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DISCLOSURES ABOUT OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2020

Results of Operations, Revenue from Oil and Gas Producing Activities [Abstract]

Schedule of Costs Incurred in Oil and Natural Gas Producing Activities

Costs incurred in oil and natural gas producing activities are as follows (in thousands):


	Year Ended December 31,
	2020		2019		2018
Acquisition(1)	$	11,296	$	12,901	$	2,861
Development(2)(3)	55,934		209,535		304,197
Exploration	595		796		294
Total	$	67,825	$	223,232	$	307,352

_________________________

(1)Acquisition costs for unproved properties for the years ended December 31, 2020, 2019, and 2018 were $2.3 million, $4.2 million, and $2.5 million, respectively. There were $9.0 million, $8.7 million, and $0.4 million in acquisition costs for proved properties for the years ended December 31, 2020, 2019, and 2018, respectively.

(2)Development costs include workover costs of $1.2 million, $1.4 million, and $5.6 million charged to lease operating expense for the years ended December 31, 2020, 2019, and 2018, respectively.

(3)Includes amounts relating to asset retirement obligations of $(1.0) million, $(0.9) million, and $(9.0) million, for the years ended December 31, 2020, 2019, and 2018, respectively.

Summary of BCEI's Changes in Quantities of Proved Oil, Natural Gas Liquids and Natural Gas Reserves

A summary of the Company's changes in quantities of proved oil, natural gas liquids, and natural gas reserves for the years ended December 31, 2020, 2019, and 2018 are as follows:


		Natural	Natural
	Oil	Gas	Gas Liquids
	(MBbl)	(MMcf)	(MBbl)
Balance-December 31, 2017	52,928	157,669	22,815
Extensions, discoveries and infills(1)	18,390	31,471	5,197
Production	(3,841)	(8,567)	(1,140)
Sales of minerals in place	(6,236)	(20,534)	(1,499)
Removed from capital program(2)	(1,442)	(3,246)	(544)

Revisions to previous estimates(3)	4,555	8,219	101
Balance-December 31, 2018	64,354	165,012	24,930
Extensions, discoveries and infills(1)	8,825	20,604	3,123
Production	(5,136)	(11,967)	(1,431)
Sales of minerals in place	(52)	(110)	(18)
Removed from capital program(2)	(4,926)	(11,508)	(1,862)
Purchases of minerals in place	303	627	102
Revisions to previous estimates(3)	1,045	49,542	(2,683)
Balance-December 31, 2019	64,413	212,200	22,161
Extensions, discoveries and infills(1)	9,376	32,172	3,269
Production	(5,019)	(14,166)	(1,858)
Sales of minerals in place	—	—	—
Removed from capital program(2)	(14,120)	(33,886)	(3,141)
Purchases of minerals in place	1,430	5,457	570
Revisions to previous estimates(3)	(3,287)	33,951	5,110
Balance-December 31, 2020	52,793	235,728	26,111

Proved developed reserves:
December 31, 2018	23,725	79,630	11,703
December 31, 2019	25,397	105,840	11,566
December 31, 2020	24,320	123,220	14,315
Proved undeveloped reserves:
December 31, 2018	40,629	85,382	13,227
December 31, 2019	39,016	106,360	10,595
December 31, 2020	28,473	112,508	11,796

________________________

(1)During the years ended December 31, 2020, 2019, and 2018, horizontal development in the Wattenberg Field resulted in additions in extensions, discoveries, and infills of 18.0 MMBoe, 15.4 MMBoe, and 28.8 MMBoe, respectively.

(2) During the years ended December 31, 2020, 2019, and 2018, proved undeveloped reserves were reduced by 22.9 MMBoe, 8.7 MMBoe, and 2.5 MMBoe respectively, primarily due to the removal of proved undeveloped locations from our five-year drilling program.

(3) As of December 31, 2020, the Company revised its proved reserves upward by 7.5 MMBoe primarily driven by 12.3 MMBoe in positive engineering revisions. The commodity prices at December 31, 2020 decreased to $39.57 per Bbl WTI and $1.99 per MMBtu HH from $55.85 per Bbl WTI and $2.58 per MMBtu HH at December 31, 2019, resulting in a partially offsetting negative revision of 4.8 MMBoe.

As of December 31, 2019, the Company revised its proved reserves upward by 6.6 MMBoe. The commodity prices at December 31, 2019 decreased to $55.85 per Bbl WTI and $2.58 per MMBtu HH from $65.56 per Bbl WTI and $3.10 per MMBtu HH at December 31, 2018, resulting in a negative revision of 1.4 MMBoe, offset by 8.1 MMBoe in positive engineering revision.As of December 31, 2018, the Company revised its proved reserves upward by 6.0 MMBoe. The commodity prices at December 31, 2018 increased to $65.56 per Bbl WTI and $3.10 per MMBtu HH from $51.34 per Bbl WTI and $2.98 per MMBtu HH at December 31, 2017, resulting in positive revisions of 2.3 MMBoe. In addition, lower operating cost estimates resulted in positive reserve adjustments of 1.5 MMBoe. There were net positive engineering revisions of 2.2 MMBoe.

Schedule of Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves

The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows (in thousands):


	Year Ended December 31,
	2020		2019		2018
Future cash flows	$	2,230,012	$	3,827,009	$	4,742,180
Future production costs	(675,755)		(1,029,140)		(1,585,032)
Future development costs	(530,970)		(850,327)		(925,640)
Future income tax expense	—		—		—
Future net cash flows	1,023,287		1,947,542		2,231,508
10% annual discount for estimated timing of cash flows	(586,233)		(1,089,395)		(1,276,528)
Standardized measure of discounted future net cash flows	$	437,054	$	858,147	$	954,980

Schedule of Changes in the Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves

The changes in the standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows (in thousands):


	Year Ended December 31,
	2020		2019		2018
Beginning of period	$	858,147	$	954,980	$	598,498
Sale of oil and gas produced, net of production costs	(160,466)		(233,677)		(204,566)
Net changes in prices and production costs	(641,137)		(372,233)		365,952
Net changes in extensions, discoveries and improved recoveries	(54,269)		45,728		153,691
Development costs incurred	42,325		185,086		127,788
Changes in estimated development cost	220,964		81,358		(52,260)
Purchases of minerals in place	12,372		10,135		—
Sales of minerals in place	—		(309)		(115,742)
Revisions of previous quantity estimates	60,754		79,637		12,341
Net change in income taxes	—		—		—
Accretion of discount	85,815		95,498		59,850
Changes in production rates and other	12,549		11,944		9,428
End of period	$	437,054	$	858,147	$	954,980

Schedule of Average Wellhead Prices Used in Determining Future Net Revenues Related to Standardized Measure Calculation

The average wellhead prices used in determining future net revenues related to the standardized measure calculation as of December 31, 2020, 2019, and 2018 were calculated using the twelve-month arithmetic average of first-day-of-the-month prices inclusive of adjustments for quality and location.


	Year Ended December 31,
	2020		2019		2018
Oil (per Bbl)	$	34.96	$	51.22	$	59.29
Gas (per Mcf)	$	0.95	$	1.44	$	2.28
Natural gas liquids (per Bbl)	$	6.12	$	10.07	$	22.06

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details