We have grown our reserves about 20% since 2009, 20% compound annual interest rate our compound growth rate and our reserve base is also becoming more diversified if you were to look back just to the beginning of 2010 or the end of 2009 we had about 80% of our reserves were located in the conventional shelve which is our legacy asset base. We past forward to today, we were about equally spread in three different areas, the conventional shelf is about a third, the Appalachia is about a third, and the Deep Water Gulf of Mexico is about a third. Also our proved developed reserves base, the 27 million barrels I alluded to above, you can see the pie chart on the lower right, that’s about 56% oil and about 4% NGLs and 40% gas. So, we have a slight liquids waiting in our reserve proved producing reserve base.We are also growing our production and diversifying it. If you look at the picture on the left you see our 2012 production guidance is 41 to 43,000 barrels of oil per day. As you know you just had hurricane Isaac that came through the Gulf of Mexico that has deferred some of our production, we now estimate that we will still be within this range but maybe toward the middle to lower end on the full-year annualized basis. You see our production by commodity split is about 54% liquids, roughly 50% oil and 4% NGLs and about 46% natural gas. We have been able to also diversify our production base about half of that not quite half of it, it's is from our legacy asset and the other equal amounts basically from Appalachia and from the Deep Water Gulf of Mexico. You can see on the right there, that we have been able to grow our production base at about an 18% rate from last year to this year as well.
What we are really focused on doing is becoming excellent in exploration and in operations. I think there is an evidence to prove to you that we are doing that. Our strategy is to leverage the high cash flows that we enjoy from the conventional Gulf of Mexico to grow oil in material impact areas, to grow gas in priced advantage basins which means liquids rich today, to limit our reinvestment in our legacy assets, exercise discipline to what we are doing there is investing only in oil development programs, so we are not chasing any gas prospects that are in the Gulf of Mexico conventional shale and exercising discipline in our reinvestment plan there. And then we are also always interested in acquiring high quality properties.From a portfolio management point of view we are balanced across different risk profiles, you will see that if you look at the chart on the right there, we have a mix of very low risk liquids rich Marcellus Shale, development opportunities and shelf oil development opportunities that generally have an 80% plus probability of working, balanced with some exploration at the high end in Deep Water Gulf of Mexico and in deep liquids gas exploration which is currently onshore South Louisiana. So, we have both ends of the spectrum covered there with low risk development and some higher risk but potentially higher reward exploration. We have multi-year low risk inventory, we have a multi-year catalyst inventory. We balanced across both commodities and geography between the Gulf, Louisiana onshore and the Appalachia area. Read the rest of this transcript for free on seekingalpha.com