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Unocal Replaces 101 Percent of Prod
- Subject: Unocal Replaces 101 Percent of Prod
- From: Rangoonp@xxxxxxx
- Date: Tue, 09 Feb 1999 21:52:00
Subject: Unocal Replaces 101 Percent of Production ......
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Unocal Replaces 101
Percent of Production
through Successful
Indonesia, Gulf of Mexico
Exploration Program
PRNewswire
08-FEB-99
EL SEGUNDO, Calif., Feb. 8 /PRNewswire/ -- Unocal
Corporation (NYSE: UCL) today said that it replaced 101
percent of its worldwide crude oil and natural gas
production
(excluding sales and price-related revisions) during 1998
with new proved reserves as the company focused on
adding value and re-energizing its domestic U.S.
exploration
program.
"Our focused exploration and development program during
1998 yielded significant reserve additions in both our
new
growth areas and in our existing production operations,"
said
Roger C. Beach, Unocal chairman and chief executive
officer.
"We added more than 50 million barrels of proved oil
reserves from our two new deepwater fields, Merah Besar
and West Seno, in the Kutei Basin in Indonesia. In the
U.S.,
our Spirit Energy 76 unit recorded more than 30
discoveries
in the Gulf of Mexico shelf and onshore area and added 65
MMBOE in proved reserves through discoveries and
extensions, improved recovery and purchases," he said.
Beach went on to say that the company made major
investments in 1998 to capture additional new exploration
opportunities that have increased the resource potential
of
Unocal's portfolio. "The new exploration prospects in
Africa,
Latin America and Asia offer the potential for
significant
reserve additions in the years to come," he said.
International Operations
Unocal's international operations replaced 114 percent of
production in 1998 (excluding sales and price-related
revisions), primarily through exploration drilling. This
included net additions of 55 MMBOE in Indonesia, 30
MMBOE in Thailand, and 15 MMBOE in Bangladesh. For
the year, the preliminary finding, development and
acquisition (FD&A) costs for new reserves in Unocal's
international operations (excluding price-related
revisions)
were $7.70 per BOE in the Far East and $8.03 per BOE for
total international operations.
International FD&A costs rose in 1998 due to several
timing
factors, including spending on the pipeline in Myanmar,
entry
costs in Gabon, India, Bangladesh and Brazil, and the
impact
of the company's "just-in-time" exploration program in
Thailand. Spirit Energy 76
Spirit Energy 76 replaced 108 percent of its production
(excluding sales and price-related revisions),
particularly as
a result of a 64-percent exploration success rate on the
Gulf
of Mexico shelf during the year. Spirit Energy's
preliminary
finding, development and acquisition costs (excluding
price-related revisions) for new reserves in 1998 on the
GOM shelf and onshore were $7.26 per BOE.
"Spirit's success in 1998 was the first time in many
years that
its replacement ratio exceeded 100 percent," Beach said.
"Our new projects have projected returns of 15 to 20
percent, and we expect even higher returns as we move
forward with our deepwater program in the Gulf of
Mexico."
Resource Potential
With the current growth portfolio, Unocal estimates its
total
oil and gas risked resource base at 6.0 to 8.2 billion
BOE,
including year-end 1998 proved oil and gas reserves of
1.55
billion BOE. The estimate is up from 4.8 to 6.7 billion
BOE
last year, which included proved reserves of 1.63 billion
BOE. The additional potential comes principally from new
prospects in the deepwater Gulf of Mexico, Gabon,
Bangladesh, Indonesia, Brazil and Vietnam. (The unproved
resource base includes discovered and potential resources
with price and market risk. It also includes targeted
opportunities not yet captured by contract, which
aggregated
approximately 650 MMBOE at year-end 1998, compared
with approximately 1,100 MMBOE in mid-1998.)
Unocal is a leading global oil and gas exploration and
production company with significant pipeline and power
plant
project developments worldwide. For more information
about
the company, visit Unocal's website at www.unocal.com.
Forward-looking statements and estimates regarding
reserves, returns on investment, future reserve
replacement
and resource potential in this news release are based on
assumptions concerning market, competitive, regulatory,
geological, pricing, environmental, operational and other
considerations. Actual results could differ materially.
