press release

Texaco Press Release - Texaco Announces 1999 Reserve Replacement

Reserve Life Grows To Highest Level In Two Decades

FOR RELEASE: MONDAY, FEBRUARY 7, 2000.

WHITE PLAINS, N.Y., Feb. 7 -- Texaco announced today that it replaced 111 percent of its 1999 worldwide combined oil and gas production, excluding purchases and sales. The company's net proved reserves increased by four percent to 4.8 billion barrels of oil equivalent (BOE). The average life of Texaco's reserves increased to 10.3 years, the longest reserve life in over 20 years.

Worldwide 1999 1998
Net Proved Reserves million barrels of oil equivalent 4,831 4,659
Reserve Life 10.3 years 9.4 years
Production Replaced excluding purchases & sales 111% 166%
Production Replaced including purchases & sales 137% 171%

Texaco Chairman and Chief Executive Officer Peter I. Bijur said, "Three key objectives were achieved in our 1999 reserve replacement performance. We grew Texaco's net proved reserves to the highest level since 1984, extended the average life of those reserves and lightened our portfolio mix by increasing our worldwide gas reserves by 25 percent."

Texaco's proved oil and gas reserves are comprised of 3.5 billion barrels of liquids and 8.1 trillion cubic feet of natural gas.

Worldwide 1999-1997
3 year average
1999-1995
5 year average
Production Replaced excluding purchases & sales 148% 138%
Production Replaced including purchases & sales 180% 149%
Finding & Development Costs $3.82 $3.90

International Operations

Excluding purchases and sales, we replaced 124 percent of production in 1999. Adding in our purchases and sales, we replaced 186 percent of production in 1999. The international reserve replacement performance reflects Texaco's strategy of focusing its resources on high margin, high impact projects. The replacement of international reserves included a major increase to the Karachaganak field in Kazakhstan and the acquisition of a 45 percent stake in the Malampaya gas field offshore Philippines. Additions to the Duri field in Indonesia, the Dolphin gas field offshore Trinidad and new developments in the Danish North Sea also contributed to the increase.

Reserve replacement and finding and development costs per BOE in 1999 were negatively impacted by a downward revision of 165 million BOE in Indonesia as higher year-end prices reduced the amount of reserves associated with cost recovery under our production sharing agreement. Conversely, reserve replacement and finding and development costs per BOE in 1998 were favorably impacted by low year-end prices, which resulted in an upward revision of 90 million BOE.

U.S. Operations

Excluding purchases and sales, we replaced 99 percent of production in 1999. Adding in our purchases and sales, we replaced 89 percent of production in 1999. Additions to the Kern River field led the U.S.-based reserve replacement performance, followed by notable additions to gas fields in the Rocky Mountain Region. Consistent with Texaco's ongoing process of enhancing its reserve portfolio, the sale of non-strategic assets in 1999 reduced U.S. reserves by approximately 20 million BOE.

TEXACO RESERVE SUMMARY
(Including Equity in P.T. Caltex Pacific Indonesia)

Net Proved Reserves* Production Replacement %
(Excluding purchases and sales)
Production Replacement %
(Including purchases and sales)
Finding and Development Costs per BOE
1999
United States
Liquids 1,782 77% 71%
Natural Gas 4,205 133% 118%
Combined 2,483 99% 89% $4.12
International
Liquids 1,698 61% 73%
Natural Gas 3,903 430% 732%
Combined 2,348 124% 186% $4.71
Worldwide Total (BOE) 4,831 111% 137% $4.45
1998
United States
Liquids 1,824 161% 136%
Natural Gas 4,105 119% 113%
Combined 2,508 144% 127% $4.41
International
Liquids 1,749 215% 228%
Natural Gas 2,412 76% 178%
Combined 2,151 191% 219% $2.64
Worldwide Total (BOE) 4,659 166% 171% $3.45
1997
United States
Liquids 1,767 122% 407%
Natural Gas 4,022 144% 146%
Combined 2,437 132% 296% $5.37
International
Liquids 1,500 192% 169%
Natural Gas 2,220 309% 87%
Combined 1,870 212% 155% $2.57
Worldwide Total (BOE) 4,307 167% 233% $3.79

* Estimated net proved developed and undeveloped reserves in millions of barrels of liquids and billions of cubic feet of natural gas. Combined amounts are in millions of barrels of oil equivalent, with natural gas converted to its oil equivalent at 6,000 cubic feet per barrel.

Updated: February 2000