El Paso to reduce reserve estimates

The Associated Press

Regulatory filings by El Paso Corp. show an expected reduction in proved natural gas and oil reserve estimates by the nation’s largest natural gas pipeline company.

Officials of the Houston-based company said Feb. 2 the planned drop is “a material negative revision.” Such reserves are a key number used in the industry for predicting the potential of oil and gas production.

In January, The Royal Dutch/Shell Group of Cos. said it was reducing its estimate of its proved hydrocarbon reserves by about 20 percent.

El Paso’s stock has come under pressure partly because of reserve worries.

Company officials said in their third-quarter financial report filed with regulators in November that they had hired a new outside firm as its primary reserve engineer. That firm prepares its estimates, which are reviewed by a third party.