The attached tables provide details on the company's
reserves and FD&A costs. Unocal Corporation
Crude Oil and Natural Gas Reserve
Data
Estimated proved reserves of crude oil, condensate and
natural gas
Crude Oil/ Natural
Gas Oil equivalent
(MMbbls)
(bcf) (MMBOE)
1998 beginning reserves 533
6,550 1,625
Discoveries/extensions 81
437 154
Improved recovery 6
20 9
Revisions
- Price-related (23)
(15) (26)
- Other 14
(51) 6
Purchases 7
52 15
Sales (19)
(181) (49)
Production (67)
(690) (182)
1999 beginning reserves* 532
6,122 1,552
*Includes host country shares for
Indonesia, Yemen and Democratic
Republic of Congo of: 44
389 109
Estimated proved reserves by geographic area (millions of
BOE)
Spirit Other
Far Other Total
Energy 76 U.S. East International
1998 beginning
reserves 406 156
856 207 1,625
Discoveries/
extensions 45 6
87 16 154
Improved
recovery 5 2
1 1 9
Revisions
- Price-related (8) (15)
-- (3) (26)
- Other 6 (3)
(12) 15 6
Purchases 15 --
-- -- 15
Sales (21) --
-- (28) (49)
Production (66) (21)
(83) (12) (182)
1999 beginning
reserves* 382 125
849 196 1,552
*Includes host
country shares
for Indonesia,
Yemen and
Democratic
Republic of
Congo of: -- --
104 5 109
Note: Other U.S. is principally Alaska. Far East
includes Thailand,
Indonesia and Myanmar. Other international includes
Azerbaijan, Bangladesh, Canada, Democratic Republic of
Congo, Netherlands and Yemen. Unocal Corporation
Preliminary 1998 finding, development and
acquisition costs per BOE
Spirit
Energy 76
Deepwater
Other Total
Costs incurred (MM$)
Exploration 319
262 581
Development 5
202 207
Proved property acquisitions --
53 53
Total costs incurred 324
517 841
Reserve data (MMBOE)
Discoveries/extensions --
45 45
Improved recovery --
5 5
Purchases --
15 15
Subtotal --
65 65
Revisions - price related --
(8) (8)
Revisions - other --
6 6
Total changes --
63 63
Finding and development costs
per BOE*
Excluding price revisions --
$8.36 $14.20
Excluding all revisions --
$9.32 $15.83
Including revisions --
$9.73 $16.53
Finding, development and
acquisition costs per BOE
Excluding price revisions --
$7.26 $11.81
Excluding revisions --
$7.89 $12.84
Including revisions --
$8.16 $13.27
* Excludes proved property acquisition costs and
purchases volumes
Unocal Corporation
Preliminary 1998 finding, development and
acquisition costs per BOE
Other Far
Other Total Total
Domestic East
Int'l Int'l
Costs
incurred
(MM$)
Exploration 3 209
167 376 960
Development 42 378
116 494 743
Proved property
acquisitions -- --
10 10 63
Total costs
incurred 45 587
293 880 1,766
Reserve data (MMBOE)
Discoveries/
extensions 6 87
16 103 154
Improved recovery 2 1
1 2 9
Purchases -- --
-- -- 15
Subtotal 8 88
17 105 178
Revisions
- price related (15) --
(3) (3) (26)
Revisions
- other (3) (12)
15 3 6
Total changes (10) 76
29 105 158
Finding and
development
costs
per BOE*
Excluding
price
revisions $11.08 $7.70
$8.49 $7.94 $10.07
Excluding all
revisions $6.52 $6.65
$15.62 $8.18 $10.44
Including
revisions ($4.23) $7.70
$9.46 $8.19 $11.90
Finding,
development and
acquisition costs
per BOE
Excluding price
revisions $11.08 $7.70
$8.80 $8.03 $9.56
Excluding
revisions $6.52 $6.65
$16.19 $8.23 $9.88
Including
revisions ($4.23) $7.70
$9.81 $8.29 $11.12
* Excludes proved property acquisition costs and
purchases volumes