to their targeted depth and have subsequently been either temporarily or permanently plugged and
abandoned.
West Africa
Gross(1)
Net(1)
1
0.40
(1) The well noted is the Orca #2 appraisal well.
Summary of Oil and Gas Reserves
The summary data with respect to our estimated proved reserves and future cash flows has been
prepared by Netherland, Sewell & Associates, Inc. (‘‘NSAI’’), our independent reserve engineering firm,
in accordance with the definitions and regulations of the Securities and Exchange Commission (‘‘SEC’’)
applicable to companies involved in oil and natural gas producing activities and adjusted for
imbalances. The December 31, 2014 reserve report was completed on January 22, 2015, and a copy is
included as an exhibit to this report.
Proved Reserves
As of December 31, 2014, our estimated net proved undeveloped reserves totaled 8.4 MMBbls of
oil and 3.7 Bcf of natural gas. All of our proved reserves are attributable to our interest in the
Heidelberg field in the U.S. Gulf of Mexico.
Estimated Net Proved Reserves as of December 31, 2014
Oil (MMBbls) Natural Gas (Bcf) Total (MMBOE)
Proved Developed . . . . . . . . . . . . .
0
0
0
Proved Undeveloped . . . . . . . . . . . .
8.4
3.7
9.0
All estimated future net cash flows are attributable to projected production from the Heidelberg
Field in the U.S. Gulf of Mexico. The table below provides information regarding estimated future net
cash flows (excluding derivative contracts) and the benchmark prices used.
Estimated Future Net Cash Flows
(in millions, except $ per Bbl/Mcf)
Estimated Future Net Cash Flows
. . . . . . . . . . . . . . .
$557.0
Standardized Measure
. . . . . . . . . . . . . . . . . . . . . . . .
$365.3
PV-10
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$365.3
Benchmark oil price ($/Bbl) . . . . . . . . . . . . . . . . . . . .
$95.24
Benchmark natural gas price ($/Mcf) . . . . . . . . . . . . .
$ 4.77
Standardized Measure of Discounted Net Future Cash Flows
The standardized measure of discounted net future cash flows (‘‘Standardized Measure’’) is the
present value of estimated future net cash inflows from proved oil and natural gas reserves, less future
development and production costs and future income tax expenses, discounted at 10% per annum to
reflect timing of future net cash flows. As of December 31, 2014, the Standardized Measure was
approximately $365.0 million.
SEC reporting rules require companies to prepare reserve estimates using reserve definitions and
pricing based on 12-month historical un-weighted first-day-of-the-month average prices, rather than
year-end prices. Our estimated net proved reserves, future net cash flows, PV-10 and Standardized
Measure were determined using index prices for oil and gas and were held constant throughout the life
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