0001193125-15-080051.txt : 20150820 0001193125-15-080051.hdr.sgml : 20150820 20150306094001 ACCESSION NUMBER: 0001193125-15-080051 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20150306 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENN VIRGINIA CORP CENTRAL INDEX KEY: 0000077159 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 231184320 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: 100 MATSONFORD ROAD SUITE 200 STREET 2: FOUR RADNOR CORPORATE CENTER CITY: RADNOR STATE: PA ZIP: 19087 BUSINESS PHONE: 6106878900 MAIL ADDRESS: STREET 1: 100 MATSONFORD ROAD SUITE 200 STREET 2: FOUR RADNOR CORPORATE CENTER CITY: RADNOR STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: VIRGINIA COAL & IRON CO DATE OF NAME CHANGE: 19670501 CORRESP 1 filename1.htm Correspondence

March 6, 2015

Via EDGAR

Mr. Brad Skinner

Senior Assistant Chief Accountant

Division of Corporation Finance

United States Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

 

Re: Penn Virginia Corporation

Form 10-K for Fiscal Year Ended December 31, 2013

Filed February 24, 2014

File No. 001-13283

Dear Mr. Skinner:

On February 6, 2015, the Staff of the Securities and Exchange Commission (the “Staff”) issued a comment letter to Penn Virginia Corporation (the “Company”) regarding the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The responses provided below are numbered to correspond to the Staff’s comments, which have been reproduced here for ease of reference.

Form 10-K for the Fiscal Year Ended December 31, 2013

Properties, page 17

Proved Undeveloped Reserves, page 19

 

1. As part of your response to prior comment number one from our letter dated December 19, 2014, you have provided us with an analysis of your PUD volumes as of December 31, 2013 and the changes in those volumes during the year then ended. Provide us with additional analyses that show corresponding information for the years ended December 31, 2010, December 31, 2011 and December 31, 2012.

Response: The following tables set forth the PUD roll-forward analyses for each of the years requested. Please also refer to the Company’s response to prior comment number four for a discussion of changes in the Company’s development activities during these years.

United States Securities and Exchange Commission

March 6, 2015

Page 2

 

Year Ended December 31, 2010

2010 PUDs Initially Booked in 2006

None

2010 PUDs Initially Booked in 2007

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      —           —           2.3         0.38   

Revisions of previous estimates

      —           —           —           —     

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      —           —           2.3         0.38   

2010 PUDs Initially Booked in 2008

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      5.38         7.13         250.5         54.25   

Revisions of previous estimates

      (2.85 )       (2.12 )       (139.6 )       (28.24 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase/(sale) of reserves

      (0.10 )       (0.10 )       (1.2 )       (0.40 ) 

Conversion to proved developed reserves

      (1.85 )       (3.44 )       (58.1 )       (14.98 ) 

Proved undeveloped reserves at end of year

      0.58         1.47         51.5         10.64   

2010 PUDs Initially Booked in 2009

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      2.63         2.89         135.5         28.11   

Revisions of previous estimates

      (0.75 )       1.48         (6.1 )       (0.28 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      1.88         4.37         129.4         27.82   

2010 PUDs Initially Booked in 2010

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      —           —           —           —     

Revisions of previous estimates*

      1.16         5.39         83.7         20.50   

Extensions, discoveries and other additions

      0.43         2.70         63.8         13.73   

Purchase of reserves

      —           —           1.8         0.30   

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      1.59         8.09         149.1         34.53   

 

* Includes reserves associated with replacing old vertical well locations with new horizontal locations.

United States Securities and Exchange Commission

March 6, 2015

Page 3

 

Year Ended December 31, 2011

2011 PUDs Initially Booked in 2007

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      —           —           2.3         0.38   

Revisions of previous estimates

      —           —           (2.3 )       (0.38 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      —           —           —           —     

2011 PUDs Initially Booked in 2008

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      0.58         1.47         51.5         10.64   

Revisions of previous estimates

      (0.23 )       (0.15 )       (1.9 )       (0.69 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase/(sale) of reserves

      —           —           (9.4 )       (1.57 ) 

Conversion to proved developed reserves

      (0.05 )       (0.12 )       (1.4 )       (0.41 ) 

Proved undeveloped reserves at end of year

      0.31         1.19         38.8         7.98   

2011 PUDs Initially Booked in 2009

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      1.88         4.37         129.4         27.82   

Revisions of previous estimates

      (0.93 )       (0.93 )       (26.3 )       (6.25 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      (0.33 )       (0.64 )       (6.6 )       (2.07 ) 

Proved undeveloped reserves at end of year

      0.62         2.80         96.5         19.50   

2011 PUDs Initially Booked in 2010

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      1.59         8.09         149.1         34.53   

Revisions of previous estimates

      (0.02 )       (0.34 )       (0.4 )       (0.41 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      1.57         7.76         148.7         34.12   

United States Securities and Exchange Commission

March 6, 2015

Page 4

 

2011 PUDs Initially Booked in 2011

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      —           —           —           —     

Revisions of previous estimates*

      —           —           8.6         1.44   

Extensions, discoveries and other additions

      4.49         0.35         46.6         12.61   

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      4.49         0.35         55.3         14.05   

 

* Includes reserves associated with replacing old vertical well locations with new horizontal locations.

