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Oil and Gas Reserve Information | 12 Months Ended
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Dec. 31, 2017
Extractive Industries [Abstract] |
Oil and Gas Reserves Information | Oil and Gas Reserve Information There are numerous uncertainties inherent in estimating quantities of proved crude oil and natural gas reserves. Crude oil and natural gas reserve engineering is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be precisely measured. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimate. Accordingly, reserve estimates are often different from the quantities of crude oil and natural gas that are ultimately recovered. Estimates of our crude oil and natural gas reserves and present values as of December 31, 2017, 2016, and 2015, were prepared by Netherland, Sewell & Associates, Inc., independent reserve engineers. A summary of changes in estimated quantities of proved reserves for the years ended December 31, 2017, 2016, and 2015 is as follows:
| Gas |  | Oil |  | NGLS |  | Total
| (MMcf) |  | (Mbbl) |  | (Mbbl) |  | (MMcfe) (1)
Company: |  |  |  |  |  |  |
Balance at January 1, 2015 | 601 |  |  | 77 |  |  | 17 |  |  | 1,165 |
Revisions of quantity estimate | (330 | ) |  | (35 | ) |  | (15 | ) |  | (630 | )
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Production | (83 | ) |  | (36 | ) |  | (2 | ) |  | (311 | )
Balance at December 31, 2015 (2) | 188 |  |  | 6 |  |  | — |  |  | 224 |
Revisions of quantity estimate | 196 |  |  | 3 |  |  | 8 |  |  | 262 |
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Production | (54 | ) |  | (2 | ) |  | — |  |  | (66 | )
Balance at December 31, 2016 (3) | 330 |  |  | 7 |  |  | 8 |  |  | 420 |
Revisions of quantity estimate | 109 |  |  | 2 |  |  | 3 |  |  | 139 |
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Production | (47 | ) |  | (2 | ) |  | — |  |  | (59 | )
Balance at December 31, 2017 (4) | 392 |  |  | 7 |  |  | 11 |  |  | 500 |
Company’s share of Laramie Energy: |  |  |  |  |  |  |
Balance at January 1, 2015, as revised (5) | 192,015 |  |  | 684 |  |  | 5,444 |  |  | 228,788 |
Revisions of quantity estimate | (86,092 | ) |  | (295 | ) |  | (2,281 | ) |  | (101,553 | )
Extensions and discoveries | 32,041 |  |  | 131 |  |  | 1,007 |  |  | 38,869 |
Acquisitions and divestures | (5,945 | ) |  | (20 | ) |  | (171 | ) |  | (7,091 | )
Production | (4,745 | ) |  | (20 | ) |  | (149 | ) |  | (5,759 | )
Balance at December 31, 2015, as revised (2) (5) | 127,274 |  |  | 480 |  |  | 3,850 |  |  | 153,254 |
Revisions of quantity estimate | 28,195 |  |  | 53 |  |  | 526 |  |  | 31,672 |
Extensions and discoveries | 638 |  |  | 1 |  |  | 19 |  |  | 758 |
Acquisitions and divestures | 168,887 |  |  | 492 |  |  | 4,701 |  |  | 200,045 |
Production | (15,192 | ) |  | (59 | ) |  | (552 | ) |  | (18,858 | )
Balance at December 31, 2016, as revised (3) (5) | 309,802 |  |  | 967 |  |  | 8,544 |  |  | 366,871 |
Revisions of quantity estimate | 1,344 |  |  | 211 |  |  | (434 | ) |  | 3 |
Extensions and discoveries (4) | — |  |  | — |  |  | — |  |  | — |
Acquisitions and divestures | — |  |  | — |  |  | — |  |  | — |
Production | (18,104 | ) |  | (71 | ) |  | (608 | ) |  | (22,178 | )
Balance at December 31, 2017 (4) | 293,042 |  |  | 1,107 |  |  | 7,502 |  |  | 344,696 |
Total at December 31, 2017 | 293,434 |  |  | 1,114 |  |  | 7,513 |  |  | 345,196 |
__________________________________________________
(1) | MMcfe is based on a ratio of 6 Mcf to 1 barrel.
