Freeport-McMoRan 2013 Annual Report Download - page 21

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OIL & GAS RESERVES
FCX’s oil and gas operations have significant proved, probable and possible reserves
(3P reserves) with financially attractive organic growth opportunities. All of FCX’s oil and
natural gas reserves are located in the United States. At December 31, 2013, FCX’s 3P reserves
totaled 861 MMBOE, including 464 MMBOE of proved, 184 MMBOE of probable and
213 MMBOE of possible. Approximately 80 percent of these 3P reserves are associated with
oil and natural gas liquids.
Proved reserves represent quantities of oil and natural gas, which, by analysis of geoscience
and engineering data, can be estimated with reasonable certainty to be economically
producible from a given date forward, from known reservoirs, and under existing economic
conditions, operating methods and government regulations. Probable reserves are those
additional reserves that are less certain to be recovered than proved reserves, but which,
together with proved reserves, are as likely as not to be recovered. Possible reserves are those
additional reserves that are less certain to be recovered than probable reserves. FCX’s year-
end 2013 3P reserves were based on reference prices of $96.94 per barrel for crude oil and
$3.67 per million British thermal units (MMBtu) for natural gas.
RESERVES
PROVED, PROBABLE AND
POSSIBLE OIL & GAS RESERVES
861 MMBOE 54% Proved
21% Probable
2 5% Possible
Photos: (Left) Copper-bearing mineral sample from our TFM project,
(Right) Drill pipe on a platform in the shallow waters of the Gulf of Mexico
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