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Supplemental Oil and Gas Information (Tables)
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12 Months Ended |
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Jun. 30, 2012
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| Oil and Gas Exploration and Production Industries Disclosures [Abstract] |
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| Analysis of Changes in Proved Reserves |
The following table sets forth information regarding the Company's estimated proved oil and gas reserve quantities. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries and undeveloped locations are more imprecise than estimates of established producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available.
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United States |
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Australia (1)
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Total |
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Oil
(Mbbls)
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Gas
(MMcf)
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Oil
(Mbbls)
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Gas
(MMcf)
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Oil
(Mbbls)
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Gas
(MMcf)
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Proved Reserves: |
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2009 |
— |
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|
— |
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|
996.0 |
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|
3.3 |
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|
996.0 |
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|
3.3 |
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Extensions and discoveries |
6,963.0 |
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|
— |
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|
— |
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|
— |
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|
6,963.0 |
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|
— |
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Revision of previous estimates |
(74.0 |
) |
|
— |
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|
(694.0 |
) |
|
1.6 |
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|
(768.0 |
) |
|
1.6 |
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Purchase of minerals in place |
2,631.0 |
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|
— |
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|
— |
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|
— |
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|
2,631.0 |
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|
— |
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Sales of minerals in place |
— |
|
|
— |
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|
(205.0 |
) |
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— |
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|
(205.0 |
) |
|
— |
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Production |
(42.0 |
) |
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— |
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|
(97.0 |
) |
|
(3.4 |
) |
|
(139.0 |
) |
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(3.4 |
) |
2010 |
9,478.0 |
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|
— |
|
|
— |
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|
1.5 |
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|
9,478.0 |
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|
1.5 |
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Extensions and discoveries |
6.0 |
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|
— |
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|
— |
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|
— |
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6.0 |
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|
— |
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Revision of previous estimates |
(404.0 |
) |
|
— |
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|
64.0 |
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(0.2 |
) |
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(340.0 |
) |
|
(0.2 |
) |
Purchase of minerals in place |
178.0 |
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|
— |
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|
— |
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|
— |
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|
178.0 |
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|
— |
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Production |
(68.0 |
) |
|
— |
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|
(64.0 |
) |
|
(0.9 |
) |
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(132.0 |
) |
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(0.9 |
) |
2011 |
9,190.0 |
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|
— |
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|
— |
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0.4 |
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|
9,190.0 |
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|
0.4 |
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Extensions and discoveries |
186.4 |
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|
— |
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|
— |
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— |
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|
186.4 |
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|
— |
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Revision of previous estimates |
(1,643.8 |
) |
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— |
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— |
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6.0 |
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(1,643.8 |
) |
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6.0 |
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Purchase of minerals in place |
1,246.8 |
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— |
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— |
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5.5 |
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|
1,246.8 |
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|
5.5 |
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Production |
(74.2 |
) |
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— |
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— |
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(0.4 |
) |
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(74.2 |
) |
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(0.4 |
) |
2012 |
8,905.2 |
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— |
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— |
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|
11.5 |
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|
8,905.2 |
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|
11.5 |
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(1) The amount of proved reserves applicable to Australia gas reflects the amount of gas committed to specific contracts and is net of royalties.
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United States |
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Australia (1)
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Total |
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Oil
(Mbbls)
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Gas
(MMcf)
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Oil
(Mbbls)
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Gas
(MMcf)
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Oil
(Mbbls)
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Gas
(MMcf)
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Proved Developed Reserves: |
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June 30, 2010 |
2,515.0 |
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— |
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— |
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1.5 |
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|
2,515.0 |
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1.5 |
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June 30, 2011 |
2,249.0 |
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— |
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— |
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0.4 |
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|
2,249.0 |
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0.4 |
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June 30, 2012 |
1,646.7 |
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— |
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— |
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|
11.5 |
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|
1,646.7 |
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11.5 |
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Proved Undeveloped Reserves: |
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June 30, 2010 |
6,963.0 |
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— |
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— |
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— |
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6,963.0 |
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— |
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June 30, 2011 |
6,941.0 |
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— |
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— |
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— |
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|
6,941.0 |
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— |
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June 30, 2012 |
7,258.4 |
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— |
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— |
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— |
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|
7,258.4 |
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— |
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(1) The amount of proved reserves applicable to Australia gas reflects the amount of gas committed to specific contracts and is net of royalties.
