James C. Flores, Chairman, President and CEO of PXP commented, "The quality of our people and portfolio continue to stand out as we reported significant progress in growing production and reserves. During 2009, we increased production sales volumes by 8% over 2008, excluding the impact of our 2008 divestments, and grew total proved reserves by 23% over 2008 year-end amounts. Our Flatrock development in the Gulf of Mexico and our accelerated Haynesville Shale project are the primary drivers of this growth. Our Gulf of Mexico exploration program delivered a number of discoveries adding to our potential future development project inventory. We participated in discoveries at the Davy Jones prospect on South Marsh Island Block 230 announced in January 2010, the Lucius prospect on Keathley Canyon Block 875, and the Blueberry Hill prospect on Louisiana State Lease 340. PXP is in an enviable position with a balanced, geographically diverse, lower-risk portfolio of producing properties, which underpin our long-term growth strategy. These are the catalysts supporting our average annual reserve growth target of 20% and production growth target of 10% over the next several years."
Year-end estimated proved reserves of 359.5 million BOE were 60% oil and 40% natural gas. Further, estimated proved reserves were 64% developed and 36% undeveloped. The estimated reserves are based on the twelve-month average West Texas Intermediate oil price of $61.18 per barrel and Henry Hub natural gas price of $3.87 per million British thermal units.
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