Ken; This might look like the same news clip but checking para.#3 might hold the answer to your question. Thanks for the link. Yuo will find more at Yahoo.
DENVER, Feb. 10 /PRNewswire/ -- Basin Exploration, Inc. (Nasdaq: BSNX - news) announced today that its estimated net
proved oil and gas reserves at the end of 1997 totaled approximately 138.5 billion cubic feet of natural gas equivalents (Bcfe),
comprised of 89.5 billion cubic feet (Bcf) of natural gas and 8.2 million barrels of crude oil and condensate. The present value
of projected future net cash flows from estimated net proved reserves, before income taxes, totaled approximately $160 million
at December 31, 1997, using a 10% discount rate and year-end gas and oil prices held constant. These amounts represent an
80% increase in proved reserve quantities and a 91% increase in the present value of future net cash flows, compared to
amounts reported at December 31, 1996, despite utilizing gas and oil prices at December 31, 1997 that were 23% and 36%
lower, respectively, than those used the prior year. Average prices utilized at December 31, 1997 were $2.32 per thousand
cubic feet (Mcf) of natural gas and $16.34 per barrel of oil.
The company reported that its net production in 1997 totaled 8.7 Bcfe, including 4.0 Bcfe produced in the fourth quarter, when
average daily rates reached approximately 44 million cubic feet equivalent (MMcfe). Proved reserve additions in 1997,
including acquisitions, discoveries, divestitures, and revisions of previous estimates, totaled approximately 70 Bcfe, or more
than 800% of production for the year.
The company's proved reserves in the Gulf of Mexico increased from 6.7 Bcfe at the beginning of 1997 to 81.8 Bcfe at the end
of the year, reflecting the impact of three acquisitions and participation in nine successful wells drilled during the year. Two wells
drilled in 1997, both on Eugene Island Block 65, produced for a portion of the year. The company had interests in nine Gulf of
Mexico wells drilled in 1997 that were under development at year end, including two that were acquired and one that has been
temporarily abandoned due to mechanical problems. Two of these wells came on-line in January 1998 and five more are
expected to commence production between now and mid-year.
The company's onshore reserves declined from 70.2 Bcfe at December 31, 1996 to 56.7 Bcfe at December 31,1997, despite
modest reserve additions during the year from extension drilling on certain Rocky Mountain properties. A substantial portion of
the decline was attributable to using lower gas and oil prices in the more recent reserve report, which had the effect of
shortening the economic lives of these properties.
Did you notice the $1 price drop thur on a single sale?
Frank |
