Exxon Mobil Corporation reported that it replaced more than 100 percent of its production in 2007.
Additions to the Corporation's worldwide proved oil and gas reserves totaled 1.6 billion oil-equivalent barrels in 2007 or 101 percent of production. Reserves replacement totaled 132 percent excluding the effects of the expropriation of Venezuelan assets and property sales. These additions assume the pricing basis the Corporation uses to make investment decisions consistent with long-standing practice, rather than single-day, year-end pricing.
"With a 10-year average replacement ratio of 112 percent, ExxonMobil has continued to replace annual production with new, quality reserves additions," said Rex Tillerson, Exxon Mobil Corporation's chairman and chief executive officer. "This performance is a reflection of our disciplined investment strategy, world-class resource base and outstanding execution capabilities, which enable the Corporation to continue to develop new production capacity to help meet the world's growing energy needs."
"The annual reporting of proved reserves is the product of our long-standing, rigorous process that ensures consistency and management accountability with respect to all reserves bookings."
Key 2007 proved reserve additions were made from new developments and established operations in North America, the Middle East, Europe and West Africa. These additions reflect developments with significant funding commitments as well as revisions or extensions to existing fields based on routine reservoir studies and field evaluations. The Venezuelan expropriation and asset sales reduced proved reserves by 0.5 billion oil-equivalent barrels.
ExxonMobil also states proved reserves utilizing December 31 liquids and natural gas prices. On this basis, the total proved reserves additions in 2007 were 1.2 billion oil-equivalent barrels, resulting in a reserves replacement ratio of 76 percent. Excluding the effects of the Venezuelan expropriation and property sales, reserves replacement was 107 percent, using the year-end pricing basis. The use of prices from a single date is not relevant to investment decisions made by the Corporation, and annual variations in reserves based on such year-end prices are not of consequence in how the business is actually managed.
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