Marathon Delivers Solid Oil, Gas Reserves Additions for 2008
Marathon announced that during 2008, the Company added net proved liquid hydrocarbon and natural gas reserves of 110 million barrels of oil equivalent (mmboe), excluding dispositions of 3 mmboe, while producing 137 mmboe, for a reserve replacement of 80 percent. Included in the table below are the reserve additions, revisions, sales and production for 2008 by region.
"Marathon delivered solid oil and gas reserve additions for 2008 despite extreme market volatility. Importantly, 79 percent of our overall reserve additions were generated through drilling activity and improved recovery techniques. We also increased the Company's U.S. proved reserves for the first time since 2002, mainly as a result of increased drilling activity. Marathon's reserve additions are the result of our ongoing focus to convert the Company's substantial risked resource base of 6.5 billion barrels of oil equivalent into proved reserves. This in turn has provided defined, profitable production growth well into the future for Marathon," said Clarence P. Cazalot, Jr., Marathon president and CEO.
The use of average 2008 prices rather than end-of-year prices would have resulted in additional reserve bookings from approved projects in Angola and the Gulf of Mexico as well as planned development wells in North Dakota, and would have increased total reserve additions to approximately equal 2008 production.
For the three-year period ended Dec. 31, 2008, Marathon added net proved liquid hydrocarbon and natural gas reserves of 344 mmboe, excluding dispositions of 48 mmboe, while producing 396 mmboe, resulting in an average reserve replacement of 87 percent. Both the one-year and three-year additions exclude the Company's 388 million barrels of proved bitumen reserves in its Canadian oil sands business acquired in 2007, which are reported separately.
Year-end 2008 net proved reserves totaled 1,195 mmboe, of which 53 percent were liquid hydrocarbons and 47 percent were natural gas. Marathon's 2008 proved reserve additions were primarily in the United States, Libya, Equatorial Guinea and Norway. Proved developed reserves represented 76 percent of total proved reserves at year end 2008, as compared to 72 percent the previous year.
Property acquisition, exploration and development costs incurred for oil and gas producing activities during 2008 were $3 billion. For the three-year period ended Dec. 31, 2008, costs incurred for oil and gas producing activities were $9 billion.
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