Attached files
file | filename |
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8-K - FORM 8-K - WHITING USA TRUST I | d70677e8vk.htm |
EX-99.1 - EX-99.1 - WHITING USA TRUST I | d70677exv99w1.htm |
Exhibit 99.2
Cawley, Gillespie & Associates, Inc.
PETROLEUM CONSULTANTS
1000 LOUISIANA STREET, SUITE 625 | 306 WEST SEVENTH STREET, SUITE 302 | 9601 AMBERGLEN B L V D . , SUITE 117 | ||
HOUSTON , TEXAS 77002 5008 | ORT WORTH, TEXAS 76102-4987 | AUSTIN, TEXAS 78729-1106 | ||
713-651-9944 | 817-336-2461 | 512-249-7000 | ||
FAX 713-651-9980 | FAX 817-877-3728 | FAX 512-233-2618 |
January 26, 2010
Whiting USA Trust I
1700 Broadway, Suite 2300
Denver, Colorado 80290-2300
1700 Broadway, Suite 2300
Denver, Colorado 80290-2300
Re: | Evaluation Summary SEC Price Whiting USA Trust I Interests Proved Producing Reserves Certain Properties Located in Various States As of December 31, 2009 |
||
Pursuant to the Guidelines of the Securities and Exchange Commission for Reporting Corporate Reserves and Future Net Revenue |
Gentlemen:
As requested, we are submitting our estimates of proved producing reserves and forecasts of
economics attributable to the underlying properties, from which a net profits interest has been
formed and conveyed by Whiting Petroleum Corporation to the Whiting USA Trust I. These certain oil
properties are located in North Dakota, Texas, Oklahoma, Arkansas, Montana, Wyoming, Michigan, New
Mexico, Alabama, Louisiana, Colorado, Kansas, Utah and Mississippi. Also included in the table
below are the proved reserves attributable to the same underlying properties estimated to be
produced by August 31, 2018, which is the estimated date of termination for Whiting USA Trust I.
This report includes results for an SEC pricing scenario. The results of this evaluation are
presented in the accompanying tabulations, with a composite summary presented below:
Proved Developed Producing | ||||||||||||
Underlying | Underlying Properties | |||||||||||
Properties | Reserves Estimated to be Produced | |||||||||||
Full Economic Life | By August 31, 2018 | |||||||||||
Net Reserves |
||||||||||||
Oil |
- Mbbl | 5,885.5 | 3,901.5 | |||||||||
Gas |
- MMcf | 18,056.4 | 12,768.9 | |||||||||
NGL |
- Mbbl | 378.6 | 309.9 | |||||||||
Equivalent* |
- Mbbl | 9,273.5 | 6,339.5 | |||||||||
Revenue |
||||||||||||
Oil |
- M | $ | 314,126.2 | 208,218.6 | ||||||||
Gas |
- M | $ | 57,338.6 | 40,348.5 | ||||||||
NGL |
- M | $ | 11,121.8 | 9,098.8 | ||||||||
Other |
- M | $ | 0.0 | 0.0 | ||||||||
Severance Taxes |
- M | $ | 30,192.6 | 19,727.1 | ||||||||
Ad Valorem Taxes |
- M | $ | 5,158.8 | 3,315.9 | ||||||||
Operating Expenses |
- M | $ | 181,887.4 | 115,506.1 | ||||||||
Investments |
- M | $ | 0.0 | 0.0 | ||||||||
Net Operating Income |
- M | $ | 165,347.9 | 119,116.9 | ||||||||
Discounted @ 10% |
- M | $ | 101,001.9 | 88,791.7 |
* | Calculated based on an energy equivalent that one Bbl of crude oil equals six Mcf of natural gas and one Bbl of crude oil equals one Bbl of natural gas liquids. |
Whiting USA Trust I
January 26, 2010
Page 2
January 26, 2010
Page 2
The discounted cash flow value shown in the previous table should not be construed to
represent an estimate of the fair market value by Cawley, Gillespie & Associates, Inc.
Hydrocarbon Pricing
As requested for the SEC scenario, initial WTI spot oil and Henry Hub Gas Daily prices of
$61.18 per bbl and $3.87 per MMBtu, respectively, were adjusted individually to WTI posted pricing
at $57.90 per bbl and Houston Ship Channel pricing at $3.64 per MMBtu, as of December 31, 2009.
Prices were not escalated in the SEC scenario. Oil price differentials, gas price differentials
and heating values were applied as furnished by your office.
Expenses and Taxes
Lease operating expenses and Ad Valorem tax values were forecast as provided by your office.
Lease operating expenses were held constant in accordance with SEC guidelines. Severance tax rates
were applied at normal state percentages of oil and gas revenue.
Miscellaneous
An on-site field inspection of the properties has not been performed. The mechanical operation
or conditions of the wells and their related facilities have not been examined nor have the wells
been tested by Cawley, Gillespie & Associates, Inc. Possible environmental liability related to
the properties has not been investigated nor considered. The cost of plugging and the salvage
value of equipment at abandonment have not been included.
The proved reserve classifications used conform to the criteria of the Securities and Exchange
Commission (SEC). The reserves and economics are predicated on regulatory agency
classifications, rules, policies, laws, taxes and royalties in effect as noted herein. The
possible effects of changes in legislation or other Federal or State restrictive actions have not
been considered. All reserve estimates represent our best judgment based on data available at the
time of preparation, and assumptions as to future economic and regulatory conditions. It should be
realized that the reserves actually recovered, the revenue derived therefrom and the actual cost
incurred could be more or less than the estimated amounts.
The reserve estimates were based on interpretations of factual data furnished by your office.
Production data, gas prices, gas price differentials, expense data, tax values and ownership
interests were also supplied by you and were accepted as furnished. To some extent information
from public records has been used to check and/or supplement these data. The basic engineering and
geological data were subject to third party reservations and qualifications. Nothing has come to
our attention, however, that would cause us to believe that we are not justified in relying on such
data.
Yours very truly, |
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Robert D. Ravnaas, P.E. Executive | ||||
Vice President Cawley, Gillespie & Associates Texas Registered Engineering Firm F-693 | ||||