Mariner Bumps Up Proved Reserves by 17% in 2008

Mariner has announced results of an independent, fully-engineered analysis of the company's proved and probable reserves prepared by the Ryder Scott Company, L.P. The report utilizes hydrocarbon prices in effect at December 31, 2008 of $44.61 per barrel for oil and $5.71 per million British Thermal Units for gas in accordance with Securities & Exchange Commission (SEC) requirements.

Highlights from the report and year-end operations review include:

  • Estimated proved reserves increased 17% to a record 973.9 Bcfe.
  • Mariner achieved a reserve replacement rate of 217% from all sources at an all-in reserve replacement cost, net of hurricane expenditures, of $4.96 per thousand cubic feet equivalent (Mcfe), excluding probable and possible reserves.
  • Including probable reserves estimated by Ryder Scott at 285 Bcfe, Mariner's estimated proved and probable reserve base exceeds 1.25 trillion cubic feet of natural gas equivalent.
  • 70% of Mariner's estimated proved reserves are proved developed.

Commenting on Mariner's year-end reserves, CEO Scott D. Josey said, "Mariner's proved reserves increased across each of its core areas during 2008. Although we achieved significant reserve growth, delays in the completion of several offshore projects due to the effects of Hurricanes Ike and Gustav reduced our reserve growth. As a result, we booked a relatively small amount of proved reserves on these projects despite substantial capital outlays for them. In 2009, we expect to add significant incremental proved reserves attributable to these projects when they are completed or come online. The company wrote down 29 Bcfe of proved reserves due to low year-end commodity prices, but we expect these reserves to be restored if drilling and completion costs adjust to the current commodity price environment."