Attached files
file | filename |
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8-K - Energy XXI Ltd | v204198_8-k.htm |
EX-99.8 - Energy XXI Ltd | v204198_ex99-8.htm |
EX-99.1 - Energy XXI Ltd | v204198_ex99-1.htm |
EX-99.4 - Energy XXI Ltd | v204198_ex99-4.htm |
EX-99.2 - Energy XXI Ltd | v204198_ex99-2.htm |
EX-99.3 - Energy XXI Ltd | v204198_ex99-3.htm |
EX-99.5 - Energy XXI Ltd | v204198_ex99-5.htm |
EX-99.6 - Energy XXI Ltd | v204198_ex99-6.htm |
EX-99.9 - Energy XXI Ltd | v204198_ex99-9.htm |
Exhibit 99.7
Exxon
Properties Summary Reserve and Historical Operating Data
The
following estimates of the net proved oil and natural gas reserves of the Exxon
properties as of November 30, 2010 are based on evaluations prepared by NSAI.
Reserves were estimated in accordance with guidelines established by the SEC and
the FASB, which require that reserve estimates be prepared under existing
economic and operating conditions with no provisions for price and cost changes
except by contractual arrangements. Reserve estimates are inherently imprecise
and estimates of new discoveries are more imprecise than those of producing oil
and gas properties. Accordingly, reserve estimates are expected to change as
additional performance data becomes available, and such change may be
material.
Estimated
quantities of proved oil and gas reserves and changes in quantities of proved
developed and undeveloped reserves in thousands of barrels (“MBbls”) and
thousands of cubic feet (“MMcf”) for each of the periods indicated were as
follows:
November
30,
2010
|
||||
|
(Unaudited)
|
|||
Total
Proved Reserves (MBOE)
|
49,467
|
|||
Crude
Oil as a Percent of Proved Reserves
|
61
|
%
|
||
Proved
Developed Reserves as a Percent of Proved Reserves
|
68
|
%
|
||
PV-10
Value (In thousands)(1)(2)
|
$
|
802,929
|
||
Prices
Used in Calculating End of Year Reserves
|
|
|||
Natural
Gas per MMbtu
|
$
|
4.396
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||
Crude
Oil per Bbl
|
$
|
75.25
|
(1)
|
PV-10
reflects the present value of the estimated future net revenues to be
generated from the production of proved reserves, determined in accordance
with the rules and regulations of the SEC (using the average of the
first-day-of-the-month commodity prices during the 12-month period ending
on November 30, 2010) without giving effect to non-property related
expenses such as general and administrative expenses, debt service,
depreciation, depletion and amortization expense and discounted at 10% per
year before income taxes.
|
(2)
|
We
believe PV-10 is a helpful measure in evaluating the value of our oil and
gas reserves and many securities analysts and investors use PV-10. We use
PV-10 in our ceiling test computations, and we also compare PV-10 against
our debt balances. The closest GAAP measure to PV-10, a non-GAAP measure,
is the standardized measure of discounted future net cash flows. Due to
the nature of the Exxon acquisition, we are currently unable to calculate
the after-tax present value of discounted future net cash flows required
to present the standardized measure of discounted future net cash
flows.
|
The
following table sets forth certain information provided to us by Exxon regarding
production, historical sales volumes, sales prices and production costs
associated with the operation of the Exxon properties for the periods
indicated:
Year
Ended
June
30,
2010
|
Three
Months
Ended
September
30,
2010
|
|||||||
|
(In
thousands,
except
per unit amounts)
|
|||||||
Operating
Data
|
|
|
||||||
Total
production (MBOE/D)
|
20.9
|
18.8
|
||||||
Percent
of sales volumes from crude oil
|
58
|
%
|
55
|
%
|
||||
Average
sales prices
|
|
|
||||||
Crude
oil per Bbl
|
$
|
73.59
|
$
|
79.05
|
||||
Average
NYMEX price
|
$
|
75.27
|
$
|
76.20
|
||||
Natural
gas per Mcf
|
$
|
4.42
|
$
|
4.59
|
||||
Average
NYMEX price
|
$
|
4.24
|
$
|
4.38
|
||||
Costs
and expenses per BOE
|
|
|||||||
Lease
operating expense
|
$
|
13.39
|
$
|
13.77
|
||||
Production
taxes
|
$
|
0.16
|
$
|
0.15
|