The company’s reserve replacement ratio was 206%, based on 605 million barrels of oil equivalent (BOE) of production, bringing ConocoPhillips’ total reserve base to 8.5 billion BOE, excluding 0.3 billion barrels associated with the company’s Canadian Syncrude operations.
The US Securities and Exchange Commission (SEC) regulations define the company’s Syncrude operations as mining related; therefore, these operations are not reported as part of its conventional oil and gas proved reserves base.
Excluding sales and acquisitions, ConocoPhillips’ reserve replacement ratio was 65%.
However, consistent with the company’s practice and in accordance with SEC guidelines to use year-end prices for reserve estimates, due to unusually low year-end Canadian bitumen values, the company recorded a negative revision of proved crude oil reserves for the Surmont project.
Before application of this revision, the company’s reserve replacement ratio, excluding sales and acquisitions, would have been 101%.
We are focused on replacing reserves at a competitive finding and development cost. In 2004, we advanced several key projects that positively impacted the company’s reserves, including projects in the Caspian Sea, North Sea, Alaska and Indonesia, said Bill Berry, executive vice president of Exploration and Production.
