HOUSTON, Jan. 17 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) today
announced a reserve replacement of 269 percent of 2000 production and a
finding and development (F&D) cost of $4.28 per barrel of oil equivalent (BOE)
for the year ending December 31, 2000.
"Reserve replacement almost tripled 2000 production, reflecting company-
wide exploratory success especially in our deepwater Gulf of Mexico drilling
program, coupled with excellent exploitation and improved performance from the
Zafiro field in Equatorial Guinea," said James T. Hackett, Chairman, President
and Chief Executive Officer. "The continued achievement of low F&D costs
since our 1999 merger is a direct result of enhanced technical expertise,
prudent risk management and a strong commitment to financial discipline."
Ocean's total proved reserves rose 11 percent to 460 million barrels of
oil equivalent (MMBOE) (20 percent excluding asset sales) as of
December 31, 2000 from 415 MMBOE at year-end 1999. Proved natural gas
reserves, which comprise 52 percent of total proved reserves, reached
1,431 billion cubic feet and crude oil reserves totaled 222 million barrels.
Of these proved reserves, 62 percent is located domestically and 38 percent
internationally.
During 2001, Ocean plans to participate in at least six deepwater
exploratory prospects in the Gulf of Mexico and four to six wells off the
coast of West Africa. The company will also continue development and
appraisal of its Nansen, Boomvang, Magnolia and Zia deepwater discoveries in
the Gulf.
Ocean Energy, Inc. is an independent energy company engaged in the
exploration, development, production, and acquisition of crude oil and natural
gas. North American operations are focused in the shelf and deepwater areas
of the Gulf of Mexico, the Permian Basin, Mid-continent and Rocky Mountain
regions. Internationally, Ocean holds a leading position among U.S.
independents in West Africa with oil and gas activities in Cote d'Ivoire,
Equatorial Guinea and Angola. The company also conducts operations in the
republics of Egypt, Tatarstan, Pakistan and Indonesia.
Ocean Energy, Inc.
Proved Reserve Quantity Information
Domestic International Total
Natural Gas (Bcf) (A)
Beginning of 2000 1,156.0 231.2 1,387.2
Purchases of reserves
in place 4.7 --- 4.7
Sales of reserves in place (71.3) --- (71.3)
Revisions of previous
estimates (10.9) (10.8) (21.7)
Discoveries and
extensions 280.8 --- 280.8
Production (136.7) (12.1) (148.8)
End of 2000 1,222.6 208.3 1,430.9
Liquids (MMbbl) (A)
Beginning of 2000 89.8 94.0 183.8
Purchases of reserves
in place 0.4 --- 0.4
Sales of reserves in place (26.7) --- (26.7)
Revisions of previous
estimates (0.3) 48.8 48.5
Discoveries and extensions 27.5 12.9 40.4
Production (10.0) (14.8) (24.8)
End of 2000 80.7 140.9 221.6
Combined (MMBOE) (A)
Beginning of 2000 282.5 132.5 415.0
Purchases of reserves
in place 1.1 --- 1.1
Sales of reserves in place (38.6) --- (38.6)
Revisions of previous
estimates (2.2) 47.1 44.9
Discoveries and extensions 74.4 12.9 87.3
Production (32.8) (16.8) (49.6)
End of 2000 284.4 175.7 460.1
Costs Incurred ($000's)
Capital expenditures $386,936 $178,521 $565,457
Acquisitions 6,276 (727) 5,549
$393,212 $177,794 $571,006
Finding and Development
Costs ($ per BOE) $5.36 $2.97 $4.28
(A) Gas stated in billion cubic feet. Oil, condensate and NGLs stated in
millions of barrels. Gas reserves converted to equivalent liquids
(MMBOE: million barrels of oil equivalent) at the rate of 6,000 cubic
feet of gas to 1 barrel of oil equivalent.
Certain statements in this news release regarding future expectations,
plans for acquisitions, dispositions, and oil and gas reserves, exploration,
development, production and pricing may be regarded as "forward-looking
statements" within the meaning of the Securities Litigation Reform Act. They
are subject to various risks, such as operating hazards, drilling risks, the
inherent uncertainties in interpreting engineering data relating to
underground accumulations of oil and gas, as well as other risks discussed in
detail in the Company's SEC filings, including the Annual Report on Form 10-K
for the year ended December 31, 1999. Actual results may vary materially.
SOURCE Ocean Energy, Inc.
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Related links:
http://www.oceanenergy.com
Company News On-Call:
http://www.prnewswire.com/comp/913463.html or fax,
800-758-5804, ext. 913463
CONTACT:
financial, Bruce Busmire, 713-265-6161, or
media, Janice Aston White, 713-265-6164, both of Ocean Energy,
Inc.
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