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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

ANNUAL REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2003 Commission file number 0-5426

THE WISER OIL COMPANY

A DELAWARE CORPORATION

I.R.S. EMPLOYER IDENTIFICATION NO. 55-0522128

8115 PRESTON ROAD, SUITE 400

DALLAS, TEXAS 75225

TELEPHONE: (214) 265-0080

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and has been subject to such filing requirements for the past 90 days.  þ.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨.

Indicate by checkmark whether the registrant is an accelerated filer (as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended). Yes  ¨  No  þ.

The aggregate market value of registrant’s Common Stock held by non-affiliates based on the closing price on June 28, 2003 was approximately $51.0 million.

As of March 24, 2004, registrant had outstanding 15,470,007 shares of common stock, $.01 par value (“Common Stock”), which is registrant’s only class of common stock.

DOCUMENTS INCORPORATED BY REFERENCE

(Specific incorporations are identified under the applicable item herein.)

Portions of the registrant’s proxy statement furnished to stockholders in connection with the 2004 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference in Part III of this Report. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the close of the registrant’s fiscal year.

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The Wiser Oil Company

TABLE OF CONTENTS

DESCRIPTION

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THE WISER OIL COMPANY

PART I

Items 1, 2. Business and Properties

General

The Wiser Oil Company is an independent oil and gas exploration and production company operating primarily in Texas, New Mexico, the Gulf Coast and Western Canada. Our total proved reserves at December 31, 2003 were 191.2 Bcfe, with oil and NGL’s comprising 49% and natural gas comprising 51% of total reserves. Our proved reserves at December 31, 2003 were 85% developed with approximately 70% located in the U.S. and 30% located in Canada.

The pre-tax present value of our total proved reserves at December 31, 2003 was $349.6 million, discounted at 10% and based on average realized prices of $28.99 per barrel for oil and $5.40 per Mcf for gas, as computed under Securities and Exchange Commission (“SEC”) pricing guidelines. After taxes, the present value of our total proved reserves at December 31, 2003 was $270.3 million. See “Oil and Gas Reserves” below for additional information about our reserves.

Our principal executive offices are located at 8115 Preston Road, Suite 400, Dallas, Texas 75225, and our telephone number is (214) 265-0080. The Internet address is http://www.wiseroil.com. On our web site you can review, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and amendments of those reports filed with or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934. The Company posts these reports as soon as reasonably practicable after electronically filing them with, or furnishing them to, the SEC. References in this Form 10-K to “Wiser”, “we,” “our,” or “us”, except as otherwise indicated, refer to The Wiser Oil Company and our consolidated subsidiaries.

Certain oil and gas industry terms used herein are defined in the “Glossary of Oil and Gas Terms” appearing at the end of Item 1 and 2.

History

In 1905, Clinton B. Wiser pooled some oil leases and founded The Wiser Oil Company. We began operations in Kentucky in 1917 and maintained our headquarters in Sistersville, West Virginia, until 1991. We moved our headquarters to Dallas, Texas in 1991 and over the next five years expanded operations by acquiring and operating properties in the Permian Basin in West Texas and Southeast New Mexico and in Alberta, Canada. In 1999, we sold non-strategic properties in Appalachia and began focusing our exploration and production operations primarily in Texas, New Mexico, the Gulf Coast and Western Canada.

In May 2000, we completed a corporate restructuring and appointed George K. Hickox, Jr. as the new CEO. As part of the corporate restructuring, we received a $23.7 million net capital infusion through the sale of convertible preferred stock in May 2000 and June 2001. In May 2001, we acquired Invasion Energy, Inc. in northern Alberta for $37.5 million and we also expanded into the Gulf of Mexico in 2001 through joint venture agreements.

Strategy

Over the past four years, we have increased the percentage of our natural gas reserves from 31% at December 31, 1999 to 51% at December 31, 2003. We continue to focus our efforts on adding primarily gas reserves through exploration activities or strategic acquisitions in both the U.S. and Canada. We expect to fund our future capital expenditure programs primarily with discretionary cash flow and any significant acquisition opportunities would be funded with borrowings under our credit facility.

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Principal Oil and Gas Properties

The following table summarizes certain information with respect to each of our principal areas of operation at December 31, 2003.

