Burlington Resources Announces Preliminary 2002 Reserve Replacement of 160 Percent at Average Cost of $1.08 Per Mcfe.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Jan. 14, 2003

Burlington Resources (NYSE:BR)(TSX:B) today announced that it expects to post reserve replacement of 160 percent of worldwide production from all sources during 2002. The reserve replacement cost is expected to average $1.08 per thousand cubic feet of natural gas equivalent (Mcfe). Excluding acquisitions, the company estimates that it replaced 102 percent of its 2002 production at an average finding and development cost of $1.07 per Mcfe. Final averages will be disclosed in the January 23 earnings announcement.

"We are very pleased with our favorable cost and reserve replacement performance for the year, given the industry trends toward higher costs and lower replacement rates," said Randy Limbacher, executive vice president and chief operating officer. "These are further indications that our repositioning of Burlington's asset base is succeeding, as our returns-based investment strategy results in improving capital efficiency."

Worldwide reserve additions during 2002 were estimated at 963 billion cubic feet of natural gas equivalent (Bcfe) from extensions, discoveries, additions and revisions, with significant additions from drilling and development in the San Juan Basin of the U.S. and in Canada. Acquisitions added an estimated 549 Bcfe of reserves, the majority located in Canada, the Fort Worth Basin in the U.S., and Ecuador. Burlington also sold 965 Bcfe of reserves through its 2002 property sales program. At year-end 2002, estimated total reserves stood at 11.4 trillion cubic feet of natural gas equivalent (Tcfe), down from 11.8 Tcfe the year before as a result of the property sales.

From 2000 through 2002, the company estimates that it replaced an average of 176 percent of worldwide production at an average reserve replacement cost of $1.18 per Mcfe, including acquisitions. Excluding acquisitions, Burlington estimates that it replaced approximately 100 percent of worldwide production during this period at an average finding and development cost of $1.11 per Mcfe.

Earnings Conference Call

Burlington will provide additional detail when it Webcasts its fourth-quarter and full-year 2002 earnings and operational review conference call on Thursday, Jan. 23, 2003 at 10 a.m. Central time, following issuance of its earnings statement earlier that morning.

The live Webcast can be accessed on the Investor Relations section of Burlington's Web site (www.br-inc.com). A replay of the conference call will be available from 1:30 p.m. Central time on January 23 through midnight Feb. 7, 2003 at the Investor Relations section of Burlington's Web site.

Headquartered in Houston, Texas, Burlington Resources is one of the world's largest independent oil and gas companies. The company has properties in the U.S., Canada, the United Kingdom, South America, Africa and China. Additional information is available on the Burlington Resources Web site at www.br-inc.com.

Forward-Looking Statements 

This press release may contain projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any such projections or statements reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ materially from those projected is included in the company's periodic reports filed with the Securities and Exchange Commission.