Remington Oil and Gas Corporation Announces Year-End Reserve Estimates And Updates Operational Activities
PR NEWSWIRE - March 03, 2003 10:00
DALLAS, Mar 3, 2003 /PRNewswire-FirstCall via COMTEX/ -- Remington Oil and Gas Corporation (NYSE: REM) announced today year-end 2002 proved oil and gas reserves of 13.1 million barrels of oil and 125 billion cubic feet of natural gas or 204 BCFE. Proven reserve growth of 7%, net of the sale of approximately 5 BCFE of reserves in South Texas, was achieved when compared to year end 2001. New reserves added replaced over 150% of the company's estimated 28 BCFE of production for 2002.
Reserve additions totaled 51 BCFE from new discoveries and extensions, excluding 8 BCFE in negative revisions of previous years' estimates. Remington's capital expenditures for 2002 were approximately $100 million. Un-audited all in finding and development costs for 2002 were $2.37 per MCFE including revisions and $1.98 excluding revisions. Over the last three years, Remington has invested $297 million in capital and has added 192 BCFE (net of revisions) of proved reserves at a finding and development cost of $1.55 per MCFE. Over 99% of these reserves have been added through drillbit activities. As of December 31, 2002, the SEC PV@10% of the reserves was $469 million before tax, based on year-end prices of $28 per barrel of oil and $4.74 per MCF of gas. The company's reserves at year-end were 59% proved developed with 61% of the total reserves being natural gas.
Operational Update
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
South Marsh Island 24 #2 Exploratory 45 Tested 25 MMCFE/day Remington
West Cameron 357 #1 Exploratory 50 Plugged and Abandoned Remington
Eugene Island 159 #1 st1 Exploratory 50 Logging Remington
Eugene Island 397 A-7 Exploratory 38 Completing W&T
West Cameron 428 #1 Exploratory 50 Discovery/Completing Remington
South Timbalier 109 #1 Exploratory 40 Drilling Remington
Eugene Island 397 A-3 Development 38 March W&T
Vermilion 100 Exploratory 50 March Remington
Onshore
Tatum Dome, MS Exploratory 77 Tested 7 MMCFE/day Remington
Tatum Dome, MS Development 71 April Remington
Rivers Perry #2 Exploratory 25 Tested 4 MMCFE/day Suemaur
Carver Heirs #2 Exploratory 20 Plugged and Abandoned Suemaur
Completion and testing operations at our South Marsh Island Block 24 discovery have been concluded. This well was flow tested at a rate of 20 MMCFD and 900 BOPD. A caisson has been driven over the well and construction has begun on the production facility. First production is anticipated by the end of the second quarter of 2003. Remington operates South Marsh Island Block 24 with a 45% working interest. Magnum Hunter Resources (NYSE: MHR) owns a 30% working interest and Energy Partners, Ltd (NYSE: EPL) owns the remaining 25% working interest.
At our Tatum Dome Prospect, Lamar Co., MS, the Singer #1 well has been drilled to 16,071 feet. Pay zones were logged in our primary objective James Lime and Upper Hosston Sand targets in addition to shallower targets detailed in earlier releases. We have completed an extensive testing program in the Hosston and James Lime intervals. Wireline log analysis and hydrocarbon shows encountered while drilling this well indicated the potential zones to be gas productive. However, production tests in five Hosston sands have tested oil at varying rates of 100 to 500 barrels of oil per day. Due to the small wellbore size of the Singer #1, we were unable to fracture stimulate these zones to achieve higher producing rates. Current plans are to capture these productive sands in a future wellbore with larger production casing that will enable fracture stimulation. Production testing in the James Lime interval yielded oil with a natural flowing, sustained producing rate of 1,000 barrels of oil and 800 mcf of gas per day. Testing continues in the James Lime while surface production facilities and a gas pipeline are being constructed. Production is expected to commence in the early second quarter of 2003. The company plans to drill additional wells at the Tatum Dome Prospect to delineate the size of this new discovery as this is the first deep test on the dome. Remington operates this well with a 77% working interest.
Additionally, the company has made a forward sale of 21 million cubic feet of gas and 1,200 barrels of oil per day commencing April 1, 2003, through December 31, 2003. The average product price to be received is $5.00 per Mcf and $29.00 per barrel of oil. This will not be classified as a hedge transaction in the company's financial reports.
James A. Watt, President and Chief Executive Officer stated, "We are very encouraged with the recent flow tests from our South Marsh Island 24 #2 and the various oil tests in the Singer #1 at Tatum Dome. Additional wells are planned at Tatum Dome during 2003 which should add significantly to the minimal reserves booked on this project at year-end." |
