Production
Total sales volumes for the fourth quarter 2007 averaged 200 thousand barrels of oil equivalent per day (MBoepd) compared to 185 MBoepd for the same period in 2006. For the year, total sales volumes were approximately 199 MBoepd, 13 percent greater than the full year 2006 after adjusting for the Gulf of Mexico shelf assets sold in 2006.
Production volumes for 2006 increased 28 percent to 185,954 barrels of oil equivalent.
Reserves
Year-end 2007 estimated reserves were a record 880 million barrels of oil equivalent (MMBoe), up over five percent from year-end 2006. Total proved developed reserves increased 11 percent to 655 MMBoe. Reserve additions from all sources before sales totaled 120 MMBoe, or 166 percent of 2007 volumes.
Reserve additions in the United States totaled 96 MMBoe and were primarily driven by the execution of low-risk development projects in the Wattenberg and Piceance areas and deepwater Gulf of Mexico exploration and development success. International reserve additions totaled 24 MMBoe with the majority contributed from the North Sea due to the sanctioning of phase two of the Dumbarton development and from West Africa.
United States reserves represented 58 percent of total proved reserves, while International reserves comprised the other 42 percent. Liquids, including crude oil, condensate, and natural gas liquids, made up approximately 37 percent of total proved reserves, with natural gas being the remaining 63 percent.
Total costs incurred in 2007 for oil and gas activities, including acquisition, exploration and development costs were $1.77 billion. The average worldwide reserve replacement cost is estimated at $14.71 per barrel of oil equivalent (Boe), or $2.45 per thousand cubic feet equivalent (Mcfe). Included in costs incurred was approximately $180 million for West Africa exploration that discovered substantial resources that have not yet been booked as proven.
