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Pioneer Natural Resources Reports Year-End 2012 Proved Reserves and Finding Costs
The NYMEX prices used for 2012 proved reserves reporting purposes were
The Company’s successful horizontal
As mentioned above, technical revisions of previous reserve estimates for 2012 included the movement of 80 MMBOE of vertical PUD reserves to the probable category. This negative impact was partially offset by performance improvements totaling 53 MMBOE across Pioneer’s asset portfolio, resulting in net negative technical revisions of 27 MMBOE for the year. Technical revisions are included in the calculation of the drillbit F&D cost.
Pioneer’s proved reserve additions from the drillbit and acquisitions
totaled 170 MMBOE for 2012. After taking into account the Company’s
production for 2012 of 61 MMBOE, negative pricing revisions of 82 MMBOE
and proved reserves of 4 MMBOE that were removed due to the divestitures
The table below shows Pioneer’s year-end 2012 proved reserves by asset in MMBOE:
Total costs incurred during 2012 were
The commodity prices used for 2012 resulted in a pre-tax present value
of future net cash flows discounted at 10% (PV-10) of
Year-end proved reserves, costs incurred and a reconciliation of PV-10 to Standardized Measure are detailed in the attached supplemental schedules.
Further information regarding 2012 reserves and finding costs will be
discussed during Pioneer’s quarterly conference call scheduled for
Telephone: Dial (877) 718-5108, confirmation code: 7431932 five minutes before the call. View the presentation via Pioneer’s internet address above.
A replay of the webcast will be archived on Pioneer’s website. A
telephone replay will be available through
Pioneer is a large independent oil and gas exploration and production
company, headquartered in
Except for historical information contained herein, the statements,
charts and graphs in this news release are forward-looking statements
that are made pursuant to the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements and
the business prospects of Pioneer are subject to a number of risks and
uncertainties that may cause Pioneer's actual results in future periods
to differ materially from the forward-looking statements. These risks
and uncertainties include, among other things, volatility of commodity
prices, product supply and demand, competition, the ability to obtain
environmental and other permits and the timing thereof, other government
regulation or action, the ability to obtain approvals from third parties
and negotiate agreements with third parties on mutually acceptable
terms, the receipt of approvals required to consummate the Company’s
Southern Wolfcamp joint interest transaction, litigation, the costs and
results of drilling and operations, availability of equipment, services,
resources and personnel required to complete the Company's operating
activities, access to and availability of transportation, processing and
refining facilities, Pioneer's ability to replace reserves, implement
its business plans or complete its development activities as scheduled,
access to and cost of capital, the financial strength of counterparties
to Pioneer's credit facility and derivative contracts and the purchasers
of Pioneer's oil, NGL and gas production, uncertainties about estimates
of reserves and resource potential and the ability to add proved
reserves in the future, the assumptions underlying production forecasts,
quality of technical data, environmental and weather risks, including
the possible impacts of climate change, the risks associated with the
ownership and operation of an industrial sand mining business and acts
of war or terrorism. These and other risks are described in Pioneer's
10-K and 10-Q Reports and other filings with the
An audit of proved reserves follows the general principles set forth
in the standards pertaining to the estimating and auditing of oil and
gas reserve information promulgated by the
"Finding and development cost per BOE," or “all-in F&D cost per BOE,” means total costs incurred divided by the summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place, discoveries and extensions and improved recovery. Consistent with industry practice, future capital costs to develop proved undeveloped reserves are not included in costs incurred.
"Drillbit finding and development cost per BOE," or “drillbit F&D cost per BOE,” means the summation of exploration and development costs incurred divided by the summation of annual proved reserves, on a BOE basis, attributable to technical revisions of previous estimates, discoveries and extensions and improved recovery. Consistent with industry practice, future capital costs to develop proved undeveloped reserves are not included in costs incurred.
“Reserve replacement” is the summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place, discoveries and extensions and improved recovery divided by annual production of oil, NGLs and gas, on a BOE basis.
“Drillbit reserve replacement” is the summation of annual proved reserves, on a BOE basis, attributable to technical revisions of previous estimates, discoveries and extensions and improved recovery divided by annual production of oil, NGLs and gas, on a BOE basis.
Pioneer Natural Resources
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