Production
In the 4th quarter of 2007 production increased by 110% to 1,389,000 Boe from 661,000 Boe
Production in 2006 was over 1.6 million boe, or 4,572 boepd.
Reserves
As of December 31, 2007, estimated proved reserves were 142.2 MMBoe, an increase of 363% when compared to 30.7 MMBoe as of December 31, 2006. The 111.5 MMBoe increase is primarily a result of acquiring 111.3 MMBoe of proved reserves in 2007. In addition to being successful on the acquisition front, the company had a good year with organic reserve replacement. The 2007 reserve replacement ratio excluding the acquisitions and their associated production was 198%. This percentage excludes 1,354 MBoe of production associated with the acquisitions and includes the estimated reserve changes associated with additions, extensions, and revisions due to infill drilling, performance and price changes. Using the same methodology, and excluding the revisions due to performance and price changes, the 2007 reserve replacement ratio was 93%.