Company Valuation Under IFRS : Interpreting and Forecasting ...

Chapter Six – The awkward squad
2. Exxon oil and gas reserves
Year 2001 2002 2003 2004 2005 2006 2007 2008
Oil reserves (million barrels)
Opening 11,561 11,491 11,823
Revisions 264 355 375
Purchases 0 0 1
Sales (9) (13) (16)
Improved recovery 121 94 111
Extensions and discoveries 453 777 674
Production (899) (881) (893)
Closing 11,491 11,823 12,075
Of which developed 7,212 7,200 7,172
Of which undeveloped 4,279 4,623 4,903
Gas reserves (billion cubic feet)
Opening 55,866 55,946 55,718
Revisions 836 1,447 1,462
Purchases 1 2 10
Sales (69) (43) (120)
Improved recovery 39 4 25
Extensions and discoveries 3,431 2,597 1,719
Production (4,158) (4,235) (4,045)
Closing 55,946 55,718 54,769
Of which developed 36,022 34,743 36,234
Of which undeveloped 19,924 20,975 18,535
Oil equivalent reserves (mmboe)
Opening 20,872 20,815 21,109 21,203 21,415 21,629 21,846 22,064
Revisions 403 596 619 655 662 669 675 682
Purchases 0 0 3 0 0 0 0 0
Sales (21) (20) (36) 0 0 0 0 0
Improved recovery 128 95 115 122 123 124 126 127
Extensions and discoveries 1,025 1,210 961 1,017 1,028 1,038 1,048 1,059
Production (1,592) (1,587) (1,567) (1,583) (1,599) (1,615) (1,631) (1,647)
Closing 20,815 21,109 21,203 21,415 21,629 21,846 22,064 22,285
Of which developed 13,216 12,991 13,211 13,343 13,477 13,611 13,747 13,885
Of which undeveloped 7,600 8,119 7,992 8,072 8,153 8,234 8,317 8,400
Developed percentage 63% 62% 62% 62% 62% 62% 62% 62%
3. Exxon upstream performance
Year 2001 2002 2003 2004 2005 2006 2007 2008
Reserve replacement
Production volume growth (0%) (1%) 1% 1% 1% 1% 1%
Reserve replacement ratio 100% 101% 100% 101% 101% 101% 101% 101%
Finding cost per barrel 1.00 0.61 0.70 1.00 1.00 1.00 1.00 1.00
Development cost per barrel 5.73 5.27 6.50 6.50 6.50 6.50 6.50
Opening reserve/production ratio 13.1 13.1 13.5 13.4 13.4 13.4 13.4 13.4
Per barrel numbers
Revenue 20.00 19.12 24.66 35.00 30.00 30.00 30.00 30.00
Production costs 3.27 3.44 3.97 4.37 4.82 5.31 5.85 6.45
Depreciation and depletion 3.13 3.42 3.68 4.53 4.79 5.01 5.20 5.37
Taxes other than income 1.91 1.75 2.50 3.54 3.04 3.04 3.04 3.04
Taxes other than income/revenue 10% 9% 10% 10% 10% 10% 10% 10%
Capitalised costs per developed barrel 3.38 3.83 4.53 4.79 5.01 5.20 5.37 5.51
Depletion/opening capitalised costs 101% 96% 100% 100% 100% 100% 100%
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