Rex Energy Corporation reported that its estimated total proved reserves of natural gas and crude oil as of December 31, 2007 increased 10% to 15.9 Mmboe (or 95 Bcfe), as compared with 14.5 Mmboe (or 87 Bcfe) at year-end 2006. The 2007 reserves are comprised of 18.5 Bcf of natural gas and 12.8 million barrels of crude oil. Of the 15.9 Mmboe of total proved reserves, 78% are categorized as proved developed, while 22% are proved undeveloped.
The present value of future cash flows before income taxes as of December 31, 2007, discounted at 10% (SEC PV10), totaled $392.1 million, utilizing year-end pricing of $6.79 per mcf for natural gas and $92.50 per barrel of crude oil. This represents a 96% increase over the $200.3 million of present value reported at year-end 2006. These estimates are based on an independent engineering study of Rex Energy's oil and gas properties prepared by Netherland, Sewell & Associates, Inc.
Benjamin Hulburt, CEO, stated, "We are very pleased with this increase in our proven reserves. During 2008, we plan to continue to grow our proven reserves as we develop our extensive asset base, including our enhanced oil recovery project in the Illinois Basin and our Marcellus Shale position in the Appalachian Basin."
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