Energen Corp. announced operating results for the year 2012. For the calendar year 2012, the company drilled 42 gross (40 net) 3 Bone Spring wells.

The average initial stabilized rate of 38 gross (35 net) wells was 1,031 BOE per day (68% oil). The 30-day average production rate of 35 gross (32 net) wells with sufficient production history was 661 BOE per day (65% oil). Proved reserves at year-end 2012 totaled a record 346 MMBOE and were essentially unchanged from the prior year as record production and price-related, downward revisions offset the addition of previously classified unproved reserves and acquisition-related reserves.

Oil and NGL reserves represent 61% of total proved reserves and are expected to increase as Energen continues to focus on the exploration and development of the liquids-rich Permian Basin. Natural gas and NGL prices used for calculating reserves were down substantially in 2012 relative to 2011. Probable and possible reserves at year-end 2012 declined to 407 MMBOE.

Substantially lower gas and NGL prices resulted in the loss of approximately 137 MMBOE of unproved San Juan reserves at the end of the 2012. Total LOE per unit in 2012 increased approximately 1% from the prior year to $12.73 per BOE. Base LOE and marketing and transportation expenses increased 5% to $10.41 per BOE largely due to increased water disposal costs, ad valorem taxes, and equipment rental partially offset by lower operations and maintenance expense.