Antero Reports 78% Increase in Proved Reserves to 7.6 Tcfe

          Antero Reports 78% Increase in Proved Reserves to 7.6 Tcfe

PR Newswire

DENVER, Feb. 4, 2014

DENVER, Feb. 4, 2014 /PRNewswire/ --

  oProved reserves increased by 78% to 7.6 Tcfe and 3P reserves increased by
    62% to 35.0 Tcfe at year-end 2013
  oProved developed reserves increased by 117% to 2.0 Tcfe at year-end 2013
  oReplaced 1,857% of estimated production in 2013
  oAchieved all-in finding and development costs of $0.58 per proved Mcfe
    during 2013
  oIncreased proved reserves pre-tax PV10 by 133% to $7.0 billion, including

Antero Resources (NYSE: AR) ("Antero" or the "Company") today announced that
proved reserves at December 31, 2013 were 7.6 Tcfe, a 78% increase compared to
proved reserves at December 31, 2012, in each case assuming ethane rejection.
Proved, probable and possible ("3P") reserves at year-end 2013 totaled 35.0
Tcfe, which represents a 62% increase compared to last year, assuming ethane
rejection. Antero's December 31, 2013 proved and 3P reserves exclude 271 and
1,399 million barrels of ethane, respectively, which are not recovered in the
Securities and Exchange Commission ("SEC") price case due to the relationship
between assumed ethane and methane prices at year-end 2013.


Antero replaced 1,857% of estimated production in 2013 from all sources
including performance and price revisions. Finding and development costs for
proved reserve additions from all sources including costs incurred for
drilling capital, acquisitions, leasehold additions and all price and
performance revisions averaged $0.58 per Mcfe, based on preliminary unaudited
capital expenditure amounts for 2013. Drill-bit only finding and development
costs averaged $0.45 per Mcfe for 2013. Antero's proved developed reserve
additions totaled 1,281 Bcfe on $1.6 billion of drilling capital for a
development cost of $1.25 per Mcfe in 2013. The Company's reserve life of its
proved reserves, based on estimated 2013 production, is approximately 40

Proved Reserves

Proved reserves increased by 78% to 7.6 Tcfe as of December 31, 2013. The
Marcellus Shale accounted for 95% of Antero's proved reserve volumes at
December 31, 2013 and the Utica Shale accounted for the remaining 5%. Also at
year-end 2013, 88% of Antero's proved reserves by volume were natural gas, 11%
were natural gas liquids ("NGLs") and 1% was oil. As of December 31, 2013,
23% of Antero's 450,000 net acres of leasehold in the Marcellus and Utica was
classified as proved. Based on Antero's successful drilling results to date,
as well as those of other operators in the vicinity of Antero's leasehold, the
Company believes that a substantial portion of its Marcellus and Utica Shale
acreage will be added to proved reserves over time as more wells are drilled.

Antero added 3.7 Tcfe of proved reserves in 2013 primarily in the Marcellus
Shale. NGLs and oil increased by 98 million barrels and 7 million barrels,
respectively, due to Antero's 2013 drilling program targeting liquids-rich
locations in the Marcellus and Utica Shales. Negative performance revisions
of 157 Bcfe of proved reserves were due to the reclassification of 65 wells,
or 374 Bcfe, to the probable category due to the SEC 5-year development rule
partly offset by improved Marcellus well performance from SSL completions.

Proved developed reserves increased 117% from year-end 2012 to over 2.0 Tcfe
at December 31, 2013. The Company added 113 Marcellus wells to proved
developed reserves in 2013. These wells had an average estimated ultimate
recovery ("EUR") of 10.6 Bcfe and an average lateral length of 7,308 feet.
During 2013, Antero placed on line 26 Marcellus wells using SSL completions
with encouraging results. Based on these results, Antero has increased its
EUR per 1,000 feet of lateral by 18% to 1.73 Bcf for 1,768 gross SSL
undeveloped 3P Marcellus locations out of the 3,067 total gross undeveloped 3P
Marcellus locations, or 58%. Included in the gross SSL undeveloped 3P
Marcellus locations are 91 gross SSL locations categorized as proved
undeveloped out of the 665 total gross proved undeveloped Marcellus locations,
or 14%. Antero has recently decided to complete virtually all wells in 2014
with SSL and expects further increases to the portion of gross undeveloped 3P
Marcellus locations that assume SSL completions.

Antero added 11 Utica wells to the proved developed reserves category in 2013
consisting of 2 rich gas (1100-1200 BTU), 4 highly-rich gas (1200 to 1250 BTU)
and 5 highly-rich/condensate (1250 to 1300 BTU) wells. The wells located in
the rich gas and highly-rich gas regimes had an average EUR of 18.8 Bcfe (15%
liquids) and 20.5 Bcfe (23% liquids), respectively, normalized to a 7,000'
lateral. These EURs are consistent with previous estimates. Additionally,
the wells located in the highly-rich/condensate regime had an average EUR of
11.3 Bcfe (32% liquids), normalized to a 7,000' lateral, representing an 18%
decrease from previous estimates. This reduction was due to lower production
performance from the highly-rich/condensate wells in 2013, which were
producing in a high pressure (1100 psi) environment with no compression during
the year.

