XTO: "Cross Timbers added 852 billion cubic feet of gas equivalent (Bcfe) during 1999 at a cost of $.70 per thousand cubic feet of gas"
Sorry if this has already been posted, I haven't read everything the past few days.
crosstimbers.com
CROSS TIMBERS' PROVED RESERVES TOP 2 TCFE;
367% OF PRODUCTION REPLACED AT A COST OF $.70 PER MCFE
FORT WORTH, TX (Mar. 16, 2000) - Cross Timbers Oil Company (NYSE-XTO) today announced that independent petroleum engineers estimate Cross Timbers' proved oil and gas reserves at year-end 1999 to be a record 2.02 trillion cubic feet of gas equivalent (Tcfe), up 23% compared with 1.64 Tcfe at year-end 1998.
Cross Timbers added 852 billion cubic feet of gas equivalent (Bcfe) during 1999 at a cost of $.70 per thousand cubic feet of gas equivalent (Mcfe). After deducting reserve sales of 325 Bcfe, the Company replaced 527 Bcfe or 367% of 1999 production. The Company's development program, including the effect of revisions, replaced 341 Bcfe or 237% of production at a cost of $.28 per Mcfe.
Natural gas reserves increased 28% to 1.55 trillion cubic feet and, combined with natural gas liquids of 17.9 million barrels, equaled 82% of total reserves. Oil reserves increased 13% to 61.6 million barrels. Proved developed reserves account for 79% of total proved reserves on an Mcfe basis. At year-end 1999, the Company's reserve-to-production index was 13.6 years.
Based on realized prices of $24.17 per barrel of oil and $2.20 per thousand cubic feet of gas (Mcf), and on constant cost assumptions, estimated future net cash flows, before income taxes, totaled $3.27 billion at December 31, 1999. The present value before income tax, discounted at 10%, was $1.77 billion, compared to $909 million as of year-end 1998. The realized prices at year-end 1998 were $9.92 per barrel and $2.00 per Mcf of gas.
"We believe that our production replacement percentage and finding cost will again rank Cross Timbers near the top of its industry for both measures," noted Bob R. Simpson, Chairman and Chief Executive Officer. "This exceptional performance is a result of our highly successful development programs in the East Texas and San Juan basins and the timely acquisition of nearly 500 Bcf of natural gas in the Arkoma Basin. We expect 2000 to be another exceptional year as our continuing development programs in East Texas and the San Juan Basin are supplemented by our initial development of the recently acquired Arkoma Basin properties."
Cross Timbers Oil Company is engaged in the acquisition, exploitation and development of quality, long-lived producing oil and gas properties. The Company, whose predecessors were established in 1986, completed its initial public offering in May 1993. Its properties are concentrated in Texas, Arkansas, Oklahoma, Kansas, New Mexico, Wyoming and Alaska.
Contact: Louis G. Baldwin
Executive Vice President and Chief Financial Officer
Cross Timbers Oil Company
817/870-2800
Statements concerning future development activity are forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information; however, management's assumptions are subject to a wide range of business risks, and there is no assurance that these development activities will occur as projected. Further information is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by this reference as though fully set forth herein.
Cross Timbers Oil Company
Proved Oil and Gas Reserves
December 21, 1999
(in thousands) Natural
Oil Gas Gas Liquids
(Bbls) (Mcf) (Bbls) BOE MCFE
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Proved Developed 48,010 1,225,014 13,781 265,960 1,595,760
Proved Undeveloped 13,593 320,609 4,121 71,149 426,893
Total Proved 61,603 1,545,623 17,902 337,109 2,022,653
Estimated future net cash flows
before income tax $3,269,443
Present value before income tax
discounted at 10% $1,765,936
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Changes in Proved Reserves
(in thousands) Natural
Oil Gas Gas Liquids
(Bbls) (Mcf) (Bbls) BOE MCFE
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December 31, 1998 54,510 1,209,224 17,174 273,221 1,639,328
Revisions 10,792 60,011 1,838 22,632 135,791
Extensions and discoveries 3,003 166,669 3,357 34,139 204,829
Production (5,112) (105,120) (1,325) (23,957) (143,742)
Purchases in place 2,790 494,666 20 85,254 511,526
Sales in place (4,380) (279,827) (3,162) (54,180) (325,079)
December 31, 1999 61,603 1,545,623 17,902 337,109 2,022,653
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Acquisition, Development & Exploration Costs Incurred During 1999
The following table summarizes costs incurred, whether such costs are capitalized for financial reporting purposes (in thousands):
Acquisitions:
Producing properties $505,912
Undeveloped properties 4,182
Development (a) 89,306
Exploration (b) 904
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Total $600,304
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(a) Includes $1,353,000 of capitalized interest.
(b) Primarily includes geological and geophysical costs. |
