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NEW ORLEANS, Jan. 31, 2013 (GLOBE NEWSWIRE) -- EPL Oil & Gas, Inc. (EPL or the Company) (NYSE:EPL) today provided an operational update.
2012 oil exit rate above guidance at approximately 16,500 Barrels (Bbls) per day
2012 operational results include 28 successful development and exploration projects for a 90% success rate
Organic reserve replacement expected to exceed production withdrawals due to its highly successful 2012 capital program
Hedging provides significant downside protection of cash flow, with 62% of forecasted oil production hedged in 2013 and substantial oil hedges added in 2014
EPL announced its oil production exit rate for 2012 was estimated to be approximately 16,500 Bbls per day, exceeding the Company's guidance of 16,000 Bbls per day. Total company exit rate is estimated at year end to be approximately 22,300 Boe per day. Based upon projected strong fourth quarter 2012 performance, EPL currently expects EBITDAX for full year 2012 to be in the mid to upper range of the Company's guidance of $275 million to $285 million.
EPL also reported that its 2012 operational results include 28 successful development and exploration projects for a 90% success rate. During 2012, capital expenditures on exploration and development activities totaled approximately $230 million, including $10.7 million of seismic purchases and $7.0 million of lease purchases. Based on the high success rate in 2012, EPL internal projections indicate the Company has more than organically replaced last year's production withdrawals through execution of high impact projects. Major rig operations are ongoing, mainly executing infield development and exploration work within its core field areas. For full year 2013, EPL still expects to spend approximately $300 million on its development and exploration activities.
Gary Hanna, EPL's President and CEO, stated, "While the base integration of our recently acquired Hilcorp assets is complete, we continue to identify additional field cost savings while high-grading near term projects and reprocessing 3-D seismic to unlock the upside potential of the properties. This process, successful in prior acquisitions, together with good execution and efficient capital allocation, resulted in the ramping up of oil production and a solid performance in 2012. We expect this trend to continue as we drive organic growth on our significantly larger asset base."