Wednesday, February 4, 2009

El Paso Natural Gas 2.5 Trillion Cubic Feet Equivalent

2.5 trillion cubic feet equivalent (Tcfe) proved
reserves, including the Company's proportionate interest
in Four Star Oil & Gas (Four Star)
-- 595 billion cubic feet equivalent (Bcfe) of reserve
additions prior to revisions
-- 192 percent reserve replacement prior to price-related
-- $2.87 per million cubic feet equivalent (Mcfe) domestic
reserve replacement costs prior to price-related revisions
-- Increased risked resource potential (which is in addition
to proved reserves) to 3.5 Tcfe

Note: Reserve additions include extensions, discoveries and purchases of reserves in place

El Paso Corporation (NYSE: EP) reported today that its proved natural gas and oil reserves at December 31, 2008 totaled 2.5 Tcfe, including 222 Bcfe related to its 48.8 percent interest in Four Star.

"El Paso had a very good year in terms of reserve additions, percentage of reserves replaced and domestic reserve replacement costs, excluding the effects of significant price-related revisions at year-end," said Doug Foshee, president and chief executive officer of El Paso Corporation. "Extensions and discoveries were up 69 percent over 2007 results, which demonstrate significant improvement in our E&P business. And the $2.87 per Mcfe domestic reserve replacement costs, excluding price-related revisions, is our best performance since I joined El Paso in 2003. While a sharp drop in commodity prices had a significant impact on year-end reserves, it is important to note that the year-end reserve calculation assumed very little reduction in service costs, which have fallen since year end and continue to decline. If we had calculated our year-end reserves assuming a Henry Hub natural gas price of $7.00 per MMBtu, $70.00 per barrel WTI pricing and assuming no further reduction in service costs, El Paso's reserves, including our interest in Four Star, would have been approximately 3.0 Tcfe."

Below is a reconciliation of consolidated proved reserves from December 31, 2007 to December 31, 2008, and a summary of El Paso's proportionate interest in Four Star proved reserves at December 31, 2008.

Consolidated Proved Reserves (Bcfe)*
Proved Reserves at Dec. 31, 2007 2,853
Production (272)
Sales of Reserves in Place (303)
Extensions and Discoveries** 577
Purchases of Reserves in Place 18
Revisions Due to Price (476)
Revisions Other than Price (72)
Proved Reserves at Dec. 31, 2008 2,325
El Paso's Interest in Four Star Proved Reserves (Bcfe)
Four Star at December 31, 2008 222
* Year end reserve estimates are based on $5.71 per MMBtu natural gas
(Henry Hub) and $44.60 per barrel (WTI) oil prices
** 128 Bcfe of reserve extensions and discoveries related to our Altamont
oil properties were based upon a $70 per barrel (WTI) oil prices, but were
ultimately eliminated due to price-related revisions at year end.

Approximately 74 percent of the December 31, 2008, proved reserves are proved developed, and 92 percent are natural gas. Approximately 85 percent of price-related revisions are attributable to the decline in oil and NGL prices. Of the price-related revisions, approximately 300 Bcfe were domestic, the largest portion of which was related to the company's Altamont oil properties. In addition, El Paso did not book any reserves from the Camarupim (Bia) project in Brazil due to the sharp drop in oil prices.

El Paso E&P's oil and gas 2008 capital expenditures were approximately $1.7 billion, which includes approximately $50 million for acquisitions of producing properties and approximately $200 million for international expenditures.

El Paso Corporation expects to take a fourth quarter after-tax full-cost ceiling test charge of $1.9 billion and a $0.1 billion impairment of its investment in Four Star. Approximately $1.4 billion of the full-cost ceiling test charge is attributable to the domestic full-cost pool and $0.5 billion to the Brazilian full-cost pool. The company uses the full-cost method of accounting for its oil and natural gas properties. The carrying value of these assets, net of related deferred income taxes, is evaluated on a quarterly basis and is limited to the present value of estimated net revenues of proved reserves using a 10-percent discount rate based on prices and costs at the end of the quarter plus the cost of unevaluated oil and natural gas properties (i.e. a cost center ceiling). A ceiling test charge occurs when the carrying value of the natural gas and oil assets exceeds the cost center ceiling.

