Production
2007 average production was 31,326 boe/d. Overall average production, revenue, and adjusted cash flow from operations for 2007 declined from 2006 levels primarily as a result of an overall reduction in drilling, particularly during the first half of the year, and natural declines and property divestments. During the last half of 2007, activity increased appreciatively. Compton drilled a total of 238 wells during the third and fourth quarters of 2007 and fourth quarter production averaged 32,646 boe/d, an increase of 7% over the third quarter.
2006 production grew 13% to average 33,187 boe/day versus 29,424 boe/day in 2005. Compton's increase in low cost reserves and production growth are largely as a result of their continued successful drilling program and capital investment in facilities and infrastructure expansion. The company's ten year compound annual growth rate on reserves is 35%.
Reserves
During 2007 Compton Petroleum Corporation achieved solid proved plus probable reserve additions at competitive finding and development costs. The company successfully completed their 322 well drilling program, replacing 192% of 2007 production at an all-in Finding, Development, and Acquisition cost ("FD&A") of $9.98/boe, excluding change in future capital, and $12.89/boe, including change in future capital.
Compton's 2007 proved plus probable reserves grew by nine percent and are now valued in excess of $3.4 billion dollars, using a discount rate of eight percent. The company added 2.3 million boe proved and 22 million boe proved plus probable reserves, after production and asset sales and including acquisitions, for total proved plus probable reserves of 271 million boe as at December 31, 2007. This number equates to 2.10 boe per common share outstanding, versus 1.93 boe last year, also an increase of nine percent."
Consistent with the Company's strategy of redeploying capital from non-core assets into its focus areas of operations, the Company closed a number of property divestments and strategic acquisitions during the year. Year end 2007 reserves reflect these transactions. During the year Compton acquired a total of 18.9 mmboe proved plus probable reserves at a total cost of $206 million or $10.93 per boe and sold 11.4 mmboe proved plus probable reserves for total proceeds of $262 million or $21.50 per boe. Excluding acquisitions and dispositions, 26.7 mmboe were added during the year at a cost of $14.58 per boe, proved plus probable, excluding future capital, and $18.21 per boe including future capital.