Year Ended December 31, 2012

2012 PUDs Initially Booked in 2008

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      0.31         1.19         38.8         7.98   

Revisions of previous estimates

      (0.15 )       (0.78 )       (24.6 )       (5.03 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           (2.3 )       (0.38 ) 

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      0.16         0.42         12.0         2.57   

2012 PUDs Initially Booked in 2009

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      0.62         2.80         96.5         19.50   

Revisions of previous estimates

      (0.12 )       (0.98 )       (44.2 )       (8.46 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           (0.7 )       (0.12 ) 

Conversion to proved developed reserves

      (0.20 )       (0.39 )       (3.75 )       (1.21 ) 

Proved undeveloped reserves at end of year

      0.30         1.43         48.6         9.83   

2012 PUDs Initially Booked in 2010

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      1.57         7.76         148.7         34.12   

Revisions of previous estimates

      —           (0.12 )       (11.2 )       (1.99 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      —           —           (1.7 )       (0.29 ) 

Proved undeveloped reserves at end of year

      1.57         7.63         135.8         31.84   

United States Securities and Exchange Commission

March 6, 2015

Page 5

 

2012 PUDs Initially Booked in 2011

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      4.49         0.35         55.3         14.05   

Revisions of previous estimates

      (1.25 )       (0.06 )       (32.8 )       (6.78 ) 

Extensions, discoveries and other additions

      —           —           —           —     

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      (2.06 )       (0.19 )       (1.0 )       (2.41 ) 

Proved undeveloped reserves at end of year

      1.18         0.09         21.5         4.87   

2012 PUDs Initially Booked in 2012

 

     Crude Oil      NGLs      Natural Gas      Oil Equivalents  
     (MMBbl)      (MMBbl)      (Bcf)      (MMBOE)  

Proved undeveloped reserves at beginning of year

      —           —           —           —     

Revisions of previous estimates*

      0.54         0.67         8.9         2.69   

Extensions, discoveries and other additions

      10.63         2.18         11.3         14.69   

Purchase of reserves

      —           —           —           —     

Conversion to proved developed reserves

      —           —           —           —     

Proved undeveloped reserves at end of year

      11.17         2.85         20.1         17.38   

 

* Includes reserves associated with replacing old vertical well locations with new horizontal locations.

 

2. Your response to prior comment number 2 indicates, in part, that you do not separately budget for PUD reserve development drilling. In view of this, tell us whether, and, if so, how, you ensure that the future development costs underlying the determination of PUD reserves for reserve reporting and accounting purposes are reflected in your capital budgets. Separately, given that you do not separately track actual development costs for PUD locations, tell us whether, and, if so, how, you compare actual development costs to projected development costs underlying your determination of PUD reserves. On a related point, if you do not track actual development costs for PUD reserves, explain how you are able to determine the capital expenditure amounts required to be disclosed by Item 1203(c) of Regulation S-K.

Response: The Company would like to clarify its response to prior comment number 2, which addressed only the level of detail included in the Company’s capital budget at the time such budget was prepared. While the Company identifies in each capital budget the wells it expects to drill, it does not specifically note in the budget which drilling locations are PUDs versus non-PUDs. Notwithstanding the foregoing, the Company does prepare future development cost estimates for each location and also tracks actual costs for each well drilled.

The cost estimates used for budgeting and to support the determination of PUD reserves are based on the assumptions then in use in preparing authorizations for expenditures (AFEs). These cost estimates are based on the proposed footage to be drilled and the number of fracture stimulation stages anticipated for each location. The Company also tracks actual costs by AFE for each well drilled, and these statistics are an integral part of how the Company continuously refines its cost assumptions to maintain AFE estimates that reflect current conditions.

United States Securities and Exchange Commission

March 6, 2015

Page 6

 

As described above, the Company does track actual costs for its capital expenditures program. At the end of each year, the Company aggregates those costs that relate to drilling locations previously identified as PUDs. The Company uses those total actual costs in its determination of capital expenditure amounts required to be disclosed by Item 1203(c) of Regulation S-K.

 

3. Please revise your response to prior comment number 3 to clarify, for each of the four years 2010 through 2013, how the actual PUD locations drilled in the subsequent year compared to the locations scheduled to be drilled during that year per the reserve estimates as of the end of the prior year. For example, explain how many of the 33 PUD locations scheduled to be drilled during 2011 per the year end 2010 reserve report were drilled during 2011. Also, tell us of any PUD locations drilled in 2011 that were replacements for, or in addition to, the 33 scheduled in your year end 2010 reserve report.

Response: The following tables show PUD locations modeled in the reserve reports for each of 2010, 2011, 2012 and 2013 as scheduled to be drilled in the upcoming year, the actual number of those PUD locations that were drilled in the following year, any substitute PUDs that were drilled in the following year and any additional development wells that were drilled in the following year:

 

PUDs included in year end 2010 reserve report

       33   
  

 

 

  

2010 PUDs drilled in 2011

   17   

Substitute PUDs drilled in 2011

   4   

Additional development wells drilled in 2011*

   26   
  

 

 

  

Total development wells drilled as reported in 2011 Form 10-K

   47   
  

 

 

  

PUDs included in year end 2011 reserve report

   34   
  

 

 

  

2011 PUDs drilled in 2012

   17   

Substitute PUDs drilled in 2012

   5   

Additional development wells drilled in 2012*

   14   
  

 

 

  

Total development wells drilled as reported in 2012 Form 10-K

   36   
  

 

 

  

PUDs included in year end 2012 reserve report

   50   
  

 

 

  

2012 PUDs drilled in 2013

   9   

Substitute PUDs drilled in 2013

   3   

Additional development wells drilled in 2013*

   47   
  

 

 

  

Total development wells drilled as reported in 2013 Form 10-K

   59   
  

 

 

  

United States Securities and Exchange Commission

March 6, 2015

Page 7

 

PUDs included in year end 2013 reserve report

   100   
  

 

 

  

2013 PUDs drilled in 2014

   48   

Substitute PUDs drilled in 2014

   19   

Additional development wells drilled in 2014*

   17   
  

 

 

  

Total development wells drilled as reported in 2014 Form 10-K

   84   
  

 

 

  

 

* Consists of locations that were previously classified as probable or possible as well as, most notably during 2013, any PUD locations that were acquired during the year.