El Paso has derivative positions that are intended to manage the price risk of its natural gas and oil production for 2009 and beyond. They are recorded on a mark-to-market basis and therefore were not included in the ceiling test calculation. These positions had a net asset value of approximately $700 million at December 31, 2008.

The ceiling test and impairment charges are non-cash items that do not impact any of the covenants on the debt obligations of El Paso Corporation or its subsidiaries. Based on current reserves and the expected fourth quarter 2008 ceiling test charge, the company estimates its first quarter 2009 per-unit DD&A rate will decline by approximately $0.90 per Mcfe from the rate used in the fourth quarter of 2008 to approximately $2.30 per Mcfe.

27 Percent Increase in Non-Proved Resources

El Paso also reported today that at December 31, 2008, it had an estimated 3.5 Tcfe of net risked or 6.6 Tcfe of net unrisked non-proved resource potential in addition to its 2.5 Tcfe of proved natural gas and oil reserves. The company's risked non-proved resource potential rose 0.7 Tcfe, or 27 percent, from 2007 levels. The majority of the increase was primarily due to the addition of new opportunities in the Haynesville Shale, infill opportunities in the Altamont Field and the Raton Basin coal bed methane program. Non-proved resources include the company's proportionate share of Four Star.

Foshee added, "One of our key successes in 2008 was the expansion of our future drilling inventory. The 2009 E&P capital program will optimize our current investment opportunities while preserving the drilling inventory that we have worked hard to develop, most of which is operated by El Paso and held by production."

A breakout of non-proved resources (risked/unrisked) is as follows:

Unconventional - 1,080/1,560 Bcfe - Unconventional resources primarily consist of the company's coal bed operations in the Raton, Black Warrior, and Arkoma Basins and its holdings in the New Albany and Haynesville shale plays.

Conventional, low-risk (probability of geologic success greater than or equal to 40 percent) - 1,770/2,300 Bcfe - This consists of conventional resources in the Rockies, south Texas, and Brazil development programs. It also includes tight-sand drilling in the ArkLaTex area.

Conventional, higher-risk (probability of geologic success less than 40 percent) - 700/2,785 Bcfe - This includes higher-risk exploration in the Gulf of Mexico, Texas Gulf Coast, and undrilled international exploration prospects in Brazil and Egypt.

Click here to view a chart showing the change in year end reserves, including the Company's proportionate interest in Four Star.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit

Cautionary Note to U.S. Investors

Note that the SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We have used certain terms in this news release, such as risked and unrisked non-proved resource potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. The SEC defines proved reserves as estimated quantities that geological and engineering data demonstrate with reasonable certainty to be recoverable in the future from known reservoirs under the assumed economic conditions. Risked and unrisked non-proved resource potential are estimates of potential reserves that are made using accepted geological and engineering analytical techniques, but which are estimated with reduced levels of certainty than for proved reserves. Unrisked resource potential is less certain than those for risked resource potential. Investors are urged to closely consider the disclosures and risk factors in our Forms 10-K and 10-Q, available from our offices or from our website at, including the inherent uncertainties in estimating quantities of proved reserves and non-proved resource potential.


This release includes certain forward-looking statements and projections. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, changes in unaudited and/or unreviewed financial information; the uncertainty of estimating proved reserves and non-proved potential, the future level of service costs, the availability and cost of financing to fund our future exploration and production operations; the effects of any changes in accounting rules and guidance; our ability to meet production volume targets in our Exploration and Production segment; changes in commodity prices and basis differentials for oil, natural gas, and power, including the impact upon our hedge positions and our full-cost ceiling test in the future; general economic and weather conditions in geographic regions or markets served by the company and its affiliates, or where operations of the company and its affiliates are located, including the risk of a global recession and negative impact on natural gas demand; political and currency risks associated with international operations of the company and its affiliates; competition; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

