Rex Energy's total proved oil and natural gas reserves as of December 31, 2009 increased 90% from 2008 year-end estimates to 125.2 billion cubic feet of natural gas equivalent ("Bcfe").
Rex Energy's total proved reserves for natural gas, crude oil and natural gas liquids ("NGLs") as of December 31, 2009 were 125.2 Bcfe, consisting of 11.5 million barrels ("MMBbls") of crude oil and NGLs and 56.2 billion cubic feet ("Bcf") of natural gas.
Proved reserves in the Appalachian Basin as of December 31, 2009, which consist of 100% natural gas and NGLs, increased 106% from 2008 year-end estimates to 63.4 Bcfe. In the Illinois Basin, proved reserves as of December 31, 2009, which consist of 100% crude oil, increased 75% from 2008 year-end reserves to 10.3 MMBbls.
The present value of future cash flows before income taxes and asset retirement obligations as of December 31, 2009, discounted at 10% ("PV-10"), totaled $190.5 million, an increase of 127% over December 31, 2008. PV-10 is a non-GAAP financial measure. See Footnote 1 to the table set forth below for a reconciliation of PV-10 to the standardized measure of discounted future net cash flows as defined by GAAP. The commodity prices used in the estimate were based on the 12-month unweighted arithmetic average of the first-day-of-the-month price for the period January 2009 through December 2009. For crude oil and NGL volumes, the average West Texas Intermediate posted price of $57.65 per barrel was adjusted by county for quality, transportation fees, and regional price differentials. For gas volumes, the average Henry Hub spot price of $3.87 per million British thermal units ("MMBTU") was adjusted by county for energy content, transportation fees, and regional price differentials. All prices were held constant throughout the lives of the properties, which Rex Energy refers to as the "SEC Case."
Rex Energy's proved reserves estimates for all of its oil and gas properties were prepared in accordance with the definitions and guidelines of the U.S. Securities and Exchange Commission ("SEC") by the independent reservoir engineering firm of Netherland, Sewell & Associates, Inc. ("Netherland"). In addition to the SEC Case proved reserves, Netherland also prepared estimates of Rex Energy's year-end proved reserves using two alternative commodity price assumptions.
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