The present value, using a 10% discount rate, of the future net cash flows before income taxes of the Company's estimated proved oil and natural gas reserves at the end of 2005 is approximately $1.9 billion using oil and natural gas prices of $57.92 per barrel for oil and $10.21 per Mcf for natural gas. Such prices were based on the December 31, 2005 market prices, as adjusted for the Company's average basis differentials.
Bois d'Arc replaced 182% of its 2005 production of 21.9 Bcfe. Successful results from its 2005 exploration activities added approximately 67 Bcfe of new proved oil and natural gas reserves. The Company estimates that the 2005 discoveries have an additional 40 Bcfe in probable reserves. These reserve gains were partially offset by 28 Bcfe of performance related downward revisions to last year's reserve base.
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