Remington Oil and Gas Announces Financial Results for the Three and Six Months Ended June 30, 2004 DALLAS, July 28 /PRNewswire-FirstCall/ -- Remington Oil and Gas Corporation (NYSE:REM) announced financial results for the three and six months ended June 30, 2004. Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 Total revenues $58,384 $46,003 $104,545 $88,340 Net income $14,988 $12,264 $25,987 $23,951 Basic net income per share $0.55 $0.46 $0.96 $0.91 Diluted income per share $0.53 $0.44 $0.92 $0.86 Cash flow provided by operations $48,133 $38,212 $77,595 $63,216 Production Bcfe 9.4 8.5 17.5 15.6 Oil and gas production for the three months ended June 30, 2004, increased by 11% to 9.4 Bcfe compared to 8.5 Bcfe for the same three months of 2003. For the six months oil and gas production increased by 12% to 17.5 Bcfe in 2004 compared to 15.6 Bcfe in 2003. Net income for the three months ended June 30, 2004, increased by $2.7 million to $15.0 million, or $0.53 diluted income per share, and net income for the six months ended June 30, 2004, increased by $2.0 million to $26.0 million, or $0.92 diluted income per share. Net income in the second quarter was decreased by a $4.8 million pre-tax property impairment charge, $4.5 million of which was associated with the unsuccessful completion of the Fleishaker #2 well at the Tatum Dome prospect in Mississippi. Cash flow from operations increased by $9.9 million, or 26%, and by $14.4 million, or 23%, for the three and six months ended June 30, 2004, compared to the same periods in 2003 respectively. The increases in net income and cash flow from operations reflect primarily the higher revenues from increased production. Results versus Guidance The Company provided production guidance of 17.5 Bcfe to 18.5 Bcfe for the first six months of the year. Actual production was 8.1 Bcfe in the first quarter and 9.4 Bcfe in the second quarter for a combined total of 17.5 Bcfe for the first six months of 2004. This was 12% above the first six months of 2003. Total annual production for 2004 is expected to be approximately 40 Bcfe, or 15% above the 34.8 Bcfe produced in 2003. DD&A was forecast to be between $1.80 and $1.95 per Mcfe produced for the year. Second quarter DD&A was $17.6 million or $1.87 per Mcfe produced. For the first six months of 2004 DD&A was $32.8 million or $1.87 per Mcfe produced. DD&A in the second quarter and for the first six months of 2003 was $1.50 and $1.51, respectively, per Mcfe produced. This increase of $0.36 per Mcfe produced, or 24%, represents the impact of increased finding and development costs over the past few years. Lease operating expenses (LOE) were $6.0 million or $0.64 per Mcfe produced for the second quarter of 2004. For the first six months LOE was $12.1 million or $0.69 per Mcfe produced. Annual guidance is for LOE to be between $0.60 and $0.70 per Mcfe produced. G&A expense was $1.6 million or $0.17 per Mcfe produced for the second quarter. For the first six months, G&A was $3.5 million or $0.20 per Mcfe produced. Guidance was for annual G&A expense to be between $0.21 and $0.28 per Mcfe produced. Included in the G&A is $371,000 in the first quarter and $732,000 for the first six months for stock-based compensation. This is $0.04 per Mcfe produced in both periods. Interest and financing costs were $250,000 for the quarter and $478,000 for the first six months or $0.03 per Mcfe produced. Guidance was for interest costs to be between $0.03 and $0.05 per Mcfe produced for the year. Dry hole costs for the second quarter were $1.1 million and $6.8 million for the first six months. Annualized guidance for dry hole expense is between $20 million and $24 million. Geological and geophysical costs, which are included in exploration costs on the income statement, were $3.7 million in the second quarter reflecting the initial payment on the purchase of 1,400 blocks of deeper water 3-D data and costs associated with prior seismic agreements. It is anticipated that $2.5 to $3.0 million of geophysical costs will be incurred in each of the remaining quarters of 2004 associated with the same programs. James A. Watt, Chairman and Chief Executive Officer said, "This was an excellent quarter for Remington. Our balance sheet is in excellent shape, and we have dramatically expanded our seismic data base to generate new prospects for future drilling." 