-----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, FoOPOwszfIs48cubnTGn8+z7Zt1+uV5zbyuNtF0bEOjbl4o+lbQhrPtlV4hXAVwb AFo+Vg4LFZjqJAElqPedow== 0000716039-99-000006.txt : 19990211 0000716039-99-000006.hdr.sgml : 19990211 ACCESSION NUMBER: 0000716039-99-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990208 ITEM INFORMATION: FILED AS OF DATE: 19990210 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: 99528989 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 UNOCAL YEAR-END 1998 RESERVES 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 8, 1999 ------------------------ 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) ITEM 5. OTHER EVENTS. 1998 YEAR-END RESERVES AND RELATED COSTS Unocal Corporation announced that it replaced 101 percent of its worldwide crude oil and natural gas production (excluding sales and price-related revisions) during 1998 with new proved reserves. Including sales and all revisions, the company replaced 60 percent of its production. The company added more than 50 million barrels of proved oil reserves from two new deepwater fields, Merah Besar and West Seno, in the Kutei Basin, offshore East Kalimantan, in Indonesia. In the U.S., the company's lower 48 exploration and production business unit, Spirit Energy 76, recorded more than 30 discoveries in the Gulf of Mexico (GOM) shelf and onshore area and added 65 million barrels of oil equivalent (BOE) in proved reserves through discoveries and extensions, improved recovery and purchases. International Operations Unocal's international operations replaced 114 percent of production in 1998 (excluding sales and price-related revisions), primarily through exploration drilling. Including sales and all revisions, 81 percent of the international production was replaced. This included net proved reserve additions of 55 million BOE in Indonesia, 30 million BOE in Thailand, and 15 million BOE in Bangladesh. For the year, the preliminary finding, development and acquisition (FD&A) costs for new proved reserves in Unocal's international operations in total (excluding price-related revisions) were $8.03 per BOE. Including price-related revisions, the preliminary FD&A costs were $8.29 per BOE. International FD&A costs rose in 1998 due to several timing factors, including spending on the pipeline in Myanmar, initial exploration costs in Gabon, India, Bangladesh and Brazil, and the impact of the company's scheduled "just in time" exploration program in Thailand. Spirit Energy 76 Spirit Energy 76 replaced 108 percent of its production in 1998 with new proved reserves (excluding sales and price-related revisions), particularly as a result of a 64-percent exploration success rate on the GOM shelf during the year. Including sales and all revisions, 65 percent of Spirit's production was replaced. Spirit Energy's preliminary FD&A costs (excluding price-related revisions) for new proved reserves in 1998 on the GOM shelf and onshore were $7.26 per BOE. Including price-related revisions, Spirit's preliminary FD&A costs for the GOM shelf and onshore were $8.16 per BOE. Overall for Spirit, after taking into account price-related revisions and deepwater expenditures, which included $202 million in land acquisitions, preliminary FD&A costs were $13.27 per BOE. Unocal is a leading global oil and gas exploration and production company with significant pipeline and power plant project developments worldwide. Forward-looking statements and estimates regarding reserves in this report are based on assumptions concerning market, competitive, regulatory, geological, pricing, environmental, operational and other considerations. Actual results could differ materially. The following tables provide details on the company's reserves and FD&A costs. 2
UNOCAL CORPORATION CRUDE OIL AND NATURAL GAS RESERVE DATA ESTIMATED PROVED RESERVES OF CRUDE OIL, CONDENSATE AND NATURAL GAS CRUDE OIL (1) NATURAL GAS (2) OIL EQUIVALENT(3) (MMBBLS) (BCF) (MMBOE) --------------------------------------------------------------- 1998 beginning reserves .......................................... 533 6,550 1,625 Discoveries/extensions ....................................... 81 437 154 Improved recovery ............................................ 6 20 9 Revisions - Price-related ............................................. (23) (15) (26) - Other ..................................................... 14 (51) 6 Purchases .................................................... 7 52 15 Sales ........................................................ (19) (181) (49) Production ....................................................... (67) (690) (182) --------------------------------------------------------------- 1999 beginning reserves* ......................................... 532 6,122 1,552 =============================================================== *Includes host country shares for Indonesia, Yemen and Democratic Republic of Congo of: ...................... 44 389 109 (1) Includes condensate. (2) Reported on a wet gas basis, which include natural gas liquids. (3) 6,000 cubic feet of natural gas = one barrel of oil.
