Phillips replaces 1,128 percent of 2000 production

Petroleum News Alaska

Phillips Petroleum Co. said Feb. 21 that it replaced 1,128 percent of its 2000 worldwide oil and gas production at an average preliminary finding-and-development cost of $2.39 per barrel-of-oil equivalent.

Excluding acquisitions and sales the company replaced 515 percent of its 2000 production.

Phillips said its 2000 production replacement substantially benefited from the company’s April acquisition of ARCO Alaska. Without this transaction the 2000 production replacement would have been 501 percent.

“With the acquisition of our Alaskan assets, we doubled our reserves in a single stroke,” said Dodd DeCamp, senior vice president of worldwide exploration. “Looking forward, we have committed 8 percent of Phillips’ 2001 capital budget to worldwide exploration activities. We believe our drilling program for 2001 — including promising plays in the Atlantic Margin and Kazakhstan, as well as additional exploration prospects in China’s Bohai Bay — can yield additional long-life reserves, supporting our strategy to build on our portfolio of legacy assets.”

The company’s worldwide hydrocarbon production increased in 2000 to 271.3 million BOE, up from 182 million BOE in 1999. During the year, Phillips benefited from the Alaska acquisition and new production from the Alpine field in Alaska.