Unocal Replaces 222% of 2001 Production

Unocal Corporation said it replaced 222 percent of its worldwide crude oil and natural gas production during 2001 with new proved reserves.

At year-end 2001, Unocal's preliminary estimate of worldwide reserves totaled 1.81 billion barrels-of-oil-equivalent (BOE), up 15 percent from 1.58 billion BOE the year before.

"Every one of our major production areas contributed to the reserve replacement in 2001, which was among the highest in the company's history," said Charles R. Williamson, Unocal chairman and chief executive officer. "We booked our first reserves from the Mad Dog field, a new deepwater development in the Gulf of Mexico, and added to our reserves in Azerbaijan, Thailand, Indonesia, the GOM region, onshore Texas and Alaska through the drillbit."

During 2001, the company added reserves of 241 million BOE from discoveries and extensions and improved recovery. Reserve acquisitions onshore Texas, in the GOM shelf, Brazil and Canada totaled 113 million BOE. Unocal also made net upward revisions of 80 million BOE because of price effects and reservoir performance. Because of cost recovery provisions in certain production-sharing contracts, reserves increase when prices decline.

Production of 193 million BOE and the sale of 5 million BOE in reserves partially offset the increases.

For the year, preliminary worldwide finding and development (F&D) costs were $5.39 per BOE. Unocal's preliminary estimated worldwide finding, development and acquisition (FD&A) costs for new reserves were $6.18 per BOE.