Newspaper article THE JOURNAL RECORD

Anadarko Petroleum Replaces 581 Percent of Its Reserves

Newspaper article THE JOURNAL RECORD

Anadarko Petroleum Replaces 581 Percent of Its Reserves

Article excerpt

HOUSTON (JR) -- Anadarko Petroleum on Tuesday said it achieved a reserve replacement ratio of 581 percent in 1988.

It was the 17th consecutive year that the Houston-based company with an office in Oklahoma City has more than replaced annual production with new reserves. Anadarko plans to report its 1998 fourth quarter and annual financial results later this week, said Robert J. Allison Jr., chairman, president and CEO.

In 1988, Anadarko added more than a 250 million equivalent barrels of proved reserves at a finding cost of only $3.13 per barrel. "Doing this in a year when our production was also at an all-time high makes Anadarko's performance all the more significant," Allison said. During 1998, the company added 274.3 million energy equivalent barrels, or 1.65 trillion cubic feet of gas equivalent, of proved reserves, a 32 percent increase from year-end 1997. Most of the additions in 1998 were natural gas reserves from recent discoveries in the Gulf of Mexico's sub-salt trend. This gives Anadarko a more balanced reserve base in terms of gas versus oil and U.S. versus foreign, Allison said. For example, natural gas now accounts for 64 percent of the company's domestic proved reserves, up from 55 percent at year-end 1997. Anadarko's natural gas reserves represent 47 percent of total proved reserves. In 1998, Anadarko produced 47.2 million energy equivalent barrels, 7 percent above 1997 and the highest production level in the company's 40-year history. "Although low prices affected our financial results for 1998, Anadarko continued to outperform our industry peers and grow our core assets," said Allison. "Despite terrible prices, we achieved real economic growth and added value for our stockholders during this very tough period. "We continued to make significant exploration discoveries in the U.S. and overseas. Anadarko's operating successes last year reflect the superior quality of our exploration and development projects and our commitment to grow the company profitably. …

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