Certain of the production information in this press release include the production attributable to El Paso's 49 percent interest in Four Star Oil & Gas Company ("Four Star"). El Paso's Supplemental Oil and Gas disclosures, which are included in its Annual Report on Form 10-K, reflect its proportionate share of the proved reserves of Four Star separate from its consolidated proved reserves. In addition, the proved reserves attributable to its proportionate share of Four Star represent estimates prepared by El Paso and not those of Four Star. The reserve replacement ratio and reserve replacement costs are two metrics we use to measure our ability to establish a long-term trend of adding reserves at a reasonable cost in our core asset areas. In this press release, we have excluded price-related revisions from the calculations of these metrics. These revisions are included in the calculations of these metrics as presented in company's Annual Report on Form 10-K. See the company's Annual Report on Form 10-K for further discussions of these metrics.

Investor-Media Relations
Bruce L. Connery
Vice President
Office: (713) 420-5855
Media Relations
Bill Baerg
Office: (713) 420-2906


Anonymous said...

[b][url=]louis vuitton outlet[/url][/b] Focus on your communication expertise. You've got to noticeably enhance your conversation capabilities mainly because a large portion on the occupation calls for remaining a team player. Significantly, you ought to understand how to communicate with superiors and fellow personnel. Though, they are highly-priced just ensure will compare and contrast them with outstanding, you learn it ideal regarding price. LV makers build the newest patterns LV Men which obtain in the firm logo Louis Vuitton Trip cruise Assortment Galliera Amalfitana structure. I will propose a Jimmy Choo Nino darkish louis vuitton stockholm reptile-consequence leather wallet to a chic place of work sweetheart.

[b][url=]uggs boots[/url][/b] For athletic and energetic folks, here is a bracelet that could surely suit your life-style. It truly is created from pretty gentle content so whatever you do, you won't be disturbed or bothered by its weight and decoration. It is completely silicon since it is or else you might also have your symbol or message engraved on it if you need to customize your own private..

[b][url=]louis vuitton outlet[/url][/b] You do not will need to be working an enormous enterprise to presume just like a CEO. Just reframe the term CEO consequently that it really works to the enterprising entrepreneur. Any time you do, then the CEO results in being the top-level girl to blame for the functions of her company. A large stage individual thus you would like to retain on the ideal and newest kinds then you definately definately really need to keep your eye location obtainable when browsing together with the entire world huge web for women bags. It is best to locate a fairly priced but critically stylish women women purse in the web. In the course of your quest it is best to examine that the ladies wallet actually really should at present have high-quality features within it.

[b][url=]louis vuitton outlet[/url][/b] During the instance of that Pretend Louis Vuitton Personally Bags, authorities that you seriously having said that get enjoyment from the previous common really come to feel, lavishness also to effortless education these form of sacks, billfold also for the purse on account of getting the extremely exact very similar assets and resources to pick from just inside of printed look-alike Louis Vuitton Palm Scenario show households. The particular Look-alike Louis Vuitton give sacks might be approximately similar on performance, seems to become like, assortment, versions not to mention distinctive shades on the fundamental Louis Vuitton. These plastic bags take place for being in real excellent benefits additionally enchantment as soon as you actually have an understanding of your Faux Louis Vuitton structure and type, on the other hand, you can not stand ordinarily the big charge the software demands.

[b][url=]ugg boots outlet[/url][/b] You will find also couple of reliable on the web stores of which mulberry caddy last sale give price reductions to them, and also would definitely allows you to pay for for over the internet as for every a ease-of-use as well as significance collection. Replications. are avid players given the nod handbags which can be ready beneath actual needs to duplicate this primeval carrier..

Anonymous said...

top [url=][/url] brake the latest [url=][/url] manumitted no set aside hand-out at the leading [url=]no deposit reward

Anonymous said...

