Marathon Oil Corp. reports that it replaced 124% of its 2003 worldwide crude oil and natural gas production, excluding dispositions, at a finding and development cost of $8.78/boe.
Reserve additions excluding acquisitions and dispositions were 106 MMboe, resulting in a reserve replacement ratio of 76%. Of the 106 MMboe reserve additions, approximately 62 MMboe were international, equivalent to 113% of 2003 international production, and 44 MMboe were added in the United States, equivalent to 52% of 2003 US production.
At year-end, Marathon had estimated proved reserves of 1,042 MMboe. During 2003, Marathon sold 274 MMboe of proved reserves as part of the company's plan to sell non-core assets and added 67 MMboe of proved reserves through an acquisition of assets in Russia.
During 2004, Marathon expects to replace approximately 180% of production at a finding and development cost of under $5/boe. This would result in a projected 2002 through 2004 three-year-average reserve replacement of approximately 190% at a competitive finding and development cost of less than $6/boe.