ProEx Energy Ltd. announces today the operational and financial results for the year ended December 31, 2007.
2007 ACCOMPLISHMENTS
Reserves
- Total proved plus probable reserves at December 31, 2007 increased 68 percent to 52.9 million boe compared to 31.5 million boe in 2006.
- Total proved reserves at December 31, 2007 increased 65 percent to 35.7 million boe compared to 21.7 million boe in 2006.
- Proved plus probable reserves per thousand basic shares increased 26 percent over the prior year while proved plus probable reserves per one thousand diluted shares increased 32 percent during the same period.
- Reserve growth in 2007 was achieved through the exploration and development program as well as two strategic acquisitions during the year. The 2007 capital investment of $302.7 million was divided approximately 50 percent each between exploration and development activities and acquisitions.
- The 2007 activity replaced 787 percent of production on a proved plus probable basis and 553 percent on a proved basis.
- Since July 2004, when the Company commenced operations, ProEx has booked approximately 340 bcf equivalent of proved plus probable reserves primarily in the Foothills project area.
- ProEx's net asset value per share at December 31, 2007 was $14.35 per basic share and $13.25 per diluted share ($11.90 and $10.49 respectively per share in 2006) using GLJ forecasted prices discounted at eight percent.
Capital Efficiency
- Finding and development costs ("F&D"), which represents the efficiency of the Company's ongoing exploration and development program, related to the total 2007 capital program (including technical revisions and the change in future development capital) were $16.60 per boe proved and $12.33 per boe proved plus probable. This translates into a recycle ratio of 2.14 times on a proved plus probable basis.
- Finding, development and net acquisition costs ("FD&A") related to the total 2007 capital program which includes the asset acquisitions (including technical revisions and the change in future development capital) were $19.70 per boe proved and $14.29 per boe proved plus probable.
- The cumulative F&D costs since inception of the Company (including technical revisions and the change in future development capital) for the period July 1, 2004 to December 31, 2007 are $14.69 per boe proved and $11.00 per boe proved plus probable. The cumulative FD&A costs since inception of the Company (including change in future development capital) for the period July 1, 2004 to December 31, 2007 are $16.31 per boe proved and $12.06 per boe proved plus probable.
Operations
- Average 2007 production was 8,509 boe per day compared to 5,285 boe per day during the same period in 2006, an increase of 61 percent while production per diluted share increased 28 percent during the same period.
- 2007 fourth quarter production averaged 9,680 boe per day compared to 6,080 boe per day in the fourth quarter of 2006, an increase of 59 percent while production per diluted share increased 25 percent during the same period.
- Natural gas production was 52,917 mcf per day during the fourth quarter of 2007 compared to 33,505 mcf per day in the fourth quarter of 2006.
- Crude oil and natural gas liquids production averaged 860 bbls per day during the fourth quarter of 2007 compared to 495 bbls per day in the fourth quarter of 2006.
- The Company drilled 70 gross wells (45.5 net) during the year with a 93 percent net success rate, resulting in 64 natural gas wells (42.3 net).
- During the year, the Company increased net undeveloped land to 433,000 net acres from 271,000 net acres at December 31, 2006. At December 31, 2007 undeveloped lands under the control of ProEx, including option acreage, is approximately 465,000 acres.
Financial
- Petroleum and natural gas revenue increased 57 percent to $132.2 million for the year compared to $84.0 million during the prior year.
- Average natural gas prices for 2007 were $6.64 per mcf down from $6.84 per mcf in 2006.
- Funds generated from operations increased 70 percent to $73.8 million ($1.40 per diluted share) for the year compared to $43.5 million ($1.04 per diluted share) during the prior year resulting in a 35 percent increase to funds generated from operations per diluted share.
- Net earnings for the year was $20.1 million ($0.38 per diluted share) a 32 percent increase over the $15.2 million ($0.36 per diluted share) recorded in the prior year.
- Capital investment for 2007, excluding net property acquisitions (dispositions), was $150.2 million, slightly lower than the prior year at $151.5 million. Total capital investment, including the two strategic Foothills acquisitions during the year was $302.7 million compared to $152.2 million in 2006.
- Bank debt and working capital deficiency was $111.0 million at December 31, 2007 on a $185 million demand revolving operating credit facility available at year end.
2008 Activity Update
- The Company commenced operations in January with six rigs operating in the foothills and currently has four rigs operating. Drilling operations are scheduled to be completed in mid March with the balance of the activity until break up to consist of well completions and well tie-ins.
- Current production is approximately 11,300 boe per day and program results are on track for production to reach approximately 13,000 boe per day by early April. -- www.cnxmarketlink.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
