Production
In the fourth quarter of 2007, production averaged 20,806 barrels of oil equivalent (Boe) per day, compared to 27,080 Boe per day in the fourth quarter of 2006. Natural gas production in the fourth quarter of 2007 averaged 73.9 million cubic feet (Mmcf) per day and oil production averaged 8,489 barrels per day.
Production for the full year 2007 averaged 24,130 Boe per day, down from the 2006 average of 25,912 Boe per day primarily due to the sale of substantially all of the Company's onshore south Louisiana properties in June of 2007. Natural gas production averaged 92.2 Mmcf per day in 2007, and oil production averaged 8,769 barrels per day.
In the fourth quarter of 2006, production averaged 27,080 barrels of oil equivalent (Boe) per day, compared to 18,583 Boe per day in the fourth quarter of 2005. While the daily average for the fourth quarter of 27,080 Boe per day was up significantly from the third quarter average of 25,421 Boe per day, it was below the Company's guidance range of 28,500 to 30,500 Boe per day. This was due primarily to production start-up delays and higher than anticipated downtime, due to inclement weather and mechanical problems, of which the majority have since been resolved. Natural gas production in the fourth quarter of 2006 averaged 105.7 million cubic feet (Mmcf) per day and oil production averaged 9,465 barrels per day.
Production for 2006 averaged 25,912 Boe per day, a record high for the Company and a 14% increase over the 2005 average of 22,722 Boe per day. Natural gas production averaged 106.0 Mmcf per day in 2006, and oil production averaged 8,238 barrels per day.
Production for 2005 averaged 22,722 Boe per day, a slight increase over the 2004 average of 22,346 Boe per day. Natural gas production averaged 88.4 million cubic feet per day in 2005, and oil production averaged 7,984 barrels per day.
Reserves
EPL's proved reserves at year end 2007 stood at 28.1 million barrels of oil and 103.1 billion cubic feet of natural gas, or 45.3 million Boe. EPL's proved reserves at year-end 2007 were 62% oil and 38% natural gas, and 84% were classified as proved developed. EPL added 2.5 million Boe from its exploration and development program, and acquired an additional 0.7 million Boe mainly from the purchase of an additional interest in the Company's Mississippi Canyon blocks 248 (the Raton discovery), 204, and 292 leases in the deepwater GOM. The Company recorded 5.3 million Boe in negative revisions to its proved reserves in 2007, comprised of 4.1 million Boe of negative revisions for fields mainly in the Western offshore area that were impaired during 2007. EPL produced 8.8 million Boe during 2007. The Company sold 2.1 million Boe in the sale of substantially all of its onshore South Louisiana asset base in June of 2007. The Company's total expenditures for finding and development in 2007 were $307.7 million, or $317.3 million including acquisition expenditures.
EPL's proved reserves at year end 2006 stood at 29.9 million barrels of oil and 170.1 billion cubic feet of natural gas, or 58.3 million Boe, down 2% from 59.3 million Boe at year end 2005. EPL's proved reserves at year-end 2006 were 49% natural gas and 51% oil, and 76% were classified as proved developed. In 2006, the Company replaced 92% of its 2006 production at an average cost of $45.97 per Boe, based on total finding and development costs of $398.9 million. EPL added 8.4 million Boe from its exploration and development program. The Company recorded 0.2 million Boe in revisions to its proved reserves in 2006, reflecting overall positive revisions from year-end 2005 reserves for both its Gulf of Mexico (GOM) Shelf asset base and its onshore South Louisiana asset base. All of the Company's proved reserve figures are based upon third party engineering estimates prepared by Ryder Scott Company, L.P. and Netherland, Sewell & Associates, Inc.
EPL's proved reserves at year end 2005 stood at 31.5 million barrels of oil and 166.9 billion cubic feet of gas, or 59.3 million Boe, up 10% from 53.7 million Boe at year end 2004.