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15. SUPPLEMENTARY FINANCIAL INFORMATION ON OIL
AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES
(UNAUDITED)
The following disclosures provide unaudited
information required by SFAS No. 69, "Disclosures About Oil and
Gas Producing Activities."
COSTS INCURRED
Costs incurred in oil and natural gas property
acquisition, exploration and development activities are summarized
below:
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Excludes capitalized interest on unproved properties of $3.1 million,
$2.9 million and $2.9 million for the years ended December 31, 2002,
2003 and 2004, respectively, and includes capitalized overhead of
$1.0 million, $1.4 million and $1.7 million for the years ended
December 31, 2002, 2003 and 2004, respectively. The table also includes
non-cash asset retirement obligations of $0.7 million and $0.5 million
for the year ended December 31, 2003 and 2004, respectively. |
OIL AND NATURAL GAS RESERVES
Proved reserves are estimated quantities of
oil and natural gas which geological and engineering data demonstrate
with reasonable certainty to be recoverable in future years from
known reservoirs under existing economic and operating conditions.
Proved developed reserves are proved reserves that can reasonably
be expected to be recovered through existing wells with existing
equipment and operating methods.
Proved oil and natural gas reserve quantities
at December 31, 2002, 2003 and 2004, and the related discounted
future net cash flows before income taxes are based on estimates
prepared by Ryder Scott Company, DeGolyer and MacNaughton and Fairchild
& Wells, Inc., independent petroleum engineers. Such estimates have
been prepared in accordance with guidelines established by the Securities
and Exchange Commission.
The Company's net ownership interests in estimated
quantities of proved oil and natural gas reserves and changes in
net proved reserves, all of which are located in the continental
United States, are summarized below:
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