The Company disposed of 7.1 MMBOE TP and 11.4 P&P reserves. Approximately 75% of the TP and 81% of the P&P dispositions were due to the $74 million in property sales during 2012. Dispositions also include 1.8 MMBOE TP and 2.2 MMBOE P&P reserves associated with the cancellation of the Edmonton Sands drilling commitment. The Company was able to cancel its previous Edmonton Sands farm-in commitment in exchange for a carried interest in one net Cardium horizontal well from this winter's drilling program. The cancellation of the Edmonton Sands commitment combined with the economic factor revision for this area, plus minor changes to the Cardium future development capital, caused a significant reduction in future development capital compared to the previous year's reserve report. Future development capital on TP reserves is $66.8 million as compared to $149.8 million on last year's report, and is $145.3 million for P&P reserves, as compared to $264.9 million last year.
The Company will provide more detailed information regarding its December 31, 2012 reserves report as part of its annual information form filing in March 2013.
FINANCIAL RESULTS
Capital expenditures were $10.1 million in the fourth quarter of 2012 with $8.3 million spent on drilling and completions and $1.3 million spent on facilities. This compares to capital expenditures of $41.0 million in the fourth quarter of 2011. Proceeds from the sale of assets were $37.0 million in the fourth quarter of 2012.
Anderson's funds from operations were $5.7 million in the fourth quarter of 2012 compared to $17.0 million in the fourth quarter of 2011. The Company's average crude oil and natural gas liquids sales prices in the fourth quarter of 2012 were $79.73 and $52.02 per barrel compared to $96.33 and $72.71 respectively per barrel in the fourth quarter of 2011. The Company's average natural gas sales price was $3.16 per Mcf in the fourth quarter of 2012 compared to $3.20 per Mcf in fourth quarter of 2011. The Company recorded a loss of $8.9 million in the fourth quarter of 2012 compared to a loss of $32.2 million in the fourth quarter of 2011. The Company's operating netback was $26.50 per BOE in the fourth quarter of 2012 compared to $29.88 per BOE in the fourth quarter of 2011. The decrease in the operating netback was primarily due to the decrease in oil and NGL prices and oil volumes. Anderson's operating netback for its Cardium horizontal properties in the year ended December 31, 2012 was $44.73 per BOE compared to $6.07 per BOE for the remainder of its properties (exclusive of hedging). Anderson's operating netback for its Cardium properties was $44.32 per BOE in the fourth quarter of 2012.
OPERATING NETBACK Average wellhead natural gas Operating Funds from price Revenue netback operations ($/Mcf) ($/BOE) ($/BOE) ($/BOE)2010 3.96 31.31 17.44 13.222011 3.60 42.13 25.89 19.40First quarter of 2012 2.01 38.28 23.62 16.12Second quarter of 2012 1.72 32.70 21.04 12.25Third quarter of 2012 2.24 32.05 20.54 10.78Fourth quarter of 2012 3.16 36.89 26.50 13.75----------------------------------------------------------------------------
