Marathon Oil Corporation reported 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.
"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.
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