Questar E&P Exits 2009 with 11% Production Increase

Questar E&P has reported 2009 production and year-end 2009 proved gas and oil reserves. The company also provided an update on recent well results in its core operating areas.

Questar E&P reports 2009 production of 189.5 Bcfe, up 11% from 2008

Questar E&P reported production of 189.5 Bcfe in 2009, compared to 171.4 Bcfe in 2008, an 11% increase. Natural gas comprised 89% of reported 2009 production. During the fourth quarter of 2009, Questar E&P net production was 55.4 Bcfe compared to 46.0 Bcfe in the 2008 quarter, a 20% increase. Fourth-quarter 2009 production volumes benefited from flush production from wells returned to sales after price-related shut-ins and curtailments in the second and third quarters, and the completion during the fourth quarter of an inventory of standing drilled and cased wells. Questar E&P exited 2009 with net production of approximately 600 MMcfe per day. “I’m proud of the superb execution of our talented asset management teams across our entire organization,” said Chuck Stanley, Questar E&P President and CEO. “Driven by strong well results from the Haynesville Shale play in NW Louisiana, and the Woodford Shale ‘Cana’ play in Oklahoma, almost half of our fourth-quarter 2009 production came from the Midcontinent region. While Rockies region production typically declines during the first and second quarters of each year due to the deferral of well completions during the winter months, we are on track to grow Questar E&P production to 210-215 Bcfe in 2010.”

Questar E&P reports year-end 2009 proved gas and oil reserves of 2.75 Tcfe, up 24% from year-end 2008

Questar E&P reported estimated proved gas and oil reserves of 2.75 Tcfe at December 31, 2009, up 24% from 2.22 Tcfe at year-end 2008. Including all sources, and primarily price-related revisions, Questar E&P replaced 379% of 2009 production. Production replacement from additions was 537%. Proved developed reserves comprised 1.34 Tcfe, or 49% of year-end 2009 proved reserves. The number of proved developed and proved undeveloped locations booked in each major play, along with the company’s estimate of remaining unbooked locations at a specific ultimate well density, is included in the operational updates below. Questar E&P’s estimated proved reserves at December 31, 2009 were prepared by Ryder Scott Company, L.P., independent petroleum engineers, in accordance with Securities and Exchange Commission guidelines. Estimated proved reserves are 92% natural gas. During 2009, Questar E&P invested total capital of $1.056 billion, of which approximately $215 million was for the acquisition of non-producing leasehold in the company’s core plays in the Rockies and Midcontinent.