press release

Texaco Press Release - Texaco Replaces 113 Percent of 1996 Worldwide Production


WHITE PLAINS, N.Y., March 10 - Texaco announced today that it replaced 113 percent of its 1996 worldwide combined oil and gas production. These results include equity reserves but exclude purchases and sales.

U.S. and international reserve replacement ratios were 83 percent and 154 percent respectively. Texaco replaced 122 percent of its 1996 liquids production and 93 percent of its 1996 gas production.

For the three-year period, 1994 to 1996, worldwide reserve replacement averaged 118 percent at finding and development costs of $3.89 per BOE. On a five-year basis from 1992 to 1996, overall reserve replacement averaged 112 percent at finding and development costs of $4.04 per BOE.

Texaco Chairman and Chief Executive Officer Peter I. Bijur noted, "These figures represent the fourth consecutive year that Texaco has replaced more than 100 percent of our worldwide production annually. This performance and our solid capital and exploratory spending program set the stage for Texaco to continue to generate profitable new reserves and production, and help sustain the company's substantial reserves base well into the next century."

At year-end 1996, Texaco had 3.7 billion barrels of oil equivalent of worldwide net proved reserves consisting of 2.7 billion barrels of liquid reserves and 6 trillion cubic feet of net proved natural gas reserves, including equity reserves in affiliates.

Excluding purchases and sales, 87 percent of the worldwide reserve additions in 1996 were in the categories of extensions, new sands and enhanced recovery operations. The majority of these reserve additions were realized from activities in the U.K. North Sea, Trinidad, Indonesia, Colombia and the United States.

Updated: March 1997