RALPH E. Davis Associates, INC.
CONSULTANTS-PETROLEUM AND NATURAL GAS
3555 TIMMONS LANE-SUITE 1105
HOUSTON, TEXAS 77027
(713) 622 -8955
October 17, 1995
Seneca Resources Corporation
333 Clay Street, Suite 4150
Houston, Texas 77002
Attention: Mr. Don A. Brown
Vice President
Re: 0il, Condensate and Natural Gas Reserves,
Seneca Resources Corporation
As of October 1, 1995
Gentlemen:
At your request, the firm of Ralph E. Davis Associates, Inc. has audited an
evaluation of the proved oil, condensate and natural gas reserves on leaseholds
in which Seneca Resources Corporation has certain interests. This report
presents a summary of the Proved Developed (producing and non-producing) and
Proved Undeveloped reserves anticipated to be produced from Seneca Resources'
interest.
Liquid volumes are expressed in thousands of barrels (MBbls) of stock tank oil.
Gas volumes are expressed in millions of standard cubic feet (MMSCF) at the
official temperature and pressure bases of the areas wherein the gas reserves
are located.
The summarized results of the reserve audit are as follows:
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RALPH E. DAVIS ASSOCIATES, INC.
Seneca Resources Corp.
Mr. Don A. Brown
October 17, 1995
Page 2
Estimated Proved Reserves
Net to Seneca Resources Corporation
As of October 1, 1995
Proved Reserves
--------------------------------------------
Developed
-----------------------
Remaining Reserves Producing Non-Producing Undeveloped Total
Gulf Coast Division:
Oil/Condensate, MBbls 704 5,122 2,062 7,888
Gas, MMSCF 41,973 39,694 47,114 128,781
West Coast Division:
Oil/Condensate, MBbls 5,993 2,891 5,866 14,750
Gas, MMSCF 13,435 5,693 11,840 30,968
East Coast Division;
Oil/Condensate, MBbls 227 0 0 227
Gas, MMSCF 61,317 392 0 61,709
TOTAL:
Oil/Condensate, MBbls 6,924 8,013 7,928 22,865
Gas, MMSCF 116,725 45,779 58,954 221,458
DISCUSSION:
The scope of this study was to audit the proved reserves attributable to the
interests of Seneca Resources Corporation. Reserve estimates were prepared by
Seneca using acceptable evaluation principals for each source. The quantities
presented herein are estimated reserves of oil, condensate and natural gas that
geologic and engineering data demonstrate can be recovered from known reservoirs
under existing economic conditions with reasonable certainty.
Ralph E. Davis Associates, Inc. has audited the reserve estimates, the data
incorporated into preparing the estimates and the methodology used to evaluate
the reserves. Certain changes to either individual reserve estimates or the
categorization of reserves were suggested by Ralph E. Davis Associates, Inc. and
accepted by Seneca Resources. It is our opinion that the reserves presented
herein meet all the criteria of Proved Reserves.
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RALPH E. DAVIS ASSOCIATES, INC.
Seneca Resources Corp.
Mr. Don A. Brown
October 17, 1995
Page 3
Neither Ralph E. Davis Associates, Inc. nor any of its employees have any
interest in Seneca Resources Corporation or the properties reported herein. The
employment and compensation to make this study are not contingent on our
estimate of reserves.
We appreciate the opportunity to be of service to you in this matter, and will
be glad to address any questions or inquiries you may have.
Very truly yours,
RALPH E. DAVIS ASSOCIATES, INC.
/s/ Allen C. Barron
Allen C. Barron, P. E.
Vice President