Amoco replaces 178 %, Phillips 164 % of production

Amoco and Phillips Petroleum both have announced impressive reserve replacement figures for 1997 along with equally positive finding and development (F&D) costs.
Amoco estimated that it had replaced 178 % of its reserves during last year of which about 30 % was the result of purchases and sales. It expected its F&D cost to be under $ 4 per barrel of oil equivalent (boe). Its year-end proved reserves were more than 6 bn boe.
Significant new reserves were found in the Permian Basin and the deepwater Gulf of Mexico in the US and also in Trinidad (1 tcf of gas), Argentina and Canada. Its drilling success rate was 50 %.
Richard Flury, executive vice-president of Amoco, said: "Our target is to achieve 25 % growth in world-wide oil and gas production. These results will also contribute to achieving our corporate financial goals of 10 % annual earnings growth and a 15 % return on capital employed," he said.
The oil company said its annual average five-year reserves replacement estimate was 145 % at an average F&D cost of $ 4 per barrel.

Phillips Petroleum said it had replaced 164 % of its world reserves last year, up from 71 % in 1996, at an F&D cost of $ 4.42 per barrel of oil equivalent, down some 40 % on the previous year.
These figures improved the company's average production replacement to 126 % from 1993 to 1997 at an average F&D cost of $ 4.17 per boe.
According to Knut Am, senior vice-president of exploration and production: "This was a remarkable year for us. Discoveries, extensions and improved recovery are responsible for nearly two-thirds of the year's excellent performance.
"Additionally, revisions and our acquisition of the Zama/Virgo area in Canada contributed to our reserve replacement success," he said.
Phillips' proved reserves increased 6 % last year to 2.28 bn boe with oil and liquids rising 9 % and gas increasing 2 %.
In the US, the company replaced 61 % of its reserves at an F&D cost of $ 7.21 per boe. It replaced 54 % of its liquids reserves and 65 % of its gas.
Outside the US, Phillips replaced 263 % of its production, 271 % of its crude and 252 % of its gas, at a cost of $ 3.85 per boe. Production during the year rose slightly to 190.2 mm boe.