Acquisitions in 2012 added 35.0 MMBoe, all of which related to the purchase of reserves from Eagle Energy Production, LLC (“Eagle”) that was effective October 1, 2012. At year-end 2012, the Oklahoma reserves totaled 38.7 MMBoe, comprised of 38% crude oil, 22% NGLs, and 40% natural gas. All in, including acquisitions, drill bit additions, and revisions, Midstates replaced 1,446% of total 2012 production. Revisions to previous reserve estimates totaled 3.0 MMBoe. While West Gordon accounted for 1.6 MMBoe of those revisions, net reserves at West Gordon remained largely unchanged due to reserve additions from drilling activities in the north fault block.
Midstates’ 2012 proved reserves had a net present value discounted at 10% (“PV-10”) of $1,489 million, up 115% from $693 million at year-end 2011.
John Crum, Midstates’ CEO and President commented, “We are very pleased with the significant growth we achieved in our proved reserves during 2012 both organically in Louisiana and from the Eagle acquisition. We grew our Louisiana reserve base by 40% through successful drilling activities and increased proved reserves by 38.7 MMBoe through the acquisition and subsequent drilling of the Eagle properties. Importantly, Midstates replaced greater than 14 times its total 2012 production at a competitive all-in finding, development, and acquisition cost of approximately $20 to $23 per Boe based on preliminary cost estimates.” Crum continued, “Our 2013 drilling program will provide the opportunity to further grow reserves. We will also look at increasing acreage in our existing focus areas in Louisiana and Oklahoma/Kansas and to adding a potential third core area to our portfolio.”
About Midstates Petroleum Company, Inc.Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources in previously discovered yet underdeveloped hydrocarbon trends. The Company’s operations are currently focused on oilfields in the Upper Gulf Coast Tertiary trend onshore in central Louisiana and in the Mississippian Lime trend in northwestern Oklahoma and southern Kansas. The Company is headquartered in Houston, Texas. Additional information about the Company is available at www.midstatespetroleum.com. Forward Looking Statements This press release may contain forward-looking statements within the meaning of federal securities laws. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of words such as “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project,” “guidance,” and similar expressions. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. Factors that can affect future results are discussed in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 and other reports filed by the Company from time to time with the Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.
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