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(RS LOGO)
    
    
    
    FAX (713) 651-08491100 LOUISIANA     SUITE 3800
    
    HOUSTON, TEXAS 77002-5218
    
    TELEPHONE (713) 651-9191
 February 8, 2007
 
   Estimated Net Reserves Cash Flow
  SEC CASE    El Paso Production
 Oil, Condensate
    
    
    
    
    
    Gasand NGLs
    
    Gas
    
    Equivalents(MBbls)
    
    (MMCF)
    
    (MMCFE)Proved DevelopedProducingAudited
    
    
    22,283
    
    
    
    1,099,556
    
    
    
    1,233,254Unaudited
    
    
    8,023
    
    
    
    171,395
    
    
    
    219,533Total PDP
    
    
    30,306
    
    
    
    1,270,951
    
    
    
    1,452,787Non-ProducingAudited
    
    
    6,085
    
    
    
    152,539
    
    
    
    189,049Unaudited
    
    
    2,714
    
    
    
    68,747
    
    
    
    85,031Total PDNP
    
    
    8,799
    
    
    
    221,286
    
    
    
    274,080Proved UndevelopedAudited
    
    
    38,963
    
    
    
    370,866
    
    
    
    604,644Unaudited
    
    
    4,470
    
    
    
    56,516
    
    
    
    83,336Total PUD
    
    
    43,433
    
    
    
    427,382
    
    
    
    687,980TOTAL PROVEDAudited
    
    
    67,331
    
    
    
    1,622,961
    
    
    
    2,026,947Unaudited
    
    
    15,207
    
    
    
    296,658
    
    
    
    387,900Total
    
    
    82,538
    
    
    
    1,919,619
    
    
    
    2,414,847
 
 1
    bbl liquid = 6 MCF gas equivalents
 1200, 530 8TH AVENUE, S.W.621 17TH STREET, SUITE 1550
    
    CALGARY, ALBERTA T2P 3S8DENVER, COLORADO 80293-1501
    
    TEL (403) 262-2799TEL (303) 623-9147
    
    FAX (403) 262-2790FAX (303) 623-4258




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Review Procedure and Opinion
    Reserve Estimates
     General




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Very truly yours,RYDER SCOTT COMPANY, L.P.(-s- J.D. WILSON)Jeffrey D. Wilson, P.E.Vice PresidentJDW/plReviewed by:(-s- J.E. Magoto)Joseph E. Magoto, P.E.Managing Senior Vice President




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PETROLEUM RESERVES DEFINITIONS
 SECURITIES AND EXCHANGE COMMISSION
 INTRODUCTION
    PROVED RESERVES (SEC DEFINITIONS)
  Proved oil and gas reserves . Proved oil and gas reserves are the estimated quantities of crude
oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known reservoirs under existing
economic and operating conditions, i.e., prices and costs as of the date the estimate is made.
Prices include consideration of changes in existing prices provided only by contractual
arrangements, but not on escalations based upon future conditions.
 (i) Reservoirs are considered proved if economic producibility is supported by either actual
production or conclusive formation test. The area of a reservoir considered proved includes:
 (A) that portion delineated by drilling and defined by gas-oil and/or oil-water
contacts, if any; and




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(B) the immediately adjoining portions not yet drilled, but which can be reasonably
judged as economically productive on the basis of available geological and engineering data.
In the absence of information on fluid contacts, the lowest known structural occurrence of
hydrocarbons controls the lower proved limit of the reservoir.
 (ii) Reserves which can be produced economically through application of improved recovery
techniques (such as fluid injection) are included in the proved classification when successful
testing by a pilot project, or the operation of an installed program in the reservoir, provides
support for the engineering analysis on which the project or program was based.(iii) Estimates of proved reserves do not include the following:
 (A) oil that may become available from known reservoirs but is classified separately
as indicated additional reserves;(B) crude oil, natural gas, and natural gas liquids, the recovery of which is subject
to reasonable doubt because of uncertainty as to geology, reservoir characteristics, or
economic factors;(C) crude oil, natural gas, and natural gas liquids, that may occur in undrilled
prospects; and(D) crude oil, natural gas, and natural gas liquids, that may be recovered from oil
shales, coal, gilsonite and other such sources.
 Proved developed oil and gas reserves . Proved developed oil and gas reserves are reserves that can
be expected to be recovered through existing wells with existing equipment and operating methods.
Additional oil and gas expected to be obtained through the application of fluid injection or other
improved recovery techniques for supplementing the natural forces and mechanisms of primary
recovery should be included as proved developed reserves only after testing by a pilot project or
after the operation of an installed program has confirmed through production response that
increased recovery will be achieved.
 Proved undeveloped reserves . Proved undeveloped oil and gas reserves are reserves that are expected
to be recovered from new wells on undrilled acreage, or from existing wells where a relatively
major expenditure is required for recompletion. Reserves on undrilled acreage shall be limited to
those drilling units offsetting productive units that are reasonably certain of production when
drilled. Proved reserves for other undrilled units can be claimed only where it can be demonstrated
with certainty that there is continuity of production from the existing productive formation.
Under no circumstances should estimates for proved undeveloped reserves be attributable to any
acreage for which an application of fluid injection or other improved recovery technique is
contemplated, unless such techniques have been proved effective by actual tests in the area and in
the same reservoir.
  Economic producibility of estimated proved reserves can be supported to the satisfaction of
the Office of Engineering if geological and engineering data demonstrate with reasonable




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certainty that those reserves can be recovered in future years under existing economic and
operating conditions. The relative importance of the many pieces of geological and engineering data
which should be evaluated when classifying reserves cannot be identified in advance. In certain
instances, proved reserves may be assigned to reservoirs on the basis of a combination of
electrical and other type logs and core analyses which indicate the reservoirs are analogous to
similar reservoirs in the same field which are producing or have demonstrated the ability to
produce on a formation test. (extracted from SAB-35)
 In determining whether proved undeveloped reserves encompass acreage on which fluid
injection (or other improved recovery technique) is contemplated, is it appropriate to distinguish
between (i) fluid injection used for pressure maintenance during the early life of a field and (ii)
fluid injection used to effect secondary recovery when a field is in the late stages of depletion?
.... The Office of Engineering believes that the distinction identified in the above question may be
appropriate in a few limited circumstances, such as in the case of certain fields in the North Sea.
The staff will review estimates of proved reserves attributable to fluid injection in the light of
the strength of the evidence presented by the registrant in support of a contention that enhanced
recovery will be achieved. (extracted from SAB-35)
 Companies should report reserves of natural gas liquids which are net to their leasehold
interest, i.e., that portion recovered in a processing plant and allocated to the leasehold
interest. It may be appropriate in the case of natural gas liquids not clearly attributable to
leasehold interests ownership to follow instruction (b) of Item 2(b)(3) of Regulation S-K and
report such reserves separately and describe the nature of the ownership. (extracted from SAB-35)
 The staff believes that since coalbed methane gas can be recovered from coal in its natural
and original location, it should be included in proved reserves, provided that it complies in all
other respects with the definition of proved oil and gas reserves as specified in Rule 4- 10(a)(2) including the requirement that methane production be economical at current prices, costs, (net of
the tax credit) and existing operating conditions. (extracted from SAB-85)
  SUB-CATEGORIZATION OF DEVELOPED RESERVES (SPE/WPC DEFINITIONS)
  Producing .
 Non-Producing.




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