Oil and Gas Exploration and Production Industries Disclosures [Text Block] | Net Proved Reserves All of this Partnership's crude oil, natural gas, and NGLs reserves are located in the U.S. This Partnership utilized the services of an independent petroleum engineer to estimate this Partnership's 2016 and 2015 crude oil, natural gas, and NGLs reserves. As of December 31, 2016 and 2015, all of this Partnership's estimates of proved reserves were based on reserve reports prepared by Ryder Scott Company, L.P. These reserve estimates have been prepared in compliance with professional standards and the reserves definitions prescribed by the SEC. Proved reserves estimates may change, either positively or negatively, as additional information becomes available and as contractual, economic, and political conditions change. This Partnership's net proved reserve estimates have been adjusted as necessary to reflect all contractual agreements, royalty obligations and interests owned by others at the time of the estimate. Proved developed reserves are the quantities of crude oil, natural gas, and NGLs expected to be recovered from currently producing zones under the continuation of present operating methods. Proved undeveloped reserves are those reserves expected to be recovered from existing wells where a relatively major expenditure is required for additional reserve development. As of December 31, 2016 and 2015 , there are no proved undeveloped reserves for this Partnership. The following table presents the indicated index price for our reserves, as required by SEC regulations and are referred to as SEC commodity prices: Average Benchmark Prices As of December 31, Crude Oil (per Bbl) Natural Gas (per Mcf) NGLs (per Bbl) 2016 $ 42.75 $ 2.48 $ 42.75 2015 50.28 2.58 50.28 The following table presents the netted back prices used to estimate this Partnership's reserves, by commodity. The prices used to estimate reserves have been prepared in accordance with SEC commodity prices. Future estimated cash flows were based on a 12-month average price calculated as the unweighted arithmetic average of the prices on the first day of each month, January through December, applied to this Partnership's year-end estimated proved reserves. Prices for each of the two years were adjusted for Btu content, transportation and regional price differences. Price Used to Estimate Reserves As of December 31, Crude Oil (per Bbl) Natural Gas (per Mcf) NGLs (per Bbl) 2016 $ 38.70 $ 1.95 $ 10.79 2015 42.07 2.07 10.60 The following table presents the changes in estimated quantities of this Partnership's reserves, all of which are located within the United States: Crude Oil and Condensate Natural Gas NGLs Crude Oil Equivalent (MBbl) (MMcf) (MBbl) (MBoe) Proved Reserves: Proved reserves, January 1, 2015 158 1,192 140 497 Revisions of previous estimates and reclassifications (102 ) (1,015 ) (115 ) (386 ) Production (16 ) (44 ) (6 ) (29 ) Proved reserves, December 31, 2015 40 133 19 82 Revisions of previous estimates and reclassifications 21 133 18 61 Production (16 ) (56 ) (8 ) (33 ) Proved reserves, December 31, 2016 45 210 29 110 Proved Developed Reserves, as of: December 31, 2015 40 133 19 82 December 31, 2016 45 210 29 110 2016 Activity. As of December 31, 2016, this Partnership recorded an upward revision of its previous estimate of proved reserves by approximately 61 MBoe. The revision includes upward revisions to previous estimates of 21 MBbl of crude oil, 133 MMcf of natural gas, and 18 MBbl of NGLs. The upward revisions were the result of reductions in gathering system line pressures, which has enhanced the productive profile of some of this Partnership's wells. There were no proved undeveloped reserves developed in 2016 and no proved undeveloped reserves attributable to this Partnership's assets as of December 31, 2016. 2015 Activity. As of December 31, 2015, this Partnership recorded a downward revision of its previous estimate of proved reserves by approximately 386 MBoe. The revision includes downward revisions to previous estimates of 102 MBbl of crude oil, 1,015 MMcf of natural gas, and 115 MBbl of NGLs. The downward revisions were the result of reduced asset performance. There were no proved undeveloped reserves developed in 2015 and no proved undeveloped reserves attributable to this Partnership's assets as of December 31, 2015. Standardized Measure of Discounted Future Net Cash Flows and Changes Therein Relating to Proved Reserves The standardized measure below has been prepared in accordance with U.S. GAAP. Future estimated cash flows were based on a 12-month average price calculated as the unweighted arithmetic average of the prices on the first day of each month, January through December, applied to our year-end estimated proved reserves. Prices for each year were adjusted for Btu content and transportation. Production, development and abandonment costs were based on prices as of December 31 for each of the respective years presented. The amounts shown do not give effect to non-property related expenses, such as corporate general and administrative expenses, or to depreciation, depletion, and amortization expense. No income taxes were considered in the standardized measure as this Partnership is not subject to income tax. The following table presents information with respect to the standardized measure of discounted future net cash flows relating to proved reserves. Changes in the demand for crude oil, natural gas, and NGLs, inflation and other factors make such estimates inherently imprecise and subject to substantial revision. This table should not be construed to be an estimate of the current market value of our proved reserves. As of December 31, 2016 2015 Future estimated cash flows $ 2,490,900 $ 2,174,400 Future estimated production costs (1,707,000 ) (1,386,800 ) Future estimated abandonment costs (3,043,100 ) (949,300 ) Future net cash flows (2,259,200 ) (161,700 ) 10% annual discount for estimated timing of cash flows 704,100 119,300 Standardized measure of discounted future estimated net cash flows $ (1,555,100 ) $ (42,400 ) Capitalized Costs and Costs Incurred in Crude Oil and Natural Gas Property Development Activities Crude oil and natural gas development costs include costs incurred to gain access to and prepare development well locations for drilling, drill and equip developmental wells, complete additional production formations or recomplete existing production formations, and provide facilities to extract, treat, gather, and store crude oil and natural gas. This Partnership is engaged solely in crude oil and natural gas activities, all of which are located in the continental United States. Drilling operations began upon funding in September 2006 . This Partnership currently owns an undivided working interest in 59 gross ( 58.9 net) productive crude oil and natural gas wells located in the Wattenberg Field within the Denver-Julesburg Basin, northeast of Denver, Colorado. Aggregate capitalized costs related to crude oil and natural gas development and production activities with applicable accumulated DD&A are presented below: As of December 31, 2016 2015 Leasehold costs $ 126,373 $ 8,004 Development costs (1) 1,769,437 1,513,442 Crude oil and natural gas properties, successful efforts method, at cost 1,895,810 1,521,446 Less: Accumulated DD&A (779,728 ) (571,528 ) Crude oil and natural gas properties, net $ 1,116,082 $ 949,918 (1) Includes estimated costs associated with this Partnership's asset retirement obligations. From time-to-time, this Partnership invests in additional equipment which supports treatment, delivery, and measurement of crude oil and natural gas or environmental protection. This Partnership may also invest in equipment and services to complete refracturing or recompletion opportunities. |