El Paso Corp. pumped up its production in 2007 and built its total natural gas-weighted proved reserves base to 3.1 Tcfe, the company said Wednesday.
About 72% of El Paso’s year-end 2007 proved reserves were considered proved developed; 80% were gas.
The company reported that it replaced 252% of its consolidated reserves. Proved reserves included 256 Bcfe related to its 48.8% stake in Four Star Oil & Gas Co. El Paso last year also added 357 Bcfe of reserves through the drillbit and acquired 357 Bcfe. Another 43 Bcfe was added through price revisions. El Paso’s proved reserves at the end of 2006 totaled 2.4 Tcfe.
“We hit all of our major goals, including an 8% production increase, growth of our proved reserves, and improvement in per-unit lease operating expense and cash flow,” said Brent Smolik, president of El Paso Exploration & Production (E&P) Co.
El Paso E&P’s 2007 capital expenditures totaled $2.59 billion, which included $1.18 billion for acquisitions and $230 million of international expenditures. Replacement costs from consolidated domestic operations were $3.26/Mcfe.
El Paso has announced its intention to sell up to 300 Bcfe of proved reserves as part of its portfolio high-grading initiative. These reserves are included in year-end amounts, and the company’s goal is to close the sales by the end of March (see Daily GPI, Jan. 25). It also has agreements to sell additional properties with an estimated 191 Bcfe of proved reserves.
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