In 2012, the company had onshore Monterey capital expenditures of $76 million or 35% of its total 2012 capital expenditures. During the year, the company spud five wells and completed six wells, including one well spud in 2011. All of the wells completed during the year were located in the Sevier field. In addition to the wells spud and completed, the company completed a water pipeline and substantially completed oil and natural gas pipelines from the Sevier field to the respective points of sale.
The company's 2013 capital expenditure budget for the onshore Monterey shale project has been significantly reduced from 2012 levels to $13 million in 2013. Similar to 2012, the company's focus with respect to the onshore Monterey shale will continue to be on the Sevier field. The capital expenditure budget contemplates drilling one horizontal well in the Sevier field and continued improvements to production facilities in the field. The agreement governing the company's revolving credit facility limits the amount of capital that can be deployed in onshore Monterey activities, which could reduce the amount of capital spent in 2013 below the budgeted level.
During 2012, the company spent $26 million or 12% of its capital expenditures in the Sacramento Basin. The company spud four wells and performed approximately 250 recompletions in the basin during the year. The reduced capital activity in the Sacramento Basin was anticipated and was the result of the low natural gas price environment that currently exists.
The company's year-end 2012 total proved reserves were 52.2 million BOE, compared to year-end 2011 reserves of 95.9 million BOE. Pro forma for the sales of the Sacramento Basin and Santa Clara Avenue (sold in the second quarter of 2012) properties, proved reserves increased by 5% over year-end 2011 reserves of 49.7 million BOE. After adjusting for 2012 production of 3.1 million BOE, pro forma for the sales of the Sacramento Basin and Santa Clara Avenue properties, the company added reserves of 5.6 million BOE, including revisions, extensions and discoveries, which primarily related to progress made by Denbury Resources in implementing the CO2 enhanced oil recovery project at the Hastings field and successful wells drilled at South Ellwood during the year. The increase realized was partially offset by proved undeveloped reserves that were removed at yearend related to the 3242-4 well at South Ellwood, which was wet when initially completed late in 2012. The company's year-end 2012 proved reserves do not include any reserves for the 3242-4RD well completed in the first quarter of 2013.
"The Hastings field was returned to production in mid-January 2012 and it has responded very favorably to the CO2 flood that Denbury Resources has implemented. The response has enabled us to convert a portion of our probable reserves to proved during 2012," said Mr. O'Donnell. "As of yearend, we removed the reserves associated with the 3242-4 well at South Ellwood that we drilled during the year. However, we completed the re-drill of this well in the first quarter of 2013 and it produced at an average rate of approximately 1,500 gross BOE per day in the last 20 days of March and as a result, we expect that we will be able to record proved reserves associated with this well in 2013."
The company's 2012 rollforward of proved reserves is as follows:
2012 Reserve Rollforward MBOE(1) ----------Beginning of the year reserves 95,884Revisions of previous estimates (4,387)Extensions and discoveries 9,948Purchases of reserves in place -Production (6,345)Sales of reserves in place (42,857) ----------End of year reserves 52,243 ==========Proved developed reserves:Beginning of year 48,765End of year 36,324(1) Barrel of oil equivalent (BOE) is calculated using the ratio of six Mcf of natural gas to one barrel of crude oil, condensate or natural gas liquids.