Business
Compton reports 2006 year end results
Compton reports 2006 year end results.
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\nCALGARY, March 26 /CNW/ - Compton Petroleum Corporation (TSX - CMT, NYSE\n- CMZ) is pleased to report its financial and operating results for the year\nand quarter ended December 31, 2006.\n\n\n2006 HIGHLIGHTS\n\n - Reserve additions 42.2 million boe\n (net of production),\n 20% increase\n\n - Reserve value $3.3 billion, 8% DCF\n\n - FD&A costs, $/boe\n Excluding change in future capital $8.84 proved plus probable\n $14.36 proved\n Including change in future capital $13.56 proved plus probable\n $18.45 proved\n\n - 2006 Average Production (boe/d) 33,187 - 13% increase\n\n - Production replacement 4.5 times\n\n - Cash flow $256 million, $1.92/share F.D.\n\n\nStrong Reserve and Production Growth\n\n\nTotal proved plus probable reserves rose 20% from the prior year to\n249 million boe and were valued at $3.3 billion, 8% DCF. Total proved reserves\nat year end were 147 million boe, an increase of 17% from 2005. Proved\nproducing reserves comprise 67% of total proved reserves. Total proved\nreserves account for 59% of the proved plus probable reserves.\n\n\nOur 2006 production grew 13% to average 33,187 boe/day versus 29,424\nboe/day in 2005. Ernie Sapieha, President and CEO, commented that "Compton's\nincrease in low cost reserves and production growth are largely as a result of\nour continued successful drilling program and capital investment in facilities\nand infrastructure expansion. Our ten year compound annual growth rate on\nreserves is 35%, and we have never had any material revisions to our reserve\nreports."\n\n\nDrilling Results\n\n\nDuring 2006 Compton achieved reserve additions of 54.3 MMboe, before\nproduction, of reserve additions, primarily through the drill bit, at highly\ncompetitive finding and development costs. We successfully completed our 342\nwell drilling program, with a 94% success rate. We replaced 448% of our 2006\nproduction at an all-in Finding, Development, and Acquisition cost ("FD&A") of\n$8.84/boe, excluding the change in future capital, or $13.56/boe, including\nchange in future capital.\n\n\nOf the 342 wells drilled in 2006, 86% were classified as development\nwells and 14% were classified as exploratory wells, compared to 80% and 20%\nrespectively in 2005. The higher percentage of development wells in the\ncurrent year reflects the increasing success of our oil...