Permian Basin

Maljamar. Our Maljamar properties are situated in Southeast New Mexico. At December 31, 2003, the Maljamar properties contained 56.0 Bcfe of proved reserves, which represented 29% of our total proved reserves and 14% of the Present Value of total proved reserves.

The Maljamar properties consist primarily of three oil producing units acquired by us in separate transactions between 1992 and 1996: the Maljamar Grayburg and Caprock Maljamar Units, both of which are in Lea County, New Mexico, and the Skelly Unit located in Eddy County, New Mexico. The Maljamar Grayburg Unit produces from the Grayburg and San Andres formations at depths ranging from 3,800 to 4,500 feet, and the Caprock Maljamar Unit produces from the same formations at depths ranging from 4,000 to 5,000 feet. The Skelly Unit is located approximately five miles west of the two Lea County units and produces from the Seven Rivers, Grayburg and San Andres formations at depths ranging from 2,100 to 4,000 feet. We have a 100% working interest in each of these units, which, along with some smaller adjacent properties, have been combined into a single large-scale waterflood project encompassing approximately 17,000 gross developed leasehold acres.

A large scale development program was undertaken on the project from 1995 to 1998. This program included conversion of existing wells to injection wells and the drilling of infill development wells on 20-acre spacing to create 40-acre five-spot water injection patterns throughout most of the project area. At December 31, 2003, the project included 235 producing wells and 169 active water injection wells, virtually all of which were operated by us.

Our net production from the Maljamar properties averaged 970 Bbls of oil and 669 Mcf of natural gas (6,486 Mcfe) per day in 2003. Our cumulative net production from the Maljamar properties since acquired by us has been 5.5 MMBbls of oil and 2.74 Bcf of natural gas through December 31, 2003. Additional exploitation potential exists in the form of lease line development, extending water flood activities and the development of offsetting leases acquired in 2003.

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Dimmitt/Slash Ranch. Our Dimmitt/Slash Ranch properties are situated in Loving County, Texas, 80 miles west of Midland, Texas. At December 31, 2003, the Dimmitt/Slash Ranch properties contained 23.1 Bcfe of proved reserves, which represented 12% of our total proved reserves and 12% of the Present Value of total proved reserves.

We own 6,155 gross (5,499 net) developed leasehold acres in the Dimmitt/Slash Ranch area in Loving County, Texas. We acquired our initial interest in and became operator of the field in 1993. The Dimmitt Field produces oil and gas from the Cherry Canyon and Bell Canyon formations at depths ranging from 4,700 to 6,700 feet. The Slash Ranch Field is a natural gas field that underlies the Dimmitt Field. The Slash Ranch Field produces from the Atoka, Fusselman and Ellenburger formations at depths ranging from 15,000 to 20,000 feet. At December 31, 2003, the Dimmitt/Slash Ranch Field included 88 producing wells, all of which were operated by us. Our average working interest in these wells is 97%.

Our net production from the Dimmitt/Slash Ranch properties averaged 339 Bbls of oil and 2,637 Mcf of natural gas (4,671 Mcfe) per day in 2003. Our cumulative net production from the properties since acquired by us has been 1.3 MMBbls of oil and 10.1 Bcf of natural gas through December 31, 2003.

San Juan Basin

Our San Juan Basin properties are located in Rio Arriba County in northwestern New Mexico. At December 31, 2003, the San Juan Basin properties contained 26.9 Bcfe of proved reserves, which represented 14% of our total proved reserves and 17% of the Present Value of total proved reserves. We own 4,479 gross (4,357 net) developed leasehold acres in the San Juan Basin. In the 1950’s, our average 48% working interest in most of the acreage was contributed in connection with a unitization of the wells in the San Juan Basin fields, resulting in the ownership by us of small non-operated working interests in several large units. At December 31, 2003, we owned working interests in approximately 3,049 producing gas wells and one oil well in the San Juan Basin. These working interests average approximately 1.8%. Our San Juan Basin properties produce from multiple formations ranging from depths of 3,000 to 8,000 feet. Our net production from these properties averaged 7,358 Mcf of natural gas, 40 Bbls of oil and 103 Bbls of NGLs (8,214 Mcfe) per day in 2003. We expect that future development of the properties will depend on natural gas prices.

