Quest Energy Partners Increase Reserves by 7%
Quest Eenrgy Partners reported that total year-end 2007 proved reserves were 211.1 billion cubic feet of natural gas equivalents (bcfe), a 7% increase over the year-end 2006 proved reserves of its predecessor. These proved reserves had a Standardized Measure of $322.5 million. Standardized Measure is the present value of estimated future net revenues to be generated from the production of proved reserves, determined using prices and costs in effect as of the date of estimation and discounted using an annual discount rate of 10%.
Approximately 99% of the company's proved reserves were natural gas; approximately 67% of which were proved developed and 33% of which were proved undeveloped. The increase in proved reserves was driven by the 2007 drilling and development program and does not include the estimated 0.71 million barrels of total proved oil reserves added to the Partnership as a result of the previously announced acquisition which closed in early February.
The Partnership's reserves are long-lived, with an average proved reserve-to-production ratio of 12.3 years (8.2 years for its proved developed properties) as of December 31, 2007. The Partnership's typical Cherokee Basin coalbed methane (CBM) well has a predictable production profile and a standard economic life of approximately 15 years.