HOUSTON, Jan. 24 /PRNewswire/ -- Ocean Energy Inc. (NYSE: OEI) today
announced a reserve replacement of 504% of 1999 production and a finding and
development (F&D) cost of $5.13 per barrel of oil equivalent (BOE) for the
year ending Dec. 31, 1999.
"This accomplishment reflects the strength of Ocean's technical teams and
asset base," said James T. Hackett, Chairman, President and Chief Executive
Officer. "This operational success was accomplished while implementing a
$700 million asset rationalization program, and eliminating more than
$100 million in annual costs. Our recent Nansen/Boomvang discoveries and our
drilling program with Duke Energy in the Gulf of Mexico, as well as our
international and deepwater Gulf of Mexico high-impact drilling opportunities
position us for continued low F&D costs and reserve growth in 2000."
Ocean's total proved reserves rose 42% from 292 MMBOE of oil equivalent at
year-end 1998 to 415 MMBOE as of Dec. 31, 1999. Proved natural gas reserves,
which comprise 56% of total proved reserves, reached 1,387 billion cubic feet
and crude oil reserves totaled 184 million barrels. Of these proved reserves,
68% are located domestically and 32% internationally.
Excluding the effects of acquisitions (primarily Seagull and Duke Energy)
F&D costs were $4.98 per BOE and reserve replacement was 130%.
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, Midcontinent and Rocky Mountain
regions. Internationally, the Company explores for and produces oil and gas
in West Africa (Cote d'Ivoire and Equatorial Guinea), Egypt, Russia and
Indonesia. Ocean Energy also has exploration programs underway in Angola,
Pakistan and Yemen.
Ocean Energy, Inc.
Proved Reserve Quantity Information
Domestic International Total
Natural Gas (Bcf)(A)
Beginning of 1999 667.0 278.8 945.8
Purchases of reserves
in place 762.8 85.6 848.4
Sales of reserves
in place (310.0) (115.1) (425.1)
Revisions of previous
estimates (15.3) (1.3) (16.6)
Discoveries and
extensions 188.7 --- 188.7
Production (137.2) (16.8) (154.0)
End of 1999 1,156.0 231.2 1,387.2
Liquids (MMbbl)(A)
Beginning of 1999 82.9 51.4 134.3
Purchases of reserves
in place 14.7 40.7 55.4
Sales of reserves in
place (12.2) (6.7) (18.9)
Revisions of previous
estimates 10.2 18.2 28.4
Discoveries and extensions 7.7 3.9 11.6
Production (13.5) (13.5) (27.0)
End of 1999 89.8 94.0 183.8
Combined (MMBOE)(A)
Beginning of 1999 194.1 97.9 292.0
Purchases of reserves
in place 141.8 54.9 196.7
Sales of reserves in
place (63.9) (25.9) (89.8)
Revisions of previous
estimates 7.7 18.0 25.7
Discoveries and
extensions 39.2 3.9 43.1
Production (36.4) (16.3) (52.7)
End of 1999 282.5 132.5 415.0
Costs Incurred ($000's)
Capital expenditures $ 166,939 $ 174,968 $ 341,907
Acquisitions 844,173 174,355 1,018,528
$1,011,112 $ 349,323 $1,360,435
Finding and Development Costs, including acquisitions
Costs per BOE $ 5.36 $ 4.55 $ 5.13
Finding and Development Costs, excluding acquisitions
Costs per BOE $ 3.57 $ 8.01 $ 4.98
(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, 1998. Actual results may vary materially.
SOURCE Ocean Energy, Inc.
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http://www.oceanenergy.com
Company News On-Call:
http://www.prnewswire.com/comp/913463.html or fax,
800-758-5804, ext. 913463
CONTACT:
William L. Transier, Executive Vice President
and Chief Financial Officer of Ocean Energy, Inc., 713-265-6161
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