ESTIMATED PROVED RESERVES BY GEOGRAPHIC AREA (MILLIONS OF BOE) Spirit Other Far Other Energy 76 U.S. East International Total -------------------------------------------------------------------- 1998 beginning reserves ................................. 406 156 856 207 1,625 Discoveries/extensions .............................. 45 6 87 16 154 Improved recovery ................................... 5 2 1 1 9 Revisions - Price-related .................................... (8) (15) -- (3) (26) - Other ............................................ 6 (3) (12) 15 6 Purchases ........................................... 15 -- -- -- 15 Sales ............................................... (21) -- -- (28) (49) Production .............................................. (66) (21) (83) (12) (182) -------------------------------------------------------------------- 1999 beginning reserves* ................................ 382 125 849 196 1,552 ==================================================================== *Includes host country shares for Indonesia, Yemen and Democratic Republic of Congo of: .............. -- -- 104 5 109 Note: Other U.S. is principally Alaska. Far East includes Thailand, Indonesia and Myanmar. Other International includes Azerbaijan, Bangladesh, Canada, Democratic Republic of Congo, Netherlands and Yemen.
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PRELIMINARY 1998 FINDING, DEVELOPMENT AND ACQUISITION COSTS PER BOE Spirit Energy --------------------------------- Other Far Other Total Deepwater Other Total U.S. East International International Total ------------------------------------------------------------------------------------------------ Costs Incurred (millions of dollars) Exploration .................. $ 319 $ 262 $ 581 $ 3 $ 209 $ 167 $ 376 $ 960 Development .................. 5 202 207 42 378 116 494 743 Proved property acquisitions -- 53 53 -- -- 10 10 63 ------------------------------------------------------------------------------------------------ Total Costs Incurred .............. $ 324 $ 517 $ 841 $ 45 $ 587 $ 293 $ 880 $ 1,766 ================================================================================================ Reserve Data (millions of BOE)) Discoveries/extensions ....... 45 45 6 87 16 103 154 Improved recovery ............ 5 5 2 1 1 2 9 Purchases .................... 15 15 -- -- -- -- 15 Subtotal .......................... 65 65 8 88 17 105 178 Revisions - price related .... (8) (8) (15) -- (3) (3) (26) Revisions - other ............ 6 6 (3) (12) 15 3 6 ------------------------------------------------------------------------------------------------ Total Changes ..................... 63 63 (10) 76 29 105 158 ================================================================================================ Finding & Development Costs Per BOE* Excluding price revisions .... $ 8.36 $14.20 $11.08 $ 7.70 $ 8.49 $ 7.94 $ 10.07 Excluding all revisions ...... $ 9.32 $15.83 $ 6.52 $ 6.65 $ 15.62 $ 8.18 $ 10.44 Including revisions .......... $ 9.73 $16.53 $ -- $ 7.70 $ 9.46 $ 8.19 $ 11.90 Finding, Development & Acquisition Costs Per BOE Excluding price revisions .... $ 7.26 $11.81 $11.08 $ 7.70 $ 8.80 $ 8.03 $ 9.56 Excluding all revisions ...... $ 7.89 $12.84 $ 6.52 $ 6.65 $ 16.19 $ 8.28 $ 9.88 Including revisions .......... $ 8.16 $13.27 $ -- $ 7.70 $ 9.81 $ 8.29 $ 11.12 * Excludes proved property acquisition costs and purchases volumes
4 DESIGNATION OF EXECUTIVE OFFICER William T. Wilson, the company's Vice President, Commodity Trading and Risk Management, and President of its Unocal Global Trade business unit, has been designated an executive officer of the company in accordance with Item 401(b) of Regulation S-K and other rules of the Securities and Exchange Commission. Mr. Wilson was named Vice President, Commodity Trading and Risk Managment, in September 1995, heading the newly formed Unocal Global Trade unit. In January 1999, the responsibility for pipelines and related midstram operations was consolidated into that unit. Mr. Wilson joined the company in March 1995 as General Manager of Risk Management. From 1990 to 1995, he was employed by British Petroleum, where he held various management positions in exploration and production. His last assignment with British Petroleum was Manager of North American Gas Marketing. Mr. Wilson is 44. 5 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: February 10, 1999 By: /s/ JOE D. CECIL - ------------------------ ------------------------------------ Joe D. Cecil Vice President and Comptroller 6 -----END PRIVACY-ENHANCED MESSAGE-----