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CNOOC total net production in 2009 hits 227 million barrels

|Includes: CNOOC Limited (CEO)

China focused oil and gas goliath CNOOC (NYSE: CEO, HKG:0883) reported an impressive 17% increase net production for the 12 month period ended 31 December 2009 (“FY 2009”).

Total net production climbed to 227.7 million barrels of oil equivalent (“boe”), largely thanks to CNOOC’s focus on exploring and developing new oil fields offshore China.  During 2009, the company brought 11 new fields online, and spend US$1.07 billion on exploration, US$4.16 billion on development and just under US$1 billion on production.

Average realized oil price per barrel in 2009 fell approximately 32% to $60.61, while the average realized gas price rose 4.6% to US$4.01 per mcf (thousand cubic feet), which compared favourably to the company’s  “all-in cost” of US$22.08 per barrel.

 Realized oil and gas sales hit 83.91 billion RMB (US$12.3 billion) and net profits came in at 29.49 billion RMB (US$4.3 billion). Earnings per share (NYSEARCA:EPS) in 2009 were 0.66 RMB ($0.095) and the company is proposing a yearend dividend of HK$0.20 per share bringing the total full year dividend to HK$0.40 per share.

“We have achieved 15 independent discoveries and successfully appraised 11 oil and gas structures in offshore China, including quite a few independent discoveries in adjacent area around Shijiutuo uplift and Liaodong Bay in Bohai area, which are anticipated to become a new base for our reserve growth,” CNOOC stated.

In 2009, the Company's reserve replace was 163%, ahead of management expectations.

"The Company's outstanding operating and management capability enabled us to again meet our production target set at the beginning of the year. I am gratified of all the accomplishments and even more confident in achieving our production target in 2010,” Yang Hua, President and CFO of CNOOC added.

Disclosure: no position