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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (8337)	2/15/2008 5:00:57 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 33421

DJ News -- Exxon Mobil : new reserves again topped production in 2007 .............................. February 15, 2008 4:03 p.m. Exxon Mobil Replaces All of 2007 Output By KEVIN KINGSBURY Exxon Mobil Corp. said new reserves again topped its production for 2007, as it continued to be the one big oil company that has consistently matched output with new finds. The Irving, Texas, company said it replaced 101% of last year's oil-and-gas production with additions to its reserves. The replacement rate would have been 132%, excluding property sales and the loss of Venezuelan assets the company walked away from in June as the country nationalized projects in the Orinoco River basin. Chairman and Chief Executive Rex Tillerson noted the company's 10-year replacement-ratio average has been 112%. Exxon put proven reserves as of Dec. 31 at 22.7 billion barrels of oil and gas, split about evenly between liquids and gas. At current production rates, that would last more than 14 years. The portion of proved reserves already developed is 62%. Between 2004 and 2006, only Exxon Mobil managed a better-than-100% replacement rate on its own among the Western world's five largest oil companies by market capitalization. As a group, the firm managed a 75% rate excluding acquisitions, meaning that for every four barrels they pumped out and sent to market they found only three new barrels in the ground. Some of the declines have been due to a lack of significant increases in the companies' capital budgets. For example, Exxon's annual capital budget has barely budged, growing at a 1% annual rate since 2003. But other firms have been boosting spending at a double-digit clip. Write to Kevin Kingsbury at kevin.kingsbury@dowjones.com Copyright © 2008 Dow Jones & Company, Inc. All Rights Reserved.