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EXHIBIT 99.3
TUESDAY, FEBRUARY 10, 1998 CONTACT: JEANNE BUCHANAN
(713) 653-5095
UMC INCREASES RESERVES 36 PERCENT,
REPLACES 366 PERCENT OF PRODUCTION
Houston, TX -- United Meridian Corporation today announced that proved energy
reserves at year-end 1997 reached a record 162 million barrels of oil
equivalent (MMBOE), 36% greater than the 120 MMBOE reported at year-end 1996.
After record production volumes of 55 billion cubic feet (BCF) of gas and 8
million barrels of oil, gas reserves totaled 560 BCF and crude oil reserves
totaled 69 million barrels compared to year-end 1996 totals of 451 BCF and 45
million barrels. Proved oil reserves accounted for 42 percent of UMC's total
proved reserves compared to 37 percent at year-end 1996, a significant step
toward achieving the company's goal of more balanced production and reserves.
During 1997, the company replaced 366 percent of total production with
additions to proved reserves, marking the eighth straight year the company has
more than replaced its oil and gas production. UMC achieved this at an
all-sources finding cost of $5.47 per barrel of oil equivalent (including
additions, revisions of prior reserve estimates, and acquisitions).
UMC's North American activities accounted for 58 percent of the company's total
reserves and West Africa contributed the balance. On the continued success of
the company's drilling program on Block B in Equatorial Guinea, UMC doubled
proved oil reserves in the country, booking 40 million barrels (net).
"Proved reserves are at the highest level in the company's history, driven by
our most active annual drilling program to date," said chairman and chief
executive officer John B. Brock. "We drilled 337 wells in 1997 and had an 84%
success rate compared to 169 wells drilled in 1996 and a success rate of 80%.
We expect 1998 to be another record-breaking year as we complete the merger
with Ocean Energy and drill many of the high-impact prospects in our respective
exploration inventories."
United Meridian Corporation is a Houston-based independent energy company
engaged in the exploration, exploitation and acquisition of natural gas and
crude oil properties in the United States and Canada. Internationally, the
company has exploration and development activities in West Africa's Cote
d'Ivoire and Equatorial Guinea, and was recently awarded a block offshore
Angola. UMC also has exploration programs underway in Pakistan and Bangladesh.
The company's common stock is traded on the New York Stock Exchange under the
symbol UMC.
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UNITED MERIDIAN CORPORATION
DECEMBER 31, 1997
PROVED RESERVE RECONCILIATION
UNITED IVORY EQUATORIAL
STATES CANADA COAST GUINEA TOTAL
---------- ---------- ---------- ---------- ----------
NATURAL GAS (MMCF)
- ------------------------------------
December 31, 1996 297,532 62,781 90,410 0 450,723
Revisions of Previous Estimates 5,716 533 14,174 0 20,423
Additions 35,687 17,775 3,370 0 56,832
Improved Recoveries 0 3,327 0 0 3,327
Production (42,238) (7,630) (4,939) 0 (54,807)
Purchases of Reserves In-Place 41,876 21,377 33,275 0 96,528
Sales of Reserves In-Place (12,474) (301) 0 0 (12,775)
---------- ---------- ---------- ---------- ----------
December 31, 1997 326,099 97,862 136,290 0 560,251
========== ========== ========== ========== ==========
CRUDE OIL (MBBLS)
- ------------------------------------
December 31, 1996 16,941 3,499 4,150 19,940 44,530
Revisions of Previous Estimates (780) 192 854 441 707
Additions 2,950 156 218 24,086 27,410
Improved Recoveries 0 25 0 0 25
Production (2,214) (439) (1,027) (4,453) (8,133)
Purchases of Reserves In-Place 4,436 45 1,062 0 5,543
Sales of Reserves In-Place (1,167) (95) 0 0 (1,262)
---------- ---------- ---------- ---------- ----------
December 31, 1997 20,166 3,383 5,257 40,014 68,820
========== ========== ========== ========== ==========
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UNITED MERIDIAN CORPORATION
DECEMBER 31, 1997
PROVED RESERVE RECONCILIATION
UNITED IVORY EQUATORIAL
STATES CANADA COAST GUINEA TOTAL
---------- ---------- ---------- ---------- ----------
TOTAL MBOE
- ------------------------------------
December 31, 1996 66,530 13,963 19,218 19,940 119,651
Revisions of Previous Estimates 173 281 3,216 441 4,111
Additions 8,898 3,119 780 24,086 36,883
Improved Recoveries 0 580 0 0 580
Production (9,254) (1,711) (1,850) (4,453) (17,268)
Purchases of Reserves In-Place 11,415 3,608 6,608 0 21,631
Sales of Reserves In-Place (3,246) (145) 0 0 (3,391)
---------- ---------- ---------- ---------- ----------
December 31, 1997 74,516 19,695 27,972 40,014 162,197
========== ========== ========== ========== ==========
1997 Capital Expenditures $ 154,165 $ 27,832 $ 56,931 $ 127,074 $370,096 (1)
Less:
LPG Plant -- -- (17,229) -- (17,229)
Corporate Items (6,816) (284) -- -- (7,100)
---------- ---------- ---------- ---------- ----------
1997 Drill Bit & Acq Capital 147,349 27,548 39,702 127,074 345,767 (1)
1997 Drill Bit Capital 94,287 17,994 39,702 127,074 283,151 (1)
1997 Acquisition Costs 53,062 9,554 -- -- 62,616
All Sources Finding Costs ($/BOE) $ 7.19 $ 3.63 $ 3.74 $ 5.18 $ 5.47
Finding Costs with Drill Bit ($/BOE) $ 10.39 $ 4.52 $ 9.94 $ 5.18 $ 6.81
Acquisition Costs ($/BOE) $ 4.65 $ 2.65 -- -- $ 2.89
(1) Total Company includes $4,094 of Other International Capital Expenditures.