Production
Oil and gas sales increased 67% from $57.8 million for the fourth quarter of 2006 to $96.3 million for the same quarter in 2007 due to a combination of higher prices and incremental production volumes. Gas production increased 36% to 5.4 Bcf, or 58,924 Mcf per day, from 4 Bcf, or 43,272 Mcf per day, in the 2006 quarter. Oil production for the fourth quarter of 2007 increased 16% to 616,000 barrels, or 6,696 barrels per day, compared to 529,000 barrels, or 5,750 barrels per day, in the 2006 quarter. The increase in gas production was attributable primarily to recent drilling activity in North and South Louisiana. For the fourth quarter of 2007, average realized gas prices increased 9% to $7.06 per Mcf from $6.49 per Mcf in the same quarter of 2006, while oil prices increased 56% to $89.55 per barrel from $57.41 per barrel in the 2006 period.
Oil production for the fourth quarter of 2006 increased to 529,000 barrels, or 5,750 barrels per day, up from 487,000 barrels, or 5,293 barrels per day in the 2005 quarter. Gas production increased 24% to 4 Bcf, or 43,272 Mcf per day, from 3.2 Bcf, or 34,815 Mcf per day in the 2005 quarter. Average realized oil prices in the fourth quarter of 2006 remained relatively flat at $57.41 compared to $56.99 per barrel in the 2005 period, while gas prices decreased 35% from $10.02 to $6.49 per Mcf.
Reserves
Total proved oil and gas reserves as of December 31, 2007 were 290.8 Bcfe, consisting of 27.9 million barrels of oil and NGL and 123.2 Bcf of natural gas. By comparison, the Company reported proved reserves of 271.5 Bcfe as of December 31, 2006, consisting of 25.4 million barrels of oil and NGL and 119.2 Bcf of natural gas. The pre-tax present value of estimated future net revenues from these reserves, discounted at 10% and computed in accordance with SEC guidelines, totaled $1.3 billion at December 31, 2007, as compared to $712.4 million at December 31, 2006. The estimates were based on weighted average oil and NGL prices of $91.30 per Bbl in 2007, as compared to $57.18 in 2006, and gas prices of $7.37 per Mcf in 2007, as compared to $5.24 per Mcf in 2006.
During 2007, the Company replaced 97% of the 35.9 Bcfe produced in 2007 through extensions and discoveries. The following table summarizes the changes in proved reserves during 2007 on a Bcfe basis and as a percentage of 2007 production.
Total proved oil and gas reserves as of December 31, 2006 were 271.5 Bcfe, consisting of 25.4 million barrels of oil and NGL and 119.2 Bcf of natural gas. By comparison, the Company reported proved reserves of 293.8 Bcfe as of December 31, 2005, consisting of 27.8 million barrels of oil and NGL and 126.8 Bcf of natural gas. The pre-tax present value of estimated future net revenues from these reserves, discounted at 10% and computed in accordance with SEC guidelines, totaled $712.4 million at December 31, 2006, as compared to $1.1 billion at December 31, 2005. The estimates were based on weighted average oil and NGL prices of $57.18 per Bbl in 2006, as compared to $57.85 in 2005, and gas prices of $5.24 per Mcf in 2006, as compared to $10.65 per Mcf in 2005.
During 2006, the Company replaced 100% of the 29.4 Bcfe produced in 2006 through extensions and discoveries, excluding purchases and downward revisions to previous estimates.