Property and production taxes for the full year 2012 were $1.53 per BOE compared to $0.99 per BOE in 2011. The increase is primarily the result of supplemental ad valorem taxes related to successful oil wells drilled during the second quarter of 2012.
Quarter Ended Year Ended -------------------------- -----------------UNAUDITED (per BOE) 12/31/11 9/30/12 12/31/12 12/31/11 12/31/12 -------- -------- -------- -------- --------Lease Operating Expenses $ 13.87 $ 13.90 $ 15.69 $ 14.64 $ 14.48Production/Property Taxes 0.97 1.01 0.71 0.99 1.53DD&A Expense 13.43 13.50 13.53 13.35 13.68G&A Expense (1) 5.46 5.59 8.47 4.96 6.13
(1) Net of amounts capitalized and excluding non-cash share-based compensation costs, costs related to the going-private transaction and severance costs associated with the sale of our Sacramento Basin assets. See the end of this release for a reconciliation of G&A per BOE.
Capital Investment 2012
Venoco's 2012 capital expenditures for exploration, development and other spending were $219 million, including $154 million for drilling and rework activities, $25 million for facilities, and the remaining $40 million for land, seismic and capitalized G&A.
In 2012, the company spent $117 million or 53% of its capital expenditures on its Southern California legacy fields. At the West Montalvo field, the company spud four wells and completed six wells (including two wells spud in 2011), all targeting the offshore portion of the field. Net production at West Montalvo has increased approximately 25% from 1,428 BOE per day in the fourth quarter of 2011 to 1,806 BOE per day in the fourth quarter of 2012. At the South Ellwood field, the company spud four wells and completed three wells during 2012. The first well averaged about 60 gross BOE per day in the fourth quarter, while the second well (the 3242-12 well) averaged about 2,000 gross BOE per day in the fourth quarter. The third well drilled (3242-4) was wet. This well was re-drilled (as the 3242-4RD) in the fourth quarter and was completed in the first quarter of 2013. The fourth well spud during 2012 (3242-19) was drilled to a probable location but was suspended following setting intermediate casing to facilitate the re-drill of the 3242-4RD well. During 2012, the company drilled three wells and performed one recompletion at the Sockeye field.
The company's capital expenditure budget for 2013 is $91 million. Of that amount, $78 million is anticipated to be spent at the company's legacy Southern California properties. At South Ellwood, the company's capital budget includes completing both the 3242-4RD and the 3242-19 probable well that was suspended in the third quarter of 2012. The budget also includes plans to spud and complete one to two additional wells in the South Ellwood field during 2013. Additionally, the company plans to drill four proved undeveloped locations and one probable location at West Montalvo in 2013. No significant activity is planned at the Sockeye field in 2013. The company expects production levels from its Southern California legacy fields to increase 20-25% in 2013 compared with 2012 as a result of its capital expenditure activity.