Winners Circle

[tagthatstock]

trying to pound the table here,, beta has the proven reserves based at a much lower estimate.. Oil is testing $37,, they based their inventories at just less than $32 for par value-- par value has 'grown' since then. and I wont even go into the heavier side of their gas ops'' pssssssst- gas is pretty much bottomed,, and running 1 month faster than the past in up turning in per year cycle


TULSA, Okla.--(BUSINESS WIRE)--Feb. 12, 2004--Beta Oil & Gas, Inc. ("Company") (Nasdaq:BETA - News) announced today its proved reserves for the year ended December 31, 2003 increased 65% over its proved reserves at year end 2002.
Total proved reserve volumes at December 31, 2003 were 22.4 billion cubic feet (Bcf) of natural gas and 1.3 million barrels (MMBbl) of oil, or 30.2 billion cubic feet equivalent (Bcfe) of natural gas as compared to December 31, 2002 proved reserve volumes of 14.7 Bcf of natural gas and 0.6 MMBbl of oil, or 18.3 Bcfe of natural gas. Total proved reserves increased 11.9 Bcfe of natural gas, or approximately 65%. Production volumes for the year ended December 31, 2003 were approximately 1.9 Bcf of natural gas and 127 thousand barrels (MBbl) of oil, or 2.7 Bcfe of natural gas. Average production in 2003 was approximately 7.4 million cubic feet equivalent (MMcfe) per day of natural gas as compared to 8.2 MMcfe per day of natural gas in 2002, a 9.7% decrease. The 2003 production consisted of 72% natural gas and 28% oil. The total reserve additions represent a 540% replacement of 2003 production.

At December 31, 2003, the present value of the Company's proved reserves, before income taxes, using a discount rate of 10% (PV10), was $58.5 million, which was based on 2003 year-end prices of $29.25 per barrel (West Texas Intermediate posted price) and $5.97 per Mmbtu (Henry Hub spot market price). This compares to a PV10 value of $35.9 million at December 31, 2002 using 2002 year-end prices of $31.23 per barrel (NYMEX) and $4.75 per Mmbtu (Henry Hub spot market price). At year end 2003, approximately 84% of the Company's total proved reserves were classified as "proved developed". The total proved reserve mix at year-end 2003 was 74% natural gas and 26% oil. All year end 2003 reserve estimates were prepared by Netherland, Sewell & Associates, a third party independent engineering firm.

The key reserve additions at year end 2003 occurred in four main areas as follows:

Net Reserve
State Area Additions
Oklahoma West Edmond Hunton Lime Unit 10.4 Bcfe
Louisiana Broussard Field 2.3 Bcfe
Kansas South Central Kansas 1.1 Bcfe
Kansas Peace Creek Unit 0.9 Bcfe

West Edmond Hunton Lime Unit (WEHLU)

Oklahoma County, OK

The majority of the 2003 reserve additions were in WEHLU where Beta holds a 98% working interest (WI) and is the operator of the unit. As a result of the detailed technical work conducted by the Company supported by the success of the 2003 workover activity and the joint-venture drilling program, the proved developed producing reserves increased by 7.2 Bcfe and proved undeveloped reserves of 3.2 Bcfe were added. With these additions totaling 10.4 Bcfe, the year end 2003 total proved reserves for WEHLU were 20.3 Bcfe. All of the 2003 drilling activity was focused inside the Joint Venture Development Area (JVDA) where Beta has a 40% WI and all of the 2003 workover activity was outside the JVDA where Beta has a 98% WI.