HOUSTON, Feb. 19 /PRNewswire-FirstCall/ -- Marathon Oil Corporation
(NYSE: MRO) announced that during 2007, the Company added net proved liquid
hydrocarbon and natural gas reserves of 88 million barrels of oil
equivalent (mmboe) while producing 125 mmboe, for a reserve replacement of
70 percent. For the three-year period ended Dec. 31, 2007, Marathon added
net proved liquid hydrocarbon and natural gas reserves of 516 mmboe,
excluding dispositions of 46 mmboe, while producing 383 mmboe, resulting in
an average reserve replacement of 135 percent. Both the one-year and
three-year additions exclude the Company's 421 mmboe of proved bitumen
reserves in its Canadian oil sands business acquired in 2007, which are
reported separately.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051027/DATH029LOGO )
Estimated Net Proved Reserves of Liquid Hydrocarbons & Natural Gas*
(Millions of barrels of oil equivalent) U.S. Europe Africa Total
As of December 31, 2006 350 182 730 1,262
Extensions, discoveries & other additions 30 13 31 74
Improved recovery 8 - - 8
Revisions of previous estimates (4) 6 2 4
Purchases of reserves in place 2 - - 2
Sales of reserves in place - - - -
Production (52) (22) (51) (125)
As of December 31, 2007 334 179 712 1,225
*Note: Bitumen reserves are not included.
"Over the past five years, Marathon has more than doubled its total
resource base, from 3.2 billion to 6.6 billion boe," said Clarence P.
Cazalot, Jr., Marathon president and CEO. "Importantly, the 70 percent
replacement rate for 2007 was achieved without benefit of any major project
sanctioning. We expect to sanction at least two major development projects
during 2008 which, along with other projects driven by our expanded
resource base, will support future proved reserve additions and fuel our
long-term, profitable production growth beyond our already well defined 6
to 9 percent compound average annual production growth through 2010."
At year-end 2007, Marathon had estimated net proved liquid hydrocarbon
and natural gas reserves of 1.2 billion boe, of which 53 percent were
liquid hydrocarbons and 47 percent were natural gas. Marathon's 2007 proved
reserve additions were primarily in Libya, Norway and Colorado's Piceance
Basin. Proved developed reserves represented 72 percent of total proved
reserves at year end 2007, as compared to 68 percent the previous year.
Property acquisition, exploration and development costs incurred for
oil and gas producing activities during 2007 were $3 billion. For the
three-year period ended Dec. 31, 2007, costs incurred for oil and gas
producing activities were $8 billion.
Marathon is an integrated international energy company engaged in
exploration and production; oil sands mining; integrated gas; and refining,
marketing and transportation operations. Marathon, which is based in
Houston, has principal operations in the United States, Angola, Canada,
Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United
Kingdom. Marathon is the fourth largest United States-based integrated oil
company and the nation's fifth largest refiner.
This release contains forward-looking statements related to proved
reserves of liquid hydrocarbons and natural gas, which are based upon
certain assumptions, including, among others, presently known physical data
concerning size and character of reservoirs, economic recoverability,
technology development, future drilling success, production experience,
industry economic conditions, levels of cash flow from operations and
operating conditions. This release also contains forward-looking statements
regarding proved bitumen reserves, which are based on presently known
physical data, economic recoverability and operating conditions. Factors
that could affect the timing and levels of liquid hydrocarbons and natural
gas production and the development projects the Company anticipates
sanctioning during 2008 include pricing, supply and demand for petroleum
products, the amount of a capital available for exploration development,
regulatory constraints, timing of commencing production from new wells,
drilling rig availability, unforeseen hazards such as weather conditions,
acts of war or terrorists acts and the governmental or military response
thereto, and other geological, operating and economic considerations. The
foregoing factors (among others) could cause actual results to differ
materially from those set forth in the forward- looking statements. In
accordance with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, Marathon Oil Corporation has included in its
Annual Report on Form 10-K for the year ended December 31, 2006, and
subsequent Forms 10-Q and 8-K, cautionary language identifying other
important factors, though not necessarily all such factors, that could
cause future outcomes to differ materially from those set forth in the
forward- looking statements.
Cautionary Note to U.S. Investors: The United States Securities and
Exchange Commission (SEC) permits oil and gas companies, in their filings
with the SEC, to disclose only proved reserves that a company has
demonstrated by actual production or conclusive formation tests to be
economically and legally producible under existing economic and operating
conditions. Marathon Oil Corporation uses certain terms in this press
release, such as total resource base, that the SEC's guidelines strictly
prohibit us from including in filings with the SEC. U.S. Investors are
urged to consider closely the disclosures in Marathon's periodic filings
with the SEC, available from us at 5555 San Felipe, Houston, Texas 77056
and the Company's Web site at http://www.Marathon.com . You can also obtain
this information from the SEC by calling 1-800-SEC-0330.
Media Relations Contacts: Lee Warren 713-296-4103
Scott Scheffler 713-296-4102
Investor Relations Contacts: Howard Thill 713-296-4140
Michol Ecklund 713-296-3919
SOURCE Marathon Oil Corporation
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Related links:
http://www.marathon.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20051027/DATH029LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media Relations: Lee Warren, +1-713-296-4103,
Scott Scheffler, +1-713-296-4102, Investor Relations: Howard
Thill, +1-713-296-4140, Michol Ecklund, +1-713-296-3919, all of
Marathon Oil Corporation
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