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At December
31, 2001, we had an estimated net proved reserves of 53.4 Bcfe.
We own approximately 73% of these reserves directly and 27% through
our managed grilling programs. Based on average prices of $1.76
per Mcf of natural gas and $13.87 per Bbl of oil, the present value
of estimated future net revenues (“PV-10”) was approximately
$20 million. At December 31, 2001, our drilling programs had 59.2
Bcfe of estimated proved reserves with a PV-10 value of $35 million,
excluding our interests in these programs. Based upon average realized
prices on March 31, 2002 of $2.18 per Mcf of natural gas and $20.45
per Bbl of oil, the PV-10 of our proved reserves were approximately
$49 million and our drilling programs were approximately $58 million.
At March 31,
2002, we had estimated net probable reserves of 128.5 Bcfe, which
had a PV-10 value of $139 million. This was based on an evaluation
of only 10% of our coalbed methane holdings in the Washakie Basin
in Wyoming. In addition, we believe a significant number of natural
gas and oil reserves potentially exist in our properties, which
is based upon preliminary test data from the Atlantic Rim Project
and Wilmington field in the Los Angeles Basin in California.
The following
table sets forth summary data with respect to our proved, probable
and possible natural gas and oil reserves and the combined reserves
of Warren and our drilling programs as of December 31, 2001, using
non-escalated pricing at March 31, 2002.
| |
Warren
(1) |
Warren
Including Drilling Programs (2) |
| |
|
|
| Proved
Reserves (3)
|
| Liquids
(Mbbl) |
8,873 |
15,413 |
| Natural
Gas (Mmcf) |
3,489 |
21,203 |
| Equivalent
(Mmcfe) |
56,727 |
113,681 |
| PV-10%
($000s) |
$48,582 |
$107,030 |
| |
|
|
| Probable
Reserves (3)
|
| Liquids
(Mbbl) |
- |
- |
| Natural
Gas (Mmcf) |
128,527 |
128,527 |
| Equivalent
(Mmcfe) |
128,527 |
128,527 |
| PV-10%
($000s) |
$139,382 |
$139,382 |
| |
|
|
| Total
Reserves (3)
|
| Liquids
(Mbbl) |
8,873 |
15,413 |
| Natural
Gas (Mmcf) |
132,016 |
149,730 |
| Equivalent
(Mmcfe) |
185,254
|
242,208 |
| PV-10%
($000s) |
$187,964 |
$246,412 |
| |
|
|
| Possible
Reserves (4)
|
| Liquids
(Mbbl) |
31,000 |
31,000 |
| Natural
Gas (Mmcf) |
1,311,800 |
1,311,800 |
| Equivalent
(Mmcfe) |
1,497,800 |
1,497,800 |
| PV-10%
($000s) |
$1,621,520 |
$1,621,520 |
(1)
Includes our interest in the drilling programs as general
partner.
(2) Includes all interests associated with the drilling programs.
(3) Data prepared by Williamson Petroleum Consultants, Inc.
(4) Data prepared internally based on preliminary reserve
estimates – not included in Total Reserves. |
As
of December 31, 2001, we had interests in 231 producing wells
and were the operator of 64% of these wells. As of the same date,
the daily gross production of these wells was 33.8 Mmcfe, of which
12.8 Mmcfe was attributable to Warren (38%) and its drilling programs
(62%). Although Warren was entitled to a percentage of production,
due to production subordination agreements with our drilling programs
substantially all production was allocated to investors in our
drilling programs. Commencing July 1, 2001, 25% of new production
from interests in wells owned by the drilling programs formed
in 1999 and subsequent years is being directly allocated to us
pursuant to governing agreements with our drilling programs.
Our
exploration and development is focused on:
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