El Paso Reports 4% Production Growth for 2006
El Paso Corp. on Thursday said that its proved natural gas and oil reserves at December 31, 2006, totaled more than 2.6 trillion cubic feet equivalent (Tcfe), including 222 billion cubic feet equivalent (Bcfe) related to its proportionate interests in Four Star Oil & Gas Company (Four Star).
For the year, production averaged 798 million cubic feet equivalent per day (MMcfe/d), including 68 MMcfe/d from Four Star. For the second consecutive year, reserve revisions due to performance were positive. Below is a reconciliation of consolidated proved reserves from December 31, 2005 to December 31, 2006, and a summary of El Paso's 43.1-percent interest in Four Star Proved reserves at December 31, 2006.
Consolidated Proved Reserves Bcfe at Dec. 31, 2005 2,415 Production (266) Net Sales (20) Additions 299 Acquisitions 2 Revisions due to Price (54) Revisions due to Performance 39 Bcfe at Dec. 31, 2006 2,415 El Paso's Interest in Four Star Proved Reserves Four Star at December 31, 2006 (Bcfe) 222
El Paso E&P's 2006 oil and gas capital expenditures were $1.193 million, and consolidated reserve replacement costs were $4.17 per Mcfe. Consolidated reserve replacement costs were $3.51 per thousand cubic feet equivalent (Mcfe) before price-related reserve revisions.
Approximately 73 percent of the December 31, 2006 proved reserves are proved developed, and 79 percent are natural gas, including Four Star.
2007 Production and Capital Guidance
Including El Paso's proportionate share of Four Star, the company expects to produce an average of 800 MMcfe/d to 860 MMcfe/d in 2007, which at its midpoint, is a 4-percent increase from 2006 production. Production at Four Star is expected to be between 60 MMcfe/d to 65 MMcfe/d in 2007. The 2007 capital program is planned at $1.7 billion, including $255 million to acquire south Texas producing and undeveloped properties in January 2007 and $85 million of capital for the further development of these properties. In addition, the 2007 capital program includes $200 million for Brazil, primarily for the Camamu Basin development program, which is expected to begin production in 2008 and reach a level of 50 MMcfe/d to 75 MMcfe/d before the end of 2008. Drilling operations for this program are currently underway.
El Paso will provide full details on its 2007 plan for its pipeline and E&P businesses during its February 21, 2007 analyst meeting. The company has scheduled a live webcast of this meeting, which will begin at 8:00 a.m. Eastern Time. A detailed agenda, presentation slides, and the audio webcast of the day's meeting will be available through the company's Web site at http://www.elpaso.com in the Investors section one hour before the presentations begin.
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Company: Four Star Oil & Gas Co. more info
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