(2) | During 2015, the Company's estimated proved reserves, inclusive of the Company's share of Laramie Energy's estimated proved reserves, decreased by 76,475 MMcfe or approximately 33%. Revisions of quantity estimates related to our share of Laramie Energy's estimated proved reserves resulted in a decrease of 101,553 MMcfe from the beginning of year reserves. These revisions of quantity estimate are primarily associated with wells becoming uneconomic during 2015.
(3) | During 2016, the Company's estimated proved reserves, inclusive of the Company's share of Laramie Energy's estimated proved reserves, increased by 213,813 MMcfe or approximately 139%. Acquisitions and divestitures related to our share of Laramie Energy's estimated proved reserves resulted in an increase of 200,045 MMcfe from the beginning of year reserves. This increase was primarily due to Laramie Energy's acquisition of properties in the Piceance Basin for $152.1 million in March 2016. Please read Note 3—Investment in Laramie Energy, LLC for more information. The increase of 31,672 MMcfe in Revisions of quantity estimate related to our share of Laramie Energy's estimated proved reserves is primarily due to wells that became economic as a result of increased operator efficiency and cost reductions.
(4) | During 2017, the Company's estimated proved reserves, inclusive of the Company's share of Laramie Energy's estimated proved reserves, decreased by 22,095 MMcfe or approximately 6%. Production volumes related to our share of Laramie Energy's estimated proved reserves resulted in a decrease of 22,178 MMcfe. Beginning in 2017, Par has decided to base its determination of Laramie Energy proved undeveloped reserves on only a two year drilling and three year completion time horizon, which has resulted in negative revisions to our proved reserves of 17,216 MMcfe during 2017. The Company's share of Laramie Energy's revisions of quantity estimate also includes 30,362 MMcfe of positive revisions associated with 44 probable locations that were converted to proved developed reserves during 2017. These 44 locations converted to proved reserves during 2017 were not considered extensions because they were drilled in proved areas that are slightly offset to other proved locations. The remaining decrease in estimated proved reserves was due to performance and other changes to the Company's share of Laramie Energy's proved developed producing and developed non-producing reserves.
(5) | We have revised our previously disclosed proved reserves quantities as of December 31, 2016, 2015, and 2014 to remove certain proved undeveloped locations scheduled for completion more than 5 years from initial booking that were classified as proved undeveloped reserves as of December 31, 2016, 2015, and 2014. Par’s share of Laramie Energy's proved undeveloped reserves from the removed proved undeveloped locations was 19,307 MMcfe, 7,587 MMcfe, and 23,786 MMcfe, representing 5%, 5%, and 9% of total proved reserves as of December 31, 2016, 2015, and 2014, respectively. These prior period revisions are not material to our consolidated financial statements for the respective periods.
| Gas |  | Oil |  | NGLS |  | Total
| (MMcf) |  | (Mbbl) |  | (Mbbl) |  | (MMcfe) (1)
December 31, 2015 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 188 |  |  | 6 |  |  | — |  |  | 224 |
Company's share of Laramie Energy | 65,499 |  |  | 248 |  |  | 1,931 |  |  | 78,573 |
Total | 65,687 |  |  | 254 |  |  | 1,931 |  |  | 78,797 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company's share of Laramie Energy (2) | 61,775 |  |  | 232 |  |  | 1,919 |  |  | 74,681 |
Total | 61,775 |  |  | 232 |  |  | 1,919 |  |  | 74,681 |
December 31, 2016 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 330 |  |  | 7 |  |  | 8 |  |  | 420 |
Company's share of Laramie Energy | 159,500 |  |  | 516 |  |  | 4,349 |  |  | 188,690 |
Total | 159,830 |  |  | 523 |  |  | 4,357 |  |  | 189,110 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company's share of Laramie Energy (2) | 150,302 |  |  | 451 |  |  | 4,195 |  |  | 178,181 |
Total | 150,302 |  |  | 451 |  |  | 4,195 |  |  | 178,181 |
December 31, 2017 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 392 |  |  | 7 |  |  | 11 |  |  | 500 |
Company's share of Laramie Energy | 174,464 |  |  | 658 |  |  | 4,589 |  |  | 205,946 |
Total | 174,856 |  |  | 665 |  |  | 4,600 |  |  | 206,446 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company's share of Laramie Energy | 118,578 |  |  | 449 |  |  | 2,913 |  |  | 138,750 |
Total | 118,578 |  |  | 449 |  |  | 2,913 |  |  | 138,750 |
__________________________________________________
(1) | MMcfe is based on a ratio of 6 Mcf to 1 barrel.