The Company has provided single well economics assuming the increased
Marcellus SSL type curve and the updated Utica type curves in the February
2014 corporate presentation which has been posted to its website at

Antero's estimate of drilling and development costs incurred during 2013,
including drilling and completion of $1.6 billion and leasehold acquisition of
$0.4 billion, is $2.0 billion. Assuming the $2.0 billion estimate of drilling
and development costs, preliminary finding and development costs from all
sources for 2013 averaged $0.58 per Mcfe. Three-year finding and development
costs for Antero from all sources through 2013 averaged $0.55 per Mcfe,
excluding the divested Arkoma and Piceance Basin properties.  The 2013 capital
costs are unaudited and preliminary. Audited and final results will be
provided in Antero's Annual Report on Form 10-K for the year ended December
31, 2013.

The percentage of proved reserves classified as proved developed increased to
27% at December 31, 2013 as compared to 22% at year-end 2012. Proved
undeveloped reserves increased by 67% as a result of the successful execution
of Antero's Marcellus Shale development drilling plan. The 67% increase was
driven by the addition of 195 gross proved undeveloped drilling locations and
an increase in expected recoveries in the Marcellus Shale for 91 gross proved
undeveloped locations based on SSL completions.

Under SEC reporting rules, proved undeveloped reserves are limited to reserves
that are planned to be developed in the next five years. Antero's 5.6 Tcfe of
proved undeveloped reserves will require an estimated $5.3 billion of
development capital over the next five years, resulting in an estimated
average development cost for proved undeveloped reserves of $0.95 per Mcfe.

SEC prices for reserves calculated as of December 31, 2013 averaged $87.00 per
Bbl for oil and $3.65 per MMBtu for gas, which represent the benchmark
Appalachian Basin oil and natural gas price. Using SEC prices adjusted for
energy content and quality, the pre-tax present value discounted at 10%
("pre-tax PV10") of the December 31, 2013 proved reserves was $6.0 billion,
excluding the Company's natural gas and oil hedges. Including Antero's hedges
as of December 31, 2013 and using SEC prices, the pre-tax PV10 value of proved
reserves was $7.0 billion, a 133% increase over year-end 2012. The pre-tax
PV10 value of proved developed reserves was $2.9 billion excluding hedges and
$3.9 billion including current hedges.

Summary of Changes in Proved Reserves (in Bcfe)
Balance at December 31, 2012(1)                 4,283
Extensions, discoveries and additions           3,682
Purchases                                       –
Performance revisions                           (157)
Price revisions                                 15
Sales                                           –
Production                                      (191)
Balance at December 31, 2013                    7,632
(1) Excludes 646 Bcfe of ethane volumes.

Antero's proved reserves at December 31, 2013 were prepared by its internal
reserve engineers and audited by DeGolyer and MacNaughton (D&M). D&M's
reserve audit covered properties representing over 99% of Antero's total
proved reserves at December 31, 2013 and was within 2% of Antero's internal
reserve estimates.

Proved, Probable and Possible Reserves

Antero estimates that it had year-end 2013 3P reserves of 35.0 Tcfe, a 62%
increase over year-end 2012 3P reserves of 21.6 Tcfe, in each case assuming
ethane rejection. The 3P reserves contain 29.6 Tcf of natural gas, 811
million barrels of NGLs, excluding 1,339 million barrels of ethane, and 91
million barrels of oil. The Marcellus, Utica, and Upper Devonian Shale
comprised 25.0 Tcfe, 5.8 Tcfe and 4.2 Tcfe of the 3P reserves, respectively.
The 62% increase in 3P reserves was driven by the addition of 51,000 net acres
in the Marcellus Shale in northern West Virginia and 28,000 net acres in the
Utica Shale in southern Ohio and the implementation of SSL completions.
Importantly, 24.1 Tcfe of Antero's 25.0 Tcfe 3P reserves in the Marcellus, or
97%, was classified as proved and probable ("2P"), reflecting the low risk
nature of Antero's Marcellus reserves. 

