St. Mary Land & Exploration Company reported its year-end 2007 estimated proved reserves for the Company and provides updated production and financial guidance for 2007.
Tony Best, President and CEO, comments, "St. Mary had a strong finish to 2007. We are increasing our production forecast for the fourth quarter and will achieve a new annual production record with expected production growth exceeding 15 percent for the year. Additionally, the Company has reached a major milestone with proved reserves exceeding 1 TCFE resulting in another year of solid reserve replacement."
Estimated proved oil and gas reserves as of December 31, 2007, increased 17 percent to 1,087 Bcfe from 928 Bcfe as of year-end 2006. These reserves are 56 percent natural gas and 23 percent proved undeveloped. Unaudited acquisition, development, and exploration costs for the year were approximately $927 million for 2007, which included $28 million in costs related to asset retirement obligations.
St. Mary estimates its basis differential for the fourth quarter of 2007 will be $5.50 to $6.50 per Bbl of oil. The Company estimates that it will receive a premium to NYMEX in the range of $0.00 to $0.10 per Mcf of gas as a result of the strong natural gas liquids prices experienced in the fourth quarter.
The 2007 production range above includes production from the properties sold in the previously announced divestiture of non-strategic oil and gas assets. Production from these properties totaled approximately 5 BCFE for 2007.
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