"Fiscal 2012 was a record year for production, EBITDA, net income and reserves," Energy XXI Chairman and CEO John Schiller said. "Our successful oil-focused development program drove these results, with the primary goal of generating substantial free cash flow to bolster the balance sheet. Even with this low-risk approach, without the contribution of a single exploration well, we were able to replace nearly 120 percent of production and grow reserves 3 percent. For fiscal 2013, we remain focused on growing oil production through the exploitation and development of our core assets while deploying 15 percent of our capital to exploration in the shallow waters of the Gulf of Mexico."
The company's June 30, 2012 fiscal year-end proved reserves were estimated at 119.6 million barrels of oil equivalent (MMBOE), up 3 percent from the June 30, 2011 fiscal year-end reserves. Energy XXI added 19.2 MMBOE of proved reserves primarily through discoveries, extensions of existing fields and revisions, while producing 16.1 MMBOE. The all-sources reserves replacement rate was 119 percent.
NSAI provided the year-end reserves estimates. All of the company's proved reserves are in the Gulf of Mexico or U.S. Gulf Coast, 68 percent are proved developed, 71 percent are oil and natural gas liquids, and 29 percent are natural gas. The tables set forth below provide additional information relating to the company's reserves, including cost-incurred data.The following fiscal year-ended June 30, 2012 estimated proved, probable and possible reserves attributable to the company's net interests in oil and gas properties were prepared by NSAI, in conjunction with in-house reservoir engineers.
|June 30, 201 2|
|Proved Developed Producing||49,444||1,654||68,275||62,477||2,526,175|
|Proved Developed Non-Producing||10,441||1,769||42,035||19,216||612,630|
|Proved + Probables||103,759||7,081||328,631||165,612||5,771,986|