(2) | We have revised our previously disclosed proved undeveloped reserves quantities as of December 31, 2016 and 2015 to remove certain proved undeveloped locations scheduled for completion more than 5 years from initial booking that were classified as proved undeveloped reserves as of December 31, 2016 and 2015. Par’s share of Laramie Energy's proved undeveloped reserves from the removed proved undeveloped locations was 19,307 MMcfe and 7,587 MMcfe as of December 31, 2016 and 2015, respectively. These prior period revisions are not material to our consolidated financial statements for the respective periods.
| Price per MMbtu (2) |  | WTI per Bbl
Base pricing, before adjustments for contractual differentials (Company and Laramie Energy): (1) |  |  |
December 31, 2015 | $ | 2.39 |  |  | $ | 50.28 |
December 31, 2016 | 2.29 |  |  | 42.75 |
December 31, 2017 | 2.68 |  |  | 51.34 |
______________________________________________
(1) | Proved reserves are required to be calculated based on the 12-month, first day of the month historical average price in accordance with SEC rules. The prices shown above are base index prices to which adjustments are made for contractual deducts and other factors.
(2) | The CIG index was used for pricing during 2015. In 2017 and 2016, pricing is based on the Northwest spot price index.
Future net cash flows presented below are computed using applicable prices (as summarized above) and costs and are net of all overriding royalty revenue interests.
| December 31,
| 2017 |  | 2016 |  | 2015
| (in thousands)
Company: |  |  |  |  |
Future net cash flows | $ | 1,802 |  |  | $ | 1,154 |  |  | $ | 690 |
Future costs |  |  |  |  |
Production | 902 |  |  | 713 |  |  | 345 |
Development and abandonment | — |  |  | 2 |  |  | 25 |
Income taxes (1) | — |  |  | — |  |  | — |
Future net cash flows | 900 |  |  | 439 |  |  | 320 |
10% discount factor | (328 | ) |  | (154 | ) |  | (128 | )
Discounted future net cash flows | $ | 572 |  |  | $ | 285 |  |  | $ | 192 |
Company’s share of Laramie Energy: (2) |  |  |  |  |
Future net cash flows | $ | 1,026,005 |  |  | $ | 905,607 |  |  | $ | 405,365 |
Future costs |  |  |  |  |
Production | 491,748 |  |  | 462,684 |  |  | 238,129 |
Development and abandonment | 109,248 |  |  | 136,224 |  |  | 67,443 |
Income taxes (1) | — |  |  | — |  |  | — |
Future net cash flows | 425,009 |  |  | 306,699 |  |  | 99,793 |
10% discount factor | (209,188 | ) |  | (165,557 | ) |  | (60,188 | )
Discounted future net cash flows | $ | 215,821 |  |  | $ | 141,142 |  |  | $ | 39,605 |
Total discounted future net cash flows | $ | 216,393 |  |  | $ | 141,427 |  |  | $ | 39,797 |
_______________________________________________
(1) | No income tax provision is included in the standardized measure of discounted future net cash flows calculation shown above as we do not project to be taxable or pay cash income taxes based on its available tax assets and additional tax assets generated in the development of its reserves because the tax basis of its oil and gas properties and NOL carryforwards exceeds the amount of discounted future net earnings.
