Mission Increases Reserves by 113%

Mission Resources Corporation announced that its 2001 proved crude oil and natural gas reserves increased 113 percent to 67.3 million barrels of oil equivalent (MMBOE). Oil reserves reached 41.6 million barrels (MMBO) and gas reserves totaled 154.1 billion cubic feet (BCF). These results were achieved in spite of property sales with associated reserves of 12.0 MMBOE. By comparison, reserves totaled 31.6 MMBOE at the end of 2000, comprising 19.1 MMBO and 74.7 BCF.

Mission's 2001 all-sources finding and development (F&D) cost fell to $4.94 per barrel of oil equivalent (BOE) from last year's $10.25 per BOE. The company's acquisition finding cost was $4.93 per BOE and its F&D cost was $4.96 per BOE, excluding price-related revisions.

"We replaced 295 percent of the company's total annual production, and at an enviable finding cost," said Douglas G. Manner, Mission chairman and chief executive officer. "Not only did we add value by increasing reserves on an absolute basis, but, more importantly, we increased them on a per-share basis. As expected, the bulk of the reserve increase came from acquisitions, primarily as a result of the May 2001 merger. Reserve additions from the drill bit came primarily from the successful drilling at Raccoon Bend and Ship Shoal Block 225."