Marathon
replaces 124 per cent of 2003 production
Posted: 19 February 2004
Marathon Oil Corporation replaced 124 per cent of its 2003 worldwide
crude oil and natural gas production, excluding dispositions, at
a finding and development cost of $8.78 per barrel of oil equivalent
(boe).
Reserve additions excluding acquisitions and dispositions were
106 million barrels of oil equivalent (mmboe), resulting in a reserve
replacement ratio of 76 per cent. Of the 106 mmboe reserve additions,
approximately 62 mmboe were international, equivalent to 113 per
cent of 2003 international production, and 44 mmboe were added in
the United States, equivalent to 52 per cent of 2003 U.S. production.
At year-end, Marathon had estimated proved reserves of 1,042 mmboe.
During 2003, Marathon sold 274 mmboe of proved reserves as part
of the company's successful plan to sell non-core assets and added
67 mmboe of proved reserves through an acquisition of assets in
Russia.
During 2003, approximately 35 per cent of Marathon's total proved
reserves were prepared, reviewed or validated by third-party petroleum
engineering consultants and the results were consistent with Marathon's
proved reserves.
Additionally, approximately 70 per cent of Marathon's proved reserves
were developed at year-end 2003. Of the just over 300 mmboe of proved
undeveloped reserves at year-end 2003, only 10 percent have been
included as proved reserves for more than two years.
During 2004, Marathon expects to replace approximately 180 percent
of production at a finding and development cost of under $5 per
boe.
This would result in a projected 2002 through 2004 three-year-average
reserve replacement of approximately 190 percent at a competitive
finding and development cost of less than $6.00 per boe.
For more information see http://www.marathon.com
Posted by Richard Price,
Editor Pipeline Magazine
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