ConocoPhillips Reports 2011 Organic Reserve Replacement of 120 percent
HOUSTON, Jan. 23, 2012 - ConocoPhillips [NYSE:COP] today announced preliminary 2011 organic net proved reserve additions of 738 million barrels of oil equivalent (BOE). This represents an expected organic reserve replacement ratio of 120 percent of 2011 production.
“Replacing our 2011 production with new reserves reflects the success of our strategic focus on organic growth,” said Jim Mulva, chairman and chief executive officer. “We added reserves throughout our globally diverse asset base, through focused investment on high-return opportunities.”
Reserves were added across the portfolio, including at the company’s Canadian oil sands properties at Christina Lake and Surmont; in liquids-rich U.S. shale trends, such as Eagle Ford and Bakken; in the North Sea, through expansion projects in the Ekofisk, Eldfisk and Clair developments; and in Malaysia, with sanctioning of the Kebabangan project and ongoing development of the Gumusut Field. Reserve additions were also delivered across the company’s North American conventional asset portfolio.
“With a substantial captured resource base providing significant exploitation opportunities and continued execution of major projects around the world, we remain committed to our goal to grow production and reserves,” added Mulva.
Acquisitions and dispositions are expected to reduce reserves by 45 million BOE, primarily reflecting dilution of the company’s interest in the Australia Pacific LNG project and sale of North American natural gas assets. The total reserve replacement ratio is expected to be 112 percent of 2011 production. Production for the year is expected to be 617 million BOE, including fuel gas. ConocoPhillips expects to end 2011 with 8.4 billion BOE of proved reserves.
The company will provide final information related to its 2011 oil and gas reserves and finding and development costs in its Annual Report on Form 10-K, expected to be filed with the Securities and Exchange Commission in late February.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,700 employees, $155 billion of assets, and $247 billion of annualized revenues as of Sept. 30, 2011. For more information, go to www.conocophillips.com.
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