St. Mary had a strong year in 2007, driven by record production and strong oil prices. Net income for 2007 was $189.7 million, or $2.94 per diluted share. Discretionary cash flow was $636.9 million, or $10.30 per basic share. Production for 2007 was 107.5 BCFE.
Proved oil and gas reserves as of December 31, 2007 increased 17 percent over the prior year to 1,086.5 BCFE, 77 percent of which was proved developed and 56 percent were natural gas. Our all sources reserve replacement for 2007 was 248 percent, and our five-year average is 235 percent. St. Mary’s all-in finding and development costs for 2007 were $3.48 per MCFE, and our five-year average is $2.61 per MCFE.