Bonanza Creek Energy declared a 33% year-over-year increase in proved reserves at December 31, 2011.

Bonanza Creek's estimated total proved reserves increased by 10.8 million barrels of oil equivalent ("Boe") to 43.7 million Boe, comprised of 65% crude oil and natural gas liquids, and approximately 39% categorized as proved developed. Year-end 2010 proved reserves were 32.9 million Boe. The Company's reserve life (R/P ratio) based on the previously announced average daily production rate for November 2011 of approximately 6,105 Boe per day was 19.6 years as of December 31, 2011. Reserve replacement for 2011 was approximately 680% of production.

The PV-10 of the Company's proved reserves at December 31, 2011 increased by $332.4 million or 72% to $794.0 million from $461.6 million at December 31, 2010. The company say that the proved reserve classifications conform to SEC criteria

During 2011, Bonanza Creek invested approximately $160 million in capital expenditures related to the drilling and completing of new wells and the expansion of its gas processing facilities in Arkansas. As previously announced, the Company's capital expenditure guidance for 2012 is $250 million.

"We are pleased with the results of our year-end 2011 proved reserves adding 10.8 million Boe, which equates to another year of impressive reserve replacement of approximately 680% of production. Bonanza Creek is well positioned to execute on our 2012 development plan and we reiterate our previously disclosed 2012 guidance of 8,700 - 10,000 Boe/d average daily production for 2012." say Bonanza Creek's President and CEO Michael Starzer.

Gary Grove, Executive Vice President of Engineering and Planning added, "2011 was another year of attractive proved reserve additions through development of Bonanza Creek's low risk, oil focused project inventory. This assessment by CGA also included proved reserve additions for Bonanza Creek's horizontal Niobrara Oil Shale development in Wattenberg based on our drilling results in 2011. With our internal estimate of 215 horizontal Niobrara drilling locations identified in Wattenberg, we believe this development will continue to provide attractive proved reserve additions."

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