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Remington Oil and Gas Corporation Announces Two New Gulf Of Mexico Discoveries.

DALLAS, July 10 /PRNewswire/ --

Drilling Update

Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced today two new operated discoveries at South Marsh Island 93 and East Cameron 184.

At South Marsh Island Block 93, located approximately 140 miles southwest of New Orleans in 153' of water, wireline logs and sidewall core analysis indicate 80 feet of apparent oil and gas pay in two sand packages. Production casing has been set, and a caisson structure is currently being installed. After this well is completed and flow tested, additional drilling is expected to immediately follow in order to properly locate and size the production facilities for this new field discovery. Remington operates and owns 57.5% working interest in this well. Magnum Hunter Resources, Inc. (Amex: MHR) (30%) and Wiser Oil Co. (NYSE: WZR) (12.5%) own the remaining interests.

Exploratory drilling continues toward a 12,524' total depth at the company's East Cameron 184 #1 well. An intermediate wireline log run with sidewall cores has identified over 200' of apparent gas pay in three sand units. Once the well has been drilled to total depth, a caisson structure will be installed with follow-up drilling expected in the late 3rd quarter of 2001. East Cameron Block 184 is located 161 miles southwest of New Orleans in 90' of water. Remington operates and owns 57.5% working interest in this well. Magnum Hunter Resources, Inc. (Amex: MHR) (30%) and Wiser Oil Co. (NYSE: WZR) (12.5%) own the remaining interests.

In addition to the above activity, the company is currently drilling an exploratory well at South Timbalier Block 214 with a 33% working interest and completing a well at East Cameron Block 345 with a 37.5% working interest. At West Cameron 170 the company is participating with a 20% working interest in the drilling of the A-7 development well that is expected to commence the week of July 16th. Scheduled to follow the A-7 well is the drilling of the #5 exploratory well, where Remington will have a 42% working interest. Remington is participating in all three projects as a non-operator.

Production and Reserves

Including these two new discoveries, the company now has eight development projects ongoing offshore, five of which are operated. Production from South Marsh Island 93 and East Cameron 184 is anticipated early in 2002. Production volumes in 2002 as a result of all of these developments are anticipated to be over 20% above 2001 production levels.

During the first half of 2001 Remington has participated in the drilling of 19 wells with 15 of these being successful. Reserves found in the new wells, on an unaudited basis, are estimated to be in excess of the 28 Bcfe of reserves expected to be produced for the year. Based on new discoveries so far this year, the company's reserve mix at mid-year is approximately 55% natural gas and 45% oil. At the beginning of 2002 we were 60% natural gas and 40% oil. The company plans to keep two operated rigs drilling new offshore prospects for the remainder of the year. In most of these drilling projects the company will participate with a 50-60% working interest.

A new, 8000 meter, long offset 3-D seismic survey at the company's South Pass 89 complex (blocks 86, 87 and 89) is being acquired to detail a high potential prospect (Aquarius) below 20,000 feet and better define the remaining exploitation potential of South Pass 89. Drilling on the Aquarius prospect is expected to commence late in the fourth quarter. Exploitation on South Pass 89 should commence in 2002 after interpretation of the new data.

Shares Issued to Phillips Petroleum Company

Remington issued approximately 1.2 million shares to Phillips Petroleum as part of the settlement of long-standing litigation between the companies. To date Remington has purchased 300,000 shares from Phillips and Phillips has sold 34,000 shares in the open market. As per the agreement Phillips can put shares to Remington as long as the stock trades below $17.867 per share. This put is limited to 100,000 shares per week. If the share price remains below $17.867 per share, we anticipate purchasing all the remaining outstanding shares issued to Phillips in the third quarter using cash and available bank lines. The purchase of shares from Phillips and the recent decline in natural gas prices do not affect the company's planned $90 million capital budget for 2001.

James A. Watt, President and Chief Executive Officer of the company, stated, "Our exploration model continues to work focusing on high-potential, 3-D defined Gulf of Mexico shelf projects. With our inventory of over 60 drillable gulf coast prospects with over 1 Tcf of unrisked reserve exposure, we are confident we can continue adding significant value for our shareholders through the drillbit. Our approximately 55%/45% mix of gas and oil reserves provides a natural price hedge for price fluctuations in either commodity."

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, results of exploration, exploitation, development and acquisition expenditures, and reserve levels are forward-looking statements. These statements are based on assumptions concerning commodity prices, drilling results and production, 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 risks, and there is no assurance that these goals and projections can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by this reference.

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Publication:PR Newswire
Geographic Code:1USA
Date:Jul 10, 2001
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