ConocoPhillips Replaces 106 Percent of 2003 Production

ConocoPhillips reports that the net addition of 650 million barrels of oil equivalent (BOE) to its proved reserve base during 2003. The company replaced 106 percent of its 2003 production or 133 percent excluding sales and acquisitions, bringing ConocoPhillips' total reserve base to 7.8 billion BOE, excluding 0.3 billion barrels associated with the company's Canadian Syncrude operation. The U.S. Securities and Exchange Commission regulations define the company's Syncrude operation as mining related; therefore, these operations are not reported as part of its conventional oil and gas proved reserves base.

Including sales and acquisitions, the company achieved a production replacement of 106 percent, at a finding and development (F&D) cost of $5.35 per BOE in 2003. F&D costs include approximately $430 million of 2003 additions to properties, plants and equipment associated with the repeal of the Norway Grant Act. ConocoPhillips' five-year average production replacement for the period 1999 through 2003 was 414 percent at an average F&D cost of $4.29 per BOE. ConocoPhillips' reserves-to-production ratio is 12.6 years.

"ConocoPhillips had a very successful 2003, in terms of project approvals," said Bill Berry, executive vice president of Exploration and Production for ConocoPhillips. "Our focused efforts to progress our legacy projects toward development resulted in major increases in proved reserves, primarily from projects in Australia, Canada and Norway.

"Looking ahead, we anticipate our current pipeline of projects to provide the company with substantial future reserves growth. In 2004, we will continue to pursue government approval on our Kashagan project in Kazakhstan, as well as the authorization of major projects in the United Kingdom, China and Alaska."

ConocoPhillips' proved reserves are reviewed annually to ensure that all reserve determinations are made in accordance with a disciplined internal policy. This policy requires the financial commitment to proceed with development of such reserves and any appropriate government and partner approvals before reserves are booked.