As of December 31, 2004, the company’s proved oil and gas reserves were 645.5 billion cubic feet of gas equivalent, up from 503.1 billion cubic feet of gas equivalent at December 31, 2003.
Southwestern added 197.2 billion cubic feet of gas equivalent (Bcfe) of proved reserves during 2004 at an estimated finding cost of $1.43 per thousand cubic feet of gas equivalent (Mcfe). The new findings represent almost four times the estimated 2004 production totals.
Costs incurred during 2004 for the company’s exploration and development activities are estimated at approximately $282 million based upon un-audited financial results. Additionally, Southwestern estimates that it produced a record 54.1 Bcfe during 2004, up 31% from 41.2 Bcfe in 2003.
Our disciplined strategy of investing our cash flow in projects that will generate the highest returns continues to keep us focused on organic growth through the drill bit, stated Harold Korell, president and CEO of Southwestern.
In 2005, we are targeting another record year, as we continue our drilling program at the Overton Field in East Texas, increase our drilling activity at the Ranger Anticline, and significantly accelerate our Fayetteville Shale drilling program.
