Burlington Resources said Tuesday that it expects to post reserve replacement of 160% of worldwide production from all sources during 2002. The Houston-based company added that it expects the reserve replacement cost to average $1.08/Mcfe.

Not counting acquisitions, Burlington estimates that it replaced 102% of its 2002 production at an average finding and development cost of $1.07/Mcfe. Final averages will be reported in the company’s Jan. 23 earnings announcement.

“We are very pleased with our favorable cost and reserve replacement performance for the year, given the industry trends toward higher costs and lower replacement rates,” said Randy Limbacher, Burlington COO. “These are further indications that our repositioning of Burlington’s asset base is succeeding, as our returns-based investment strategy results in improving capital efficiency.”

For 2002, Burlington estimated its worldwide reserve additions at 963 Bcfe from extensions, discoveries, additions and revisions, with significant additions from drilling and development in the San Juan Basin of the United States and in Canada. Acquisitions added an estimated 549 Bcfe of reserves, the majority located in Canada, the Fort Worth Basin in the United States, and Ecuador. The company noted that it also sold 965 Bcfe of reserves through its 2002 property sales program. At year-end 2002, estimated total reserves stood at 11.4 Tcfe, down from 11.8 Tcfe the year before as a result of the property sales.

For the three-year period from 2000 through 2002, Burlington estimates that it replaced an average of 176% of worldwide production at an average reserve replacement cost of $1.18/Mcfe, including acquisitions. Excluding acquisitions, the company said it replaced approximately 100% of worldwide production at an average finding and development cost of $1.11/Mcfe.

Burlington said it will go into more detail when it webcasts its fourth quarter and full-year 2002 earnings and operational review conference call on Jan. 23 at 10 a.m. The webcast can be accessed on the Investor Relations section of Burlington’s Web site (www.br-inc.com).

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