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Matador Resources Company (NYSE:MTDR) (“Matador” or the “Company”), an independent energy company currently focused on the oil and liquids rich portion of the Eagle Ford shale play in South Texas, today announced that its total proved oil and natural gas reserves at December 31, 2012 were 10.5 million barrels of oil and 80.0 billion cubic feet (“Bcf”) of natural gas, or 23.8 million barrels of oil equivalent (“BOE”).
The Company’s proved oil reserves grew 176% from 3.8 million barrels at December 31, 2011 to 10.5 million barrels at December 31, 2012. Proved oil reserves at December 31, 2012 comprised 44% of the Company’s total proved reserves (1 Bbl = 6 Mcf basis), an increase of nearly four-fold from 12% of total proved reserves at December 31, 2011. This growth in proved oil reserves during 2012 was attributable to the Company’s ongoing drilling program in the Eagle Ford shale in South Texas.
Proved natural gas reserves declined to 80.0 Bcf at December 31, 2012 from 170.4 Bcf at December 31, 2011 as a result of substantially lower natural gas prices in 2012. Earlier in 2012, the Company removed 97.8 Bcf (or approximately 16.3 million BOE) of previously classified proved undeveloped natural gas reserves in the Haynesville shale in Northwest Louisiana from its total proved reserves at June 30, 2012, due to these low natural gas prices, and these proved undeveloped reserves were likewise not included in the Company’s total proved reserves at December 31, 2012. As long as the leasehold acreage associated with these previously classified proved undeveloped natural gas reserves is held by production from existing Haynesville wells, these natural gas volumes remain available to be developed by us or the operator at a future time, should natural gas prices improve. Proved developed reserves comprised 58% of total proved reserves at December 31, 2012 compared to 34% at December 31, 2011.