DENVER, Feb. 01, 2017 (GLOBE NEWSWIRE) — PDC Energy, Inc. (“PDC,” the “Company,” “we” or “us”) (NASDAQ:PDCE) today reported year-end 2016 proved reserves and full-year production.
- Year-end 2016 proved reserves of 341.4 million barrels of oil equivalent (“MMBoe”), an approximate 25% increase over year-end 2015 proved reserves with estimated all-sources reserve replacement of 409%(1).
- Estimated 2016 production of 22.2 MMBoe, a 44% increase over 2015.
- Increased the average lateral length of proved undeveloped horizontal (“PUD”) Niobrara locations in the Wattenberg Field from approximately 5,400 feet to approximately 7,000 feet.
- Proved reserve additions of 32.5 MMBoe attributable to the Delaware basin acquisitions that closed in December 2016. The acquisitions included approximately 61,500 net acres in Reeves and Culberson counties, Texas.
Bart Brookman, President and Chief Executive Officer, commented, “Increasing our Wattenberg proved reserves, in spite of reduced commodity prices, is a notable accomplishment. The increase in proved reserves in Wattenberg is attributable to the underlying benefits of our previously executed strategic acreage trade. This trade has let us drill longer lateral wells with increased operational synergies and higher working interests, and should continue to provide enhanced efficiencies moving forward. We are very pleased with the early results in the Delaware Basin as we continue the integration activities and build out of our extremely talented team.
“Our main focus in 2017 is on operational execution and integration. We expect to demonstrate the quality of our Delaware Basin acreage while continuing to drive value through our high rate-of-return Wattenberg drilling program.”
2016 Proved Reserves
PDC’s total proved reserves as of December 31, 2016 increased 25% to 341.4 MMBoe compared to 272.8 MMBoe reported at year-end 2015. The composition of the reserves at the end of 2016 were 59% liquid and 41% natural gas, with 29% of the reserves classified as proved developed. Year-end 2015 reserves were 60% liquid, 40% natural gas, and 26% proved developed. Proved reserves in the Wattenberg Field and Utica Shale increased 13% to 308.9 MMBoe. In 2016, the Company acquired approximately 61,500 net acres in the Delaware Basin and established total proved reserves of 32.5 MMBoe in the Wolfcamp A and B.
|Year-End Proved Reserve Breakdown by Basin|
PDC’s independent reserve engineering firms, Ryder Scott Company, L.P. (Wattenberg and Utica) and Netherland, Sewell and Associates, Inc. (Delaware) completed their estimate of the Company’s year-end 2016 proved reserves in accordance with Securities and Exchange Commission (“SEC”) guidelines. NYMEX pricing used in the preparation of the December 31, 2016 reserves was $42.75 per barrel (“Bbl”) for crude oil and $2.48 per million British Thermal Units (“MMBtu”) for natural gas, before adjustments for energy content, quality, midstream fees, and basis differentials.
The value of the Company’s proved reserves, utilizing the SEC price guidelines, discounted at ten percent and before tax (“PV10”), increased to $1.7 billion as of December 31, 2016, compared to $1.3 billion as of year-end 2015. The increase in PV10 is primarily a result of a 25% increase in total proved reserves outweighing the 15% and 4% decrease in the average NYMEX oil and gas price, respectively.
|2016 Year-End Proved Reserves Summary|
|Beginning balance at December 31, 2015||272.8||$||1,337||$||4.90|
|Extensions, revisions, dispositions and acquisitions||90.8|
|2016 estimated production||(22.2||)|
|Ending balance at December 31, 2016||341.4||$||1,675||$||4.91|
(1) All-sources reserve replacement defined as the sum of the year-over-year net additions in proved reserves from extensions, revisions, dispositions and acquisitions, divided by 2016 estimated production.
Upcoming Investor Presentations
PDC is scheduled to present at the Credit Suisse Energy Summit in Vail, Colorado on February 15, 2017. Please see the Company’s website at www.pdce.com for details and webcast information. The related slide presentation is expected to be available on the Company’s website immediately prior to the events.
About PDC Energy, Inc.
PDC Energy, Inc. is a domestic independent exploration and production company that acquires, produces, develops, and explores for crude oil, natural gas and NGLs with operations in the Wattenberg Field in Colorado, in the Delaware Basin in West Texas and in the Utica Shale in southeastern Ohio. Its operations are focused on the liquid-rich horizontal Niobrara and Codell plays in the Wattenberg Field, the liquid-rich Wolfcamp zones in the Delaware Basin, and the condensate and wet gas portion of the Utica Shale play.