In addition, the Company had 28 wells in progress at December 31, 2014, of which 19 had been identified at December 31, 2013 as PUDs scheduled to be drilled during 2014. These wells will be reported as drilled in 2015.

 

4. Provide us a schedule that shows the ultimate disposition or current status of all PUD locations which, per your December 31, 2010, 2011 and 2012 reserve reports, were scheduled to be drilled in the following year but were not drilled in that year. For example, show the disposition or current status of all PUD locations which, as of December 31, 2010, were scheduled to be drilled in 2011 but were not drilled during that year.

Response: The following schedule show the date of drilling, sale or elimination of all PUDs scheduled to be drilled in the year following each of the reserve reports for 2010, 2011 and 2012:

 

2010 PUDs

Scheduled to be drilled in 2011

       33   

Drilled in 2011

   17   

Drilled in 2012

   5   

Sold in 2012

   2   

Eliminated from PUD category in 2011

   2   

Eliminated from PUD category in 2012

   1   

Eliminated from PUD category in 2013

   2   

Eliminated from PUD category in 2014

   4   

Remaining as PUDs at year-end 2014

   0   

2011 PUDs

Scheduled to be drilled in 2012

   34   

Drilled in 2012

   17   

Drilled in 2013

   3   

Drilled in 2014

   1   

Eliminated from PUD category in 2013

   6   

Eliminated from PUD category in 2014

   6   

Remaining as PUDs at year-end 2014

   1   

United States Securities and Exchange Commission

March 6, 2015

Page 8

 

2012 PUDs

   

Scheduled to be drilled in 2013

      50   

Drilled in 2013

      9   

Drilled in 2014

      12   

Eliminated from PUD category in 2013

      9   

Eliminated from PUD category in 2014

      8   

Remaining as PUDs at year-end 2014

      12   

 

5. Send us a schedule which shows, for each of the locations underlying your PUD reserves as of December 31, 2012 and 2013, the date the development plan for the location was originally developed and the date of any subsequent revision to that development plan.

Response: The following tables show the histories of each PUD location reflected on the reserve reports for 2012 and 2013, from the year of original booking through December 31, 2014.

2012 Reserve Report

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008     YE 2009     YE 2010     YE 2011     YE 2012    

YE 2013

  

YE 2014

PUDs Booked in 2008**

              
1   Mississippi     2009        2010        2014        2014        2014      5-Year Rule  
2   Mississippi     2009        2010        2014        2014        2014      5-Year Rule  
3   Mississippi     2009        2010        2014        2014        2014      5-Year Rule  
4   Mississippi     2009        2010        2014        2014        2014      5-Year Rule  
5   East Texas     2011        2011        2013        2013        2014      5-Year Rule  
6   Mid-Continent     2011        2011        2012        2012        2013      Drilled  
7   Mid-Continent     2011        2012        2012        2012        2013      5-Year Rule  
8   Mid-Continent     2012        2011        2011        2012        2013      5-Year Rule  
9   Mid-Continent     2012        2012        2012        2013        2013      5-Year Rule  

**     While these PUDs were booked in 2008, the five-year rule was not effective until 2009.

        

    

PUDs Booked in 2009

              
10   Mississippi       2010        2013        2013        2013      5-Year Rule  
11   Mississippi       2010        2013        2013        2013      5-Year Rule  
12   Mississippi       2010        2014        2014        2014      5-Year Rule  
13   Mississippi       2010        2014        2014        2014      5-Year Rule  
14   Mississippi       2011        2013        2013        2013      5-Year Rule  
15   Mississippi       2011        2014        2014        2014      5-Year Rule  
16   Mississippi       2011        2014        2014        2014      5-Year Rule  
17   Mississippi       2011        2014        2014        2014      5-Year Rule  
18   Mississippi       2012        2014        2014        2014      5-Year Rule  
19   East Texas       2011        2013        2013        2014      5-Year Rule  
20   East Texas       2011        2013        2013        2014      5-Year Rule  
21   East Texas       2011        2013        2013        2014      5-Year Rule  
22   East Texas       2011        2014        2014        2014      5-Year Rule  

United States Securities and Exchange Commission

March 6, 2015

Page 9

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009     YE 2010     YE 2011     YE 2012    

YE 2013

  

