Production
Production in 2007 of 42.2 Bcfe increased 34% over 2006 production of 31.5 Bcfe. Prices realized by the Company during 2007 averaged $7.19 per Mcf of natural gas and $74.15 per barrel of oil as compared to $7.13 per Mcf of natural gas and $64.66 per barrel of oil in 2006.
Bois d'Arc's production in the fourth quarter of 2007 increased to 10.7 billion cubic feet equivalent of natural gas ("Bcfe"), 20% higher than production of 8.9 Bcfe in the fourth quarter of 2006.
Production in 2006 totaled 31.5 Bcfe, an increase of 44% over production of 21.8 Bcfe for 2005. Production of 3.6 Bcfe and 4.3 Bcfe was deferred during the years ended December 31, 2006 and 2005, respectively, due to the 2005 hurricanes.
Reserves
Total proved oil and natural gas reserves as of December 31, 2007 are estimated at 250 billion cubic feet ("Bcf") of natural gas and 24.6 million barrels of crude oil or 398 Bcf equivalent of natural gas ("Bcfe"). Natural gas reserves account for 63% of total proved reserves and 74% of the total proved reserves were classified as proved developed at the end of 2007. Bois d'Arc operates 99% of its proved reserve base. Bois d'Arc's proved reserves increased 16% from total proved oil and natural gas reserves as of December 31, 2006 of 344 Bcfe.
The present value, using a 10% discount rate, of the future net cash flows before income taxes of the Company's estimated proved oil and natural gas reserves at the end of 2007 is approximately $2.2 billion using oil and natural gas prices of $94.64 per barrel for oil and $7.26 per Mcf for natural gas. Such prices were based on the December 31, 2007 market prices, as adjusted for the Company's average basis differentials.
Bois d'Arc replaced 228% of its 2007 production of 42.2 Bcfe through its successful exploration activities in 2007. Bois d'Arc spent approximately $214 million in 2007 on exploration and development activities which added 96 Bcfe to its proved reserve base resulting in an "all in" finding costs of $2.22 per Mcfe for 2007.