Investment Highlights
High Quality, Long-Lived Asset Base
- Estimated 115.1 Bcfe of proved reserves at December 31, 2010 (1), an increase of 25% over prior year
- PV-10 of $143.7 million at December 31, 2010 (1)
Large Inventory of Drilling Locations
- Over 180 future drilling locations in Catalina
- Atlantic Rim CBM - Multi-year development program with over 250 net wells to DBLE upon full development;
- Pinedale Anticline – As a result of 5 acre spacing approval, the area contains over 350 future drill sites (26.0 net).
Low Cost Developer and Producer
- F&D cost average for past 3 years at $1.06/ Mcfe
- Production replacement ratio of approximately 350% on captal expenditures of $21.5 million, or $0.67 per Mcfe of proved reserve additions
- Production costs, including taxes, totalled $1.56 for the year ended December 31, 2010
Emerging Midstream Opportunities
- Midstream assets in which we control infrastructure and transportation provides competitive advantage and strategic options including compression and gathering systems;
- Midstream assets provide a fee-based revenue source that is independent of gas prices
- In 2011, signed third party transporation agreement to provide service for future production
Future Strategic Initiatives
- Enhancement of Company-operated wells to improve production
- Working with Atlantic Rim partners on enhancing well production
- Continued developmental drilling in core areas
- Continued marketing efforts to transport third party gas through the Company's pipeline
- Evaluating mergers and acquisitions opportunities, including property acquisitions
- Participating in future Pinedale wells
(1) Prepared by Netherland, Sewell & Associates, Inc. as of December 31, 2010.