Conoco Announces Reserves Replacement Figures for 1999

Conoco and its equity affiliates added 164 million barrels of oil equivalent (BOE) to the company's worldwide proved reserves in 1999, replacing 71 percent of the oil and natural gas produced during the year. The company has replaced an average of 174 percent of production over the five-year period between 1995 and 1999, which is among the best in the industry. Reserve additions came primarily from Conoco's strategic focus areas of North America, Norway, Venezuela, and Indonesia. Conoco said the 1999 figure was off because of project sequencing, non-strategic reserve dispositions and capital discipline steps that were instituted in the first quarter of 1999 when oil prices hovered around $10. Conoco Chairman and CEO Archie Dunham said, "I'm very optimistic about Conoco's growth opportunities as we move forward. I'm satisfied that reserves which we will add in the future will reflect our extremely successful exploration and business development programs." The company's 1999 year-end proved reserves declined slightly to 2.55 billion BOE, down 2.7 percent from 1998. International proved reserves ? which contribute nearly 75 percent to Conoco's worldwide reserves ? were off by less than one percent to 1.9 billion BOE. Domestic reserves declined eight percent, from 711 million BOE in 1998 to 656 million BOE in 1999. The company's 1999 production of 232 million barrels of oil equivalent (BOE) reflects a nine-percent increase over 1998. Natural gas production was up 18 percent over 1998, reaching 101 million BOE (or 606 billion cubic ft. of gas). Overall, natural gas accounted for 44 percent of the company's production.