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EPL Reports Recently Evaluated Year-End 2012 Probable Reserve Estimates

Stocks in this article: EPL

NEW ORLEANS, March 18, 2013 (GLOBE NEWSWIRE) -- EPL Oil & Gas, Inc. (EPL or the Company) (NYSE:EPL) today reported probable reserve estimates provided by its third party engineering firm, Netherland, Sewell & Associates, Inc. (NSAI) totaling 15.9 million barrels of oil equivalent (Boe) as of year-end 2012.


  • Oil-weighted probable reserves of 15.9 Mmboe (66% oil), representing a 13% increase year over year
  • Excludes any probable reserves associated with the recently acquired Hilcorp assets; evaluation of those assets is ongoing
  • Year-end 2012 PV-10 estimated at $2.5 billion for 2P reserves using SEC prices (see discussion of PV-10 in the appendix)

As previously reported, EPL's proved reserves at year-end 2012 stood at 77.4 Mmboe (61% oil), representing an increase of 109% compared to estimated proved reserves at the prior year-end. EPL's third party engineering firm, NSAI, recently evaluated probable reserves associated with the Company's proven reserve base at year-end 2012 totaling 15.9 million Boe, up 13% from year-end 2011. The estimated probable reserves are comprised of 66% oil and 52% are related to performance of the proved developed reserves and therefore have no associated capital requirements. Probable reserves associated with EPL's recent Hilcorp acquisition of oil-weighted properties have not been evaluated; therefore the probable reserves and value from those properties are not included in any of the figures included in this press release. The evaluation of probable reserves associated with the acquired Hilcorp assets will be completed during the year.

The estimated present value of the future net cash flows before income taxes of the Company's evaluated probable oil and natural gas reserves at the end of 2012 using a discount rate of 10% (PV-10) was approximately $0.5 billion as calculated consistent with SEC guidelines and pricing. On a 2P basis (meaning both proved and evaluated probable reserves), the Company's PV10 value at the end of 2012 was approximately $2.5 billion. All estimated development, P&A and decommissioning costs are included in the calculation of PV-10 (calculation excludes any probability weighting; PV-10 is a non-GAAP measure; see table below and discussion of PV-10 in the appendix).

Reserve Category Oil (Mmbo) Gas (Bcf) Mmboe PV10 YE ($Billion) (1)
Proved Developed 37.9 120.7 58.0 1.5
Proved Undeveloped 9.5 59.3 19.4 0.5
Proved (1P) 47.4 180.0 77.4 2.0
Probables (2) 10.5 32.4 15.9 0.5
Proved + Probables (2P) (2) 57.9 212.4 93.3 2.5
(1) The estimated present value of the future net cash flows before income taxes of the Company's estimated proved and evaluated probable oil and natural gas reserves at the end of 2012 using a discount rate of 10% (PV-10) as calculated consistent with SEC guidelines and 2012 proved pricing of $105.13 per barrel of oil and $2.92 per Mcf of natural gas, and 2012 probable pricing of $109.39 per barrel of oil and $2.74 per Mcf of natural gas.
(2) Excluding any probable reserves associated with the Hilcorp assets

All of the Company's probable reserves are based upon third party engineering estimates prepared by NSAI. All of EPL's proved reserve figures are based upon third party estimates prepared by NSAI (all properties other than the properties acquired from Hilcorp) and W.D. Von Gonten & Co. (Hilcorp properties).

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