Dominion Power 2003 Annual Report Download - page 97

95.Dominion 2003
Company-Owned Reserves
Estimated net quantities of proved gas and oil (including condensate) reserves in the United States and Canada at December 31, 2003,
2002 and 2001, and changes in the reserves during those years, are shown in the two schedules that follow.
2003 2002 2001
United United United
Total States Canada Total States Canada Total States Canada
(billion cubic feet)
Proved developed and
undeveloped reserves — Gas
At January 1 5,098 4,458 640 4,090 3,517 573 2,337 1,858 479
Changes in reserves:
Extensions, discoveries and
other additions 821 767 54 874 769 105 503 394 109
Revisions of previous estimates (147) (71) (76) 158 145 13 (24) (64) 40
Production (396) (346) (50) (399) (346) (53) (295) (238) (57)
Purchases of gas in place 133 133 — 381 379 2 1,578 1,576 2
Sales of gas in place (140) (140) — (6) (6) — (9) (9) —
At December 31 5,369 4,801 568 5,098 4,458 640 4,090 3,517 573
Proved developed reserves — Gas
At January 1 4,035 3,549 486 3,466 3,026 440 1,954 1,593 361
At December 31 4,006 3,553 453 4,035 3,549 486 3,466 3,026 440
Proved developed and
undeveloped reserves — Oil
(thousands of barrels)
At January 1 169,230 138,798 30,432 140,567 115,988 24,579 75,342 51,072 24,270
Changes in reserves:
Extensions, discoveries and
other additions 13,223 7,818 5,405 24,326 24,273 53 40,676 37,401 3,275
Revisions of previous estimates 697 1,433 (736) 11,165 4,293 6,872 (1,617) (165) (1,452)
Production (8,723) (7,642) (1,081) (9,725) (8,653) (1,072) (7,663) (6,134) (1,529)
Purchases of oil in place 380 380 — 2,928 2,928 — 34,619 34,604 15
Sales of oil in place (4,873) (4,873) — (31) (31) — (790) (790) —
At December 31 169,934 135,914 34,020 169,230 138,798 30,432 140,567 115,988 24,579
Proved developed reserves — Oil
At January 1 65,823 47,759 18,064 63,777 46,473 17,304 36,236 21,709 14,527
At December 31 59,754 42,347 17,407 65,823 47,759 18,064 63,777 46,473 17,304
Standardized Measure of Discounted Future Net Cash Flows and Changes Therein
The following tabulation has been prepared in accordance with the FASB’s rules for disclosure of a standardized measure of discounted
future net cash flows relating to proved gas and oil reserve quantities owned by Dominion.
2003 2002 2001
United United United
Total States Canada Total States Canada Total States Canada
(millions)
Future cash inflows(1) $36,486 $32,922 $3,564 $28,337 $25,344 $2,993 $12,350 $11,161 $1,189
Less:
Future development costs(2) 1,505 1,391 114 1,092 1,005 87 845 770 75
Future production costs 5,582 4,765 817 3,603 2,979 624 3,571 3,091 480
Future income tax expense (benefit) 9,457 8,715 742 7,582 6,904 678 1,917 2,026 (109)
Future cash flows 19,942 18,051 1,891 16,060 14,456 1,604 6,017 5,274 743
Less annual discount (10% a year) 10,709 9,745 964 8,255 7,436 819 2,804 2,513 291
Standardized measure of discounted
future net cash flows(2) $ 9,233 $ 8,306 $ 927 $ 7,805 $ 7,020 $ 785 $ 3,213 $ 2,761 $ 452
(1) Amounts exclude the effect of derivative instruments designated as hedges of future sales of production at year end.
(2) Estimated future development costs, excluding abandonment, for proven undeveloped reserves are estimated to be $381 million, $279 million, and $171 million for
2004, 2005 and 2006, respectively.