ROSE » Topics » Proved reserves.

These excerpts taken from the ROSE 10-K filed Mar 2, 2009.
Proved reserves. The estimated quantities of oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. See Rule 4-10(a), paragraph (2) through (2)iii for a more complete definition.
 
Proved reserves.
The estimated quantities of oil, natural gas and natural gas liquids that
geological and engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing economic and
operating conditions. See Rule 4-10(a), paragraph (2) through (2)iii for a
more complete definition.

 

These excerpts taken from the ROSE 10-K filed Feb 29, 2008.
Proved reserves. The estimated quantities of oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. See Rule 4-10(a), paragraph (2) through (2)iii for a more complete definition.
 
Proved reserves.
The estimated quantities of oil, natural gas and natural gas liquids that
geological and engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing economic and
operating conditions. See Rule 4-10(a), paragraph (2) through (2)iii for a
more complete definition.

 

This excerpt taken from the ROSE 10-K filed Apr 20, 2006.

Proved Reserves

There are a number of uncertainties inherent in estimating quantities of proved reserves, including many factors beyond our control, such as commodity pricing. Therefore, the reserve information in this report represents only estimates. Reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that can not be measured in an exact manner. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, estimates of different engineers may vary. In addition, results of drilling, testing and production subsequent to the date of an estimate may justify revising the original estimate. Accordingly, initial reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered. The meaningfulness of such estimates depends primarily on the accuracy of the assumptions upon which they were based. Except to the extent that we acquire additional properties containing proved reserves or conduct successful exploration and development activities, or both, our proved reserves will decline as reserves are produced.

As of December 31, 2005, we had 359 Bcfe of proved oil and natural gas reserves, including 344 Bcf of natural gas and 2,481 MBbls of oil and condensate. Using prices as of December 31, 2005, the estimated present value of future net revenues from proved reserves before income taxes, using SEC pricing guidelines, and

 

9


Table of Contents
Index to Financial Statements

discounted at an annual rate of 10% was approximately $1.3 billion. The following table sets forth by operating area a summary of our estimated net proved reserve information as of December 31, 2005:

 

     Estimated Proved Reserves at December 31, 2005(1)(3)(4)
     Developed
(Bcfe)
   Undeveloped
(Bcfe)
   Total
(Bcfe)
   Percent
of Total
Reserves
    PV-10
(Millions)(2)

California

   110.5    37.2    147.7    41 %   $ 605.7

Lobo

   74.0    77.2    151.2    42 %     463.1

Perdido

   9.2    1.0    10.2    3 %     44.1

State Waters

   3.4    —      3.4    1 %     17.8

Gulf of Mexico

   12.7    3.9    16.6    5 %     99.6

Other Onshore

   15.9    7.7    23.6    6 %     76.5

Rocky Mountains

   2.5    1.0    3.5    1 %     9.7

Mid-Continent

   2.3    0.5    2.8    1 %     10.2
                           

Total

   230.5    128.5    359.00    100 %   $ 1326.7
                           

(1) These estimates are based upon a reserve report prepared by Netherland Sewell & Associates, Inc. (hereafter “Netherland Sewell”) using criteria in compliance with SEC guidelines and excludes 19.6 Bcfe of proved oil and gas reserves and a value of $72.5 million representing the total allocated value of wells and the associated leases described in footnote 3 below.

 

(2) Our PV-10 value has been calculated using a spot market natural gas price and posted oil price at December 31, 2005 of $10.08/MMBtu and $57.75/Bbl, respectively, adjusted for basis differentials and held flat for the life of the reserves and adjusted for quality differentials.

 

(3) At the July 2005 closing, we withheld $68 million for properties (excluding that portion of the properties subject to the preferential right) which Calpine agreed to transfer to us as part of the acquisition but for which Calpine had not then secured consents to assign. Subsequent analysis determined that a portion of these properties, having an allocated value withheld under the PSA at closing of $29 million, did not require consent. Consents now have been received for the remaining properties as to which the allocated value under the PSA withheld at closing, was $39 million (“Cured Non-consent Properties”). We are prepared to pay Calpine the retained portion of the original purchase price, upon our receipt from Calpine of record title on these properties, free of any encumbrance, subject to appropriate adjustment for the net revenues through December 15, 2005 related to these properties.

 

(4) Includes properties subject to additional documentation or completion of ministerial actions by federal or state agencies necessary to perfect title issues discovered during routine post-closing analysis after completion of our acquisition of the domestic oil and natural gas business from Calpine, for which Calpine is contractually obligated to assist in resolving.

 

10


Table of Contents
Index to Financial Statements
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki