press release

Chevron Press Release - Chevron Reports Reserves Replacement Rate Of 112 Percent In 1996

SAN FRANCISCO, Feb. 11, 1997 -- Chevron announced today that during 1996 the company replaced 112 percent of its oil and gas production with new proved reserves, the fourth consecutive year that worldwide oil and gas reserves increased. The worldwide replacement rate was 106 percent for liquids and 128 percent for natural gas.

"Our worldwide net liquids production of 1,043,000 barrels per day was our highest oil production level since 1985, and we set production records in Nigeria, Angola and Kazakhstan," said Chairman Ken Derr. "In addition, in the fourth quarter, Chevron U.S.A. Production Co. reversed its decline in oil and gas production."

Continuing to reflect the company's emphasis on growth outside the United States, international oil and gas production increased by 7 percent over 1995 levels. New international reserves replaced 149 percent of the produced volumes. U.S. operations replaced 66 percent of oil and gas production.

Worldwide proved reserves at year-end were over 6 billion barrels of oil and equivalent gas (BOE). Total proved reserves additions during 1996 totaled 595 million BOE, with over 400 million BOE coming from new drilling and enhanced recovery methods. This is due to Chevron's successful focus on reservoir management and the application of new technologies, such as three-dimensional seismic studies and extended-reach drilling.

The production and reserves associated with Venezuela's Boscan Field are not included in the company's net production and reserves numbers. During 1996 Chevron became responsible for the operations, production and development of this field under an operating services agreement. At year end, the field production stood at 80,000 barrels per day, with plans to increase to 115,000 barrels per day. Total remaining recoverable reserves in the field are estimated to be 1.6 billion barrels.

Updated: February 1997