Ocean Energy Announces 387 Percent Reserve Replacement and $5.52 F&D Cost For 2001

Search Blogs that Mention this News Release
Click this link to view linked Bookmarking Services
Click this link to view linked Blogging Services
Ocean Energy Announces 387 Percent Reserve Replacement and $5.52 F&D Cost For 2001
    HOUSTON, Jan. 24 /PRNewswire-FirstCall/ -- Ocean Energy, Inc. (NYSE: OEI)
announced today an estimated reserve replacement rate of 387 percent of 2001
production and a finding and development (F&D) cost of $5.52 per barrel of oil
equivalent (BOE) for the year ending December 31, 2001.  The company's three-
year reserve replacement rate and average finding and development cost now
stand at 389 percent and $5.08 per BOE, respectively.
    Ocean's total estimated proved reserves rose 31 percent to 601 million
barrels of oil equivalent (MMBOE) as of December 31, 2001 from 460 MMBOE at
year-end 2000.  Proved natural gas reserves, which comprise 49 percent of
total proved reserves, reached approximately 1.8 trillion cubic feet and crude
oil reserves totaled approximately 305 million barrels.  Of these proved
reserves, 63 percent is located in North America and 37 percent
internationally.
    "Our low finding and development costs reflect the execution of our
disciplined technical approach and the resulting success of our worldwide
exploration and exploitation programs," said John D. Schiller, Jr., executive
vice president -- operations for Ocean Energy.  "Given our expanding worldwide
high-impact inventory, Ocean is in a favorable position for continued growth
from the drill bit."

                              Ocean Energy, Inc.
                     Proved Reserve Quantity Information

                                           Domestic   International     Total
         Natural Gas (Bcf) (A)
    Beginning of 2001                      1,222.6        208.3       1,430.9
      Purchases of reserves in place         183.5          ---         183.5
      Sales of reserves in place             (20.2)         ---         (20.2)
      Revisions of previous estimates        (19.9)        (0.5)        (20.4)
      Discoveries and extensions             364.0          ---         364.0
      Production                            (151.9)        (9.7)       (161.6)
    End of 2001                            1,578.1        198.1       1,776.2

         Liquids (MMbbl) (A)

    Beginning of 2001                         80.7        140.9         221.6
      Purchases of reserves in place          12.5          ---          12.5
      Sales of reserves in place             (12.4)         ---         (12.4)
      Revisions of previous estimates          3.9         36.9          40.8
      Discoveries and extensions              41.0         28.8          69.8
      Production                             (10.2)       (17.3)        (27.5)
    End of 2001                              115.5        189.3         304.8

    Combined (MMBOE) (A)

    Beginning of 2001                        284.4        175.7         460.1
      Purchases of reserves in place          43.0          ---          43.0
      Sales of reserves in place             (15.8)         ---         (15.8)
      Revisions of previous estimates          0.6         36.9          37.5
      Discoveries and extensions             101.7         28.7         130.4
      Production                             (35.4)       (19.0)        (54.4)
    End of 2001                              378.5        222.3         600.8

    Proved Developed Reserves (MMBOE)        258.1         85.7         343.8

           Costs Incurred ($000's)
    Capital expenditures                 $ 633,548    $ 224,496    $  858,044
    Acquisitions                           304,727          500       305,227
                                         $ 938,275    $ 224,996    $1,163,271

    Finding and Development Costs
      ($ per BOE)                        $    6.45    $    3.43    $     5.52

    (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.

    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 Rocky Mountains, Permian Basin, Arklatex, Anadarko,
East Texas and the Gulf Coast regions.  Internationally, Ocean holds a leading
position among U.S. independents in West Africa with oil and gas activities in
Equatorial Guinea, Angola and Cote d'Ivoire.  The company also conducts
operations in Egypt, the Russian Republic of Tatarstan, Brazil, Pakistan, and
Indonesia.

    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 periodic reports and other documents filed with the
SEC.  Actual results may vary materially.
SOURCE Ocean Energy, Inc.
http://www.oceanenergy.com
Company News On-Call:
http://www.prnewswire.com/comp/913463.html
CONTACT:
financial, Bruce Busmire, +1-713-265-6161, or
media, Janice Aston White, +1-713-265-6164, both of Ocean Energy,
Inc.