Energen Resources Honored for Best Field Rejuvenation
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Water Flood Operations Bring New Life to 90-Year-Old Oil Field
BIRMINGHAM, Ala., Jun 16, 2010 (BUSINESS WIRE) --Energen Resources Corporation, the oil and gas exploration and production subsidiary of Energen Corporation (NYSE: EGN), was honored this week as the recipient of Oil and Gas Investor magazine's Best Field Rejuvenation Award 2009-2010 for its water-flood workfor enhanced oil recovery in the North Westbrook Unit (NWBU) in Mitchell County, Texas. The award is among Oil and Gas Investors annual Excellence Awards; winners were chosen from reader-submitted nominations and honored at the magazine's Energy Capital Week Conference in Houston.
Energen Resources acquired the NWBU in November 2005 from a private company for approximately $168 million. It was producing just under 900 barrels of oil per day from the Clear Fork and Upper Clear Fork formations. Production in the NWBU had peaked at around 5,500 barrels a day back in the mid-1970s after then-operator Chevron Corporation implemented secondary recovery operations in 1968. Since assuming operations in January 2006, Energen Resources has put its exploitation and waterflood expertise to work. The result has been dramatic production growth. By year-end 2009, production in the NWBU had reached 4,150 barrels of oil per day, and it continues to increase in 2010.
"Over the last 4½ years, Energen Resources has drilled more than 420 producer and injector wells in the NWBU, built a new water injection station, replaced old injection and production lines, installed telemetry and rejuvenated a truePermian Basin legacy," said James McManus, chairman and chief executive officer of Energen. "This award for best field rejuvenation is a testament to our technical expertise and our ability to extract meaningful value for our shareholders after making an acquisition."
Energen has built its oil and gas exploration and production subsidiary into a top 25 independent (on the basis of U.S. proved reserves) over the last 14 years primarily through the acquisition and exploitation of proved reserves with development potential. Including estimated future development costs of $500 million, Energen has invested $4.2 billion to acquire and develop 2.7 trillion cubic feet equivalent (Tcfe) of proved oil, gas and natural gas liquids reserves. Its most recent acquisition was the $181 million purchase of some 15.3 million barrels of proved reserves in the Fuhrman-Mascho Field in the Permian Basin; the company estimates the property includes another 15.6 million barrels of unproved, primarily oil, reserves.
Since 1994, Energen Resources has grown its proved reserve base from less than 100 billion cubic feet equivalent located exclusively in Alabama's Black Warrior Basin to 1.6 Tcfe today. Its largest operations are in the San Juan Basin in New Mexico and Colorado and the Permian Basin in west Texas and southern New Mexico. Energen Resources still operates its legacy coalbed methane assets in the Black Warrior Basin and has a smaller presence in the North Louisiana/East Texas area.
Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and natural gas liquids reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 3.5 trillion cubic feet equivalent of proved, probable, and possible reserves in the San Juan, Permian, and Black Warrior basins. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at http://www.energen.com.
This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.
SOURCE: Energen Resources Corporation
Energen Resources Corporation
Julie S. Ryland, 205-326-8421