Harvest's Year-End Reserves Increase to 220.9 Million
Harvest Energy announced a summary of its 2007 year end reserves information. Unless otherwise indicated, all reserves stated herein are gross reserves (before royalty burdens and without including royalty interests), based on forecast prices and costs, except where indicated.
Through successful drilling, optimization and acquisition activities, year-end 2007 Proved plus Probable ("P+P") reserves have increased to 220.9 million barrels of oil equivalent ("mmboe") (2006 - 219.9 mmboe).
Harvest has successfully replaced approximately 104% of our 2007 production on a P+P basis through acquisition and positive additions from a capital program, including 5.7 mmboe of additions related to the enhanced recovery programs at Wainwright, Bellshill and Suffield.
Proved Developed Producing reserves continue to represent a high percentage (approximately 85%) of total Proved reserves. Total Proved reserves represent approximately 70% of total P+P reserves.
Development and exploration capital as well as enhanced oil recovery investments totaled $297.6 million and added net 12.7 mmboe resulting in Finding & Development ("F&D") costs on a P+P reserve basis before Future Development Capital ("FDC") of $23.35 per boe, and including FDC of $28.10 per boe(1).
Based on total capital spending of $438.8 million including acquisitions, Finding, Development and Acquisition ("FD&A") costs, before FDC, are $19.08 per boe on a P+P reserve basis. Including FDC, the P+P FD&A costs are $22.97 per boe(1).
Reserve Life Index of approximately 10 years (P+P) based on 2007 production of approximately 60,000 boe/d.
The net present value (NPV) (before taxes, discounted at 10%) of Harvest's P+P reserves increased 12% to $3,675.1 million (2006 - $3,276.9 million), while the NPV of total Proved reserves increased 12% to $2,865.8 million (2006 - $2,562.0 million).
Harvest's independent reserve evaluators confirmed that the impact under the most likely scenario of the new Alberta royalty regime to be implemented in 2009 would result in a reserves net present value impact of less than 1% to Harvest.
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