Gulf of Mexico

We began operations in the Gulf of Mexico in 2001 and currently have non-operating working interests in 11 producing offshore blocks. At December 31, 2003, the Gulf of Mexico properties contained 11.5 Bcfe of proved reserves, which represented 6% of our total proved reserves and 15% of the Present Value of total proved reserves.

We own a 12.5% working interest in the Eugene Island 302, East Cameron 179, East Cameron 185, and South Marsh Island 93 blocks and a 25% working interest in the West Cameron 416, West Cameron 417, West Cameron 428, West Cameron 488, Ship Shoal 322, Vermilion 61 and West Cameron 347 blocks. All of these blocks are located in water depths of less than 325 feet and we own 50,000 gross (9,375 net) developed leasehold acres in the Gulf of Mexico. During 2003, we participated in drilling 6 gross wells in the Gulf of Mexico, only one of which was a dry hole. As of December 31, 2003, we have been successful on 14 out of 18 wells drilled in the Gulf of Mexico during the last three years for a 78% success rate. Our net production from the Gulf of Mexico averaged 7,336 Mcf of natural gas and 240 Bbls of oil (8,778 Mcfe) per day in 2003.

Other U.S. Properties

Our other United States properties are located in West Texas, Indiana and the Onshore Gulf Coast region. For the year ended December 31, 2003, these properties represented approximately 5% of our total proved reserves.

We own a 100% working interest in and operate the Wellman Unit, located in Terry County, Texas. In 2001, we decided to discontinue injecting CO2 into the Wellman Unit reservoir and entered into a contract to sell the previously injected CO2 to a third party. We estimate that the Wellman Unit reservoir contains approximately 35.8 Bcf of recoverable CO2 at December 31, 2003. Sales of CO2 commenced in May of 2003 at a rate of approximately 20 MMcf per day. Proceeds from the sale of CO2 are recorded as a reduction of production and operating expense.

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Canada

In June 1994, we established an important new core area with the completion of a $52.0 million acquisition of Canadian oil and gas properties from Eagle Resources, Ltd., acquired by our wholly owned subsidiary The Wiser Oil Company of Canada. The purchase included 43.2 Bcfe of proved reserves and approximately 127,000 net undeveloped acres. In May 2001, The Wiser Oil Company of Canada acquired Invasion Energy, Inc. for $37.5 million. Also, in June 2001, The Wiser Oil Company of Canada entered into an Asset Exchange Agreement and acquired the Loon and other producing properties in exchange for the Pine Creek, Portage, Groat, Windfall and Sunchild fields. At December 31, 2003, our Canadian properties contained 57.4 Bcfe of proved reserves, which represented 30% of our total proved reserves and 33% of the Present Value of our total proved reserves.

Evi/Loon. Our Evi/Loon properties are located approximately 400 miles north of Calgary. At December 31, 2003, the Evi/Loon properties contained 11.2 Bcfe of proved reserves, which represented 6% of our total proved reserves and 8% of the Present Value of our total proved reserves.

We own 5,280 gross (1,960 net) developed leasehold acres in the Evi/Loon area, and have an average 57% working interest in the Evi Field and an average 30% working interest in the Loon Field. The Evi/Loon properties produce oil primarily from the Granite Wash formation at depths ranging from 4,900 to 5,000 feet. Our net production from the Evi/Loon Fields averaged 1,157 Bbls of oil (6,942 Mcfe) per day in 2003. At December 31, 2003, we owned 52 gross (18 net) productive wells and 2 gross (0.8 net) water disposal wells in the field, of which both disposal wells and 19 productive wells were operated by us.

Wolverine. Our Wolverine properties were acquired in May 2001 in the Invasion acquisition. At December 31, 2003, the Wolverine properties contained 10.9 Bcfe of proved reserves, which represented 6% of our total proved reserves and 6% of the Present Value of our total proved reserves.

We own 44,810 gross (39,465 net) developed leasehold acres in the Wolverine area. The Wolverine properties produce gas from the Wabamun, Bluesky and Gething formations at depths averaging 1,500 feet. Our net production from the Wolverine properties averaged 6,890 Mcf of gas and 4 Bbls of oil (6,912 Mcfe) per day in 2003. At December 31, 2003, we owned 118 gross and net productive wells and 4 gross and net water disposal wells in the field, all of which were operated by us.

