Resaca provide an updated reserve study as of 30 June 2011 for the Company's oil and gas properties and to provide an update on the Company's production.

Reserves Update

As of 30 June 2011, Resaca's proved and probable ("2P") reserves were 27.5 million barrels ("MMbbls") of oil and 14.5 billion cubic feet ("Bcf") of natural gas, for a total of 29.9 million barrels of oil equivalent ("MMboe"). This represents 0.2 MMboe increase in Resaca's 2P reserves since 30 June 2010 after realization of 0.2 MMboe of production during the fiscal year ended 30 June 2011. The Company's proved reserves represented 49% of the 2P reserves as of 30 June 2011. Additionally, Resaca's possible reserves were 5.4 MMbbls of oil and 3.3 Bcf of natural gas as of 30 June 2011 for total proved, probable and possible ("3P") reserves of 32.9 MMbbls of oil and 17.8 Bcf of natural gas (35.8 MMboe). Resaca's 3P reserves increased 0.009 MMboe since 30 June 2010. All reserves are calculated on a net revenue interest basis (working interest volumes, less royalties).

Resaca's proved developed producing ("PDP") reserves as of 30 June 2011 were 2.8 MMbbls of oil and 2.5 Bcf of natural gas, for a for a total of 3.2 MMboe. This represents a 0.5 MMboe increase in PDP reserves since 30 June 2010 after realization of 0.2 MMboe of production during the fiscal year ended 30 June 2011. This represents a 20 percent increase in PDP reserves, after consideration of fiscal year production. The increase in PDP reserves is primarily attributable to the capital expenditure program initiated by the Company in February 2011 on the Company's Cooper Jal Unit, the Jordan San Andres Unit, and the Edwards Grayburg Unit.

Tags: Resaca Exploitation