CWEI » Topics » If we do not replace reserves we produce, our financial results will suffer.

This excerpt taken from the CWEI 10-K filed Mar 16, 2007.

If we do not replace reserves we produce, our financial results will suffer.

In general, the volume of production from an oil and gas property declines as reserves related to that property are depleted. The decline rates depend upon reservoir characteristics. Historically, our oil and gas properties have had steep rates of decline and short estimated productive lives. The implied life of our proved reserves at December 31, 2006 is approximately 9.2 years, based on 2006 production levels.

Our oil and gas reserves will decline as they are produced unless we are able to conduct successful exploration and development activities or acquire properties with proved reserves. Because we are engaged to a large extent in exploration activities, our ability to replace produced reserves is subject to a higher level of risk and is less predictable than it might be if we concentrated on developmental drilling activities.

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This excerpt taken from the CWEI 10-K filed Mar 16, 2006.

If we do not replace reserves we produce, our financial results will suffer.

 

In general, the volume of production from an oil and gas property declines as reserves related to that property are depleted. The decline rates depend upon reservoir characteristics. Historically, our oil and gas properties have had steep rates of decline and short estimated productive lives. The implied life of our proved reserves at December 31, 2005 is approximately 9.3 years, based on 2005 production levels.

 

Our oil and gas reserves will decline as they are produced unless we are able to conduct successful exploration and development activities or acquire properties with proved reserves. Because we are

 

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engaged to a large extent in exploration activities, our ability to replace produced reserves is subject to a higher level of risk than when we were drilling development wells in the Austin Chalk (Trend).

 

EXCERPTS ON THIS PAGE:

10-K
Mar 16, 2007
10-K
Mar 16, 2006
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