Sheridan Energy, Inc. Announces a 260% Increase in Proved Oil and Gas Reserves
PR Newswire - February 09, 1998 11:38
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HOUSTON, Feb. 9 /PRNewswire/ -- Sheridan Energy, Inc. (Nasdaq: SHDN)
("Sheridan" or the "Company") announced today the results of its 1997 year-end
independent reserve analysis prepared for SEC disclosure.
Based on the independent reserve report of Netherland, Sewell &
Associates, Inc., ("NSA"), as of December 31, 1997, using year-end product
prices and costs held constant, Sheridan had total proved reserves of
2.2 million barrels of oil and 64.8 billion cubic feet of gas ("BCF") or
78.2 BCF equivalents ("BCFE"). The estimated future net revenues discounted
at 10% ("PV10 Value") of these reserves at December 31, 1997 was approximately
$72.4 million. The NSA report was based on actual December 1997 product
prices of $2.41/MMBTU for gas and $16.45/bbl for oil.
The 78.2 BCFE represents an increase of 56.5 BCFE or a 260% increase from
December 31, 1996 reported reserves of 21.7 BCFE after replacing 1997
production. The increase in reserves was the result of the Company's
acquisition and drilling program activities in 1997. The Company's 1997
capital expenditures totaled approximately $55.7 million resulting in
approximately 59.2 BCFE of proved reserve additions at an average finding and
acquisition cost of $0.94 per MCFE. The Company's largest capital investment
was the acquisition of certain properties from Pioneer Natural Resources USA,
Inc., which closed December 15, 1997. The net acquisition cost for these
properties, after purchase price adjustments, was approximately $46.8 million
which resulted in approximately 49 BCFE of reserve additions for a unit
acquisition cost of approximately $0.96 per MCFE.
Sheridan also incurred in 1997 approximately $2.7 million in net capital
exploration and development costs resulting in an increase of approximately
4.4 BCFE proved reserves additions or a $0.63/MCFE finding cost. These
results were obtained from the drilling of 14(net 3.1) economically successful
and currently producing wells out of a total of 18 (net 4.1); a 78% success
ratio.
Sheridan is an independent, domestic oil and gas production and
exploration company operating onshore primarily in Texas, Oklahoma, Louisiana
and Arkansas.
Stockholders and investors are cautioned that all forward-looking
statements involve risks and uncertainties, including without limitation,
commodity price changes, reserve quantity estimates, costs of exploring,
developing and producing oil and natural gas reserves, operating hazards and
effects of competition and general market conditions.
For further information contact Bill Berilgen, President and CEO of
Sheridan at 713-651-7899.
SOURCE Sheridan Energy, Inc.
/CONTACT: Bill Berilgen, President and CEO of Sheridan Energy, Inc.,
713-651-7899/
(SHDN) |
