RRC PRODUCTION STATISTICS AND ALLOWABLES FOR JUNE 2010

AUSTIN ––The Texas average rig count as of May 14 was 639, representing about 44 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 345 million barrels of oil and 7.4 trillion cubic feet of natural gas. Texas natural gas production represents approximately 29 percent of total U.S. natural gas demand.

The Commission’s estimated final production for March 2010 is 30,289,102 barrels of crude oil and 582,365,393 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary March 2010 production totals of 28,764,579 barrels of crude oil and 518,949,735 Mcf of gas well gas by a production adjustment factor of 1.0530 for crude oil and 1.1222 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for April 2010 was 359,156,678 Mcf compared to 343,769,899 Mcf in April 2009. The May 2010 gas storage estimate is 365,270,868 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial June 2010 natural gas production allowables for prorated fields in the state to meet market demand of 14,560,118 Mcf (thousand cubic feet). In setting the initial June 2010 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 June 2010 is reported.