"Although the 3242-4RD well came on-line later in the quarter than we had initially anticipated, the high rate of production that we are seeing from the well is very encouraging and will go a long way in helping us achieve our production guidance of 10,000 to 10,500 BOE per day for the year," commented Mr. O'Donnell. "This well was drilled to the eastern boundary of our lease, as was the 3242-12 well that was completed in June 2012, which continues to produce over 2,000 gross BOE per day. Based on the success of these wells, we believe that additional opportunities exist on the eastern portion of our lease that could provide us with similar high impact results."
The following table details the company's daily production by region (BOE(1)/d):
Quarter endedRegion 3/31/12 12/31/12 3/31/13Southern California 7,455 8,718 9,501Sacramento Basin(2) 9,970 8,221 1,127 Total 17,425 16,939 10,628 ========= ========= ========= (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. (2) First quarter 2013 production from the Sacramento Basin relates to properties that were held in escrow pending the receipt of consents regarding the transfer of ownership. As of May 1, 2013, title to all properties included in the sale on December 31, 2012 has been transferred to the purchaser.
First Quarter Costs
Venoco's first quarter 2013 lease operating expenses of $19.36 per BOE were up from $15.69 per BOE in the fourth quarter of 2012 and $15.42 per BOE in the first quarter of 2012. Pro forma for the sale of the Sacramento Basin and San Joaquin basin properties, the first quarter 2013 LOE was $21.05 per BOE, down from $25.75 per BOE in the fourth quarter of 2012. The fourth quarter expenses were negatively affected by the scheduled annual maintenance performed at the South Ellwood field during the quarter, which resulted in higher LOE costs and reduced production levels.
Venoco's first quarter G&A costs, excluding going private related costs, severance costs related to the sale of the Sacramento Basin assets and non-cash share-based compensation, was $13.14 per BOE compared to $8.47 per BOE in the fourth quarter of 2012 and $5.37 per BOE in the first quarter of 2012. Excluding production from the Sacramento Basin properties, Venoco's per barrel G&A costs, excluding the costs outlined above, were $14.71 per BOE in the first quarter of 2013 compared to $16.45 per BOE in the fourth quarter of 2012 and $12.56 in the first quarter of 2012. On a pro forma basis, G&A costs were higher in the fourth quarter of 2012 and first quarter of 2013 as a result of the conversion of restricted stock and stock option awards into cash settlement awards as a result of the going private transaction completed in October 2012.
Quarter Ended --------------------------------UNAUDITED (per BOE) 3/31/12 12/31/12 3/31/13 ---------- ---------- ----------Lease Operating Expenses $ 15.42 $ 15.69 $ 19.36Production/Property Taxes 1.02 0.71 1.18DD&A Expense 14.03 13.53 12.09G&A Expense (1) 5.37 8.47 13.14(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.