RIDGEWOOD ENERGY A-1 FUND LLC - FORM 10-K - XML - IDEA: XBRL DOCUMENT - February 16, 2012

In accordance with the Financial Accounting Standards Board guidance on disclosures of oil and gas producing activities, this section provides supplementary information on oil and gas exploration and producing activities of the Fund. The Fund is engaged solely in oil and gas activities, all of which are currently located in the United States offshore waters of Louisiana in the Gulf of Mexico.

 

Table I - Capitalized Costs Relating to Oil and Gas Producing Activities
		December 31,
		2011				2010
		(in thousands)
Advances to operators for working interests and expenditures		$	-			$	181
Unproved properties			8,078				5,790
Proved properties			18,144				12,591
Total oil and gas properties			26,222				18,562
Accumulated depletion and amortization			(7,915	)			(1,471	)
Oil and gas properties, net		$	18,307			$	17,091

 

 

Table II - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development
		Year ended December 31,
		2011				2010
		(in thousands)
Exploration costs		$	2,241			$	2,012
Acquisition of properties - proved			-				4,831
Development costs			5,490				6,252
		$	7,731			$	13,095

 

Table III - Reserve Quantity Information

Oil and gas reserves of the Fund have been estimated by an independent petroleum engineer, Ryder Scott Company, L.P. at December 31, 2011 and 2010.  These reserve disclosures have been prepared in compliance with the Securities and Exchange Commission rules.  Due to inherent uncertainities and the limited nature of recovery data, estimates of reserve information are subject to change as additional information becomes available.

 

Table IV - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves

Summarized in the following table is information for the Fund with respect to the standardized measure of discounted future net cash flows relating to proved oil and gas reserves.  At December 31, 2011 and 2010, future cash inflows were determined based on average first-of-the-month pricing for the prior twelve-month period.  Future production and development costs are derived based on current costs assuming continuation of existing economic conditions.

 

 

		December 31,
		2011				2010
		(in thousands)
Future cash inflows		$	54,992			$	28,870
Future production costs			(6,429	)			(1,932	)
Future development costs			(7,197	)			(4,585	)
Future ad valorem taxes			(200	)			(104	)
Future net cash flows			41,166				22,249
10% annual discount for estimated timing of cash flows			(5,871	)			(4,100	)
Standardized measure of discounted future estimated net cash flows		$	35,295			$	18,149

 

 

 

 It is necessary to emphasize that the data presented should not be viewed as representing the expected cash flow from, or current value of, existing proved reserves as the computations are based on a number of estimates. Reserve quantities cannot be measured with precision and their estimation requires many judgmental determinations and frequent revisions. The required projection of production and related expenditures over time requires further estimates with respect to pipeline availability, rates and governmental control. Actual future prices and costs are likely to be substantially different from the current price and cost estimates utilized in the computation of reported amounts. Any analysis or evaluation of the reported amounts should give specific recognition to the computational methods utilized and the limitation inherent therein.