YE 2014

23   East Texas       2011        2015        2015        2014      5-Year Rule  
24   East Texas       2011        2015        2015        2014      5-Year Rule  
25   East Texas       2011        2015        2015        2014      5-Year Rule  
26   East Texas       2012        2015        2015        2014      5-Year Rule  
27   East Texas       2012        2015        2015        2014      5-Year Rule  
28   East Texas       2012        2015        2015        2014      5-Year Rule  
29   East Texas       2013        2014        2014        2014      5-Year Rule  
30   East Texas       2013        2014        2014        2014      5-Year Rule  
31   East Texas       2013        2014        2014        2014      5-Year Rule  
32   Mid-Continent       2011        2011        2012        2014      2014   5-Year Rule
33   Mid-Continent       2011        2011        2012        2014      2014   5-Year Rule
34   Mid-Continent       2011        2011        2013        2014      2014   5-Year Rule
35   Mid-Continent       2011        2011        2013        2014      2014   5-Year Rule
36   Mid-Continent       2011        2012        2013        2014      2014   5-Year Rule
37   Mid-Continent       2012        2011        2012        2014      5-Year Rule  
38   Mid-Continent       2012        2012        2013        2014      2014   5-Year Rule
39   Mid-Continent       2012        2012        2013        2014      2014   5-Year Rule
40   Mid-Continent       2012        2012        2013        2014      2014   5-Year Rule

PUDs Booked in 2010

              
41   Mississippi         2013        2013        2015      2015   5-Year Rule
42   Mississippi         2013        2013        2015      2015   5-Year Rule
43   Mississippi         2013        2013        2015      2015   5-Year Rule
44   Mississippi         2013        2013        2015      2015   5-Year Rule
45   Mississippi         2013        2013        2015      2015   5-Year Rule
46   Mississippi         2013        2013        2015      2015   5-Year Rule
47   Mississippi         2013        2013        2015      2015   5-Year Rule
48   Mississippi         2013        2013        2015      2015   5-Year Rule
49   Mississippi         2013        2013        2015      2015   5-Year Rule
50   East Texas         2013        2013        2015      2015   5-Year Rule
51   East Texas         2013        2013        2015      5-Year Rule  
52   East Texas         2013        2013        2015      5-Year Rule  
53   East Texas         2013        2013        2015      5-Year Rule  
54   East Texas         2013        2013        2015      5-Year Rule  
55   East Texas         2013        2013        2015      5-Year Rule  
56   East Texas         2013        2013        2015      5-Year Rule  
57   East Texas         2013        2013        2015      5-Year Rule  
58   East Texas         2013        2013        2015      5-Year Rule  
59   East Texas         2013        2013        2015      2015   5-Year Rule
60   East Texas         2013        2013        2015      2015   5-Year Rule
61   East Texas         2013        2013        2015      2015   5-Year Rule
62   East Texas         2013        2013        2015      5-Year Rule  
63   East Texas         2014        2014        2014      2015   Sold
64   East Texas         2014        2014        2014      2015   Sold
65   East Texas         2014        2014        2014      2015   Sold
66   East Texas         2014        2014        2014      5-Year Rule  
67   East Texas         2014        2014        2015      5-Year Rule  
68   East Texas         2014        2014        2015      5-Year Rule  
69   East Texas         2014        2014        2015      5-Year Rule  

United States Securities and Exchange Commission

March 6, 2015

Page 10

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010     YE 2011     YE 2012    

YE 2013

  

YE 2014

70   East Texas         2014        2014        2015      5-Year Rule  
71   East Texas         2014        2014        2015      5-Year Rule  
72   East Texas         2014        2014        2015      5-Year Rule  
73   East Texas         2014        2014        2015      5-Year Rule  
74   East Texas         2014        2014        2015      2015   5-Year Rule
75   East Texas         2014        2014        2015      2015   5-Year Rule
76   East Texas         2014        2014        2015      2015   5-Year Rule
77   East Texas         2014        2014        2015      2015   5-Year Rule
78   East Texas         2014        2014        2015      2015   5-Year Rule
79   East Texas         2014        2014        2015      2015   5-Year Rule
80   East Texas         2014        2014        2015      2015   5-Year Rule
81   East Texas         2014        2014        2015      5-Year Rule  
82   East Texas         2014        2014        2015      5-Year Rule  
83   East Texas         2014        2014        2015      5-Year Rule  
84   East Texas         2014        2014        2015      2015   5-Year Rule
85   East Texas         2014        2014        2015      2015   5-Year Rule
86   East Texas         2014        2014        2015      2015   5-Year Rule
87   East Texas         2014        2014        2015      2015   5-Year Rule
88   East Texas         2014        2014        2015      2015   5-Year Rule
89   East Texas         2014        2014        2015      5-Year Rule  
90   East Texas         2014        2014        2015      5-Year Rule  
91   East Texas         2014        2014        2015      5-Year Rule  
92   East Texas         2014        2014        2015      5-Year Rule  
93   East Texas         2014        2014        2015      5-Year Rule  
94   East Texas         2014        2014        2015      5-Year Rule  
95   East Texas         2014        2014        2015      2015   5-Year Rule
96   East Texas         2014        2014        2015      2015   5-Year Rule
97   East Texas         2014        2014        2015      2015   5-Year Rule
98   East Texas         2014        2014        2015      2015   5-Year Rule
99   East Texas         2014        2014        2015      2015   5-Year Rule
100   East Texas         2014        2014        2015      5-Year Rule  
101   East Texas         2015        2015        2014      5-Year Rule  
102   East Texas         2015        2015        2014      5-Year Rule  
103   East Texas         2015        2015        2014      5-Year Rule  
104   East Texas         2015        2015        2015      2015   Sold
105   East Texas         2015        2015        2015      2015   Sold
106   East Texas         2015        2015        2015      2015   Sold
107   East Texas         2015        2015        2015      2015   Sold
108   East Texas         2015        2015        2015      2015   Sold
109   East Texas         2015        2015        2015      2015   Sold
110   East Texas         2015        2015        2015      2015   5-Year Rule
111   East Texas         2015        2015        2015      2015   5-Year Rule
112   East Texas         2015        2015        2015      2015   5-Year Rule
113   East Texas         2015        2015        2015      5-Year Rule  
114   East Texas         2015        2015        2015      5-Year Rule  
115   East Texas         2014        2015        2015      5-Year Rule  

