-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MGBx3AJrNKo9Ffdvhto3CfH9ZeVkzi7kEHGkdeaZJjJQDgf+oHEW6i4CBm2C+oML fhphxxIx27IHGqIHohoPDA== 0000716039-00-000006.txt : 20000211 0000716039-00-000006.hdr.sgml : 20000211 ACCESSION NUMBER: 0000716039-00-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000207 ITEM INFORMATION: FILED AS OF DATE: 20000210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNOCAL CORP CENTRAL INDEX KEY: 0000716039 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 953825062 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08483 FILM NUMBER: 531858 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 RESERVE REPLACEMENT RATIO AND FD&A COSTS SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) February 7, 2000 ------------------------ UNOCAL CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-8483 95-3825062 - -------------------------------------------------------------------------------- (Commission File Number) (I.R.S. Employer Identification No.) 2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (310) 726-7600 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) 1 Item 5. Other Events. - -------------------------- Unocal Corporation reported that it replaced 159 percent of its net worldwide crude oil and natural gas production during 1999 with new proved reserves. Excluding purchases and sales, the company replaced 100 percent of its worldwide production. At year-end 1999, Unocal's net worldwide reserves totaled 1.66 billion barrels-of-oil-equivalent (BOE), up 7 percent from 1.55 billion BOE the year before. During 1999, the company added reserves of 289 million BOE, including 107 million BOE from net purchases and sales and 182 million BOE from all other sources. Net production for the year was 181 million BOE. About two-thirds of Unocal's proved reserves are natural gas. Approximately 72 percent of the reserves are outside the U.S. Unocal holds a 47.8-percent interest in Canada-based Northrock Resources Ltd. (Northrock), which is accounted for on a consolidated basis. Excluding the minority share of Northrock's reserves, the company's overall estimated reserve replacement ratio was 131 percent. International operations - ------------------------ Unocal's international operations replaced 242 percent of production in 1999 from all sources. Excluding purchases and sales, the replacement ratio was 129 percent. At year-end, total international reserves were 1.19 billion BOE, up 14 percent from the previous year. This included 95 million BOE due to the acquisition of Northrock. More than 100 million BOE in new reserves came from Unocal's exploration program in Thailand and Indonesia. Spirit Energy 76 - ---------------- Spirit Energy 76, Unocal's Lower 48 exploration and production unit, replaced 65 percent of its production in 1999 with new reserves. In total, Spirit booked more than 34 million BOE from discoveries and extensions, including the new Muni field on Ship Shoal 295 and the long-producing Vermilion 39 field. Spirit's reserve performance was affected by low exploration capital expenditures in 1999 in response to oil prices. The 1999 reserves also do not include any additions for deepwater Gulf of Mexico discoveries. Costs - ----- For the year, Unocal's finding, development and acquisition (FD&A) costs for new reserves were $4.90 per BOE. Excluding the minority interest in Northrock's reserves, FD&A costs were $5.69 per BOE. Unocal's worldwide F&D costs, excluding purchases, were $6.95/BOE. Excluding Spirit deepwater, the effective F&D costs were $5.89/BOE. The attached tables provide details on the company's reserves and FD&A costs. Forward-looking statements and estimates regarding reserves in this filing are based on assumptions concerning operational, market, competitive, regulatory, geological, pricing, environmental, cost, and other considerations. Actual results could differ materially as a result of factors discussed in Unocal Corporation's 1998 Form 10-K report filed with the U.S. Securities and Exchange Commission. 2
UNOCAL CORPORATION Crude Oil and Natural Gas Reserve Data Estimated proved reserves of crude oil, condensate and natural gas Crude Oil Natural Gas Oil Equivalent (MMbbls) (bcf) (MMBOE) --------------------------------------- 1999 Beginning Reserves ..................................................................... 532 6,122 1,552 Discoveries and Extensions ............................................................... 31 705 148 Improved Recovery ........................................................................ 2 50 11 Revisions ................................................................................ 26 (20) 23 Purchases ................................................................................ 38 621 142 Sales .................................................................................... (15) (115) (35) Production .................................................................................. (64) (706) (181) 2000 Beginning Reserves* .................................................................... 550 6,657 1,660 * Includes host country shares for Indonesia and Democratic Republic of Congo of: ........... 46 441 120
