1/2/2023 0 Comments Theta rodstar trainingThe volume-weighted average prices over the lives of the properties were estimated at $66.49 per Bbl of oil and condensate, $32.87 per Bbl of NGLs and $2.806 per Mcf of gas. The unweighted arithmetic average first-day-of-the-month prices for the prior 12 months were $71.54 per Bbl Intercontinental Exchange (“ICE”) Brent oil (“Brent”) for oil and natural gas liquids (“NGLs”) and $3.10 per MMBtu New York Mercantile Exchange (“NYMEX”) Henry Hub (“Henry Hub”) for natural gas at December 31, 2018. Our estimated net reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. Considering our typical realized prices, we believe our operations break even when crude prices are at or above $45 Brent. In addition to our low and stable cash operating costs, which were approximately $26 per Boe in 2018, we can operate and maintain production at relatively low commodity price levels. Based on the assumptions underlying our PUD estimates, we estimate that we will require slightly more than $10 per Boe in annual capital expenditures to keep production volumes consistent each year over the next three years. Our SEC reserves report is based on the estimated individual well production profiles used to determine our PDP reserves. For example, our PDP reserves have an estimated annual decline rate of approximately 19% to 11% in the years between 20 based on total PDP Boe reserves as of December 31, 2018 as reflected in our SEC reserves report, which is attached as Exhibit 99.1. Our California reserves are predominantly long-lived and characterized by relatively low production decline rates and development costs, affording us significant capital flexibility and an ability to hedge efficiently material quantities of future expected production.
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