Alexander Energy Hikes Oil, Natural Gas Reserves

Article excerpt

A 22.4 percent increase in future net revenues is expected to result from a sharp rise in oil and natural gas reserves for Alexander Energy Corp. of Oklahoma City.

Bob G. Alexander, president of the company, said Wednesday that drilling, explortation and acquisition activities during 1989 boosted estimated proved reserves. He said growth in the reserve base resulted from funds generated internally, plus funds made available by partners.

The yearend engineering report shows proved reserves at Dec. 31, 1989, of 19 billion cubic feet of natural gas - a 9.2 percent increase from 17.4 billion cubic feet at yearend 1988. Yearend proved oil reserves were tallied at 2.2 million barrels - a 15.8 percent increase from 1.9 million barrels at yearend 1988.

Alexander said it expects to realize $67.3 million in future net revenues from these reserves on an escalated, non-discounted basis. That compares with 1988 estimated future net revenues of $55 million on proved reserves.

The company reported it replaced through reserve additions 248 percent of the barrel of oil equivalents, on a 6 to 1 conversion basis, of reserves produced during 1989. …