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A key indicator of profitability in the oil and gas sector is recycle ratio, which is defined as the operating netback divided by the F&D. The 2010 reserve additions resulted in a recycle ratio of 4.2 times and 3.9 times, respectively for the current year and three year average for P+P reserves based on the 2010 netback of $27.02 per boe and F&D costs excluding FDC. ARC typically targets a recycle ratio of 2.0 times or more on a P+P basis. ARC’s P+P reserve life index (“RLI”) has never been under 11.5 years. In 2010, our RLI increased to 15.2 years and proved RLI remained relatively unchanged at 10.4 years based on the mid-point 2011 production of 85,500 boe per day. 

Reserves data and discussions presented are primarily excerpts from the February 10, 2011 news release titled “ARC RESOURCES LTD. 2010 YEAR-EnD RESERvES InCREASE BY 29 PER CEnT”. 

Data included herein is stated on a company interest basis (before royalty burdens and including royalty interests) unless noted otherwise. All reserves information has been prepared in accordance with national Instrument (“ nI”) 51-101. The February 20, 2011 news release referred to above contains several cautionary sta tements that are specifically required by nI 51-101 under the heading “Information Regarding Disclosure on Oil and gas Reserves, Resources and Operational Information”. In addition to the detailed information disclosed in this news release more detailed information on a company gross basis (working interest before deduction of royalties without including any royalty interests) will be included in ARC’s Annual Information Form (“AIF”). numbers presented may not add due to rounding. 

## RESERvES SUMMARY 2010 

USIng gLJ JAnUARY 1, 2011 FORECAST PRICES AnD COSTS 

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## coMpAny gross 

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