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/ . Remington Oil and Gas Corporation Condensed Consolidated Balance Sheets (In thousands, except share data) June 30, December 31, 2004 2003 Assets (Unaudited) Current assets Cash and cash equivalents $38,051 $31,408 Accounts receivable 53,643 43,004 Prepaid expenses and other current assets 2,579 2,846 Total current assets 94,273 77,258 Properties Oil and gas properties (successful- efforts method) 664,662 609,599 Other properties 2,999 3,450 Accumulated depreciation, depletion and amortization (364,827) (333,011) Total properties 302,834 280,038 Other assets 1,681 2,089 Total assets $398,788 $359,385 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued expenses $60,829 $58,266 Short-term notes payable 45 45 Total current liabilities 60,874 58,311 Long-term liabilities Notes payable 10,000 18,000 Asset retirement obligation 13,656 12,446 Deferred income taxes 40,689 28,751 Total long-term liabilities 64,345 59,197 Total liabilities 125,219 117,508 Commitments and contingencies Stockholders' equity Preferred stock, $0.01 par value, 25,000,000 shares authorized Shares issued - none Common stock, $.01 par value, 100,000,000 shares authorized, 27,550,250 shares issued and 27,515,891 shares outstanding in 2004, 26,946,768 shares issued and 26,912,409 shares outstanding in 2003 275 269 Additional paid-in capital 127,552 120,925 Restricted common stock 1,573 3,156 Unearned compensation (1,013) (1,668) Retained earnings 145,182 119,195 Total stockholders' equity 273,569 241,877 Total liabilities and stockholders' equity $398,788 $359,385 Remington Oil and Gas Corporation Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per-share amounts and prices) Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 Revenues Gas sales $42,713 $33,196 $74,826 $61,847 Oil sales 15,552 12,584 29,494 26,237 Gain on sale of assets and other income 119 223 225 256 Total revenues 58,384 46,003 104,545 88,340 Costs and expenses Lease operating 6,028 5,277 12,076 9,669 Exploration 4,878 6,115 10,406 13,017 Depreciation, depletion and amortization 17,617 12,792 32,763 23,549 Impairment 4,750 251 4,986 447 General and administrative 1,625 2,214 3,547 3,924 Interest and financing 250 485 478 885 Total costs and expenses 35,148 27,134 64,256 51,491 Income before taxes 23,236 18,869 40,289 36,849 Income tax expense 8,248 6,605 14,302 12,898 Net income $14,988 $12,264 $25,987 $23,951 Basic income per share $0.55 $0.46 $0.96 $0.91 Diluted income per share $0.53 $0.44 $0.92 $0.86 Average shares outstanding Basic 27,287 26,536 27,131 26,436 Diluted 28,218 27,844 28,190 27,910 Production Gas (Mcf) 6,869 5,855 12,461 10,360 Oil (Bbls) 428 447 841 872 Mcfe (1 barrel of oil is equivalent to 6 Mcf of gas) 9,437 8,537 17,507 15,592 Average prices Gas $6.22 $5.67 $6.00 $5.97 Oil $36.34 $28.15 $35.07 $30.09 Mcfe $6.17 $5.36 $5.96 $5.65 Remington Oil and Gas Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Six Months Ended June 30, 2004 2003 Cash flow provided by operations Net income $25,987 $23,951 Adjustments to reconcile net income Depreciation, depletion and amortization 32,763 23,549 Deferred income taxes 14,152 12,898 Amortization of deferred charges 91 116 Dry hole costs 6,753 12,312 Impairment costs 4,986 447 Cash paid for asset retirements (377) (614) Stock based compensation 732 792 Changes in working capital (Increase) in accounts receivable (10,630) (6,223) Decrease (increase) in prepaid expenses and other current assets 575 (2,739) Increase (decrease) in accounts payable and accrued liabilities 2,563 (1,273) Net cash flow provided by operations 77,595 63,216 Cash from investing activities Payments for capital expenditures (65,711) (63,460) Net cash (used in) investing activities (65,711) (63,460) Cash from financing activities Loan origination costs --- (293) Payments on notes payable and other long-term payables (8,000) (679) Common stock issued 3,404 1,770 Treasury stock acquired and retired (645) (654) Net cash (used in) provided by financing activities (5,241) 144 Net increase (decrease) in cash and cash equivalents 6,643 (100) Cash and cash equivalents at beginning of period 31,408 14,929 Cash and cash equivalents at end of period $38,051 $14,829 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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