United States Securities and Exchange Commission

March 6, 2015

Page 11

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011     YE 2012    

YE 2013

  

YE 2014

PUDs Booked in 2011

              
116   Pennsylvania           2012        2013      5-Year Rule  
117   Pennsylvania           2013        2013      5-Year Rule  
118   Mississippi           2014        2014      2016   Sold
119   Mississippi           2014        2014      5-Year Rule  
120   Mississippi           2015        2015      2016   Sold
121   Mississippi           2015        2015      2016   Sold
122   Mississippi           2015        2015      2016   Sold
123   Mississippi           2015        2015      2016   Sold
124   Mississippi           2015        2015      2016   Sold
125   Mississippi           2015        2015      2016   Sold
126   Mississippi           2015        2015      2016   Sold
127   Mississippi           2015        2015      2016   Sold
128   Mississippi           2015        2015      2016   Sold
129   Mississippi           2015        2015      2016   Sold
130   Mississippi           2015        2015      5-Year Rule  
131   Mississippi           2015        2015      5-Year Rule  
132   South Texas           2012        2013      2014   Drilled
133   South Texas           2012        2013      2014   Dropped
134   South Texas           2012        2013      2015   2016
135   South Texas           2012        2013      2016   5-Year Rule
136   South Texas           2012        2013      Drilled  
137   South Texas           2012        2013      Drilled  

PUDs Booked in 2012

              
138   South Texas             2013      Drilled  
139   South Texas             2013      2016   5-Year Rule
140   South Texas             2013      2015   2017
141   South Texas             2013      2016   Drilled
142   South Texas             2013      2016   Drilled
143   South Texas             2013      2015   Drilled
144   South Texas             2013      2015   2016
145   South Texas             2013      2015   2016
146   South Texas             2013      Drilled  
147   South Texas             2013      Drilled  
148   South Texas             2013      2015   5-Year Rule
149   South Texas             2013      2016   2016
150   South Texas             2013      2015   Drilled
151   South Texas             2013      2015   Drilled
152   South Texas             2013      2014   Dropped
153   South Texas             2013      2016   5-Year Rule
154   South Texas             2013      2014   Drilled
155   South Texas             2013      2014   Drilled
156   South Texas             2013      2014   Drilled
157   South Texas             2013      2016   2016
158   South Texas             2013      2016   2017
159   South Texas             2013      2014   Drilled
160   South Texas             2013      2014   5-Year Rule
161   South Texas             2013      2016   2017
162   South Texas             2013      Drilled  
163   South Texas             2013      2016   2017

United States Securities and Exchange Commission

March 6, 2015

Page 12

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011   YE 2012    

YE 2013

  

YE 2014

164   South Texas             2013      Dropped  
165   South Texas             2013      2014   2017
166   South Texas             2013      2016   Drilled
167   South Texas             2013      2015   2016
168   South Texas             2013      Drilled  
169   South Texas             2013      Drilled  
170   South Texas             2013      2014   Drilled
171   South Texas             2013      2014   Dropped
172   South Texas             2013      2014   2015
173   South Texas             2014      2016   2017
174   South Texas             2014      2015   2016
175   South Texas             2014      2015   2015
176   South Texas             2014      2015   2016
177   South Texas             2014      2016   2016
178   South Texas             2014      Dropped  
179   South Texas             2014      2016   5-Year Rule
180   South Texas             2014      2014   Drilled
181   South Texas             2014      2014   Drilled
182   South Texas             2014      2016   2017
183   South Texas             2014      Drilled  
184   South Texas             2014      Drilled  
185   South Texas             2014      2015   2016
186   South Texas             2014      2014   Drilled
187   South Texas             2014      2016   2017
188   South Texas             2014      Drilled  
189   East Texas             2017      2017   2017
190   East Texas             2017      2017   2017
191   East Texas             2017      2017   2017
192   East Texas             2017      2017   2017

2013 Reserve Report

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009     YE 2010     YE 2011     YE 2012    

YE 2013

  

YE 2014

PUDs Booked in 2009

              

1

   Mid-Continent       2011        2011        2012        2014      2014   5-Year Rule

2

   Mid-Continent       2011        2011        2012        2014      2014   5-Year Rule

3

   Mid-Continent       2011        2011        2013        2014      2014   5-Year Rule

4

   Mid-Continent       2011        2011        2013        2014      2014   5-Year Rule

5

   Mid-Continent       2011        2012        2013        2014      2014   5-Year Rule

6

   Mid-Continent       2012        2012        2013        2014      2014   5-Year Rule

7

   Mid-Continent       2012        2012        2013        2014      2014   5-Year Rule

8

   Mid-Continent       2012        2012        2013        2014      2014   5-Year Rule

United States Securities and Exchange Commission

March 6, 2015

Page 13

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010     YE 2011     YE 2012    

YE 2013

  

YE 2014

PUDs Booked YE 2010

  

        

