Texaco Press Release - Texaco Reports Net Proved Reserves Surpass Five Billion Barrels
Texaco Announces Midyear Reserve Replacement: 165 Percent Of Worldwide Production Replaced
FOR RELEASE: MONDAY, JULY 30, 2001
WHITE PLAINS, N.Y., July 30 - Texaco announced today that the company's net proved reserves increased to 5.03 billion barrels of oil equivalent (BOE), a performance that provides Texaco with the largest reserves base since year-end 1984. Texaco replaced 165 percent of its six-month 2001 worldwide combined oil and gas production, excluding purchases and sales.
This average life of Texaco's reserves increased to 12.4 years, which is the longest reserve life in over 30 years.
|Net Proved Reserves
million barrels of oil equivalent
|Reserve Life||12.4 years||11.4 years||10.3 years|
excluding purchases & sales
including purchases & sales
John O'Connor, Texaco's President of Worldwide Upstream said, "This impressive mid-year result follows 2000 results which saw a reserve life increase to the longest reserve life Texaco has had in over 24 years. These strong results continue to validate the success of a strategy that focuses capital on high impact projects and balances our portfolio by the sale of fields that are reaching the end of their life. This portfolio provides an excellent platform for future growth."
Texaco's proved oil and gas reserves are comprised of 3.6 billion barrels of liquids and 8.5 trillion cubic feet of natural gas.
The international reserve replacement performance reflects the future strength of Texaco's high impact projects. One of the notable additions is the booking of 115 million BOE from the Hamaca field in Venezuela. Also, during the first half of 2001, there were major additions of reserves from the Partitioned Neutral Zone, Indonesia, Trinidad and Denmark (North Sea).
In the U.S., coalbed methane projects in the Central U.S. business unit added more than 20 million BOE. With several discoveries and projects, the New Orleans (offshore) successful exploitation program has also added to the reserve increase in the first half of 2001.
Note: This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected reserves, performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
The following factors known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: incorrect estimation of reserves and related assets; inaccurate scientific data; mechanical, chemical and technological failures; decreased demand for alternative fuels and other products; above or below-average product and technology demands; worldwide and industry economic conditions; higher costs, expenses and interest rates; the outcome of pending and future litigation and governmental proceedings; continued availability of financing; and strikes and other industrial disputes. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including, but not limited to, Texaco's Annual Report on Form 10-K filed with the SEC on March 26, 2001, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Texaco may use certain terms in this press release, such as estimated barrels and recoverable barrels of oil, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the Supplemental Oil and Gas Information disclosure in our 2000 Annual Report on Form 10-K filed with the SEC on March 26, 2001, File No. 1-27, available from us at:
2000 Westchester Avenue
White Plains NY 10650,
You may also obtain this form from the SEC by calling 1-800-SEC-0330.
Updated: July 2001