Delta Petroleum estimates that 2007 year-end proved reserves will approximate 376 billion cubic feet equivalent (Bcfe), which represents an increase of 24% over proved reserves at December 31, 2006. After adjusting for 2007 property purchases and sales, net proved reserve additions increased by 44% over year-end 2006 levels, and reserve replacement was 512%. Reserve growth was primarily achieved through acceleration of drilling activity on the Company's properties in the Piceance Basin, combined with some additions in the Greentown Field of the Paradox Basin and the Cowboy Field in the DJ Basin. Estimated production for 2007 totaled 17.8 Bcfe, for an increase of 11% over 2006 production levels, with most of the increase being realized in the second half of 2007.
The following information is preliminary and is subject to final review by the Company's independent reserve engineers in connection with the preparation of the 2007 Form 10-K, which will be filed with the Securities and Exchange Commission at the end of February 2008.
Fourth quarter 2007 estimated production set a Company record at 5.03 Bcfe, which was in the middle of the range of previously provided production guidance and an increase of 34% from production levels in the fourth quarter of 2006.
For the first quarter of 2008, the Company expects production to increase 5% to 9% from fourth quarter 2007 levels, for a total of 5.28 - 5.48 Bcfe. The Company reiterates its full year 2008 production guidance, which anticipates a 40% to 60% increase from 2007 production levels, to a range of 24.8 - 28.4 Bcfe.
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