Scott D. Sheffield, Chairman and CEO, stated, "In 2012, we again delivered drillbit reserve replacement well in excess of production and achieved our targeted drillbit F&D cost of $14 to $18 per BOE for the year, despite deferring the drilling of a substantial number of vertical Spraberry locations beyond five years. This strong performance is due to the continued successful execution of our drilling programs in the Spraberry field, the horizontal Wolfcamp Shale, the Eagle Ford Shale, the Barnett Shale Combo and Alaska.”
As mentioned above, technical revisions of previous reserve estimates for 2012 included the movement of 80 MMBOE of vertical PUD reserves to the probable category. This negative impact was partially offset by performance improvements totaling 53 MMBOE across Pioneer’s asset portfolio, resulting in net negative technical revisions of 27 MMBOE for the year. Technical revisions are included in the calculation of the drillbit F&D cost.
Pioneer’s proved reserve additions from the drillbit and acquisitions totaled 170 MMBOE for 2012. After taking into account the Company’s production for 2012 of 61 MMBOE, negative pricing revisions of 82 MMBOE and proved reserves of 4 MMBOE that were removed due to the divestitures of South Africa and certain Barnett Shale properties during 2012, proved oil and gas reserves totaled 1,086 MMBOE as of year-end 2012. Including negative pricing revisions, the Company replaced 144% of production at an all-in F&D cost of $34.46 per BOE.
As of December 31, 2012, all of Pioneer’s proved reserves are in the United States and 58% are classified as PD. Approximately 45% of the Company’s proved reserves are oil, 21% are NGLs and 34% are gas. Pioneer’s proved reserves are long-lived with a total reserves-to-production ratio of 18 years and a PD reserves-to-production ratio of 10 years.The table below shows Pioneer’s year-end 2012 proved reserves by asset in MMBOE:
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