CORRESP 2 filename2.htm Schedule 1 to September 30, 2005 response letter

Schedule 1 to September 30, 2005 response letter

 

The estimated future net revenue (using current prices and costs as of those dates, exclusive of income taxes) and the present value of future net revenue (at a 10% discount for estimated timing of cash flow) for the Company's proved developed and proved undeveloped oil and gas reserves at the end of each of the five years ended December 31, 2004, are summarized as follows (figures rounded):

Proved Developed

Proved Undeveloped

Total

 

As of

12-31

Future Net

Revenue

PV 10 Value

Of Future

Net Revenue

Future Net

Revenue

Present Value

Of Future

Net Revenue

Future Net

Revenue

PV 10 Value

Of Future

Net Revenue

PV 10 Value

Of future

Income Taxes

Standardized Measure of Discounted Future

Net Cash Flows(1)

2000

$ 199,376,000

113,137,000

199,376,000

113,137,000

33,127,000

80,010,000

2001

$ 41,086,000

24,653,000

957,000

629,000

42,043,000

25,282,000

4,316,000

20,966,000

2002

$ 97,600,000

56,855,000

97,600,000

56,855,000

14,079,000

42,776,000

2003

$ 141,194,000

85,695,000

22,891,000

17,401,000

164,085,000

103,096,000

29,844,000

73,252,000

2004

$ 177,916,000

107,116,000

33,484,000

26,796,000

211,400,000

133,912,000

39,501,000

94,411,000

(1) The PV 10 Value represents the discounted future net cash flows attributable to our proved oil and gas reserves before income tax, discounted at 10%. Although it is a non-GAAP measure, we believe that the presentation of the PV 10 Value is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves prior to taking into account corporate future income taxes and our current tax structure. We use this measure when assessing the potential return on investment related to our oil and gas properties. The standardized measure of discounted future net cash flows represents the present value of future cash flows attributable to our proved oil and natural gas reserves after income tax, discounted at 10%.