Williams reported that its domestic and international proved natural gas and oil reserves as of Dec. 31, 2007, increased to approximately 4.3 trillion cubic feet equivalent (Tcfe).
Reserves in the United States increased 12 percent to approximately 4.14 Tcfe, compared with approximately 3.7 Tcfe a year earlier. More than 99 percent of Williams' U.S. proved reserves are natural gas.
Williams attributed the majority of its U.S. reserves additions to the rapid development of its drilling inventory, particularly in Colorado and Wyoming.
In 2007, Williams had a drilling success rate of approximately 99 percent. The company participated in 1,590 gross wells in the U.S., of which 1,581 were successful.
Williams' development activities in 2007 resulted in a total net addition of 776 billion cubic feet equivalent (Bcfe) in net reserves. Williams added a total of 597 Bcfe in net reserves in 2006 and a total of 620 Bcfe in net reserves in 2005. The company's three-year average U.S. finding and developing cost was $1.77 per thousand cubic feet equivalent (Mcfe).
For the fifth consecutive year, Williams replaced more than 200 percent of its production. In 2007, Williams replaced its U.S. wellhead production of 334 Bcfe at a rate of 232 percent. A reserves reconciliation follows the main text in this news release.
"Our drilling and production success is driven by a determination to do things the right way," said Ralph Hill, president of Williams' exploration and production business.
"All across our operations, from Burleson, Texas, to Buffalo, Wyo., we're focused on safety, stewardship and increasing the nation's supply of clean-burning natural gas.
"I'm so impressed with the tools our people bring to the table when it comes to using their talent and the new technology that's available to responsibly develop Williams' world-class reserves," Hill added.
Over the past five years, Williams has now participated in the development of more than 7,000 new natural gas wells in the U.S., helping increase the company's total proved reserves by more than 50 percent from 2003 to 2007.
International reserves were approximately 26 million barrels of oil equivalent at year-end 2007, compared with approximately 27 million barrels of oil equivalent in 2006.
Fifty-eight percent of Williams' international proved reserves are crude oil and liquids. The remainder is natural gas. Williams' international reserves are located in Argentina.
Average daily production from domestic and international interests was approximately 960 million cubic feet of gas equivalent (MMcfe) in 2007, an increase of approximately 20 percent compared with 803 MMcfe for the same period in 2006.
Production solely from interests in the United States increased 21 percent to 913 MMcfe per day, compared with 752 MMcfe per day in 2006.
Williams also achieved a major production milestone in late 2007. Average daily production from domestic and international interests during the fourth quarter topped 1 Bcfe per day for the first time in Williams' history. One billion cubic feet of production represents enough natural gas to meet the daily energy needs of more than 4 million homes.
Williams' exploration and production business primarily develops natural gas reserves in the Piceance, Powder River, San Juan, Fort Worth and Arkoma basins in the U.S.
Approximately 98 percent of Williams' year-end 2007 U.S. proved reserves estimates were audited by Netherland, Sewell & Associates, Inc., who in their judgment determined the estimates to be reasonable in the aggregate for each basin.
Most Popular Articles