9

   Mississippi         2015        2015        2015      2015   Sold

10

   Mississippi         2015        2015        2015      2015   Sold

11

   Mississippi         2015        2015        2015      2015   Sold

12

   Mississippi         2015        2015        2015      2015   Sold

13

   Mississippi         2015        2015        2015      2015   Sold

14

   Mississippi         2015        2015        2015      2015   Sold

15

   Mississippi         2014        2014        2014      2015   Sold

16

   Mississippi         2014        2014        2014      2015   Sold

17

   Mississippi         2014        2014        2014      2015   Sold

18

   East Texas         2013        2013        2015      2015   5-Year Rule

19

   East Texas         2014        2014        2015      2015   5-Year Rule

20

   East Texas         2014        2014        2015      2015   5-Year Rule

21

   East Texas         2014        2014        2015      2015   5-Year Rule

22

   East Texas         2014        2014        2015      2015   5-Year Rule

23

   East Texas         2014        2014        2015      2015   5-Year Rule

24

   East Texas         2013        2013        2015      2015   5-Year Rule

25

   East Texas         2013        2013        2015      2015   5-Year Rule

26

   East Texas         2013        2013        2015      2015   5-Year Rule

27

   East Texas         2013        2013        2015      2015   5-Year Rule

28

   East Texas         2013        2013        2015      2015   5-Year Rule

29

   East Texas         2013        2013        2015      2015   5-Year Rule

30

   East Texas         2013        2013        2015      2015   5-Year Rule

31

   East Texas         2013        2013        2015      2015   5-Year Rule

32

   East Texas         2013        2013        2015      2015   5-Year Rule

33

   East Texas         2013        2013        2015      2015   5-Year Rule

34

   East Texas         2013        2013        2015      2015   5-Year Rule

35

   East Texas         2013        2013        2015      2015   5-Year Rule

36

   East Texas         2014        2014        2015      2015   5-Year Rule

37

   East Texas         2014        2014        2015      2015   5-Year Rule

38

   East Texas         2014        2014        2015      2015   5-Year Rule

39

   East Texas         2014        2014        2015      2015   5-Year Rule

40

   East Texas         2014        2014        2015      2015   5-Year Rule

41

   East Texas         2014        2014        2015      2015   5-Year Rule

42

   East Texas         2014        2014        2015      2015   5-Year Rule

43

   East Texas         2014        2014        2015      2015   5-Year Rule

44

   East Texas         2014        2014        2015      2015   5-Year Rule

45

   East Texas         2014        2014        2015      2015   5-Year Rule

46

   East Texas         2014        2014        2015      2015   5-Year Rule

47

   East Texas         2014        2014        2015      2015   5-Year Rule

48

   East Texas         2015        2015        2015      2015   5-Year Rule

49

   East Texas         2015        2015        2015      2015   5-Year Rule

50

   East Texas         2015        2015        2015      2015   5-Year Rule

PUDs Booked YE 2011

              

51

   Mississippi           2014        2014      2016   Sold

52

   Mississippi           2015        2015      2016   Sold

53

   Mississippi           2015        2015      2016   Sold

54

   Mississippi           2015        2015      2016   Sold

55

   Mississippi           2015        2015      2016   Sold

56

   Mississippi           2015        2015      2016   Sold

United States Securities and Exchange Commission

March 6, 2015

Page 14

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011     YE 2012    

YE 2013

  

YE 2014

57

   Mississippi           2015        2015      2016   Sold

58

   Mississippi           2015        2015      2016   Sold

59

   Mississippi           2015        2015      2016   Sold

60

   Mississippi           2015        2015      2016   Sold

61

   Mississippi           2015        2015      2016   Sold

62

   South Texas           2012        2013      2014   Drilled

63

   South Texas           2012        2013      2014   Dropped

64

   South Texas           2012        2013      2015   2016

65

   South Texas           2012        2013      2016   5-Year Rule

PUDs Booked YE 2012

              

66

   East Texas             2017      2017   2017

67

   East Texas             2017      2017   2017

68

   East Texas             2017      2017   2017

69

   East Texas             2017      2017   2017

70

   South Texas             2013      2014   Drilled

71

   South Texas             2013      2016   5-Year Rule

72

   South Texas             2013      2014   Drilled

73

   South Texas             2013      2014   Drilled

74

   South Texas             2013      2014   Drilled

75

   South Texas             2013      2014   Drilled

76

   South Texas             2013      2014   5-Year Rule

77

   South Texas             2013      2014   2017

78

   South Texas             2013      2014   Drilled

79

   South Texas             2013      2014   Dropped

80

   South Texas             2013      2014   2015

81

   South Texas             2013      2015   2017

82

   South Texas             2013      2015   Drilled

83

   South Texas             2013      2015   2016

84

   South Texas             2013      2015   2016

85

   South Texas             2013      2015   5-Year Rule

86

   South Texas             2013      2015   Drilled

87

   South Texas             2013      2015   Drilled

88

   South Texas             2013      2015   2016

89

   South Texas             2013      2016   Drilled

90

   South Texas             2013      2016   Drilled

91

   South Texas             2013      2016   2016

92

   South Texas             2013      2016   5-Year Rule

93

   South Texas             2013      2016   2016

94

   South Texas             2013      2016   2017

95

   South Texas             2013      2016   2017

96

   South Texas             2013      2016   2017

97

   South Texas             2013      2016   Drilled

98

   South Texas             2014      2014   Drilled

99

   South Texas             2014      2014   Drilled

100

   South Texas             2014      2014   Drilled

101

   South Texas             2014      2015   2016

102

   South Texas             2014      2015   2016

103

   South Texas             2014      2015   2015

United States Securities and Exchange Commission

March 6, 2015

Page 15

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011   YE 2012    

YE 2013

  

