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The success rate for the 239 Permian wells was 100 percent, the company reported.

Production and profits up at Laredo Petroleum

By ROD WALTON World Staff Writer
Published: 3/22/2012 2:32 AM
Last Modified: 3/22/2012 3:00 AM



Production and profit jumped last year at Laredo Petroleum Holdings Inc., the Tulsa-based company said in its first-ever earnings report Wednesday.


Laredo increased its estimated proved reserves by 28.5 million barrels of oil equivalent, 15 percent higher than 2010. Proved developed reserves totaled 63.2 million BOEs, up 41 percent.

Chairman and CEO Randy Foutch, who started Laredo five years ago, touted the company's growing scientific database and its drill-bit achievements in a conference call to analysts. He also noted that Laredo will release more data Monday in advance of its presentation at the Howard Weil Energy Conference in New Orleans next week.

"We're excited about telling our story over the next few days," Foutch said.

Laredo reported $105.6 million in 2011 net income, or 98 cents per diluted share. Revenues topped $510 million, double the previous annual figure.

"Of course, our revenues are driven by the production growth we had," Chief Financial Officer Greg Womble said during the conference call.

Laredo is focused on drilling in the Permian Basin of west Texas and the Anadarko Basin-Granite Wash play of western Oklahoma and the Texas Panhandle. The company's 3D-seismic database now covers 720 square miles in the Permian.

"Bottom line: Science and the collection and analyses of proprietary data is integral to how we approach this business at Laredo," Foutch said.

As of Dec. 31, the Permian held 101.4 million barrels of oil equivalent, or 65 percent of Laredo's estimated proved reserves. The Anadarko-Granite Wash accounted for 45.1 million BOEs, or 29 percent, while other plays fill out the remaining 6 percent.

Laredo drilled or participated in the drilling of 280 wells last year, a majority of those vertical wells in the Wolfberry trend.

The success rate for the 239 Permian wells was 100 percent, the company reported. The 17 Anadarko wells also had a perfect success rate.

Foutch started three companies prior to Laredo, choosing to keep all privately held and later sell them. Last year he took Laredo public, saying it was built "for the long haul."


Original Print Headline: Production, profits rise at Laredo Petroleum