Production
Sales volumes averaged 354,000 barrels of oil equivalent per day (boepd) for the fourth quarter of 2007 and 351,000 boepd for the full year 2007, and production available for sale averaged 352,000 boepd and 353,000 boepd in the same periods.
Reported sales volumes for the fourth quarter of 2006 averaged 357,000 barrels of oil equivalent per day (boepd) and production available for sale averaged 363,000 boepd. The difference between the sales volume and production available for sale was primarily a result of the Company producing, and injecting into storage, natural gas contracted for future sale in Ireland. Reported sales volumes from continuing operations averaged 365,000 boepd for 2006, representing growth of 14 percent over 2005. Production available for sale from continuing operations for 2006 also averaged 365,000 boepd. The largest sales volume increase in both periods was in Libya, where first crude oil sales occurred in the first quarter of 2006.
Reserves
Marathon announced that during 2007, the Company added net proved liquid hydrocarbon and natural gas reserves of 88 million barrels of oil equivalent (mmboe) while producing 125 mmboe, for a reserve replacement of 70 percent. For the three-year period ended Dec. 31, 2007, Marathon added net proved liquid hydrocarbon and natural gas reserves of 516 mmboe, excluding dispositions of 46 mmboe, while producing 383 mmboe, resulting in an average reserve replacement of 135 percent. Both the one-year and three-year additions exclude the Company's 421 mmboe of proved bitumen reserves in its Canadian oil sands business acquired in 2007, which are reported separately.
Estimated Net Proved Reserves of Liquid Hydrocarbons & Natural Gas* (Millions of barrels of oil equivalent)
As of December 31, 2006
U.S: 350
Europe: 182
Africa: 730
Total: 1,262
Extensions, discoveries & other additions
U.S: 30
Europe: 13
Africa: 31
Total: 74
Improved recovery
U.S: 8
Europe: -
Africa: -
Total: 8
Revisions of previous estimates
U.S: (4)
Europe: 6
Africa: 2
Total: 4
Purchases of reserves in place
U.S: 2
Europe: -
Africa: -
Total: 2
Production
U.S: (52)
Europe: (22)
Africa: (51)
Total: (125)
As of December 31, 2007
U.S: 334
Europe: 179
Africa: 712
Total: 1,225
*Note: Bitumen reserves are not included.
At year-end 2007, Marathon had estimated net proved liquid hydrocarbon and natural gas reserves of 1.2 billion boe, of which 53 percent were liquid hydrocarbons and 47 percent were natural gas. Marathon's 2007 proved reserve additions were primarily in Libya, Norway and Colorado's Piceance Basin. Proved developed reserves represented 72 percent of total proved reserves at year end 2007, as compared to 68 percent the previous year.
Property acquisition, exploration and development costs incurred for oil and gas producing activities during 2007 were $3 billion. For the three-year period ended Dec. 31, 2007, costs incurred for oil and gas producing activities were $8 billion.
In 2006, Marathon added 143 million boe in proved reserves (107 percent of 2006 production) through discoveries, extensions, improved recovery and revisions of previous estimates, principally in Libya and Equatorial Guinea. In addition, 3 million boe were added through acquisitions. At year-end 2006, Marathon had estimated proved reserves of 1.262 billion boe with a reserve life of 9.7 years, based upon 2006 production from continuing operations.
