During 2004, the Company replaced 732% of the 32 Bcfe produced in 2004. Of that, purchases of proved reserves added 170.8 Bcfe (534%), extensions and discoveries added 46.8 Bcfe (146%), and net revisions added another 16.6 Bcfe (52%). The following table summarizes these changes in proved reserves during 2004 on a Bcfe basis.
Bcfe ---- Total proved reserves, 12/31/03 124.9 Purchases 170.8 Extensions and discoveries 46.8 Net revisions 16.6 Sales (28.1) Production (32.0) Total proved reserves, 12/31/04 299.0
All of the purchases of proved reserves in 2004 were related to the acquisition of Southwest Royalties, Inc. in May 2004. More than half of the extensions and discoveries for 2004 were attributable to the Company's exploration program in south Louisiana. Approximately 66% of the net upward revisions were attributable to improved well performance primarily from properties acquired through Southwest Royalties and the remainder was attributable to the effects of higher product prices on the estimated quantities of proved reserves.
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