US-based energy company Matador Resources said its Eagle Ford shale play in South Texas, has total proved 10.5 million barrels of oil and 80 billion cubic feet (bcf) of natural gas or 23.8 million barrels of oil equivalent (boe).
The company said proved oil reserves increased 176% to 10.5 million barrels at 31 December 2012, from 3.8 million barrels at 31 December 2011.
Proved oil reserves at 31 December 2012 comprised 44% of Matador’s total proved reserves, a four-fold rise from 12% of total proved reserves, which happened due to the company’s ongoing drilling programme in the Eagle Ford shale in South Texas.
Proved natural gas reserves went down to 80bcf at 31 December 2102 from 170bcf at 31 December 2011, due to lower natural gas prices in 2012.
As a result of low natural gas prices, the company removed 97.8bcf of previously classified proved undeveloped natural gas reserves in the Haynesville shale in Northwest Louisiana from its total proved reserves at June 30, 2012, while proved developed reserves include 58% of total proved at 31 December 2012, compared to 34% at 31 December 2011.
The company’s estimated future net cash flows before income taxes is about $423.2m on total proved reserves at 31 December 2012, compared to $248.7m at 31 December 2011.
Matador Resources chairman, president and CEO Joseph Wm. Foran said that the company made progress in the Eagle Ford shale due to continuation of exploration and development programme.
“Not only did we produce more oil in December 2012 than we did in all of 2011, but we also reduced our drilling times and our drilling and completion costs on Eagle Ford wells throughout 2012,” Foran added.