Total oil production for the three months ended December 31, 2010 was 414 MBbls (4,500 bopd) compared to 212 MBbls (2,304 bopd) for the same period in 2009. During both periods, the Company had intermittent oil production from six producing wells in the Corvina field and one producing well in the Albacora field.
On November 30, 2010, the Company placed the Corvina field into commercial production. Prior to that time all Corvina oil sales were from oil produced under the Peruvian well testing regulations. Additionally, all oil sales from the Albacora field were from oil produced under the Peruvian well testing regulations.
Although the number of wells contributing to production was the same in the fourth quarter 2010 compared to the same period in 2009, several wells, the CX11-17D, CX11-23D and the A-14XD wells, have had continuous stable production during the quarter, resulting in 2010 fourth quarter production being approximately twice that of fourth quarter 2009. In addition, 2009 fourth quarter oil production was negatively impacted due to the CX11-14D well being shut in since November 7, 2009 as well as the CX11-21XD.
For the year ended December 31, 2010, net oil revenue increased by $57.6 million to $110.1 million from $52.5 million for the same period in 2009. The increase in net revenue is due to an increase in the amount of oil sold, 555 MBbls, and an increase of $18.04 to $72.53 in 2010 from $54.49 in 2009, or 33%, in the average per barrel price realized. During 2010, oil prices again rose during the year, trading in a range of $70 - $90 per barrel compared to prices in 2009, which rose from $39 per barrel at the start of the year to $73 per barrel toward the end of the year. Total sales for the year ended December 31, 2010 were 1,518 MBbls compared to 963 MBbls for the same period in 2009.
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