XTO Energy announced that Miller and Lents, Ltd., independent petroleum engineers, estimate XTO's proved oil and gas reserves at December 31, 2008 to be a record 13.86 trillion cubic feet of gas equivalent (Tcfe), up 23% compared with 11.29 Tcfe at December 31, 2007.
Natural gas reserves increased 25% to 11.80 Tcf, and natural gas combined with natural gas liquids of 76 million barrels equaled 88% of total reserves.
Oil reserves increased 11% to 267 million barrels. Proved developed reserves accounted for 64% of total proved reserves on an equivalent basis.
During 2008, XTO Energy added 3.43 Tcfe at a cost of $4.43 per thousand cubic feet of gas equivalent (Mcfe), replacing 401% of production. The Company's development program replaced 168% of production or 1.44 Tcfe at a cost of $4.15 per Mcfe.
Including revisions and excluding unproved property additions from leasing activities, development costs were $2.70 per Mcfe. Excluding revisions and unproved property additions from leasing activities the Company replaced 267% of production or 2.28 Tcfe for development costs of $1.70 per Mcfe.
In due respect of the changing guidelines of the Securities and Exchange Commission (SEC) reporting of reserves in 2009, the Company has recalculated the volumes and value of its 2008 proved reserves at a price base of $7.50 for natural gas and $75.00 for oil while using average basis differentials for the year.
At these prices, we estimate XTO's proved oil and gas reserves at December 31, 2008 to be 14.66 trillion cubic feet of gas equivalent (Tcfe), up 30% compared with 11.29 Tcfe at December 31, 2007. Natural gas reserves increased 31% to 12.36 Tcf, and natural gas combined with natural gas liquids of 83 million barrels equaled 88% of total reserves. Oil reserves increased 25% to 302 million barrels. The present value of estimated future net cash flows before income taxes is $34.2 billion. (1) The prospective SEC case, which takes effect for year-end 2009, would have utilized $9.04 for natural gas and $101.65 for oil in the reserves evaluation.
"As we embark in 2009, our direction is focused on a development campaign for the growth platforms we built through 2008," stated Keith A. Hutton, Chief Executive Officer. "We have dedicated $2.75 billion for projected growth of 14% and expect effective capital returns with development costs between $1.50 and $1.70. As industry and economic conditions change, we maintain flexibility to accelerate our value growth accordingly."
XTO Energy Inc. is a domestic energy producer engaged in the acquisition, development and discovery of quality, long-lived oil and natural gas properties in the United States.
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