Resaca Ramps Up Reserves in Permian Basin
Resaca announced an updated reserve study as of June 30, 2010 for the Company's oil and gas properties and to provide an update on the Company's operations in the Permian Basin.
As of 30 June 2010, Resaca's proved and probable (2P) reserves were 27.2 million barrels (MMbbls) of oil and 14.9 billion cubic feet (Bcf) of natural gas, for a total of 29.7 million barrels of oil equivalent (MMboe). The Company's proved reserves represented 48% of the 2P reserves. Additionally, Resaca's possible reserves were 5.5 MMbbls of oil and 3.5 Bcf of natural gas as of June 30, 2010 for total proved, probable and possible (3P) reserves of 32.7 MMbbls of oil and 18.4 Bcf of natural gas (35.8 MMboe). All reserves are calculated on a net revenue interest basis (working interest volumes, less royalties).
Resaca commissioned Haas to prepare a reserve report for its primary and secondary recovery (water injection) reserves and Williamson to prepare a reserve report considering only those additional reserves which could be recovered through tertiary recovery (CO2 injection). Together, these reports provide a complete analysis of Resaca's reserves.