Cross Timbers Oil Co. of Fort Worth, TX, proved oil and gasreserves at year-end 1999 were estimated to be a record 2.02 Tcfe,up 23% compared with 1.64 Tcfe at year-end 1998. Cross Timbersadded 852 Bcfe during 1999 at a cost of 70 cents/Mcfe. Afterdeducting reserve sales of 325 Bcfe, the company replaced 527 Bcfeor 367% of 1999 production. The company’s development program,including the effect of revisions, replaced 341 Bcfe or 237% ofproduction at a cost of 28 cents/Mcfe.

Gas reserves increased 28% to 1.55 Tcf and, combined withnatural gas liquids of 17.9 million barrels, equaled 82% of totalreserves. Oil reserves increased 13% to 61.6 million barrels.Proved developed reserves account for 79% of total proved reserveson an Mcfe basis. At year-end 1999, the company’sreserve-to-production index was 13.6 years.

Based on realized prices of $24.17/b for oil and $2.20/Mcf ofgas, and on constant cost assumptions, estimated future net cashflows, before income taxes, totaled $3.27 billion at December 31.

“We believe that our production replacement percentage andfinding cost will again rank Cross Timbers near the top of itsindustry for both measures,” said Bob R. Simpson, CEO. “We expect2000 to be another exceptional year as our continuing developmentprograms in East Texas and the San Juan Basin are supplemented byour initial development of the recently acquired Arkoma Basinproperties.”

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