Based on an independent petroleum engineer review, XTO Energy Inc. said its estimated proved oil and gas reserves on the first of the year were a record 3.37 Tcfe, up 26% from the 2.68 Tcfe figure that the company posted at the beginning of last year.

From its analysis, Miller and Lents Ltd. said that the Fort Worth, TX-based exploration and production company added 918 Bcfe in 2002 at a cost of $0.78/Mcfe, replacing 404% of production. The company noted that its development program replaced 572 Bcfe or 252% of production at a cost of $0.63/Mcfe.

“In an ever-challenging environment, XTO Energy continues to deliver exceptional reserve replacement at low costs,” CEO Bob R. Simpson. “Balancing our low-risk development program with attractive acquisitions is the best way to achieve profitable growth year after year.”

In the review breakdown, natural gas reserves increased 29% to 2.88 Tcf, and natural gas combined with natural gas liquids of 25.4 million bbls equaled 90% of total reserves. The company’s oil reserves increased 4% to 56.3 million bbl due to higher oil price assumptions. XTO Energy said that proved developed reserves accounted for 72% of total proved reserves on an Mcfe basis. The company’s noted that at the end of 2002 its reserve-to-production index was 14.6 years.

Based on realized prices of $29.69/bbl of oil, $4.41/Mcf and $17.86/bbl of natural gas liquids and on constant cost assumptions, estimated future net cash flows, before income taxes, totaled $10.5 billion at Dec. 31, 2002. The present value before income tax, discounted at 10%, was $5.5 billion, compared to $1.9 billion at year-end 2001. Realized prices at year-end 2001 were $17.39/bbl of oil, $2.36/Mcf of gas and $8.70/bbl of natural gas liquids.

XTO Energy’s portfolio has a property concentration in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Colorado, Wyoming, Alaska and Louisiana.

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