocation and defer significant natural gas investment until natural gas prices improve.
As of December 31, 2012, we had approximately 240,320 net acres in Quebec that are prospective for the Utica Shale. Natural gas produced from this area is in close proximity to major markets in Canada and the northeastern United States, which historically has provided for premium product pricing compared to the NYMEX Henry Hub pricing. The Utica Shale is relatively shallow compared to other shale plays in North America, which we believe will provide for an economic advantage relative to the drilling costs associated with developing the resource.
As of December 31, 2011, we had approximately 52,995 net acres in the Liard Basin located in the Northwest Territories that are prospective for the Muskwa Shale. This is a newly developing natural gas shale play adjacent to the producing Horn River Basin. We believe that our acreage in the Liard Basin is analogous to the Muskwa Shale in the Horn River Basin. Our acreage is located in close proximity to a pipeline in the Northwest Territories providing for the sale and distribution of any natural gas produced. In the third and fourth quarters of 2011, we re-entered and recompleted a well in the Liard Basin, and in February 2012, we submitted an application to the National Energy Board for a commercial discovery declaration that we believe could potentially lead to the continuation of our lease in the area for up to an additional 21 years.
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