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| Standardized Measure of Oil and Gas - Prices |
The resulting prices used for proved reserves for the year ended June 30, 2012 are:
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United States |
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Australia |
Year ended June 30, 2012 |
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Oil |
$ |
84.94 |
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|
NA |
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Gas |
NA |
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$ |
4.64 |
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| Standardized Measure of Oil and Gas - Discounted Future Cash Flows Relating to Proved Reserves Disclosure |
The following table presents the standardized measure of discounted future net cash flows related to proved oil and gas reserves:
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United States |
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Australia |
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Total |
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(In thousands) |
Fiscal year ended June 30, |
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2012 |
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Future cash inflows |
$ |
756,405 |
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$ |
53,296 |
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$ |
809,701 |
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Future production costs |
(291,212 |
) |
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(34,729 |
) |
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(325,941 |
) |
Future development costs |
(34,416 |
) |
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(4,107 |
) |
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(38,523 |
) |
Future income tax expense |
(152,314 |
) |
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(3,667 |
) |
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(155,981 |
) |
Future net cash flows |
278,463 |
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|
10,793 |
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|
289,256 |
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10% annual discount |
(156,967 |
) |
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(2,214 |
) |
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(159,181 |
) |
Standardized measures of discounted future net cash flows |
$ |
121,496 |
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$ |
8,579 |
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$ |
130,075 |
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2011 |
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Future cash inflows |
$ |
734,592 |
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$ |
972 |
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$ |
735,564 |
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Future production costs |
(303,005 |
) |
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(700 |
) |
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(303,705 |
) |
Future development costs |
(28,849 |
) |
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— |
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|
(28,849 |
) |
Future income tax expense |
(155,701 |
) |
|
— |
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|
(155,701 |
) |
Future net cash flows |
247,037 |
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|
272 |
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|
247,309 |
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10% annual discount |
(137,021 |
) |
|
(8 |
) |
|
(137,029 |
) |
Standardized measures of discounted future net cash flows |
$ |
110,016 |
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$ |
264 |
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$ |
110,280 |
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2010 |
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Future cash inflows |
$ |
627,842 |
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$ |
3,031 |
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$ |
630,873 |
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Future production costs |
(251,335 |
) |
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(1,870 |
) |
|
(253,205 |
) |
Future development costs |
(27,293 |
) |
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(1,780 |
) |
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(29,073 |
) |
Future income tax expense |
(132,843 |
) |
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(297 |
) |
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(133,140 |
) |
Future net cash flows |
216,371 |
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|
(916 |
) |
|
215,455 |
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10% annual discount |
(131,163 |
) |
|
1,062 |
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|
(130,101 |
) |
Standardized measures of discounted future net cash flows |
$ |
85,208 |
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$ |
146 |
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$ |
85,354 |
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| Standardized Measure of Oil and Gas - Changes in Standardized Measure of Discounted Future Net Cash Flows |
A summary of changes in the standardized measure of discounted future net cash flows is as follows:
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United States |
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Australia |
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Total |
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(In thousands) |
Standardized measure of discounted future net cash flows for Fiscal year ended June 30, |
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2009 |
$ |
— |
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|
$ |
20,055 |
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$ |
20,055 |
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Extensions and discoveries |
115,092 |
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|
— |
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|
115,092 |
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Acquisitions of reserves |
29,656 |
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|
— |
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|
29,656 |
|
Revisions of previous quantity estimates |
(8,258 |
) |
|
1,850 |
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|
(6,408 |
) |
Divestiture of reserves |
— |
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|
(11,687 |
) |
|
(11,687 |
) |
Sales and transfers of oil and gas produced |
(1,064 |
) |
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(12,299 |
) |
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(13,363 |
) |
Accretion of discount |
1,725 |
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|
— |
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|
1,725 |
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Net change in income taxes |
(53,722 |
) |
|
2,227 |
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|
(51,495 |
) |
Net change in timing and other |
1,779 |
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|
— |
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|
1,779 |
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2010 |
85,208 |
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|
146 |
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|
85,354 |
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Net change in prices and production costs |
24,899 |
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|
38 |
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|
24,937 |
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Extensions and discoveries |
117 |
|
|
— |
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|
117 |
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Acquisitions of reserves |
3,486 |
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|
— |
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|
3,486 |
|
Revisions of previous quantity estimates |
(7,041 |
) |
|
1,094 |
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|
(5,947 |
) |
Changes in estimated future development costs |
(798 |
) |
|
536 |
|
|
(262 |
) |
Sales and transfers of oil and gas produced |
(2,406 |
) |
|
(1,940 |
) |
|
(4,346 |
) |
Accretion of discount |
13,893 |
|
|
41 |
|
|
13,934 |
|
Net change in income taxes |
(16,125 |
) |
|
297 |
|
|
(15,828 |
) |
Net change in timing and other |
8,783 |
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|
52 |
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|
8,835 |
|
2011 |
110,016 |
|
|
264 |
|
|
110,280 |
|
Net change in prices and production costs |
18,517 |
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|
— |
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|
18,517 |
|
Extensions and discoveries |
6,785 |
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|
— |
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|
6,785 |
|
Acquisitions of reserves |
26,584 |
|
|
4,872 |
|
|
31,456 |
|
Revisions of previous quantity estimates (1)
|
(37,846 |
) |
|
6,144 |
|
|
(31,702 |
) |
Changes in estimated future development costs |
(2,275 |
) |
|
(555 |
) |
|
(2,830 |
) |
Sales and transfers of oil and gas produced |
(941 |
) |
|
(264 |
) |
|
(1,205 |
) |
Previously estimated development cost incurred during the period |
5,841 |
|
|
— |
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|
5,841 |
|
Accretion of discount (2)
|
— |
|
|
— |
|
|
— |
|
Net change in income taxes |
(1,657 |
) |
|
(1,576 |
) |
|
(3,233 |
) |
Net change in timing and other |
(3,528 |
) |
|
(306 |
) |
|
(3,834 |
) |
2012 |
$ |
121,496 |
|
|
$ |
8,579 |
|
|
$ |
130,075 |
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(1) The downward revision of previous quantity estimates of 1,644 Mbbls resulted from a reduced well count which was impacted by higher operating costs.
(2) For the year ended June 30, 2012, Magellan assumed no benefit from the accretion of the beginning of year value of its proved oil reserves in the United States. Accretion, with respect to measuring the changes in the standardized measure of reserves values, represents the value benefit of being closer in time, relative to the prior year's standardized measure, to future cash flows in the reserves projections. During the year ended June 30, 2012, Magellan did not develop its United States proved oil reserves in accordance with its reserve plan as of June 30, 2011, and instead postponed its reserves development plan by one year. Therefore, the benefit of accretion of last year's reserves should not factor into the value of the current standardized measure.
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