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ZAPATA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
NOTE 15. OIL AND GAS OPERATIONS (UNAUDITED)--(CONTINUED)
experience and additional development of existing reservoirs may significantly
alter previous estimates of proved reserves. Future changes in the level of
hydrocarbon prices relative to the costs to develop and produce reserves can
also result in substantial revisions to proved reserve estimates.
These estimates relate only to those reserves which meet the SEC's definition
of proved reserves and do not consider probable reserves and the likelihood of
their recovery which, if considered, could result in substantial increases in
reported reserves. Future secondary recovery efforts could also yield
additional reserves.
NATURAL GAS AND LIQUIDS RESERVES
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UNITED STATES BOLIVIA TOTAL
------------- ------------ -------------
LIQUIDS GAS LIQUIDS GAS LIQUIDS GAS
------- ----- ------- ---- ------- -----
(LIQUIDS IN MILLIONS OF BARRELS, GAS IN
BILLIONS OF CUBIC FEET)
<S> <C> <C> <C> <C> <C> <C>
Proved reserves as of
September 30, 1992................ .4 48.5 .7 21.2 1.1 69.7
Revisions of previous estimates... -- (1.1) -- 3.0 -- 1.9
Production........................ -- (7.0) -- (1.7) -- (8.7)
Purchase of reserves in place..... -- .4 -- -- -- .4
--- ----- --- ---- --- -----
Proved reserves as of
September 30, 1993................ .4 40.8 .7 22.5 1.1 63.3
Revisions of previous estimates... .1 (2.8) .1 6.7 .2 3.9
Production........................ (.1) (3.3) (.1) (1.9) (.2) (5.2)
--- ----- --- ---- --- -----
Proved reserves as of
September 30, 1994................ .4 34.7 .7 27.3 1.1 62.0
Revisions of previous estimates... -- -- -- 3.9 -- 3.9
Production........................ (.1) (3.0) -- (1.7) (.1) (4.7)
Sale of reserves in place......... (.3) (31.7) -- -- (.3) (31.7)
--- ----- --- ---- --- -----
Proved reserves as of
September 30, 1995................ -- -- .7 29.5 .7 29.5
=== ===== === ==== === =====
Proved developed reserves as of
September 30, 1993................ .2 28.2 .7 22.5 .9 50.7
September 30, 1994................ .2 27.4 .7 27.3 .9 54.7
September 30, 1995................ -- -- .7 29.5 .7 29.5
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Standardized measure of discounted future net cash flows
The information presented below concerning the net present value of after-tax
cash flows for Zapata's oil and gas producing operations is required by SFAS
No. 69 in an attempt to make comparable information concerning oil and gas
producing operations available for financial statement users. The information
is based on proved reserves as of September 30 for each fiscal year and has
been prepared in the following manner:
1. Estimates were made of the future periods in which proved reserves
would be produced based on year-end economic conditions.
2. The estimated future production streams of proved reserves have been
priced using year-end prices with the exception that future prices of gas
have been increased for fixed and determinable escalation provisions in
existing contracts.
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