Venoco Reports Year-End 2008 Reserves of 97.5 Million BOE - Reflecting 13% Year-over-Year Reserve Growth (net of production and pro forma for the sale of the Hastings Complex).
Full-year 2008 Production was 21,674 BOE/d - an increase of 11% over Full-year 2007.
Fourth Quarter 2008 Production was 22,674 BOE/d - an increase of 13% over Fourth Quarter of 2007.
"We were successful this year in adding reserves in our
Net of production in 2008, the company added 5.7 MMBOE of proved reserves in its
Pro forma for the
The pre-tax PV-10 value of the company's reserves using year-end SEC pricing of
Full Cost Ceiling Write-down
Based on year-end 2008 commodity prices, the company expects to record a non-cash, full-cost ceiling write-down of approximately
Operations Update
The company announced that production in the fourth quarter of 2008 was an all-time high of 22,674 BOE/d, an increase of 3.3% over the 21,949 BOE/d in the third quarter of 2008 and a 13% increase over the fourth quarter of 2007 production of 20,100 BOE/d. Production for the full-year of 2008 was 21,674 BOE/d, up 11% over production in 2007 of 19,535 BOE/d.
The following table details the company's quarterly daily production by region (BOE/d) as reported:
Region 4Q 2007 3Q 2008 4Q 2008 Sacramento Basin 7,887 9,363 9,668 Southern California 8,273 8,606 8,903 Texas (and other) 3,940 3,980 4,103 Total 20,100 21,949 22,674 ====== ====== ====== Total excluding Hastings 17,578 19,551 20,110 ====== ====== ======
Production from the
In
Pro forma for the sale of the Hastings Complex, the company expects to see modest production increases from its remaining
Expectations with respect to future production rates, reserves and capital projects are subject to a number of uncertainties, including those referenced below in "Forward-looking Statements".
2009 Capital Budget
The company announced on
2009 Forecasts
The following table summarizes the company's 2009 guidance:
-- Production: 19,000 BOE/d -- Lease Operating Expenses: $15.00 per BOE -- G&A Expenses (excluding stock-based compensation): $4.50 per BOE -- DD&A: $12.00 per BOE
Earnings Conference Call
Venoco will file its form 10-K with the SEC and host a conference call to discuss results on
A replay of the conference call will be available for one week by calling (888) 286-8010 or, for international callers, (617) 801-6888, and using passcode 51550711. The replay will also be available on the Venoco website for 30 days.
About the Company
Venoco is an independent energy company primarily engaged in the acquisition, exploitation and development of oil and natural gas properties in
Forward-looking Statements
Statements made in this news release relating to Venoco's anticipated "ceiling test" write down, future production and expenses and all other statements except statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are both subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the timing and extent of changes in oil and gas prices, the timing and results of drilling and other development activities, the availability and cost of obtaining drilling equipment and technical personnel, risks associated with the availability of acceptable transportation arrangements and the possibility of unanticipated operational problems, delays in completing production, treatment and transportation facilities, higher than expected production costs and other expenses, and pipeline curtailments by third parties. All forward-looking statements are made only as of the date hereof and the company undertakes no obligation to update any such statement. Further information on risks and uncertainties that may affect the Company's operations and financial performance, and the forward-looking statements made herein, 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.
SOURCE Venoco, Inc.