EPL Reports Recently Evaluated Year-End 2012 Probable Reserve Estimates
18 Marzo 2013 - 1:00PM
EPL Oil & Gas, Inc. (EPL or the Company) (NYSE:EPL) today
reported probable reserve estimates provided by its third party
engineering firm, Netherland, Sewell & Associates, Inc. (NSAI)
totaling 15.9 million barrels of oil equivalent (Boe) as of
year-end 2012.
Highlights
- Oil-weighted probable reserves of 15.9 Mmboe (66% oil),
representing a 13% increase year over year
- Excludes any probable reserves associated with the recently
acquired Hilcorp assets; evaluation of those assets is ongoing
- Year-end 2012 PV-10 estimated at $2.5 billion for 2P reserves
using SEC prices (see discussion of PV-10 in the appendix)
As previously reported, EPL's proved reserves at year-end 2012
stood at 77.4 Mmboe (61% oil), representing an increase of 109%
compared to estimated proved reserves at the prior year-end. EPL's
third party engineering firm, NSAI, recently evaluated probable
reserves associated with the Company's proven reserve base at
year-end 2012 totaling 15.9 million Boe, up 13% from year-end 2011.
The estimated probable reserves are comprised of 66% oil and 52%
are related to performance of the proved developed reserves and
therefore have no associated capital requirements. Probable
reserves associated with EPL's recent Hilcorp acquisition of
oil-weighted properties have not been evaluated; therefore the
probable reserves and value from those properties are not included
in any of the figures included in this press release. The
evaluation of probable reserves associated with the acquired
Hilcorp assets will be completed during the year.
The estimated present value of the future net cash flows before
income taxes of the Company's evaluated probable oil and natural
gas reserves at the end of 2012 using a discount rate of 10%
(PV-10) was approximately $0.5 billion as calculated consistent
with SEC guidelines and pricing. On a 2P basis (meaning both proved
and evaluated probable reserves), the Company's PV10 value at the
end of 2012 was approximately $2.5 billion. All estimated
development, P&A and decommissioning costs are included in the
calculation of PV-10 (calculation excludes any probability
weighting; PV-10 is a non-GAAP measure; see table below and
discussion of PV-10 in the appendix).
2P RESERVES AND PV-10
VALUES |
|
|
|
|
|
Reserve Category |
Oil (Mmbo) |
Gas (Bcf) |
Mmboe |
PV10 YE ($Billion)(1) |
Proved Developed |
37.9 |
120.7 |
58.0 |
1.5 |
Proved Undeveloped |
9.5 |
59.3 |
19.4 |
0.5 |
Proved (1P) |
47.4 |
180.0 |
77.4 |
2.0 |
Probables (2) |
10.5 |
32.4 |
15.9 |
0.5 |
Proved + Probables (2P) (2) |
57.9 |
212.4 |
93.3 |
2.5 |
|
|
|
|
|
(1) The estimated present value
of the future net cash flows before income taxes of the Company's
estimated proved and evaluated probable oil and natural gas
reserves at the end of 2012 using a discount rate of 10% (PV-10) as
calculated consistent with SEC guidelines and 2012 proved pricing
of $105.13 per barrel of oil and $2.92 per Mcf of natural gas, and
2012 probable pricing of $109.39 per barrel of oil and $2.74 per
Mcf of natural gas. |
(2) Excluding any probable
reserves associated with the Hilcorp assets |
All of the Company's probable reserves are based upon third
party engineering estimates prepared by NSAI. All of EPL's proved
reserve figures are based upon third party estimates prepared by
NSAI (all properties other than the properties acquired from
Hilcorp) and W.D. Von Gonten & Co. (Hilcorp properties).
Description of the Company
Founded in 1998, EPL is an independent oil and natural gas
exploration and production company based in New Orleans, Louisiana,
and Houston, Texas. The Company's operations are concentrated in
the U.S. Gulf of Mexico shelf, focusing on the state and federal
waters offshore Louisiana. For more information, please visit
www.eplweb.com.
Forward-Looking Statements
This press release may contain forward-looking information and
statements regarding EPL. Any statements included in this press
release that address activities, events or developments that EPL
"expects," "believes," "plans," "projects," "estimates" or
"anticipates" will or may occur in the future are forward-looking
statements. We believe these judgments are reasonable, but actual
results may differ materially due to a variety of important
factors. Among other items, such factors might include: hurricane
and other weather-related interference with business operations;
the effects of delays in completion of, or shut-ins of, gas
gathering systems, pipelines and processing facilities; stock
market conditions; the trading price of EPL's common stock; cash
demands caused by planned and unplanned capital expenditures;
changes in general economic conditions; uncertainties in reserve
and production estimates, particularly with respect to internal
estimates that are not prepared by independent reserve engineers;
even less certainty with respect to estimates of probable reserves
than for proved reserves; unanticipated recovery or production
problems; changes in legislative and regulatory requirements
concerning safety and the environment as they relate to operations;
oil and natural gas prices and competition; the impact of
derivative positions; production expenses and expense estimates;
cash flow and cash flow estimates; future financial performance;
drilling and operating risks; our ability to replace oil and gas
reserves; risks and liabilities associated with properties acquired
in acquisitions; integration of acquired assets; volatility in the
financial and credit markets or in oil and natural gas prices; and
other matters that are discussed in EPL's filings with the
Securities and Exchange Commission. (http://www.sec.gov/)
Appendix
PV-10 Definition and Discussion
PV-10 may be considered a non-GAAP financial measure as defined
by the SEC. We believe that the presentation of PV-10 is relevant
and useful to our investors as supplemental disclosure to the
standardized measure, or after-tax amount, because it presents the
discounted future net cash flows attributable to our proved and/or
probable reserves before taking into account future corporate
income taxes and our current tax structure. Because the
standardized measure is dependent on the unique tax situation of
each company, our calculation may not be comparable to those of our
competitors. Because of this, PV-10 can be used within the industry
and by creditors and securities analysts to evaluate estimated net
cash flows from proved reserves on a more comparable basis.
CONTACT: Investors/Media
T.J. Thom, Chief Financial Officer
504-799-1902
tthom@eplweb.com
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