Bois d'Arc Posts Higher Earnings for Q2

Bois d'Arc Energy (NYSE: BDE) reported financial and operating results for the quarter and six months ended June 30, 2007.

Second Quarter 2007 Financial Results:

Bois d'Arc reported net income of $17.4 million, or 26 cents per diluted share, for the three months ended June 30, 2007 as compared to 2006's second quarter net income of $14.8 million, or 23 cents per diluted share. Bois d'Arc's second quarter 2007 results reflect strong production growth and higher natural gas prices offset by $18.0 million in exploration costs primarily related to three unsuccessful exploratory wells drilled in the second quarter.

Bois d'Arc's production in the second quarter of 2007 increased to 10.7 billion cubic feet equivalent of natural gas ("Bcfe"), which was 47% higher than production of 7.3 Bcfe in the second quarter of 2006. The Company's realized natural gas price averaged $7.74 per Mcf in 2007's second quarter which was 13% higher than the $6.84 per Mcf realized in 2006's second quarter. Realized oil prices in the second quarter of 2007 averaged $66.28 per barrel and were 4% lower than the average oil price of $69.31 per barrel for 2006.

The impact of the strong production growth and the higher natural gas prices was a 53% increase in Bois d'Arc's second quarter oil and gas sales which were $91.0 million as compared to 2006's second quarter sales of $59.6 million. The higher revenues also drove cash flow higher in the quarter. Operating cash flow (before changes in working capital accounts) of $72.9 million in the second quarter was 67% higher than 2006's second quarter cash flow of $43.8 million. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses was $77.9 million, a 66% increase over 2006's second quarter EBITDAX of $47.1 million.

For the six months ended June 30, 2007, Bois d'Arc reported net income of $29.3 million or $0.44 per diluted share as compared to net income of $31.6 million ($0.49 per diluted share) for the six months ended June 30, 2006. Oil and gas sales for the first half of 2007 were $167.2 million as compared to $121.4 million for the six months ended June 30, 2006. Production in the first half of 2007 totaled 20.6 Bcfe, an increase of 45% over production of 14.3 Bcfe for the same period in 2006.

Prices realized by the Company during the six months ended June 30, 2007 averaged $7.43 per Mcf of natural gas and $62.55 per barrel of oil as compared to $7.60 per Mcf of natural gas and $65.31 per barrel of oil in the same period in 2006. Bois d'Arc's operating cash flow (before changes in working capital accounts) for the six months ended June 30, 2007, was $128.0 million as compared to $88.1 million in the same period in 2006. EBITDAX totaled $139.5 million in the first half of 2007 as compared to $94.8 million in the first half of 2006.

In connection with the Company's review of strategic alternatives that was announced on June 5, 2007, Bois d'Arc's independent petroleum engineers have completed a determination of the Company's proved oil and natural gas reserves.

As of June 1, 2007, the Company's proved oil and natural gas reserves were estimated at 250 billion cubic feet ("Bcf") of natural gas and 25.7 million barrels of crude oil or 404 Bcf equivalent of natural gas ("Bcfe"), as compared to total proved oil and natural gas reserves as of December 31, 2006 of 344 Bcfe. Natural gas reserves account for 62% of total proved reserves and 75% of the total proved reserves were classified as proved developed. Bois d'Arc operates 98% of its proved reserve base.

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 as of June 1, 2007 was approximately $2.0 billion using June 1, 2007 market oil and natural gas prices of $60.87 per barrel for oil and $8.27 per Mcf for natural gas.

Since the Company's last update on its drilling activity which was provided on June 5, 2007, Bois d'Arc has commenced drilling the OCS-G-0063 #8ST1 at Ship Shoal block 93 to test its "Walleye" prospect. Bois d'Arc plans to drill the well to a total depth of 15,000 feet and is currently setting protective pipe in the well below 13,000 feet. Five prospective reservoirs have been encountered so far and the well looks to be successful. Bois d'Arc is also drilling its ultra deep "Butch Cassidy" prospect, which is now drilling below 15,000 feet.

Bois d'Arc Energy is a growing independent exploration company engaged in the discovery and production of oil and natural gas in the Gulf of Mexico.

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