El Paso Exploration & Production stated that 2007 oil and gas capital expenditures were $2.58 billion, which included $1.17 billion for acquisitions and $230 million of international expenditures. Approximately 72% of the proved reserves as of December 31, 2007, are proved developed, and 80% are natural gas, including the Four Star reserves.
El Paso has announced its intention to sell up to approximately 300 billion cubic feet equivalent (Bcfe) of proved reserves as part of its portfolio high-grading initiative. The sales process is ongoing, and the company previously announced that it has agreements to sell properties with an estimated 191Bcfe of proved reserves.
Brent Smolik, president of El Paso Exploration & Production, said: I am very pleased with the results of our 2007 drilling program, our producing property acquisitions and the growth in our proved reserves. We hit all of our major goals, including an 8% production increase, growth of our proved reserves and improvement in per-unit lease operating expense and cash flow.