Hayter. Our Hayter properties were acquired in 2000. The Hayter properties are located approximately 200 miles northeast of Calgary near the Alberta, Saskatchewan border. At December 31, 2003, the Hayter properties contained 10.9 Bcfe of proved reserves, which represented 6% of our total proved reserves and 4% of the Present Value of our total proved reserves.

We own 1,492 gross (1,454 net) developed leasehold acres in the Hayter area. The Hayter properties produce heavy oil (13° gravity) mainly from the McLaren formation at depths averaging 2,600 feet. We drilled nine productive wells in the Hayter area in 2003 and plan to drill additional wells over the next few years, depending on oil prices.

Our net production from the Hayter area averaged 1,139 Bbls of oil per day and 870 Mcf (7,704 Mcfe) per day in 2003. At December 31, 2003, we owned 97 gross (95 net) productive wells and two gross and net water injection wells on the properties, all of which were operated by us.

Wild River. At December 31, 2003, the Wild River properties contained 8.2 Bcfe of proved reserves, which represented 4% of our total proved reserves and 5% of the Present Value of our total proved reserves.

We own 2,560 gross (1,280 net) developed leasehold acres in the Wild River area. The Wild River properties produce from the Gething, Cadomin and Wabamun formations at depths of 9,500 to 12,000 feet. At December 31, 2003, we owned 12 gross (6.0 net) productive wells, 8 of which were operated by us. Our net production from the Wild River area averaged 1,870 Mcf of gas per day and 44 Bbls of oil (2,136 Mcfe) per day in 2003. We made a significant discovery in the Wabamum formation in 2003, which began producing in January of 2004.

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Other Canadian Properties. We own interests in various other Canadian properties, generally located in or near our principal areas of operation. For the year ended December 31, 2003, these properties represented approximately 8% of our total proved reserves.

Exploration Activities

United States

In 2003, we drilled or participated in 11 gross (three net) U.S. exploration wells, compared with ten gross (two net) wells in 2002, spending $12.6 million in 2003 and $14.3 million in 2002 on U.S. exploration. Of the 11 gross wells we drilled or participated in during 2003, seven were successfully completed as oil or gas wells in the targeted interval, and one was completed as a shallower development well. In the Gulf of Mexico, we participated in six successful exploration wells and one dry hole, which were generated and drilled through a joint venture with Remington Oil and Gas Corp. In 2004, we plan to drill or participate in approximately 8 to 10 gross wells in the U.S. and have budgeted approximately $12.0 million for our 2004 U.S. exploration program, including seismic costs.

Onshore. The primary focus of our U.S. onshore exploration effort is the central and upper Gulf Coast areas of Texas and Louisiana. Within this core area, Wiser is actively working the Miocene, Frio, Yegua, Cook Mountain, and Wilcox plays. These are relatively gas-prone trends where state-of-the-art seismic techniques have proven to be effective tools for lowering risk. Our goal is to understand and apply the appropriate technology within these fairly mature areas, and to generate economically viable drilling opportunities. Wiser currently has over 2,500 square miles of proprietary or licensed 3D data within the Gulf Coast. We have also invested in geophysical modeling and processing software that allows pre- and post-stack data evaluation to be done in-house.

Within the U.S. onshore core area, we have ten ongoing exploration projects with over 50 defined but undrilled prospects in inventory. The key acreage is under lease on nearly all of these prospects. Two of the more important projects, the Sabine project and the Liberty project, were initiated in 2003 and are expected to generate numerous low to moderate risk drilling opportunities over the next several years.

The Sabine project, located in Beauregard Parish and Calcasieu Parish, Louisiana is a 157,000 acre block located immediately east of the Texas State line encompassing several active plays, including the prolific Frio, Hackberry, Yegua, and Wilcox trends. Multiple leads and prospects have been defined within this block to date, with drilling expected to commence in June 2004. We will be the operator of this project with a 45% working interest.

The Liberty project is located in Liberty County, Texas. A 51 square-mile proprietary 3D program was acquired in 2003 in this very active Yegua and Cook Mountain play. We co-operated the seismic acquisition and will operate drilling operations which are expected to commence mid-year 2004. Several prospects have been defined to date and interpretation of the seismic data continues. Our working interest in this project is 35%.

In addition to the Liberty and Sabine projects, we are actively exploring in several other areas of Texas and Louisiana. As a result of these efforts, we will have the opportunity to participate in a diverse set of exploration plays located in West Texas, South Texas, and in southeast Louisiana. The evaluation of these prospects is ongoing.

