RRC PRODUCTION STATISTICS AND ALLOWABLES FOR MAY 2011

04/26/2011

AUSTIN ––The Texas average rig count as of March 18 was 777, representing about 45 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 361 million barrels of oil and 7.2 trillion cubic feet of natural gas.

The Commission’s estimated final production for February 2011 is 26,488,135 barrels of crude oil and 452,390,267 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary February 2011 production totals of 24,711,386 barrels of crude oil and 416,527,269 Mcf of gas well gas by a production adjustment factor of 1.0719 for crude oil and 1.0861 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for March 2011 was 313,583,188 Mcf compared to 283,866,240 Mcf in March 2010. The April 2011 gas storage estimate is 330,856,031 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial May 2011 natural gas production allowables for prorated fields in the state to meet market demand of 11,694,374 Mcf (thousand cubic feet). In setting the initial May 2011 allowables, the Commission used historical production figures from previous months, producers’ demand forecasts for the coming month, and adjusted the figures based on well capability. These initial allowables will be adjusted after actual production for May 2011 is reported.