Oil and Gas Customers
During 2007, three domestic customers, Shell, Chevron and Noble, purchased approximately 60% of our consolidated oil and gas sales. During 2006, two domestic customers, Shell and Chevron, purchased approximately 35% of our consolidated oil and gas sales. During 2005, two domestic customers, Shell and Cinergy, purchased approximately 17% of our consolidated sales.
Oil and Natural Gas Marketing
Generally, but not always, the demand for natural gas decreases during the summer months and increases during the winter months. Seasonal anomalies such as mild winters or hot summers sometimes lessen this fluctuation. The spot market for oil and gas is subject to volatility as supply and demand factors fluctuate. We may periodically enter into financial hedging arrangement with a portion of our oil and gas production. These activities are intended to support targeted price levels and to manage our exposure to price fluctuations. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk.”
Oil and Gas Properties and Locations
Production and Revenues – See also Note 17 – “Oil and Gas Disclosures” in the Notes to Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report on Form 10-K for certain information about our proved oil and gas reserves. A summary of our ownership in our most significant producing properties at December 31, 2007 is as follows:
|
|
|
Average |
|
Average Revenue |
|
|
|
Lake Raccourci – Domestic |
|
40% |
|
28% |
|
|
|
Lapeyrouse – Domestic |
|
14% |
|
9% |
|
|
|
Raymondville – Domestic |
|
27% |
|
19% |
|
|
|
Main Pass Block 35 – Domestic |
|
90% |
|
72% |
|
|
|
Allen Ranch, Texas – Domestic |
|
11% |
|
8% |
|
|
The following table shows, for the periods indicated, operating information attributable to our North American oil and gas interests:
|
|
|
Year Ended December 31, |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Natural Gas (Mcf) |
|
2,074,000 |
|
1,739,000 |
|
1,266,000 |
|
1,712,000 |
|
986,000 |
|
|||||
|
Oil (Bbls) |
|
237,000 |
|
181,000 |
|
135,000 |
|
167,000 |
|
172,000 |
|
|||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Natural Gas |
|
$ |
11,223,000 |
|
$ |
10,745,000 |
|
$ |
10,768,000 |
|
$ |
12,381,000 |
|
7,881,000 |
|
|
|
Oil |
|
7,206,000 |
|
7,270,000 |
|
7,086,000 |
|
10,769,000 |
|
12,538,000 |
|
|||||
|
Total |
|
$ |
18,429,000 |
|
$ |
18,015,000 |
|
$ |
17,854,000 |
|
$ |
23,150,000 |
|
$ |
20,419,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Unit Prices: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Natural Gas (per Mcf) |
|
$ |
5.41 |
|
$ |
6.18 |
|
$ |
8.51 |
|
$ |
7.23 |
|
$ |
7.99 |
|
|
Oil (per Bbl) |
|
$ |
30.39 |
|
$ |
40.06 |
|
$ |
52.62 |
|
$ |
64.30 |
|
$ |
72.95 |
|
|
Production costs per equivalent Mcfe |
|
$ |
2.01 |
|
$ |
1.90 |
|
$ |
3.05 |
|
$ |
3.58 |
|
$ |
4.29 |
|
|
Amortization per equivalent Mcfe |
|
$ |
1.48 |
|
$ |
2.38 |
|
$ |
2.78 |
|
$ |
3.26 |
|
$ |
2.72 |
|
Acreage and Wells -- At December 31, 2007, we owned interests in the following oil and gas wells and acreage.
|
|
|
Gross Wells |
|
Net Wells |
|
Developed Acreage |
|
Undeveloped Acreage |
|
||||||||
|
State |
|
Oil |
|
Gas |
|
Oil |
|
Gas |
|
Gross |
|
Net |
|
Gross |
|
Net |
|
|
Texas |
|
- |
|
|
|
- |
|
5.94 |
|
4,001 |
|
|
|
9,678 |
|
1,879 |
|
|
Louisiana |
|
|
|
|
|
55.87 |
|
7.62 |
|
8,261 |
|
2,629 |
|
13,742 |
|
4,049 |
|
|
Other |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,852 |
|
1,200 |
|
|
Total |
|
|
|
|
|
55.87 |
|
13.56 |
|
12,262 |
|
3,469 |
|
25,272 |
|
7,128 |
|
Drilling Activity - A well is considered “drilled” when it is completed. A productive well is completed when permanent equipment is installed for the production of oil or gas. A dry hole is completed when it has been plugged as required and its abandonment is reported to the appropriate government agency. The following tables summarize certain information concerning our drilling activity:
|
|
|
Number of Gross Wells Drilled |
|
||||||||||
|
|
|
Exploratory |
|
Developmental |
|
Total |
|
||||||
|
|
|
Productive |
|
Drilled |
|
Productive |
|
Drilled |
|
Productive |
|
Drilled |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Net Wells Drilled |
|
||||||||||
|
|
|
Exploratory |
|
Developmental |
|
Total |
|
||||||
|
|
|
Productive |
|
Drilled |
|
Productive |
|
Drilled |
|
Productive |
|
Drilled |
|
|
|
|
0.75 |
|
0.93 |
|
0.16 |
|
0.16 |
|
0.91 |
|
1.09 |
|
|
|
|
0.20 |
|
0.52 |
|
0.76 |
|
0.76 |
|
0.96 |
|
1.28 |
|
|
|
|
0.33 |
|
0.44 |
|
0.30 |
|
0.30 |
|
0.63 |
|
0.74 |
|
|
Total |
|
1.28 |
|
1.89 |
|
1.22 |
< | ||||||