Production
Encore produced 13.5 MMBOE during 2007 averaging 37,530 barrels of oil equivalent per day ("BOEPD") during the fourth quarter of 2007. Of the 443 percent of 2007 production replaced, approximately 318 percent was related to acquisitions and 125 percent to internal organic growth. Net of divested reserves, the Company replaced over 298 percent of its 2007 production.
Reserves
Total proved oil and natural gas reserves as of December 31, 2007 were 231 million barrels of oil equivalent ("MMBOE"), consisting of 189 million barrels ("MMBbls") of crude oil, condensate, and natural gas liquids and 256 billion cubic feet ("Bcf") of natural gas. During 2007, Encore acquired properties from Anadarko Petroleum Corporation located in the Williston Basin and in the Big Horn Basin and sold certain properties in the Anadarko and Arkoma Basins. Encore added 60 MMBOE of proved reserves during 2007 (before netting out 2007 production and asset sales) replacing over 443 percent of its 2007 production at an estimated all-in replacement cost of $20.27 per BOE based on unaudited development and exploration costs of $368 million and unaudited acquisition costs of $848 million. Encore produced 13.5 MMBOE during 2007 averaging 37,530 barrels of oil equivalent per day ("BOEPD") during the fourth quarter of 2007. Of the 443 percent of 2007 production replaced, approximately 318 percent was related to acquisitions and 125 percent to internal organic growth. Net of divested reserves, the Company replaced over 298 percent of its 2007 production.
At December 31, 2007, oil reserves accounted for 82 percent of total proved reserves, and 68 percent of total proved reserves are developed. Based on production for 2007, Encore's ratio of reserves to production is approximately 17.1 years for total proved reserves and 11.6 years for proved developed reserves.
Summary of Changes in Proved Reserves (MBOE)
Reserves at December 31, 2006: 204,561
Purchases of minerals-in-place: 43,146
Extensions and discoveries, net of revisions: 16,879
Sales of minerals-in-place: (19,719)
Production: (13,539)
Reserves at December 31, 2007: 231,328
Estimated proved oil and natural gas reserves increased by 5% to 205 million barrels of oil equivalent (BOE) as of December 31, 2006. Oil reserves accounted for 75% of total proved reserves, and 65% of total proved reserves are developed. Market prices used in the year-end reserve estimate were $61.06 per barrel for oil and $5.48 per Mcf for natural gas. Based on fourth quarter 2006 production of 30,704 BOE per day, Encore's ratio of reserves to production is approximately 18 years for total proved reserves and 12 years for proved developed reserves.
During 2006, Encore replaced 179% of the 11.2 million BOE it produced. Based on total expected capital expenditures for 2006 of approximately $379 million, these reserve volumes imply an all-in finding and development cost for the year, including acquisitions, of approximately $18.85 per BOE.