YE 2014

104

   South Texas             2014      2015   2016

105

   South Texas             2014      2016   2017

106

   South Texas             2014      2016   2016

107

   South Texas             2014      2016   5-Year Rule

108

   South Texas             2014      2016   2017

109

   South Texas             2014      2016   2017

PUDs Booked YE 2013

              

110

   South Texas             2014   Drilled

111

   South Texas             2014   Drilled

112

   South Texas             2014   In-Progress

113

   South Texas             2014   2017

114

   South Texas             2014   Drilled

115

   South Texas             2014   Drilled

116

   South Texas             2014   Dropped

117

   South Texas             2014   In-Progress

118

   South Texas             2014   Drilled

119

   South Texas             2014   Drilled

120

   South Texas             2014   Drilled

121

   South Texas             2014   2015

122

   South Texas             2014   In-Progress

123

   South Texas             2014   Drilled

124

   South Texas             2014   Drilled

125

   South Texas             2014   Drilled

126

   South Texas             2014   Drilled

127

   South Texas             2014   2018

128

   South Texas             2014   5-Year Rule

129

   South Texas             2014   2018

130

   South Texas             2014   In-Progress

131

   South Texas             2014   In-Progress

132

   South Texas             2014   In-Progress

133

   South Texas             2014   2015

134

   South Texas             2014   2017

135

   South Texas             2014   2017

136

   South Texas             2014   Drilled

137

   South Texas             2014   Drilled

138

   South Texas             2014   Drilled

139

   South Texas             2014   In-Progress

140

   South Texas             2014   In-Progress

141

   South Texas             2014   Drilled

142

   South Texas             2014   Drilled

143

   South Texas             2014   Drilled

144

   South Texas             2014   Drilled

145

   South Texas             2014   Drilled

146

   South Texas             2014   Drilled

147

   South Texas             2014   Drilled

148

   South Texas             2014   2015

149

   South Texas             2014   Drilled

150

   South Texas             2014   In-Progress

United States Securities and Exchange Commission

March 6, 2015

Page 16

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011   YE 2012  

YE 2013

  

YE 2014

151

   South Texas             2014   In-Progress

152

   South Texas             2014   In-Progress

153

   South Texas             2014   2017

154

   South Texas             2014   Drilled

155

   South Texas             2014   In-Progress

156

   South Texas             2014   In-Progress

157

   South Texas             2014   In-Progress

158

   South Texas             2014   Drilled

159

   South Texas             2014   Drilled

160

   South Texas             2014   Drilled

161

   South Texas             2014   2016

162

   South Texas             2014   In-Progress

163

   South Texas             2014   In-Progress

164

   South Texas             2014   Drilled

165

   South Texas             2014   In-Progress

166

   South Texas             2014   2017

167

   South Texas             2014   2017

168

   South Texas             2014   Drilled

169

   South Texas             2014   Drilled

170

   South Texas             2014   Drilled

171

   South Texas             2014   Drilled

172

   South Texas             2014   In-Progress

173

   South Texas             2014   In-Progress

174

   South Texas             2014   Dropped

175

   South Texas             2014   Dropped

176

   South Texas             2014   Drilled

177

   South Texas             2014   Drilled

178

   South Texas             2014   2015

179

   South Texas             2014   2015

180

   South Texas             2014   Drilled

181

   South Texas             2014   Drilled

182

   South Texas             2014   Drilled

183

   South Texas             2014   Drilled

184

   South Texas             2014   Drilled

185

   South Texas             2014   Drilled

186

   South Texas             2014   Drilled

187

   South Texas             2015   2015

188

   South Texas             2015   2015

189

   South Texas             2015   Drilled

190

   South Texas             2015   Drilled

191

   South Texas             2015   Drilled

192

   South Texas             2015   2018

193

   South Texas             2015   2018

194

   South Texas             2015   2018

195

   South Texas             2015   2018

196

   South Texas             2015   Drilled

197

   South Texas             2015   2016

198

   South Texas             2015   2018

199

   South Texas             2015   2018

200

   South Texas             2015   2018

United States Securities and Exchange Commission

March 6, 2015

Page 17

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011   YE 2012  

YE 2013

  