The table below summarizes Antero's estimated 3P reserve volumes using SEC
pricing, broken out by operating area:

              Marcellus Shale                  Upper Devonian Shale
              Gas    Liquids Total  Gross      Gas    Liquids Total  Gross
                                    Locations                        Locations
              (Bcf)  (MMBoe) (Bcfe)            (Bcf)  (MMBoe) (Bcfe)
Proved        6,433  132     7,226  907        44     -       44     9
Probable      13,489 570     16,906 2,221      739    -       741    157
Possible      788    11      856    181        3,129  46      3,406  787
Total 3P      20,710 713     24,988 3,309      3,912  46      4,191  953
3P                           $16.7                            $0.0
% Liquids(2)                 17%                              7%
              Utica Shale                      Combined
              Gas    Liquids Total  Gross      Gas    Liquids Total  Gross
                                    Locations                        Locations
              (Bcf)  (MMBoe) (Bcfe)            (Bcf)  (MMBoe) (Bcfe)
Proved        276    14      362    40         6,753  147     7,632  956
Probable      1,705  82      2,196  259        15,933 652     19,843 2,637
Possible      3,000  47      3,278  479        6,918  104     7,540  1,447
Total 3P      4,981  143     5,836  778        29,603 902     35,015 5,040
3P                           $4.7                             $21.4
% Liquids(2)                 15%                              15%

 (1) Marcellus and Total PV10 includes $1.0 billion of Antero hedges at SEC
 (2) Represents liquids volumes as a % of total volumes. Liquids comprised of
     811 million barrels of NGLs and 91 million barrels of oil.

Non-GAAP Disclosure

Year-end pre-tax PV10 value is a non-GAAP financial measure as defined by the
SEC. We believe that the presentation of pre-tax PV10 value is relevant and
useful to our investors because it presents the discounted future net cash
flows attributable to our reserves prior to taking into account corporate
future income taxes and our current tax structure. We further believe
investors and creditors use pre-tax PV10 value as a basis for comparison of
the relative size and value of our reserves as compared with other companies.
Antero's pre-tax PV10 value as of December 31, 2013 may be reconciled to its
standard measure of discounted future net cash flows as of December 31, 2013
by reducing Antero's pre-tax PV10 value by the discounted future income taxes
associated with such reserves.

Antero Resources is an independent oil and natural gas company engaged in the
acquisition, development and production of unconventional oil and liquids-rich
natural gas properties primarily located in the Appalachian Basin in West
Virginia, Ohio and Pennsylvania. Our website is located at

Cautionary Statements

This release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements are subject to a number
of risks and uncertainties, many of which are beyond Antero's control. All
statements, other than historical facts included in this release, are
forward-looking statements. All forward-looking statements speak only as of
the date of this release. Although Antero believes that the plans, intentions
and expectations reflected in or suggested by the forward-looking statements
are reasonable, there is no assurance that these plans, intentions or
expectations will be achieved. Therefore, actual outcomes and results could
materially differ from what is expressed, implied or forecast in such

We caution you that these forward-looking statements are subject to all of the
risks and uncertainties, most of which are difficult to predict and many of
which are beyond our control, incident to the exploration for and development,
production, gathering and sale of natural gas, NGLs and oil. These risks
include, but are not limited to, commodity price volatility, inflation, lack
of availability of drilling and production equipment and services,
environmental risks, drilling and other operating risks, regulatory changes,
the uncertainty inherent in estimating natural gas, NGLs and oil reserves and
in projecting future rates of production, cash flow and access to capital, the
timing of development expenditures, and the other risks described under the
heading "Risk Factors" in our Final Prospectus dated October 9, 2013 on file
with the Securities and Exchange Commission (File No. 333-189284).

The SEC permits oil and gas companies to disclose probable and possible
reserves in their filings with the SEC. Antero does not plan to include
probable and possible reserve estimates in its filings with the SEC. Antero
has provided internally generated estimates that have been audited by its
third party reserve engineer in this release. Antero's estimate of proved,
probable and possible reserves is provided in this release because management
believes it is useful information that is widely used by the investment
community in the valuation, comparison and analysis of companies. However, we
note that the SEC prohibits companies from aggregating proved, probable and
possible reserves in filings with the SEC due to the different levels of
certainty associated with each reserve category.

"EUR," or Estimated Ultimate Recovery, refers to Antero's internal estimates
of per well hydrocarbon quantities that may be potentially recovered from a
hypothetical future well completed as a producer in the area. These quantities
do not necessarily constitute or represent reserves within the meaning of the
Society of Petroleum Engineer's Petroleum Resource Management System or the
SEC's oil and natural gas disclosure rules.

This release provides a summary of Antero's reserves as of December 31, 2013,
assuming ethane "rejection". Ethane rejection occurs when ethane is left in
the wellhead natural gas stream when the natural gas is processed, rather than
being separated out and sold as a liquid after fractionation. When ethane is
left in the gas stream, the Btu content of the residue natural gas at the
outlet of the processing plant is higher. Producers will generally elect to
"reject" ethane at the processing plant when the price received for the ethane
in the natural gas stream is greater than the price received for the ethane
being sold as a liquid after fractionation, net of fractionation costs. When
ethane is recovered in the processing plant, the Btu content of the residue
natural gas is lower, but a producer is then able to recover the value of the
ethane sold as a separate natural gas liquid product. In addition, natural
gas processing plants can produce the other NGL products (propane, normal
butane, isobutene and natural gasoline) while rejecting ethane.

SOURCE Antero Resources

Contact: Michael Kennedy - VP Finance, at (303) 357-6782 or
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