As of December 31,
2011
2010
2009
Oil and Gas Probable Reserves
(2)
Consolidated entities
Oil (MBbls)
Probable developed
(3)
. . . . . . . . . . . . .
2,841
Probable undeveloped . . . . . . . . . . . .
106,685
109,526
Gas (MMcf)
Probable developed
(3)
. . . . . . . . . . . . .
14,593
Probable undeveloped . . . . . . . . . . . . 1,080,967
1,095,560
MBOE . . . . . . . . . . . . . . . . . . . . . . . . . . . .
292,119
Standardized Measure (in thousands)
Consolidated entities
(4)
. . . . . . . . . . . . $ 5,134,181 $ 3,093,135 $ 2,224,839
Entity’s shares of equity investee
(1)
. . $ 261,911 $ 210,898
Average Realized Price
(5)
Oil (per Bbl) . . . . . . . . . . . . . . . . . . . . . . . . . $ 104.59 $ 72.83 $ 54.38
Gas (per Mcf) . . . . . . . . . . . . . . . . . . . . . . . . $
4.08 $
4.29 $
3.53
Reference Price
(6)
Oil (per Bbl) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95.99 $ 79.43 $ 61.18
Henry Hub Gas (per MMBtu) . . . . . . . . . . . . $
4.12 $
4.38 $
3.87
Reserve Life (years)
. . . . . . . . . . . . . . . . . . . .
12.2
13.0
11.2
(1) Amounts relate to our equity investment in McMoRan acquired on December 30, 2010.
(2) 2011 is the first year we have reported probable reserves.
(3) Reflects reserves associated with incremental recovery from existing production/injection wells that require no future
development costs and reserves associated with work performed on existing producers/injectors that do not meet the
reasonable certainty requirements to be classified as proved.
(4) Our year-end 2011 standardized measure includes future development costs related to proved undeveloped reserves of
$549 million, $557 million and $690 million in 2012, 2013 and 2014, respectively.
(5) Reflects the average realized price in our reserve reports based on the twelve-month average of the first-day-of-the-month
reference prices, in each case adjusted for location and quality differentials. Historically, the market price for California crude
oil differs from the established market indices in the United States due principally to the higher transportation and refining
costs associated with heavy oil. Recently, however, the market price for California crude oil has strengthened relative to
NYMEX and West Texas Intermediate, or WTI, primarily due to world demand and declining domestic supplies of both
Alaskan and California crude oil.
(6) Reflects the twelve-month average of the first-day-of-the-month reference prices. Our reference prices are the WTI spot
price for oil and the Henry Hub spot price for gas.
In 2011, we had a total of 75 MMBOE of extensions and discoveries, including 25 MMBOE in the
Haynesville Shale and 22 MMBOE in the Eagle Ford Shale resulting from successful drilling during 2011
that extended and developed our proved acreage and 19 MMBOE in the deepwater Gulf of Mexico
resulting from the sanctioning of the Lucius project. The divestment of our Panhandle and South Texas
properties resulted in a 48 MMBOE reduction. With persistent low natural gas prices and a corresponding
assumed reduction in the pace of development in the Haynesville Shale, we classified 44 MMBOE of our
Haynesville Shale undeveloped reserves as probable undeveloped. These reserves meet the reasonable
certainty, economic and other conditions needed to be classified as proved undeveloped reserves but the
slower pace of drilling extends the development of these reserves past five years.
11