ConocoPhillips (COP) said it added about 738 million barrels of oil equivalent to its proved reserves in 2011, allowing the oil giant to more than replace oil reserves lost from production.

"Replacing our 2011 production with new reserves reflects the success of our strategic focus on organic growth," said Chief Executive Jim Mulva.

The reserve replacement ratio is expected to be 112% of last year's production.

Reserves were added throughout the company's portfolio, including addition from its Canadian oil sands projects, expansion work in the North Sea and growth in U.S. shale assets.

Acquisitions and dispositions are expected to reduce reserves by 45 million equivalent barrels, primarily from the dilution of the company's interest in an Australia Pacific liquefied natural gas project and sale of North American natural gas assets.

The Houston-based company, which has large refineries in the nation's interior, last month boosted its 2012 capital program to $15.5 billion, higher than previously projected, in a sign of the company's confidence oil prices will remain high and that its restructuring plan is advancing on schedule.

Conoco is in the midst of a three-year repositioning aimed at shoring up finances and making itself more attractive to investors. The plan includes the sale of $15 billion to $20 billion in assets, large-scale share buybacks and the spin off of its refining arm, expected to be completed this year.

In October, the company said its third-quarter earnings dropped, mainly due to charges related to asset-sale losses. Excluding those items, high oil prices and refining margins made the company's profits soar above Wall Street expectations.

Shares were down 0.9% at $70.55 premarket. As of Friday's close, the stock was down 5.4% over the past six months.
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