Offshore. To complement our stepped-up onshore exploration effort we continue to participate in offshore exploration in the Gulf of Mexico. Our offshore interests are concentrated in the shallow water (less than 350 feet) Louisiana shelf play. In 2003, we participated in seven wells, six of which were completed as producers for an 86% success rate. We have a 25% working interest in all of these wells except one, where we have a 12.5% working interest. From 2001, when we started work in the Gulf of Mexico, through March 2004, we have participated in drilling 19 offshore wells, 15 of which were completed as producers for a 79% overall success rate. We also have a working interest in a number of additional undrilled offshore blocks. Each of these blocks has a 3-D seismic defined prospect, and it is anticipated that many of these prospects will be proposed for our participation in the next three years.

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Canada

In addition to the exploitation and development of our existing fields, we are also committed to the exploration of new oil and gas fields in western Canada. With the aid of the latest 3-D seismic evaluation techniques, we continue to explore for high impact exploration opportunities in western Canada. Our exploration efforts are concentrated primarily in the western half of Alberta and in northeast British Columbia. These are historically prolific, gas prone areas where we have a significant acreage position, access to large grids of 3-D seismic data, and the technical expertise to uncover significant new reserves. During 2003, we participated in nine gross (six net) exploratory wells of which two were completed as successful oil or gas wells. We spent $6.1 million on exploration in Canada in 2003, compared to $3.1 million in 2002, and have budgeted approximately $7.7 million for our 2004 Canadian exploration program.

Wild River. The Wild River area of western Canada continues to supply us with multiple gas bearing targets ranging in depth from 5,000 to 14,000 feet. We have acquired a contiguous land base of approximately 26,000 gross acres of highly prospective lands on which we have identified 30 additional exploration and development locations. We are actively developing the Cretaceous aged “field pay” and the deeper Devonian gas pay in the area during 2004.

During March 2003, we made a significant new gas discovery below the main field pay in an underlying Devonian reservoir. The 15-30 well (50% working interest) was brought on stream in January 2004 and is currently producing at a gross rate of 20 MMcf per day. The 3-D seismic anomaly, which the 15-30 well targeted, appears sizeable enough to support one or two additional development locations. A follow-up well to the 15-30 discovery is planned for drilling during the summer of 2004.

Hinton Obed. Over the past several years, we have acquired seismic data over much of our large land base in the Hinton Obed area of western Alberta. During 2003, we began to harvest some of the opportunities that have been generated through our exploration efforts. During the spring of 2003, we participated in the re-entry of the 5-7 suspended well which was re-completed in two gas bearing zones. The 5-7 well was offset with the 13-8 well (16.6% working interest) during the fall 2003 which encountered the same two gas bearing zones. Production at 13-8 was brought on stream in early 2004.

Northeast British Columbia. Over the past 12 months, we have acquired a large land position in northeast British Columbia where discovery wells along this trend have produced gas rates of 25 to 100 MMcf per day per well. We have acquired 3-D seismic coverage over all of our lands in 2003 and have identified a seismic anomaly on our acreage. The Buick Creek exploration well (50% working interest) started drilling during the first quarter of 2004 and is expected to reach its target depth by late March 2004.

We are also working on several new exploration gas plays in Alberta and British Columbia ranging from early grass roots exploration through to land acquisition on defined drillable prospects. We currently plan to retain a 50% working interest in these projects, some of which could be drilled in 2004.

International

We did not participate in any other international exploration activity other than Canada in 2003 and currently have no plans to participate in future international exploration activities outside of Canada.

Marketing of Production

General. We market our production of oil, natural gas and NGLs to a variety of purchasers, including large refiners and resellers, pipeline affiliate marketers, independent marketers, utilities and industrial end-users. To help manage the impact of potential price declines, we have developed a portfolio of long-term and short-term contracts with prices that are either fixed or related to market conditions in varying degrees. Most of our production is sold pursuant to contracts that provide for market-related pricing for the areas in which the production is located.

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During the year ended December 31, 2003, revenues from the sale of production to Nexen Inc. and Sempra Energy Trading Corp. represented approximately 34% and 22%, respectively, of our total oil and gas revenues. We believe we would be able to locate alternate purchasers in the event of the loss of any one or more purchaser, and that any such loss would not have a material adverse effect on our financial condition or results of operations.

