Tulsa-based independent Vintage Petroleum Inc. said Monday it internally increased its oil and natural gas production in 2004 and achieved a 5% increase in aggregate contributions from all of its producing areas. It also estimated year-end proved reserves at 437.2 million boe, with 2004 output from continuing operations of 24.5 million boe.

For 2005, Vintage raised its production guidance to 26.4 million boe from 25.8 million boe. About 0.4 million boe is attributed to an inventory adjustment in Argentina, and another 0.7 million boe is from a recent acquisition in Alabama.

“We executed our game plan to revitalize and increase internally generated production,” said CEO Charles C. Stephenson Jr. He said the company was “well positioned to demonstrate production growth in 2005, benefiting from a continuation of internally generated growth as well as a full year’s contribution to production from acquisitions made during the second half of 2004.”

Year-end 2004 estimated proved reserves were composed of 297 million bbl of oil and 840 Bcf of natural gas, representing 68% and 32% of total proved reserves, respectively. Of the total, 67% were classified as proved developed reserves.

Last year, Vintage spent $347.6 million on continuing operations, with $237.0 million allocated to exploitation and exploration projects. About $179.8 million, or 76% of the company’s total 2004 nonacquisition capital spending, went toward a variety of lower-risk exploitation projects. The remaining 24% was allocated to potentially higher-impact exploration programs in the United States and Yemen.

In addition, Vintage acquired producing properties in the United States and Argentina in close proximity to existing company operations for $110.5 million during the second half of the year, effectively rekindling the contribution to growth from acquisitions.

A conference call to review 4Q2004 and year-end 2004 results is scheduled for 2 p.m. EST on Tuesday.

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