Production
Production during the fourth quarter of 2007 was a record 5.64 Bcfe (61.3 MMcfe/d), or 54 percent above the 3.66 Bcfe (39.7 MMcfe/d) of production in the fourth quarter 2006 and 27 percent above the third quarter 2007 production. Estimated annual production for 2007 reached a record level of 17.5 Bcfe (47.9 MMcfe/d), or 49 percent higher than the 11.7 Bcfe (32.1 MMcfe/d) of production in 2006. The Company estimates that fourth quarter 2007 sales prices, including the effect of hedging activities, averaged approximately $6.83 per Mcf and $83.65 per Bbl. The natural gas sales price was benefited $0.28 per Mcf by hedging activities. The oil sales price was negatively impacted $7.03 per Bbl by hedging activities. Approximately 94 percent of fourth quarter production was natural gas, and 92 percent of total 2007 production was natural gas.
Production during the fourth quarter of 2006 was a record 3.66 Bcfe (39.7 Mmcfe/d), or 33.7 percent above the 2.73 Bcfe (29.7 Mmcfe/d) of production in the fourth quarter 2005 and 28.0 percent above the third quarter 2006 production. Estimated annual production for 2006 reached a record level of 11.7 Bcfe (32.1 Mmcfe/d), or 21.8 percent higher than the 9.6 Bcfe (26.3 Mmcfe/d) of production in 2005.
Reserves
2007 year-end proved reserves were a record 347.6 Bcfe based on reports from Carrizo's third-party reserve engineers. This is an increase of approximately 66 percent (net of 2007 production of 17.5 Bcfe) over the year-end 2006 proved reserves of 210 Bcfe. Year-end PV-10 value of the company’s proved reserves was $840.0 million (as compared to $387.2 million at the end of 2006), based upon year-end average spot prices for natural gas and year-end average posted prices for oil and natural gas liquids of $5.99 per Mcf, $92.04 per Bbl and $56.67 per Bbl, respectively.
These additions resulted in the Company replacing 887 percent of 2007 production.
From year-end 2006 to 2007, our Barnett Shale reserves increased 129.3 Bcfe, or 88 percent, to 276.0 Bcfe; Gulf Coast reserves decreased 2.1 Bcfe from 25.8 Bcfe to 23.7 Bcfe; and the company’s Camp Hill reserves increased 10.4 Bcfe, or 28 percent, from 37.5 Bcfe to 47.9 Bcfe.
2006 year-end proved reserves were a record 210 Bcfe based on reports from Carrizo's third-party reserve engineers. This is an increase of 39 percent (net of 2006 production of 11.7 Bcfe) over the year-end 2005 proved reserves of 150.6 Bcfe. Year-end PV-10 value was $394 million, based upon average posted prices for natural gas and oil of $5.40 per Mmbtu and $59.25 per Bbl, respectively.
These additions resulted in the Company replacing 607 percent of 2006 production.