Conoco Replaces 432 Percent of Production in 2001.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Feb. 7, 2002

Conoco (NYSE:COC) and its equity affiliates added more than 1.2 billion barrels of oil equivalent (BOE), including syncrude, to the company's worldwide proved reserves in 2001, replacing 432 percent of the oil and natural gas the company produced during the year.

The company's 2001 year-end proved reserves increased to 3.58 billion BOE, including syncrude, up 35 percent from year-end 2000. International proved reserves -- which represent approximately 83 percent of Conoco's worldwide reserves -- were up 45 percent to 2.98 billion BOE.

Conoco's 2001 reserve additions largely came from the company's acquisition of Gulf Canada Resources Limited. Significant reserves were also added in the U.K., the U.S., Vietnam and Indonesia.

Conoco replaced 113 percent of production, excluding the reserves bought with the Gulf Canada acquisition and other acquisitions throughout the year, and the reserves sold as part of a disposition program designed to upgrade the company's portfolio and generate cash for debt repayment.

"These additions are the result of an outstanding exploration and business development program over the past few years, in combination with a disciplined and focused approach to acquisitions and dispositions in order to maximize the value of our portfolio," said Archie Dunham, Conoco's chairman and chief executive officer.

"Between 1997 and 2001, Conoco replaced an average of 246 percent of production, which is among the best in the industry," Dunham added.

"Conoco's 2001 production of 281 million BOE, which includes six months production from the former Gulf Canada, reflects a 17 percent increase over 2000. Natural gas production was up 19 percent, reaching 123.5 million BOE (741 billion cubic feet of natural gas), reflecting an ongoing effort to increase the percentage of natural gas in our production portfolio. Natural gas production rose from 35 percent of total production in 1997 to 44 percent in 2001," Dunham said.

"2001 yielded, for the fourth consecutive year, outstanding exploration results," said Rob McKee, Conoco's executive vice president of worldwide exploration and production. "Overall, we achieved a 37 percent exploration success rate on Conoco legacy assets. Seven out of 19 exploratory wells drilled during the year resulted in discoveries, one of which -- Sutu Vang in Vietnam -- is potentially significant with more than 100 MMBOE potential," McKee said.

"Our appraisal program in 2001 yielded a 100 percent success rate on Conoco legacy assets, and as a result we were able to sanction two fields last year -- the deepwater Gulf of Mexico Magnolia field and the Sutu Den field offshore Vietnam," added McKee.

In the North Sea, Conoco made five successful "snuggle" discoveries. "We have been very successful in the pursuit of prospects close to existing processing and transportation facilities," continued McKee. "In 2002, we will continue to maintain an active 'snuggle' exploration program with high value prospects being drilled in the U.K., Norway, the Netherlands, Western Canada, San Juan Basin and Indonesia."

Conoco has an exploration and appraisal program of more than 40 wells planned for 2002 at an estimated cost of $500 million in the deepwater Gulf of Mexico, Norway, the U.K., Vietnam, Malaysia, Indonesia, Nigeria, Venezuela, the Netherlands and Canada.

Conoco is a major, integrated energy company active in more than 40 countries.

Forward-Looking Statement Disclaimer -- This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 relating to the company's operations and business plans. These statements are based on management's current expectations, estimates and projections, are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those described in the forward-looking statements include without limitation changes in crude oil and natural gas prices; unsuccessful exploratory and development drilling; failure to achieve expected reserve or production levels for existing and future projects due to operating hazards, drilling risks, and the inherent engineering uncertainties in estimating oil and gas reserves; disruption of the Company's operations due to accidents or political events; general domestic and international economic and political conditions, and other factors discussed in Conoco's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended 2000, especially in the Management's Discussion and Analysis section, its most recent Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. Conoco is under no obligation to (and expressly disclaim any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Syncrude proved reserves are distinguished from proved oil and gas reserves because SEC regulations define syncrude as mining-related and not part of conventional oil and natural gas reserves. We use certain terms in this release, such as "...potentially significant with more than 100 MMBOE potential..." that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, File No. 1-14521, available from us at 600 N. Dairy Ashford, Houston, Texas 77079. You can also obtain this form from the SEC by calling 1-800-SEC-0330.