We are an independent exploration, development and production company that utilizes 3−D seismic imaging and other advanced technologies to systematically explore for and develop domestic onshore oil and natural gas reserves. We focus our exploration and development activities in provinces where we believe technology and the knowledge of our technical staff can be effectively used to maximize our return on invested capital by reducing drilling risk and enhancing our ability to grow reserves and production volumes. Our exploration and development activities are currently concentrated in four provinces: the Onshore Gulf Coast, the Anadarko Basin, the Rocky Mountains and West Texas.
We regularly evaluate opportunities to expand our activities to other areas that may offer attractive exploration and development potential, with a particular interest in those areas with plays that complement our current exploration, development and production activities. As a result of this strategy, during late 2005 and throughout 2006 we have been accumulating significant acreage positions in the Powder River Basin and the Williston Basin. Operations within these two basins are included in and constitute the bulk of our activity in our Rocky Mountains province. We also entered into two joint ventures in Southern Louisiana in 2006. We consider these joint ventures to be logical extensions of our prospect generating activities in the onshore Texas Gulf Coast.
At December 31, 2006, our estimated proved reserves of 146.5 Bcfe had a standardized measure value of $302.7 million and a pre-tax PV10% value of $338.5 million. Approximately 82% of our proved reserves were natural gas and we operated approximately 62.4% of the pre-tax PV10% value. For the twelve month period ended December 31, 2006, our total revenue and net income were $106.3 million and $19.8 million, respectively. Our average daily production for 2006 was 36.8 MMcfe, which represents an increase of 11% from our production in 2005.
The following table provides information regarding our assets and operations located in our core areas.
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At
December 31, 2006
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Productive
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2006
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%
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Wells
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3-D
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Average
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Proved
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Pre-tax
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Natural
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Seismic
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Daily
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Province
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Reserves
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PV10%(a)
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Gas
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Gross
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Net
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Data
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Production
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(Bcfe)
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(Millions)
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(Sq.
Miles)
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(MMcfe)
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Onshore
Gulf Coast
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80.9
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$
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227.0
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85%
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|
88
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40.3
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4,369
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22.3
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Anadarko
Basin
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52.8
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80.1
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93%
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|
142
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44.3
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2,381
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11.6
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Rocky
Mountains
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7.7
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10.3
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8%
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6
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4.1
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100
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0.3
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West
Texas/Other
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5.1
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21.1
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14%
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|
82
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25.3
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4,487
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2.6
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Total
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146.5
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$
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338.5
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(b)
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82%
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|
318
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114.0
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11,337
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36.8
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____________
(a)
The prices used to calculate this measure were $61.06 per barrel of oil and $5.475 per MMbtu of natural gas, both as of December 31, 2006.
(b)
The standardized measure for our proved reserves at December 31, 2006 was $302.7 million. See “
