PITTSBURGH, Jan. 31 /PRNewswire-FirstCall/ -- Equitable Resources, Inc.
(NYSE: EQT) estimates total natural gas reserve potential, including
proved, probable and possible reserve categories, of 7,227 Bcfe, a 26%
increase over the 2006 total of 5,725 Bcfe. This increase was mainly driven
by the success of the company's horizontal drilling program.
Equitable reported total proved reserves of 2,682 Bcfe at 2007 year
end, a net increase of 185 Bcfe or 7%. The company's total proved reserve
replacement rate was 323% at an all-in 2007 replacement cost of
approximately $0.48/Mcfe. The drill bit reserve replacement rate was 386%
from 321 Bcfe of 2007 extensions, discoveries and other additions with a
reserve replacement cost of approximately $0.93/Mcfe.
Summarized below are the company's estimated 3P reserves broken out by
play type:
Reserve Estimates (Bcfe) Shale Other CBM TOTAL
Proved Developed 749 846 163 1,758
Proved Undeveloped 410 427 87 924
Probable 2,115 101 76 2,292
Possible 1,903 107 243 2,253
TOTAL 5,177 1,481 569 7,227
In addition to the reserve estimates above, the company has also made
an assessment of the total resource potential across its entire acreage
position. This assessment has categorized the company's resource potential
into a number of emerging plays with a range of unrisked reserve potential.
Emerging Plays - Unrisked Reserve Potential Bcfe
Devonian Shale extension/re-entry 3,000-6,000
Marcellus Shale - High Pressure 2,000-3,000
Marcellus Shale - Low Pressure 1,000-2,000
Devonian Shale - Virginia 1,000-2,000
CBM extensions 300-400
Deep Undefined
TOTAL 7,300 - 13,400+
Reserve Replacement Calculations
Total proved reserve replacement rate is the sum of purchases, sales,
extensions, discoveries and other additions, and revisions divided by
production. Drill bit reserve replacement rate is the sum of extensions,
discoveries and other additions divided by production. The all-in
replacement cost is the total development cost plus costs for reserve
acquisitions less proceeds from reserve sales divided by the total net
reserve additions which include purchases, sales, extensions, discoveries
and other additions, and revisions. The reserve replacement cost is the
total development cost divided by the sum of extensions, discoveries and
other additions.
Equitable Resources is an integrated energy company, with emphasis on
Appalachian area natural gas production, gathering, processing,
transmission and distribution. For information on Equitable, visit
http://www.eqt.com.
Cautionary Statements
The United States Securities and Exchange Commission permits oil and
gas companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or conclusive
formation tests to be economically and legally producible under existing
economic and operating conditions. The company uses certain terms in this
press release, such as "probable", "possible" and "unrisked reserve
potential", that the SEC's guidelines strictly prohibit the company from
including in filings with the SEC. Investors are urged to consider closely
the disclosure in the company's 2006 Form 10-K, File No. 001-03551
available from the company at 225 North Shore Drive, Pittsburgh, PA 15212,
Attention: Corporate Secretary, and, when filed with the SEC, the company's
2007 Form 10-K. You can also obtain the company's 2006 Form 10-K from the
SEC by calling 1-800-SEC-0330.
Equitable's calculations of replacement rates and replacement costs may
differ significantly from the methods used by other companies who report
similar measures. As a result, our measures may not be comparable to
similar measures reported by other companies. The data used to calculate
the total reserve replacement rate and the drill bit reserve replacement
rate is preliminary and, in some cases, remain subject to audit. Final data
will be included in the company's 2007 Form 10-K, which will be filed with
the SEC.
Disclosures in this press release contain forward-looking statements.
Statements that do not relate strictly to historical or current facts are
forward-looking. Without limiting the generality of the forgoing, forward-
looking statements contained in this press release specifically include the
estimates of proved, probable and possible reserves and the unrisked
reserve potential. A variety of factors could cause the Company's actual
results to differ materially from the anticipated results. The risks and
uncertainties that may affect the results of the Company's forward-looking
statements include, but are not limited to, those set forth under Item 1A,
"Risk Factors", of the Company's Form 10-K for the year ended December 31,
2006.
Any forward-looking statement speaks only as of the date on which such
statement is made and the Company does not intend to correct or update any
forward-looking statement, whether as a result of new information, future
events or otherwise.
SOURCE Equitable Resources, Inc.
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Related links:
http://www.eqt.com/
CONTACT:
Patrick Kane of Equitable Resources, Inc.,
+1-412-553-7833
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