RRC PRODUCTION STATISTICS AND ALLOWABLES FOR FEBRUARY 2010

AUSTIN –– The Texas average rig count as of Jan. 15 was 510, representing about 43 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 7.6 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 November 2009 is 27,747,863 barrels of crude oil and 591,058,794 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary November 2009 production totals of 26,261,464 barrels of crude oil and 496,980,404 Mcf of gas well gas by a production adjustment factor of 1.0566 for crude oil and 1.1893 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for December 2009 was 410,850,036 Mcf compared to 329,721,130 Mcf in December 2008. The January 2010 gas storage estimate is 349,530,136 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial February 2010 natural gas production allowables for prorated fields in the state to meet market demand of 16,449,885 Mcf (thousand cubic feet). In setting the initial February 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 February 2010 is reported.