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Gold/Mining/Energy : Sheridan Energy(SHDN)Today:from $5 to $23 to $8 -- Ignore unavailable to you. Want to Upgrade?

To: JacobJR who wrote (13)	2/9/1998 3:04:00 PM
From: pat w.	Read Replies (1) \| Respond to of 20

Sheridan Energy, Inc. Announces a 260% Increase in Proved Oil and Gas Reserves PR Newswire - February 09, 1998 11:38 SHDN %OIL V%PRN P%PRN -------------------------------------------------------------------------------- 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)