Production
For the three months ended December 31, 2007, Forest's oil and gas net sales volumes increased to 494 MMcfe/d or 74% over Forest's 284 MMcfe/d (excluding Alaska) in the corresponding period in 2006. For the year ended December 31, 2007, Forest's oil and gas net sales volumes (excluding Alaska) increased to 408 MMcfe/d or 50% over Remainco's 272 MMcfe/d in the corresponding period in 2006.
Forest's estimated net sales volumes are anticipated to be 317 MMcfe/d in the fourth quarter of 2006, an increase of 12% compared to Remainco's 283 MMcfe/d in the fourth quarter of 2005.
Reserves
Forest reported year end estimated proved reserves of approximately 2,119 Bcfe, up 66% compared to 1,274 Bcfe, pro forma for the sale of the Alaska assets, at December 31, 2006. The estimated proved reserves, which are 70% proved developed, consist of approximately 73% natural gas. The pre-tax present value of estimated proved reserves at year end, based on constant prices and costs and discounted at 10%, totaled $6.0 billion, up 82% compared to $3.3 billion at December 31, 2006. The valuation was based on year end natural gas prices of $6.80 per MMbtu and oil prices of $95.98 per barrel NYMEX, compared to natural gas prices of $5.64 per MMbtu and oil prices of $61.05 per barrel NYMEX at December 31, 2006.
Forest reported 2006 year end estimated proved reserves of approximately 1,455 Bcfe, all of which are located in North America. The estimated proved reserves, which are 71% proved developed, consist of approximately 53% natural gas and 47% liquids. The pre-tax present value of estimated proved reserves at year end, based on constant prices and costs and discounted at 10% totaled $3.3 billion. The valuation was based on gas prices of $5.64 per MMbtu and oil prices of $61.05 a barrel NYMEX, compared to gas prices of $10.08 per MMbtu and oil prices of $61.04 a barrel one year earlier. Forest's estimated proved reserves were audited by an independent third party engineering firm.