Magnum Hunter Reports Mid-Year Proved Reserves
Magnum Hunter Resources, Inc. estimates its proved reserves, based upon in-house engineering, as of June 30, 2002 to be 934 Bcfe.
The estimated present worth of the proved reserves, discounted at 10%, before income taxes, was $1.1 billion. This represents an increase of 22 Bcfe from the pro forma proved oil and gas reserves (with the acquisition of Prize Energy Corp.) as of December 31, 2001, which provided for an estimated present worth at that time of $763 million. Additionally, the Company's in-house petroleum engineers have estimated the net probable reserves attributable to Magnum Hunter are approximately 248 Bcfe.
This increase in proved reserves is after production for the six months ended June 30, 2002 of 33.4 Bcfe, which represents a reserve replacement rate of 166%. This represents a 121% increase in production reported by Magnum Hunter when compared to the first six months of fiscal year 2001, which was 15.1 Bcfe.
Oil prices used in the mid-year 2002 evaluation were $24.97 per barrel and natural gas prices were $3.09 per thousand cubic feet. This compares to oil prices used in the year-end 2001 evaluation of $17.94 per barrel and natural gas prices of $2.57 per thousand cubic feet. Commodity prices for both reserve reports were held constant throughout the life of the properties.
Proved developed producing reserves represent 67% of total proved reserves. The reserve life index for Magnum Hunter as of June 30, 2002 was 11.6 years.