By OGJ editors
HOUSTON, June 3 -- Record gas drilling is boosting reserves additions and allowing more than full reserve replacement in the US Lower 48 and Canada, says Ziff Energy Group in a report released June 1. The report summarizes Ziff's analysis of 2004 gas reserves replacement by the drillbit and does not include acquisitions or divestments.
The analysis indicates that there was an "overall replacement of 115% of annual production" in the US Lower 48, which had some small positive revisions, and of 108% in Canadathe first year since 2000 that companies have achieved 100% replacement by the drillbit in Canada, Ziff reported.
"Minor negative revisions reduced the Canadian replacement rate," Ziff said.
The increases raised the proved gas reserves life to 10.7 years in the Lower 48. In Canada, proved gas reserve life decreased to 7.8 years.
The top 30 companies in the US Lower 48 increased collective production by 8%. The Canadian top 30 increased production by 1%, according to the report.