El Paso Increases Proved Reserves by 18%
El Paso Corporation reported that its proved natural gas and oil reserves at December 31, 2007, totaled 3.1 trillion cubic feet equivalent (Tcfe), including 256 billion cubic feet equivalent (Bcfe) related to its proportionate interest in Four Star Oil & Gas Company (Four Star). Below is a reconciliation of consolidated proved reserves from December 31, 2006 to December 31, 2007, and a summary of El Paso's 48.8-percent interest in Four Star Proved reserves at December 31, 2007.
"I am very pleased with the results of our 2007 drilling program, our producing property acquisitions, and the growth in our proved reserves," said Brent Smolik, president of El Paso Exploration & Production Company. "We hit all of our major goals, including an 8 percent production increase, growth of our proved reserves, and improvement in per-unit lease operating expense and cash flow."
El Paso E&P's 2007 oil and gas capital expenditures were $2,589 million, which included $1,178 million for acquisitions and $230 million of international expenditures. Approximately 72 percent of the December 31, 2007 proved reserves are proved developed, and 80 percent are natural gas, including Four Star.
El Paso has announced its intention to sell up to approximately 300 Bcfe of proved reserves as part of its portfolio high-grading initiative. These reserves are included in year-end amounts, and the company's goal is to close the divestitures by March 31, 2008. The sales process is ongoing, and the company previously announced that it has agreements to sell properties with an estimated 191 Bcfe of proved reserves.
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