[url=]sac longchamp moins cher[/url] Next, add the food coloring and allow the noodles to soak in the color. When they become the shade you want, remove them from the bowl or bag. Lay them in a single layer on paper towels to dry.. People seemed sad or desperate or seedy to me. There was nothing glamorous about any of it. My illation was turning into emptiness and as I parked along a residential street, locked the doors and covered up with a coat, tears began to run down my cheeks and onto the hefty bag that had Mulberry Small Heathcliffe Laptop Briefcase Light Coffee for Men,Buy cheap Mulberry bags from Mulberry uk official factory shop. become my pillow.
[url=]sac longchamps[/url] But, these bags are also large enough to carry other random items that I Wonderful Mulberry Women's Medium Alexa Leather Satchel Light Coffee Bag, we offer %75 Off for every Mulberry Handbags. don't need, thereby making it harder to find anything. My bags turn into black holes of some sort where everything just gets lost. I know some of you know what I am talking about.
[url=]sacs longchamp[/url] This tote holds the dimension of 16 7/8w x 5d x 12 3/8h, spacious for everyday use. Interior organizer has pockets for business cards, a cell phone and electronic accessories as well as expanded utility loop. Exterior front zipper compartment includes dual zip pockets, full zip-around main compartment and center zip divided section... All the compartments are zip fastened and nicely padded. They can be fastened to the chest. It is like a chest harness system which can accommodate only specific camera models.. Contemplate all of the probable employs to check out engineered to be well-built and that will last for over only a few several weeks. You'll use it all through your daily routine, in order that Top Seller Mulberry Women's Smaller Bayswater Leather Shoulder Brown Bag at auction, High quality, Big Discount, Free shipping, No Tax and Up to 77% off it must manage the misuse you wi. Goyard Bags even when today.

Anonymous said...

You are absolutely right. In it something is also idea excellent, agree with you.
I apologise, but, in my opinion, you are not right. I can prove it. Write to me in PM, we will discuss.
You are not right. I am assured. Let's discuss it. Write to me in PM, we will communicate.
It agree, it is the remarkable answer
Do not despond! More cheerfully!

[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]

Anonymous said... The Smart Document Capture System Athento Lands in Argentina with Lakaut SAPR WebSan Jose, CA (PRWEB) [url=]Mets 5 David Wright Road Cool Base Grey 2010 All Star Jerseys[/url] May 17, 2013
Lakaut SA becomes the first official distributor of Spanish software company in Argentina, adding to an extensive global partner network. The goal pursued by the agreement is to be closer to Argentine companies that require Document Capture Software and ECM software in general, so customers now have the direct attention of sales representatives in the South American country and also enjoy a backup technical team in their own country.
For Jose Luis de la Rosa, CEO of the Athento product manufacturer - "Although we already have our headquarters in America located in Silicon Valley, our partners are the way we maintain a close relationship with our customers," -. Athento already has customers in other [url=]Yankees 24 Robinson Cano Red 2010 All Star Jerseys[/url] countries in the region such as Colombia, Mexico, Peru and Chile, but - "The market in Argentina is fairly large and it requires a close collaborator to meet your needs, and Lakaut is a company with the experience and leadership required to [url=]Rays 13 Carl Crawford Home Cool Base White 2010 All Star Jerseys[/url] bring Athento's intelligent document capture to this market"- says de la Rosa.
For Guillermo Cantini, President of Lakaut "Adding to our portfolio of services an innovative software such as Athento provides high value to our customers as we incorporate the digitization of documents, tools to label, classify or assign people and processes to documents intelligently and using semantic technology, achieving [url=]Rays 13 Carl Crawford Red 2010 All Star Jerseys[/url] time efficiency in search and, at the same time, in each work circuit".
Yerbabuena Software is a company located in San Jose, the heart of Silicon Valley, formed by a wide range of ECM software experts and has carried out an intensive process of expansion since 2010. It currently has offices in Spain and Silicon Valley (California), plus important partnership agreements in different countries. The flag product Athento is responsible for managing business documents in world leaders such as BNP Paribas, the DGT of Spain, BBVA or Leroy Merlin.
Argentina's Lakaut is a document management service company focused on paper digitization, custody and technology services related to [url=]Brewers 8 Braun Black 2011 All Star Jerseys[/url] document management. It was the first company in this country to be certified as Service Company for Archive and Scanning (PSAD) by the AFIP, the actual IRS of Argentina. With a solid set of over 1,800 customers, Lakaut also has the support of having among its clients major multinationals such as IBM Argentina, Argentina Renault, Toyota Argentina or Procter Gamble, among others.
Read the full story at