Proved
Reserves
As of December 31, 2006 Whiting’s
proved reserves totaled 248.1 million barrels of oil equivalent
(MMBOE), which consisted of 79% oil and 21% natural gas.
The net pre-tax PV10% value of these reserves by region
is summarized below.
|
|
| Total
Net Pre-Tax PV10% Value By Region
(December 31, 2006): $3,352.2 million
(click chart for larger view) |
|
 |
|
As of December 31, 2006, approximately 65% of the 263.6
MMBOE of proved reserves have been classified as proved developed
producing, or PDP. Proved developed non-producing, or PDNP,
and proved undeveloped, or PUD, reserves constitute 8% and
41%, respectively, of the proved reserves as of December
31, 2006. Total proved reserves had a net pre-tax PV10% value
as of December 31, 2006 of $3,352.2 million.
The following table summarizes our total net proved reserves
and pre-tax PV10% value within our five core areas as of
December 31, 2006, as well as our December 2006 average daily
production.
|
|
|
Proved
Reserves
|
|
|
Area
|
|
Oil
(MMbbl)
|
|
Natural
Gas (Bcf)
|
|
Total
(MMBOE)
|
%
Oil
|
Pre-Tax PV
10% Value (2)
(In millions)
|
December
2005
Average Daily
Production (MBOE/d)
|
| Permian
Basin |
|
103.1 |
|
78.3 |
|
116.1 |
89% |
|
$ |
1,345.3 |
|
12.6 |
|
|
Rocky Mountains (1) |
|
37.1 |
|
96.9 |
|
53.2 |
70% |
|
|
816.4 |
|
12.6 |
|
|
Mid-Continent |
|
47.4 |
|
36.4 |
|
53.5 |
88% |
|
|
771.8 |
|
5.2 |
|
|
Gulf Coast |
|
2.2 |
|
62.2 |
|
12.6 |
18% |
|
|
211.6 |
|
6.4 |
|
|
Michigan |
|
5.2 |
|
45.1 |
|
12.7 |
41% |
|
|
207.1 |
|
3.7 |
|
|
Total |
|
195.0 |
|
318.9 |
|
248.1 |
79% |
|
$ |
3,352.2 |
|
40.5 |
|
|
Discounted Future Income Taxes
|
|
($ |
960.0)
|
|
|
|
Standardized
Measure of Discounted
Future Net Cash Flows
|
|
$ |
2,392.2
|
|
|
|
| (1)
Pre-tax PV10% may be considered a non-GAAP financial
measure as defined by the SEC and is derived from
the standardized measure of discounted future net
cash flows, which is the most directly comparable
GAAP financial measure. Pre-tax PV10% is computed
on the same basis as the standardized measure of
discounted future net cash flows but without deducting
future income taxes. We believe pre-tax PV10% is
a useful measure for investors for evaluating the
relative monetary significance of our oil and natural
gas properties. We further believe investors may
utilize our pre-tax PV10% as a basis for comparison
of the relative size and value of our reserves
to other companies because many factors that are
unique to each individual company impact the amount
of future income taxes to be paid. Our management
uses this measure when assessing the potential
return on investment related to our oil and gas
properties and acquisitions. However, pre-tax PV10%
is not a substitute for the standardized measure
of discounted future net cash flows. Our pre-tax
PV10% and the standardized measure of discounted
future net cash flows do not purport to present
the fair value of our oil and natural gas reserves. |
| |
| (2) Please refer
to page 5 of the attached Form 10-K for more information
on Pre-Tax PV10% value. |
|
|