Crude Oil. We sell our crude oil and condensate to various refiners and resellers in the United States and Canada at posting-related and spot-related prices that also depend on factors such as well location, production volume and product quality. We typically sell our crude oil and condensate production at or near the well site, although in some cases it is gathered by us or others and delivered to a central point of sale. Our crude oil and condensate production is transported by truck or by pipeline and is typically committed to arrangements having a term of one year or less. Revenue from the sale of crude oil and condensate totaled $44.5 million for 2003 and represented 41% of our total oil and gas revenues for 2003.

From time to time, we enter into crude oil and natural gas price derivatives to reduce our exposure to commodity price fluctuation. See Item 7A. - “Quantitative and Qualitative Disclosures about Market Risk - Commodity Price Risk” and Note 1 to our Consolidated Financial Statements included elsewhere in this Report.

Natural Gas. We sell our produced natural gas and gathered gas to utilities, marketers, processor/resellers and industrial end-users primarily under market-sensitive, long-term contracts or daily, monthly or multi-month spot agreements. An insignificant amount of our natural gas is committed to long-term, fixed-price sales agreements. To accomplish the delivery and sale of certain natural gas, we have entered into long-term agreements with various natural gas gatherers that deliver our gas to points of sale on major transmission pipelines. We believe that we have sufficient production from our properties, and from those of others tied to our gathering and transportation system, to meet our delivery obligations under such agreements. Revenues from the sale of natural gas totaled $60.5 million for 2003 and represented 56% of our total oil and gas revenues for 2003.

NGLs. From our natural gas processing plants in West Texas, we sell NGLs to independent marketers for resale. A direct pipeline connection to the Texas Gulf Coast market area facilitates the sale of NGLs from our Wellman Unit, and enables us to receive prices that are representative of the daily market value of NGLs on the Texas Gulf Coast, less transportation and fractionation costs. Our average price in 2003 for NGLs sold from our operated plants or under processing agreements with others was $19.67 per Bbl. The value of NGLs attributable to natural gas sold to plants operated by others are generally included in the prices reported by us for the sale of our natural gas.

Price Considerations. Crude oil prices are established in a highly liquid, international market, with average crude oil prices received by us in both the U.S and Canada generally fluctuating with changes in the futures price established on the NYMEX for West Texas Intermediate Crude Oil (“NYMEX-WTI”). The average crude oil price per Bbl received by us in 2003 was $27.19. The average NYMEX-WTI closing price per Bbl for 2003 was $31.04.

Natural gas prices in each of the geographical areas in which we operate, including Canada, are closely tied to established price indices which are heavily influenced by national and regional supply and demand factors and the futures price per MMBtu for natural gas delivered at Henry Hub, Louisiana established on the NYMEX (“NYMEX-Henry Hub”). At times, these indices correlate closely with the NYMEX-Henry Hub price, but often there are significant variances between the NYMEX-Henry Hub price and the indices used to price our natural gas. Average natural gas prices received by us in each of our operating areas generally fluctuate with changes in these established indices. The average natural gas price per Mcf received by us in 2003 was $4.72. The average NYMEX-Henry Hub price per MMBtu for 2003 was $5.44, computed by averaging the closing price on the last three trading days of each month of the forward prompt month NYMEX natural gas futures contract price applicable to each month in 2003. The average natural gas price received by us in 2003 was lower than such 2003 NYMEX-Henry Hub price as a result of pricing differentials determined by the location of our natural gas production relative to the Henry Hub trading point and lower natural gas prices generally applicable to Canadian natural gas production relative to U.S. production. Sales of Canadian natural gas are priced in relation to AECO-C hub, which is a major pricing point for Canadian natural gas, and AECO-C prices have historically been lower than NYMEX. The average AECO-C price per MMBtu for 2003 was $0.80 lower than the average NYMEX price per MMBtu for the same period.

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Oil and Gas Reserves

The following table sets forth our proved developed and undeveloped reserves at December 31, 2003:

The following table summarizes our proved reserves, the estimated future net revenues from such proved reserves and the Present Value and Standardized Measure of Discounted Future Net Cash Flows attributable to such reserves at December 31, 2003, 2002 and 2001: