Remington Oil and Gas Corporation Announces 2005 Capital Budget and Provides Operations Update
January 26 2005 - 8:00AM
PR Newswire (US)
Remington Oil and Gas Corporation Announces 2005 Capital Budget and
Provides Operations Update DALLAS, Jan. 26 /PRNewswire-FirstCall/
-- Remington Oil and Gas Corporation (NYSE:REM) announced a 2005
capital budget of $145 million and provided an update on the
Company's drilling and production operations. 2005 Capital Budget
Remington's Board of Directors has approved a capital budget of
$145 million for 2005, representing a 39% increase over its initial
2004 budget of $104 million. Success on exploratory projects will
likely increase 2005 capital spending to $200-$225 million. It is
expected that this level of expenditures will be within the
Company's available cash flow. Remington's approved budget includes
planned exploratory wells and known developments. The budget does
not include the costs associated with completions of new
exploratory successes. The 2005 program assumes drilling 24
offshore exploratory wells and 4 onshore exploratory wells for a
total investment of $79 million. Twelve of the 24 offshore
exploratory wells are anticipated to drill to depths below 15,000
feet. Development capital of $41 million will allow for platform
and pipeline installations on recent discoveries, along with
development drilling on existing fields. Four to five rigs are
anticipated to operate continuously during the year. The remaining
$25 million will be used for seismic acquisitions, workovers, and
lease acquisitions. Drilling Program Listed in the table below are
wells recently drilled, currently drilling or completing, along
with wells that are scheduled to be drilled in the near term.
Prospect Category W.I.% Status/Spud Date Operator Offshore East
Cameron Plugged 346 A-12 Exploratory 60 and abandoned Remington
Vermilion Plugged 187 #1 Exploratory 60 and abandoned Remington
South Timbalier 138 #1 Exploratory 50 Testing Remington East
Cameron Discovery-tested 140 #1 Exploratory 60 10 MMCF/D Remington
East Cameron 140 #2 Exploratory 60 Drilling @ 5,000' Remington East
Cameron Discovery-tested 235 #1 Exploratory 60 10 MMCF/D Remington
East Cameron Multiple wells- 346 Development 75 Drilling Remington
East Cameron 185 A-4 Development 58 February Remington West Cameron
147 #1 Exploratory 75 February Remington South Pass 87-Aquarius
Exploratory 50 March Marathon The Company's East Cameron Block 346
A-12 exploratory well was unsuccessful in the deep objectives and
has been plugged back above 10,000 feet for completion in shallower
objectives. We estimate a net dry hole cost of $ 2.7 MM will be
expensed in the fourth quarter of 2004. Exploitation drilling for
existing field pays in attic structural positions is currently in
progress. These targets will be accessed using existing wellbores.
Remington operates East Cameron 346 and owns a 75% working
interest. An unsuccessful exploratory well was drilled on Vermilion
Block 187. This well was drilled to 13,670 feet and has been
plugged and abandoned. We estimate a net dry hole cost for this
well at $ 1.7 MM. Remington owns a 60% working interest in
Vermilion Block 187. Remington has made a new gas discovery at East
Cameron Block 140. The #1 well was drilled to 7,423 feet and a
single pay sand. This well has been completed and flow tested at a
rate of 10.7 million cubic feet of gas per day. We are currently
drilling an additional exploratory well to different geologic
objectives. We expect this well to be evaluated by mid-February.
Remington operates East Cameron Block 140 and owns a 60% working
interest. The Company has made a new oil and gas discovery at East
Cameron 235 #1. This well has been drilled to 10,900 feet and has
tested at a rate of 10.6 MMCFE and is awaiting platform and
pipeline installation. First production is expected by the end of
the first quarter 2005. Remington operates and owns a 60% working
interest in East Cameron Block 235. At the South Timbalier 138 #1,
we have drilled to 20,200 feet and are currently testing potential
pay intervals above 19,000 feet. Remington operates and owns a 50%
working interest in South Timbalier 138 #1. Additional wells to be
drilled in the near term include two high risk, high potential,
deep shelf exploratory wells located at West Cameron 147 #1 and
South Pass Block 87 Aquarius Prospect. Both wells are expected to
begin drilling in the first quarter. Production Update Remington's
fourth quarter 2004 production averaged approximately 113 million
cubic feet of gas equivalents per day compared to an average 111
MMCFE/D for the third quarter 2004. The Company's annual production
totaled 38.1 BCFE representing a 9.5 percent increase over 2003
volumes. The Company currently has four development projects
scheduled to come online over the next four months. The Company's
goals for 2005 are to increase production volumes and reserves
between 10% and 15% over 2004 levels. Remington anticipates
publishing year-end 2004 reserves in late February. At that time
guidance will be provided on 2005 production volumes, DD&A
rates per Mcfe and cash costs per Mcfe. Remington Oil and Gas
Corporation is an independent oil and gas exploration and
production company headquartered in Dallas, Texas, with operations
concentrating in the onshore and offshore regions of the Gulf
Coast. Statements concerning future revenues and expenses,
production volumes, results of exploration, exploitation,
development, acquisition and operations expenditures, and
prospective reserve levels of prospects or wells are
forward-looking statements. Prospect size and reserve levels are
often referred to as "potential" or "un-risked" reserves and are
based on the Company's internal estimates from the volumetric
calculations or analogous production. Other forward-looking
statements are based on assumptions concerning commodity prices,
drilling results, recovery factors for wells, production rates, and
operating, administrative and interest costs that management
believes are reasonable based on currently available information;
however, management's assumptions and the Company's future
performance are subject to a wide range of business, mechanical,
political, environmental, and geologic risks. There is no assurance
that these goals, projections, costs, expenses, reserve levels, and
production volumes can or will be met. Further information is
available in the Company's filings with the Securities and Exchange
Commission, which are herein incorporated by this reference.
Information in this document should be reviewed in combination with
the Company's filings with the Securities and Exchange Commission
and information available on the Company's website at
http://www.remoil.net/ . Contact: Steven J. Craig Sr. Vice
President (214) 210-2675 DATASOURCE: Remington Oil and Gas
Corporation CONTACT: Steven J. Craig, Sr. Vice President of
Remington Oil and Gas Corporation, +1-214-210-2675 Web site:
http://www.remoil.net/
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