Cimarex Energy declares fourth-quarter oil and gas production volumes averaged 467.6 million cubic feet equivalent per day (MMcfe/d). Average daily equivalent production was comprised of 330.0 million cubic feet of gas and 22,935 barrels of oil.

Fourth-quarter 2009 production grew 6% sequentially from the third-quarter 2009 average of 441.5 MMcfe/d but fell 5% as compared to the fourth-quarter 2008 average of 493.7 MMcfe/d. Production rate fluctuations reflect the reduction and then increase in operated drilling rigs and successful Gulf Coast exploration. Cimarex's fourth-quarter 2008 operated rig count averaged 31, then was reduced to three rigs in the first quarter of 2009 and averaged 12 by the fourth quarter of 2009.

Fourth-quarter 2009 realized prices are expected to be in the range of $5.25 to $5.35 per thousand cubic feet of gas and $72.00 to $72.50 per barrel of oil.

Full-year 2009 production volumes averaged 462.9 MMcfe/d, a 4% decrease versus 2008 adjusted for property sales. Average daily equivalent production for 2009 was comprised of 323.2 million cubic feet of gas and 23,283 barrels of oil.

Proved Reserves Year-end 2009 proved reserves grew 15% to 1.53 trillion cubic feet equivalent (Tcfe) from 1.34 Tcfe at year-end 2008. Proved reserves are 77% developed at year-end 2009 as compared to 82% at year-end 2008. Reserves added from extensions, discoveries & improved recoveries totaled 312 billion cubic feet equivalent (Bcfe), replacing 185% of production. Proved reserves of 25 Bcfe were sold in 2009. Revisions to previous estimates added 73.9 Bcfe, comprised of 104.7 Bcfe from positive performance and reductions in operating costs, offset by 30.8 Bcfe from lower prices.

Proved reserves at year-end 2009 include 225.2 Bcfe in the western Oklahoma, Cana-Woodford shale play, comprised of 110.9 Bcfe of proved developed and 114.3 Bcfe of proven undeveloped reserves.

2010 Outlook First-quarter 2010 production is projected to range between 515-530 MMcfe/d. Full-year 2010 production is projected to be in the range of 520-540 MMcfe/d, or a 12-17% increase over 2009.

Full-year 2010 exploration and development (E&D) capital investment is targeted to be generally within cash flow. At the present time, based on current market prices and service costs, Cimarex expect that 2010 capital expenditures may range from $700-$900 million. The company have a large inventory of drilling opportunities and limited lease expirations.

Tags: Cimarex Energy Co.