Plains Exploration and Production (PXP) produced an average of more than 9,000 boe/d from the Eagle Ford Shale in the fourth quarter and added more than 22 million boe of proved reserves during 2011. The company's acreage is primarily located in the oil and gas-condensate windows in Karnes County. 

In the Eagle Ford Shale, fourth-quarter daily sales volumes averaged approximately 9,123 BOE per day net to PXP, compared to approximately 1,500 BOE per day net to PXP from November acquisition to end of the fourth-quarter 2010. January 2012 volumes averaged approximately 13,700 BOE per day compared to approximately 1,970 BOE per day net to PXP in January 2011. The Company had 6.9 net rigs operating on its acreage at the end of January.

 

In 2011, PXP added total proved reserves of 81.0 million BOE. The Company reported a total of 75.2 million BOE of extensions and discoveries, including 22.5 million BOE in the Eagle Ford Shale, 19.3 million BOE in the Gulf of Mexico, and 25.5 million BOE in the Haynesville Shale, 4.3 million BOE of acquisitions and 1.5 million BOE of revisions. These additions replaced 222% of 2011 production. Pro forma for asset sales, PXP replaced 290% of 2011 production.

Oil/liquids proved reserves increased 9%, or 18% pro forma for asset sales, due primarily to the rapidly expanding Eagle Ford Shale asset area.....