Texaco Press Release - Texaco Reports Strong 1997 Reserve Replacement:
Reserve Base Grows 16%
FOR IMMEDIATE RELEASE: TUESDAY, FEBRUARY 10, 1998.
WHITE PLAINS, N.Y., Feb. 10, 1998 -- Texaco announced today that it replaced 167 percent of its 1997 worldwide combined oil and gas production. This reserve replacement performance excludes reserves added from the acquisition of Monterey Resources and various sales. The Monterey acquisition, completed in November 1997, added an additional 420 million barrels of oil equivalent (BOE) to Texaco's proved reserve base.
Proved oil and gas reserves for Texaco, including equity reserves in affiliates, increased 16 percent during 1997, and are at the highest level since the late 1980s. At year-end 1997, Texaco had 4.3 billion BOE of net proved reserves consisting of 3.3 billion barrels of liquids and 6.2 trillion cubic feet of natural gas. The estimated life of Texaco's reserves is now 9.4 years compared to 8.6 years at year-end 1996. Worldwide finding and development costs in 1997 of $3.99 per BOE were 18 percent lower than last year.
Texaco Chairman and Chief Executive Officer Peter I. Bijur stated, "This is the strongest reserve replacement performance in over three decades and is a milestone in our upstream operations. We have significantly grown our proved reserve base, while reducing finding and development costs. Our six percent production growth, combined with excellent earnings results in 1997, demonstrates the substantial progress we are making towards meeting one of our strategic goals of profitably growing production and reserves."
Excluding purchases and sales, U.S. and international reserve replacement ratios in 1997 were 132 percent and 212 percent, respectively, at finding and development costs of $5.37 per BOE in the U. S. and $2.93 per BOE internationally. For the three-year period, 1995 to 1997, worldwide reserve replacement averaged 137 percent, at finding and development costs of $4.02 per BOE. On a five-year basis from 1993 to 1997, overall reserve replacement averaged 127 percent, at finding and development costs of $3.91 per BOE.
In 1997, excluding purchases and sales, 68 percent of the reserve additions were from new fields, new sands, and enhanced recoveries and extensions, primarily in the U.S. Gulf of Mexico and the U. K. North Sea. Major upward reserve revisions were recognized in the U. S. Kern River Field and the Partitioned Neutral Zone between Kuwait and Saudi Arabia.
Texaco's RESERVE PICTURE THREE-YEAR SUMMARY (Including Equity in P.T. Caltex Pacific Indonesia) Production Production Net Proved Replacement Percentage Replacement Percentage Reserves (Excludes purchases and (Includes purchases and (See Note 1) sales of reserves) sales of reserves) 1997 Worldwide Reserves: Liquids 3,267 161% 278% Natural Gas 6,242 183% 131% U.S. Reserves: Liquids 1,767 122% 407% Natural Gas 4,022 144% 147% Worldwide Combined Liquids and Gas: 4,307 167% 233% (See Note 2) 1996 Worldwide Reserves: Liquids 2,704 122% 115% Natural Gas 5,973 93% 86% U.S. Reserves: Liquids 1,322 103% 86% Natural Gas 3,728 55% 47% Worldwide Combined Liquids and Gas: 3,700 113% 106% (See Note 2) 1995 Worldwide Reserves: Liquids 2,658 132% 91% Natural Gas 6,095 122% 87% U.S. Reserves: Liquids 1,341 138% 60% Natural Gas 4,062 86% 43% Worldwide Combined Liquids and Gas: 3,674 129% 90% (See Note 2) Note 1: Estimated net proved developed and undeveloped reserves in millions of barrels of liquids and billions of cubic feet of gas. Note 2: In millions of barrels of oil equivalent, with gas converted to its oil equivalent at 6,000 cubic feet per barrel.
Updated: February 1998