Production
Estimated production for 2007 was 61.2 Bcfe and included 94% natural gas and 6% oil. Total production included 1.2 Bcfe from the Williston Basin and other properties sold during 2007. Fourth quarter 2007 production was a Company record at 17.2 Bcfe, up 21% from 14.2 Bcfe in the fourth quarter 2006 and up 17% sequentially.
Reserves
2007 year-end estimated proved reserves of 558 Bcfe were 97% natural gas and 3% oil. Further, proved reserves were 59% developed and 41% undeveloped. The present value of proved reserves was estimated at $1.2 billion, before the effect of income taxes, based on the December 31, 2007 natural gas price of $6.04 per MMBtu (Colorado Interstate Gas, or CIG, price), WTI oil price of $92.50 per barrel and a 10% per annum discount rate.
In addition to proved reserves, the Company estimates it has probable and possible resources of 1.4 Tcfe for total proved, probable and possible resources of approximately 2.0 Tcfe.
2007 Year-end Estimated Reserves and Production (Bcfe)
2006 year-end estimated proved reserves: 428
Divestitures, Williston and other: (42)
2007 estimated production: (61)
Reserve additions, net: 233
2007 year-end proved reserves: 558
Reserve replacement ratio: 382%
3-year average reserve replacement ratio: 306%