8 Feb 2007resource reserve update● NeutralMajor
The company reported year-end 2006 proved reserves of 699,328 MMcfe (671,636 MMcf of gas and 4,615 MBbls of oil and liquids), prepared by Netherland, Sewell & Associates. It estimated its capitalised costs exceeded the accounting ceiling by about $573M to $596M pre-tax at a $4.95 per Mcf gas price, but said a fourth-quarter writedown would be needed only if the price at the final test date is below about $6.70 per Mcf, since gas prices rose after year-end. It also added further gas hedges on February 7, 2007. The filing repeats the pending Forest merger information.