YE 2014

201

   South Texas             2015   2018

202

   South Texas             2015   2018

203

   South Texas             2015   5-Year Rule

204

   South Texas             2015   2016

205

   South Texas             2015   2018

206

   South Texas             2015   2018

207

   South Texas             2015   2017

208

   South Texas             2015   2017

209

   South Texas             2015   2015

210

   South Texas             2015   2015

211

   South Texas             2015   2017

212

   South Texas             2015   2015

213

   South Texas             2015   5-Year Rule

214

   South Texas             2015   Drilled

215

   South Texas             2015   Drilled

216

   South Texas             2015   5-Year Rule

217

   South Texas             2015   5-Year Rule

218

   South Texas             2015   2018

219

   South Texas             2015   2017

220

   South Texas             2015   2015

221

   South Texas             2015   2017

222

   South Texas             2015   2017

223

   South Texas             2015   Drilled

224

   South Texas             2015   Drilled

225

   South Texas             2015   2017

226

   South Texas             2015   5-Year Rule

227

   South Texas             2015   2018

228

   South Texas             2015   5-Year Rule

229

   South Texas             2015   2018

230

   South Texas             2015   2018

231

   South Texas             2015   2018

232

   South Texas             2015   5-Year Rule

233

   South Texas             2015   2015

234

   South Texas             2015   5-Year Rule

235

   South Texas             2015   5-Year Rule

236

   South Texas             2015   2016

237

   South Texas             2015   Drilled

238

   South Texas             2015   Drilled

239

   South Texas             2015   Drilled

240

   South Texas             2015   2016

241

   South Texas             2015   2016

242

   South Texas             2015   2017

243

   South Texas             2015   Drilled

244

   South Texas             2015   2015

245

   South Texas             2015   2015

246

   South Texas             2015   2015

247

   South Texas             2015   2017

248

   South Texas             2015   2016

249

   South Texas             2015   2016

250

   South Texas             2015   2015

United States Securities and Exchange Commission

March 6, 2015

Page 18

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011   YE 2012  

YE 2013

  

YE 2014

251

   South Texas             2015   2015

252

   South Texas             2015   2017

253

   South Texas             2015   2015

254

   South Texas             2015   2015

255

   South Texas             2015   2016

256

   South Texas             2016   2016

257

   South Texas             2016   2016

258

   South Texas             2016   2016

259

   South Texas             2016   2016

260

   South Texas             2016   2017

261

   South Texas             2016   2017

262

   South Texas             2016   2018

263

   South Texas             2016   2018

264

   South Texas             2016   2017

265

   South Texas             2016   2017

266

   South Texas             2016   2016

267

   South Texas             2016   2017

268

   South Texas             2016   2016

269

   South Texas             2016   2016

270

   South Texas             2016   2018

271

   South Texas             2016   2018

272

   South Texas             2016   2018

273

   South Texas             2016   2018

274

   South Texas             2016   2018

275

   South Texas             2016   2018

276

   South Texas             2016   2018

277

   South Texas             2016   2018

278

   South Texas             2016   5-Year Rule

279

   South Texas             2016   2018

280

   South Texas             2016   2018

281

   South Texas             2016   5-Year Rule

282

   South Texas             2016   2018

283

   South Texas             2016   5-Year Rule

284

   South Texas             2016   2018

285

   South Texas             2016   5-Year Rule

286

   South Texas             2016   5-Year Rule

287

   South Texas             2016   5-Year Rule

288

   South Texas             2016   5-Year Rule

289

   South Texas             2016   5-Year Rule

290

   South Texas             2016   2016

291

   South Texas             2016   2016

292

   South Texas             2016   2018

293

   South Texas             2016   2018

294

   South Texas             2016   2018

295

   South Texas             2016   2017

296

   South Texas             2016   2017

297

   South Texas             2016   2017

298

   South Texas             2016   2016

299

   South Texas             2016   2016

300

   South Texas             2016   2016

United States Securities and Exchange Commission

March 6, 2015

Page 19

 

        Year Scheduled To Be Drilled

PUD #

  

Region

   YE 2008   YE 2009   YE 2010   YE 2011   YE 2012  

YE 2013

  

YE 2014

301

   South Texas             2016   2017

302

   South Texas             2016   2017

303

   South Texas             2016   2017

304

   South Texas             2016   2017

305

   South Texas             2016   2018

306

   South Texas             2016   2018

307

   South Texas             2016   Dropped

308

   South Texas             2016   2017

309

   South Texas             2016   Dropped

310

   South Texas             2016   2016

311

   South Texas             2016   5-Year Rule

312

   South Texas             2016   5-Year Rule

313

   South Texas             2016   5-Year Rule

314

   South Texas             2016   5-Year Rule

315

   South Texas             2016   5-Year Rule

316

   South Texas             2016   5-Year Rule

317

   South Texas             2016   5-Year Rule

318

   South Texas             2016   5-Year Rule

319

   South Texas             2016   5-Year Rule

320

   South Texas             2016   5-Year Rule

321

   South Texas             2016   5-Year Rule

322

   South Texas             2016   2015

323

   South Texas             2016   2015

324

   South Texas             2016   Dropped

325

   South Texas             2016   Dropped

326

   South Texas             2016   2017

327

   South Texas             2016   Dropped

328

   South Texas             2016   2018

329

   South Texas             2016   2017

330

   South Texas             2016   2018

331

   South Texas             2016   2015

332

   South Texas             2016   2016

333

   South Texas             2016   2016

334

   South Texas             2016   5-Year Rule

335

   South Texas             2016   5-Year Rule

336

   South Texas             2016   5-Year Rule

337

   South Texas             2016   2016

338

   South Texas             2016   2016

339

   South Texas             2016   2016

340

   South Texas             2016   2017

341

   South Texas             2016   Drilled

342

   South Texas             2016   2016

343

   South Texas             2016   2016

344

   South Texas             2016   2016

345

   Mid-Continent             2015   5-Year Rule

346

   Mid-Continent             2016   2016

United States Securities and Exchange Commission

March 6, 2015

Page 20

 

In connection with this response letter, the Company acknowledges that:

 

  •   the Company is responsible for the adequacy and accuracy of the disclosure in its filings with the Commission;

 

  •   Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the Company’s filings; and

 

  •   the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

Please contact me at (610) 687-8900 if you need additional information or would like to discuss any questions or comments.

 

Sincerely,
/s/ Steven A. Hartman
Steven A. Hartman
Senior Vice President and
Chief Financial Officer

 

cc: Nancy M. Snyder

Jenifer Gallagher