(2) | We have revised our previously disclosed discounted future net cash flows as of December 31, 2016 and 2015 to reflect the removal of Laramie Energy's proved undeveloped locations scheduled for completion more than 5 years from initial booking that were classified as proved undeveloped reserves as of December 31, 2016 and 2015. Par’s share of Laramie Energy's discounted future net cash flows from the removed locations was $1.8 million and $0.4 million, representing 1% and 1% of total discounted future net cash flows as of December 31, 2016 and 2015, respectively. These prior period revisions are not material to our consolidated financial statements for the respective periods.
The principal sources of changes in the standardized measure of discounted net cash flows for the years ended December 31, 2017, 2016, and 2015 are as follows (in thousands):
| Company |  | Company's Share of Laramie Energy |  | Total
Balance at January 1, 2015 (1) | $ | 1,766 |  |  | $ | 160,671 |  |  | $ | 162,437 |
Sales of oil and gas production during the period, net of production costs | (479 | ) |  | (5,753 | ) |  | (6,232 | )
Acquisitions and divestitures | — |  |  | (4,789 | ) |  | (4,789 | )
Net change in prices and production costs | (679 | ) |  | (153,564 | ) |  | (154,243 | )
Changes in estimated future development costs | 8 |  |  | 788 |  |  | 796 |
Extensions, discoveries, and improved recovery | — |  |  | 9,273 |  |  | 9,273 |
Revisions of previous quantity estimates, estimated timing of development and other | (601 | ) |  | 911 |  |  | 310 |
Previously estimated development and abandonment costs incurred during the period | — |  |  | 15,008 |  |  | 15,008 |
Accretion of discount | 177 |  |  | 17,060 |  |  | 17,237 |
Balance at December 31, 2015 (1) | 192 |  |  | 39,605 |  |  | 39,797 |
Sales of oil and gas production during the period, net of production costs | (62 | ) |  | (7,979 | ) |  | (8,041 | )
Acquisitions and divestitures | — |  |  | 81,066 |  |  | 81,066 |
Net change in prices and production costs | (20 | ) |  | 2,994 |  |  | 2,974 |
Changes in estimated future development costs | 14 |  |  | (8,575 | ) |  | (8,561 | )
Extensions, discoveries, and improved recovery | — |  |  | 231 |  |  | 231 |
Revisions of previous quantity estimates, estimated timing of development and other | 142 |  |  | 16,995 |  |  | 17,137 |
Previously estimated development and abandonment costs incurred during the period | — |  |  | 12,805 |  |  | 12,805 |
Accretion of discount | 19 |  |  | 4,000 |  |  | 4,019 |
Balance at December 31, 2016 (1) | 285 |  |  | 141,142 |  |  | 141,427 |
Sales of oil and gas production during the period, net of production costs | (28 | ) |  | (29,911 | ) |  | (29,939 | )
Net change in prices and production costs | (60 | ) |  | 35,597 |  |  | 35,537 |
Revisions of previous quantity estimates, estimated timing of development and other | 346 |  |  | 37,692 |  |  | 38,038 |
Previously estimated development and abandonment costs incurred during the period | — |  |  | 17,187 |  |  | 17,187 |
Accretion of discount | 29 |  |  | 14,114 |  |  | 14,143 |
Balance at December 31, 2017 | $ | 572 |  |  | $ | 215,821 |  |  | $ | 216,393 |
_______________________________________________
(1) | We have revised our previously disclosed discounted future net cash flows as of December 31, 2016, 2015, and 2014 to reflect the removal of Laramie Energy's proved undeveloped locations scheduled for completion more than 5 years from initial booking that were classified as proved undeveloped reserves as of December 31, 2016, 2015, and 2014. Par’s share of Laramie Energy's discounted future net cash flows from the removed locations was $1.8 million, $0.4 million, and $9.9 million, representing 1%, 1%, and 6% of total discounted future net cash flows as of December 31, 2016, 2015, and 2014, respectively. These prior period revisions are not material to our consolidated financial statements for the respective periods.

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- Definition The entire disclosure for properties used in normal conduct of oil and gas exploration and producing operations. This disclosure may include property accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives. + References No definition available. + Details
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