HOUSTON (Business Wire) -- Crimson Exploration Inc. (NasdaqGM: CXPO) today announced total proved reserves for 2011, and fourth quarter and year-end production results.

Allan D. Keel, President and Chief Executive Officer, commented, “Crimson's operational success in 2011 led to year over year increases of 28% and 20%, in production and reserves, respectively. Total proved reserves at year-end were 200 Bcfe, exceeding our previous internal estimates of 184 Bcfe, and the production growth, including the 34% increase in oil and liquids production, was driven by the success of our drilling program and the diligent efforts of our field personnel in improving production in our existing wells. Furthermore, achieving 40% oil/liquids production in January 2012 is a key milestone in our goal to achieve a production profile of 50% oil and liquids by the middle of 2012, and a clear indication that Crimson possesses the asset inventory and financial capacity necessary to complete this transition. We are excited about the opportunities we have in the Eagle Ford Shale and Woodbine plays, both of which offer exceptional rates of return and the foundation for generating shareholder value.”

Year-End Reserves

Proved reserves at December 31, 2011 were 200.4 Bcfe, with a PV-10 value of approximately $266.5 million, as estimated by Netherland, Sewell, and Associates, Inc., our independent petroleum engineering firm, in accordance with reserve reporting guidelines mandated by the Securities & Exchange Commission (“SEC”). The new proved reserve level represents a 20% increase over year-end 2010 proved reserves of 166.5 Bcfe, and a reserve replacement rate of 304% of 2011 production. Proved reserves are 81% natural gas and 37% proved developed.

The following table summarizes Crimson's total proved reserves as of December 31, 2011:

Note: Total numbers may not add due to rounding.

Commodity prices used in calculating the present value of our reserves were the twelve month un-weighted arithmetic average of the first-day-of-the-month prices for the period January 2011 through December 2011. For oil and NGL volumes, the average West Texas Intermediate posted price of $92.71 per barrel is adjusted by field for quality, transportation fees, and regional price differentials. For gas volumes, the average Henry Hub spot price of $4.12 per MMBTU is adjusted by field for energy content, transportation fees and regional price differentials. All prices are held constant for the lives of the properties.

In 2011, we believe our unproved resource potential increased to approximately 965 Bcfe (33% oil and natural gas liquids, at 6:1 ratio), an increase of 85 Bcfe from December 2010, as a result of success in our drilling program and strategic leasehold additions. Our unproved resource potential provides us with a significant inventory of drilling projects, in active proven areas, that is capable of providing sustainable reserve, production and cash flow growth.

The following table summarizes Crimson's total unproved resource potential as of December 31, 2011:

Fourth Quarter and Year-End Production Results

Crimson produced approximately 3.7 Bcfe of natural gas equivalents, or an estimated 40,050 Mcfe per day, during the fourth quarter 2011, compared with 4.0 Bcfe, or 43,000 Mcfe per day, produced during the fourth quarter of 2010, a 7% decrease period over period as Crimson shifted its drilling strategy from higher pressured natural gas wells to lower rate, higher return oil-weighted opportunities that currently generate higher cash flow than natural gas. For the year ended 2011, Crimson produced approximately 16.6 Bcfe of natural gas equivalents, or an estimated 45,380 Mcfe per day, compared with 12.9 Bcfe, or 35,400 Mcfe per day, produced in 2010, a 28% year-over-year increase. As of January 30, 2012, Crimson achieved 40% oil and liquids production, compared to 28% for the fourth quarter 2010, a key milestone in our strategy to reach a production mix of 50% oil and liquids by the middle of 2012.

Crimson Exploration is a Houston, TX-based independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas, primarily in the onshore Gulf Coast regions of the United States. The Company owns and operates conventional properties in Texas, Louisiana, Colorado and Mississippi, including approximately 5,400 net acres in the Haynesville Shale, Mid-Bossier, and James Lime plays in San Augustine and Sabine counties in East Texas, approximately 8,000 net acres in the Eagle Ford Shale in South Texas, approximately 17,000 net acres in Madison and Grimes counties in Southeast Texas and approximately 11,000 net acres in the Denver Julesburg Basin of Colorado.

Additional information on Crimson Exploration Inc. is available on the Company's website at http://crimsonexploration.com.