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Proved and probable producing reserves represent 55 percent of total proved and probable reserves. 87 percent of the Company's total reserves are located in the Steen River core area.
McDaniel estimates the FDC required to convert undeveloped and non-producing reserves to producing reserves at $50.1 million.
A reconciliation of the Company's reserves at December 31, 2012 to the previous year-end is as follows.
Thousand Barrels of Oil Equivalent Proved (MBoe) Proved Probable and Probable----------------------------------------------------------------------------Opening Balance December 31, 2011 3,217 2,054 5,271Discoveries and Extensions 1,101 2,534 3,635Technical Revisions 289 (475) (186)Acquisitions 316 122 439Economic Factors (138) (68) (206)Production(1) (769) 0 (769)----------------------------------------------------------------------------Closing Balance December 31, 2012 4,017 4,167 8,184--------------------------------------------------------------------------------------------------------------------------------------------------------(1)Production information is from Strategic's preliminary unauditedconsolidated financial statements for the year ended December 31, 2012.
Strategic's light and medium oil, natural gas and NGL reserves were evaluated by McDaniel using McDaniel's product price forecasts effective January 1, 2013 prior to provision for financial risk management contracts, income taxes, interest, debt service charges and general and administrative expenses. The following table summarizes the net present value from recognized reserves at December 31, 2012, assuming various discount rates, and incorporating future development costs and abandonment liabilities. It should not be assumed that the discounted future net revenues estimated by McDaniel represent the fair market value of the Company's assets or future production from the assets.
Summary of Before Tax Net Present Value of Future Net Revenue (Forecast Pricing(1)) (2) Discounted at($ thousands) Undiscounted 5% 10% 15%----------------------------------------------------------------------------Proved Producing 95,561 81,823 72,034 64,755Proved Non-Producing 16,693 14,770 13,267 12,064Proved Undeveloped 6,613 5,657 4,901 4,293----------------------------------------------------------------------------Total Proved 118,867 102,250 90,202 81,111Total Probable 99,020 68,127 48,853 35,991----------------------------------------------------------------------------Total Proved and Probable 217,887 170,377 139,055 117,103--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Based on McDaniel's January 1, 2013 escalated price forecast.(2) Tables may not add due to rounding. There is no assurance that theforecast prices and costs assumptions will be attained and variances couldbe material. The recovery and reserve estimates of Strategic's crude oil,natural gas liquids and natural gas reserves provided herein are estimatesonly and there is no guarantee that the estimated reserves will berecovered. Actual crude oil, natural gas and natural gas liquids reservesmay be greater than or less than the estimates provided herein.
