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reserves. The Corporation maintains its own internal reserve estimates that are calculated by technical staff that
work directly with the oil and gas properties. The Corporation’s technical staff updates reserve estimates throughout
the year based on evaluations of new wells, performance reviews, new technical data and other studies. To provide
consistency throughout the Corporation, standard reserve estimation guidelines, definitions, reporting reviews and
approval practices are used. The internal reserve estimates are subject to internal technical audits and senior
management review.
On December 31, 2008, the Securities and Exchange Commission published a final rule which revises its oil
and gas reserve estimation and disclosure requirements. The revisions are effective for filings on Form 10-K for
fiscal year ending December 31, 2009. The Corporation is evaluating the impact of these requirements on its oil and
gas reserve estimates and disclosures.
The oil and gas reserve estimates reported below are determined independently by the consulting firm of
DeGolyer and MacNaughton (D&M) and are consistent with internal estimates. The Corporation provided D&M
with engineering, geological and geophysical data, actual production histories and other information necessary for
the reserve determination. The Corporation’s and D&M’s technical staffs met to review and discuss the information
provided. Senior management and the Board of Directors reviewed the final reserve estimates issued by D&M.
United
States Europe Africa
Asia and
Other Total
United
States Europe
Africa,
Asia and
Other Total
Crude Oil, Condensate and Natural Gas Liquids Natural Gas
(Millions of barrels) (Millions of mcf)
Net Proved Developed and Undeveloped
Reserves
At January 1, 2006 . . . . . . . . . . . . . . . 124 348 165 55 692(c) 282(d) 715 1,409 2,406
Revisions of previous estimates(a) . . . . 7 21 39 (3) 64 2 63 45 110
Extensions, discoveries and other
additions . . . . . . . . . . . . . . . . . . . . 45 11 6 2 64 32 11 168 211
Improved recovery . . . . . . . . . . . . . . . — — 4 — 4 — — — —
Purchases of minerals in place . . . . . . . — 2 121 — 123 — — 15 15
Sales of minerals in place . . . . . . . . . . (21) — — — (21) (37) — — (37)
Production . . . . . . . . . . . . . . . . . . . . . (17) (42) (31) (4) (94) (43) (112) (84) (239)
At December 31, 2006 . . . . . . . . . . . . 138 340 304 50 832(c) 236(d) 677 1,553 2,466
Revisions of previous estimates(a) . . . . 37 17 17 1 72 32 73 143 248
Extensions, discoveries and other
additions . . . . . . . . . . . . . . . . . . . . 17 14 6 23 60 26 11 148 185
Improved recovery . . . . . . . . . . . . . . . 22 — — — 22 13 — — 13
Purchases of minerals in place . . . . . . . 5 — — — 5 1 — — 1
Sales of minerals in place . . . . . . . . . . — (6) — — (6) — (4) — (4)
Production . . . . . . . . . . . . . . . . . . . . . (15) (36) (42) (7) (100) (38) (101) (102) (241)
At December 31, 2007 . . . . . . . . . . . . 204 329 285 67 885(c) 270(d) 656 1,742 2,668
Revisions of previous estimates(a) . . . . 9 30 83 25 147 22 84 188 294
Extensions, discoveries and other
additions . . . . . . . . . . . . . . . . . . . . 26 5 1 — 32 18 — 65 83
Improved recovery . . . . . . . . . . . . . . . 1——— 1— — — —
Purchases of minerals in place . . . . . . . 2——— 2— — — —
Sales of minerals in place . . . . . . . . . . ———— —— — — —
Production . . . . . . . . . . . . . . . . . . . . . (15) (32) (45) (5) (97) (34) (101) (137) (272)
At December 31, 2008(b) . . . . . . . . . . 227 332 324 87 970(c) 276(d) 639 1,858 2,773
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