Hess 2014 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2014 Hess annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

10 10
(b) The average selling prices in Norway for 2014 were $105.35 per barrel for crude oil (including hedging), $100.34 per barrel for crude oil (excluding
hedging), $52.13 per barrel for natural gas liquids and $12.22 per mcf for natural gas. The average selling prices in Norway for 2013 were
$110.25 per barrel for crude oil (including hedging), $109.41 per barrel for crude oil (excluding hedging), $57.87 per barrel for natural gas liquids and
$13.50 per mcf for natural gas. The average selling prices in Norway for 2012 were $109.23 per barrel for crude oil (including hedging), $113.08 per
barrel for crude oil (excluding hedging), $58.48 per barrel for natural gas liquids and $12.21 per mcf for natural gas. The average production (lifting)
costs in Norway were $33.76 per barrel of oil equivalent produced in 2014, $44.69 per barrel of oil equivalent produced in 2013 and $62.38 per barrel
of oil equivalent produced in 2012, reflecting a shutdown of production from July 2012 through the end of 2012.
(c) Production (lifting) costs consist of amounts incurred to operate and maintain the Corporation’s producing oil and gas wells, related equipment and
facilities, transportation costs and production and severance taxes. The average production costs per barrel of oil equivalent reflect the crude oil
equivalent of natural gas production converted on the basis of relative energy content (six mcf equals one barrel).
The table above does not include costs of finding and developing proved oil and gas reserves, or the costs of related
general and administrative expenses, interest expense and income taxes.
Gross and net undeveloped acreage at December 31, 2014
Undeveloped
Acreage (a)
Gross Net
(In thousands)
United States ........................................................................................................... 1,217 828
Europe ...................................................................................................................... 528 424
Africa ...................................................................................................................... 6,433 3,321
Asia and other ......................................................................................................... 16,655 7,378
Total (b) ................................................................................................................ 24,833 11,951
(a) Includes acreage held under production sharing contracts.
(b) Licenses covering approximately 67% of the Corporation’s net undeveloped acreage held at December 31, 2014 are scheduled to expire during the next
three years pending the results of exploration activities. These scheduled expirations are largely in Australia and Africa.
Gross and net developed acreage and productive wells at December 31, 2014
Developed Acreage
Applicable to Productive Wells (a)
Productive Wells Oil Gas
Gross Net Gross Net Gross Net
(In thousands)
United States .................................................
.
1,265 816 2,454 1,088 123 59
Europe (b) .....................................................
.
102 59 71 44 ——
Africa ............................................................
.
9,832 933 836 130 ——
Asia and other ..............................................
.
258 129 ——
90 45
Total ........................................................... 11,457 1,937 3,361 1,262 213 104
(a) Includes multiple completion wells (wells producing from different formations in the same bore hole) totaling 129 gross wells and 81 net wells.
(b) Gross and net developed acreage in Norway was approximately 57 thousand and 36 thousand, respectively. Gross and net productive oil wells in
Norway were 53 and 33, respectively.