- Quarter-end Company estimate of SEC proved reserves consisted of 8.125 million barrels of oil (“MMBO”) and 65.849 billion cubic feet of gas (“BCFG”), or 19.099 million barrels of oil equivalent (“MMBOE”), up 1% from 18.969 MMBOE of proved reserves at year-end 2011;
- Reserve replacement ratio of 151%;
- Proved developed reserves comprised 26% of quarter-end proved reserves; and
- Quarter-end Company estimate of 3P reserves totaled 74.565 MMBOE.
Reserve growth and reserve replacement ratio reflect conversion of reserves through the recompletions undertaken during the first quarter, updated commodity pricing and revised timing of capital expenditures.
- Low risk recompletions, thru-tubing plugbacks and workovers from inventory of 55 proved developed non-producing (“PDNP”) opportunities in 8 fields;
- Development of proved undeveloped (“PUD”) reserves from inventory of 86 PUD opportunities in 24 wellbores in 5 fields; and
- Strategic partnerships and joint ventures for risk-sharing on exploratory ultra-deep prospects at Grand Bay and Vermilion 16.
Our near term development plans are focused on proved undeveloped opportunities and conversion of PDNP opportunities. At March 31, 2012, permitting had been completed on several proved undeveloped wells and permitting was underway on several more additional proved undeveloped wells. We presently anticipate drilling up to seven proved undeveloped wells over the balance of 2012 and up to seven development wells annually thereafter. The company currently has two drilling rigs under contract for development drilling and an additional workover rig under contract.Financial Position and CAPEX Highlights
- $14.8 million of cash on hand at March 31, 2012;
- $6.6 million of working capital at March 31, 2012;
- $7.0 million of CAPEX for first quarter 2012;
- $44.0 million CAPEX budgeted for balance of 2012; and
- 2012 CAPEX budget fully funded by cash on hand and projected operating cash flow.