Estimated proved reserves by geographic area (millions of BOE) Consolidated Subsidiaries --------------------------------------------------------------- Spirit Other Far Other Equity Energy 76 U.S. East International Total Affiliates Worldwide ---------------------------------------------------------------------------------------- 1999 Beginning Reserves ................. 376 125 849 196 1,546 6 1,552 Discoveries and Extensions ........... 34 3 100 11 148 -- 148 Improved Recovery .................... 4 -- 7 -- 11 -- 11 Revisions ............................ 6 5 12 (1) 22 1 23 Purchases ............................ 4 -- -- 123 127 15 142 Sales ................................ (24) (1) -- (10) (35) -- (35) Production .............................. (59) (20) (80) (20) (179) (2) (181) 2000 Beginning Reserves* ................ 341 112 888 299 1,640 20 1,660 * Includes host country shares for Indonesia and Democratic Republic of Congo of: 118 2 120 120 Notes: Other U.S. is principally Alaska. Far East includes Thailand, Indonesia and Myanmar. Other International includes Azerbaijan, Bangladesh, Canada, Democratic Republic of Congo, Yemen and Netherlands. Included in Spirit Energy's year-end 1999 reserves are 55 mmboe attributable to Spirit Energy 76 Development, L.P., a consolidated subsidiary, in which there is a minority interest share respresenting approximately 24 mmboe. Other International's year-end 1999 reserves include 98 mmboe attributable to Northrock Resources Ltd, a consolidated subsidiary, in which there is a minority interest share representing approximately 51 mmboe Purchases and Sales include reserves acquired and relinguished through property exchanges of 14 mmboe for Spirit Energy and 10 mmboe for Other International for which there were no costs incurred For the above, natural gas is converted at a ratio of 6 mcf to one barrel of oil
3 Preliminary 1999 finding, development & acquisition costs per BOE Spirit Energy Other Far Other Total -------------------------- Deepwater Mature Total U.S. East Int'l Intl Total ----------------------------------------------------------------- Costs Incurred (millions of dollars) Exploration ................................................. 180 169 349 5 161 141 302 656 Development ................................................. 13 227 240 25 204 122 326 591 Proved property acquisitions ................................ -- 18 18 -- -- 31 31 49 Northrock Acquisition ....................................... -- -- -- -- -- 274 274 274 Total Consolidated Costs Incurred ................................. 193 414 607 30 365 568 933 1,570 Share of Equity Affiliates .................................. -- 11 11 -- 4 -- 4 15 Worldwide Costs Incurred (a) ...................................... 193 425 618 30 369 568 937 1,585 Reserve Data (millions of BOE) (b) Discoveries/extensions ...................................... -- 34 34 3 100 11 111 148 Improved recovery ........................................... -- 4 4 -- 7 -- 7 11 Revisions ................................................... -- 7 7 5 12 (1) 11 23 Purchases ................................................... -- 19 19 -- -- 123 123 142 Total Changes ..................................................... -- 64 64 8 119 133 252 324 Finding & Development Costs per BOE (c) ................................................. -- $9.17 $13.50 $3.77 $3.10 $25.14 $4.89 $6.95 Finding, Development & Acquisition Costs Per BOE (d) ................................................. -- $6.70 $9.74 $3.77 $3.10 $4.26 $3.72 $4.90 F,D & A Costs per BOE Excluding Northrock Resources Ltd. Minority Interest Share (d,e) ............ -- $6.70 $9.74 $3.77 $3.10 $6.53 $4.47 $5.69 (a) Excludes properties acquired through property exchanges by definition. (b) Includes equity interest in reserves of affiliates and 100% of Northrock's reserves. (c) Excludes proved property acquisition costs and purchased volumes. (d) Includes reserves and equity interests in affiliate reserves acquired in property exchanges. (e) Excludes minority interest share of costs ($53MM) and minority interest share of reserves (54 mmboe).
4 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UNOCAL CORPORATION (Registrant) Date: Februrary 10, 2000 By: /s/ JOE D. CECIL - ------------------------- ------------------------------- Joe D. Cecil Vice President and Comptroller -----END PRIVACY-ENHANCED MESSAGE-----