Remington Oil and Gas Corporation Updates 2nd Quarter Operational Activities
28 Juillet 2004 - 3:01PM
PR Newswire (US)
Remington Oil and Gas Corporation Updates 2nd Quarter Operational
Activities DALLAS, July 28 /PRNewswire-FirstCall/ -- Remington Oil
and Gas Corporation (NYSE:REM) today provided an update on the
company's recent operational activities. Drilling Program Listed in
the table below are wells 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 West
Cameron 383#1 Exploratory 50 Discovery -- Tested Remington 6.7
Mmcfe/D West Cameron 457 #2 Exploratory 60 Discovery -- Tested
Remington 7 Mmcfe/D Vermilion 64 #1 Exploratory 50 Discovery --
Tested Remington 12 Mmcfe/D S. Marsh Island 24 #2 Development 45
Completing Remington West Cameron 170 D-1St Development 100
Drilling @ 17,000' Remington West Cameron 170 #8 Exploratory 99
Drilling @ 9,800' Remington West Cameron 458 D-3 Development 60
Drilling @ 2,300' Remington East Cameron 282 #1 Exploratory 50
Drilling @ 1,100' Remington East Cameron 364 A-3 Exploratory 75
August Remington South Timbalier 138 #1 Exploratory 50 August
Remington East Cameron 364 #3 Exploratory 75 August Remington
Remington has made a new field discovery at West Cameron 383 #1.
This exploratory well was drilled to 5,745 feet and tested 6.7
Mmcfe/day. Production is expected to commence in the third quarter
of 2004. Remington operates West Cameron 383 #1 and owns a 50%
working interest. Magnum Hunter Resources (NYSE:MHR) and Forest Oil
Corporation (NYSE:FST) each own a 25% working interest. At the
Company's West Cameron Block 457/458 project area, operations on
the 457 #2 (D-2) exploratory well have been concluded. This well
was drilled to 12,830 feet and has been flow tested at 7 million
cubic feet of gas per day. This well is expected to begin producing
by the end of July. The D-2 well is the third successful well
drilled in the 457/458 project area. Two wells, the D-1 and the 457
subsea #1, commenced production at a combined rate of 14 Mmcfe per
day this month. Drilling has commenced on the D-3 well with the
drilling of the D-4 well to follow. Remington operates West Cameron
458 Field and owns a 60% working interest. Magnum Hunter Resources
owns the remaining 40% working interest. The Company's Vermilion 64
#1 exploratory well was drilled to 9,590 feet and discovered oil
and gas pay in a single sand package. This well has been flow
tested at a rate of 10 million cubic feet of gas and 350 barrels of
condensate per day. A caisson structure has been installed over the
well and is currently awaiting platform and pipeline installation.
First production is expected in the fourth quarter of 2004.
Remington owns a 50% working interest. Magnum Hunter Resources and
Forest Oil Corporation each own a 25% working interest. The Company
is currently drilling a high risk, high potential deep shelf
exploratory well at West Cameron 170 #8 and a moderate risk
exploratory well at East Cameron 282 #1. Near term drilling
includes two low risk exploratory wells at East Cameron 364 and a
high risk, high potential deep shelf well at South Timbalier 138.
To date in 2004, we have drilled 12 exploratory wells, with 9
successful, for a 75% success rate. Overall we have drilled 16
wells, with 12 successful, for a 75% success rate. Production
Update Remington has recently commenced production from two new
offshore production platforms located at West Cameron Block 398 and
West Cameron Block 458. Both West Cameron 398 and 458 were
scheduled for first production in the second quarter, however,
significant delays were encountered during pipeline installations
resulting in first production in July. The company has recently
initiated production operations at Vermilion 241 and is currently
installing the export pipeline at East Cameron 205. Both projects
are expected at full producing rates by the end of July. Current
developments that are scheduled to begin production during the
third quarter include West Cameron Block 170 D-1St, West Cameron
383, West Cameron 458, and South Marsh Island 24 A-3. Additional
volumes are scheduled for the fourth quarter from two wells at
South Marsh Island 113 and the recent discovery at Vermilion 64.
Production for the second quarter of 2004 averaged 104 million
cubic feet of gas equivalents per day. The Company's current net
daily production is approximately 120 million cubic feet of gas
equivalents per day. Remington currently has six development
projects underway that are scheduled to commence production over
the next two quarters. Estimated production from these six
developments in conjunction with our existing production base is
projected to yield volumes between 22 and 23 billion cubic feet of
gas equivalents for the second half of 2004. Estimates for the next
two quarters of 2004 are 15% to 20% above the same two quarters in
2003, when we produced 19.2 billion cubic feet of gas equivalents.
These volumes are consistent with our targeted 15% increase in
production volumes for 2004 over 2003 levels. James A. Watt,
Chairman and Chief Executive Officer, stated, "During the first
half of 2004 our drilling operations were concentrated on
development projects and lower risk exploration plays in an effort
to achieve a targeted 15% growth in production for the year. In the
second half of the year we will drill several higher potential,
higher risk exploratory prospects." 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/ . 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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