Phillips Petroleum Co. replaced 114% of its 1999 worldwideproduction at an average finding-and-development cost of $4.81/Boe.Excluding acquisitions and sales, Phillips replaced 103% of lastyear’s production.

From 1995 through 1999, Phillips’ five-year-average productionreplacement was 110%, while finding-and-development costs averaged$5.57/Boe. The company’s three-year-average production replacementwas 114%, while finding-and-development costs averaged $5.92/Boe.

“In 1999, our domestic portfolio shifted more to gas productiondue to the sale of a number of non-strategic, low-return,oil-producing fields and the acquisition of strategically locatedgas assets,” said Kirby Hedrick, executive vice president,upstream. “Looking forward, we have committed nearly 70% ofPhillips’ 2000 capital budget to worldwide exploration andproduction activities in support of our strategy to add legacyassets to our portfolio.”

As a result of significant, non-strategic asset sales, thecompany replaced only 6% of its reserves produced in the UnitedStates at an average cost of $5.08/Boe. Excluding acquisitions andsales, Phillips replaced 58% of its 1999 U.S. production. Phillipsreplaced 206% of non-U.S. reserves produced at an average cost of$4.72/Boe. Outside of the United States, the company replaced 184%of its crude oil and gas liquids production and 258% of its gasproduction. Natural gas makes up 48% of Phillips’ proved reservesworldwide and 70% U.S. reserves.

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