Remington Oil and Gas Corporation Discovers New Reserves On West Cameron 170 and Increases 2001 Capital Spending Forecast
PR NEWSWIRE - April 11, 2001 15:09
DALLAS, Apr 11, 2001 /PRNewswire via COMTEX/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced today a new discovery on West Cameron Block 170 and provides an update on current operations.
OFFSHORE SHELF DRILLING
Production casing has been set at 17,200' measured depth in the OCS-G 4085 #4 well located on West Cameron Block 170, Offshore Louisiana. The #4 exploratory well logged 77 net feet of apparent oil and gas pay in four sands in a previously untested fault block. The well was drilled from an open water location in 45 feet of water and will require a minimal caisson structure and flowline to be installed prior to production. Current plans are to complete and test the well and then install the necessary equipment for production, which is anticipated to commence in the late third quarter 2001. Remington owns a 42% working interest in the #4 well, which is operated by NEXEN Petroleum USA, Inc. (NYSE: NXY). Following the completion of the #4 well, drilling is to commence on the West Cameron A-7 development well. Remington will participate in the A-7 well with a 20% working interest.
Remington has completed and flow tested the previously announced discovery located on South Marsh Island Block 35, Offshore Louisiana. This well flow tested 812 barrels of oil and 1.0 MMcf of gas per day. A caisson structure has been installed and the oil and gas flowline is currently being designed. First production is anticipated by the fourth quarter 2001. Remington operates this new field with a 62.5% working interest, with Magnum Hunter Resources (Amex: MHR) owning the remaining 37.5% working interest.
Drilling operations have commenced at the company's operated Eugene Island 302 exploratory well. The OCS-G 21642 #1, located in 220 feet of water, is drilling toward an 11,107' total depth. Remington owns a 57.5% working interest in this well. Magnum Hunter Resources (Amex: MHR) and The Wiser Oil Company (NYSE: WZR) own 30% and 12.5 % working interest respectively.
ONSHORE GULF COAST
In South Texas, Remington has participated in two new oil and gas discoveries located in Nueces County Texas. The two new wells, Othal #2 and Dollarhide #1, both have been completed and are currently producing to sales. Remington owns a 25% working interest in both wells. We expect to drill 10 additional exploratory wells in the South Texas area this year.
Remington is currently participating in two exploratory wells in Mississippi. The Parker #1, located in Hinds County, is currently being prepared for production testing in the Smackover. In Jasper County, the company is participating in the drilling of a 13,700' exploratory well with a 48% working interest. We expect to drill four to six additional exploratory wells in Mississippi this year mainly based on newly acquired 3-D data.
FIRST QUARTER PRODUCTION
The company expects first quarter 2001 oil and gas production volumes to increase approximately 34% over our fourth quarter 2000 volume of 5.2 BCFE. Based on new discoveries announced in 2001, barring no unexpected service industry delays, production volumes for the year are now expected to exceed 2000 levels by approximately 40%.
James A. Watt, President and Chief Executive Officer, stated, "Most of the discoveries announced in 2000 are now on production. East Cameron 305 and 345/360 are scheduled to come on production in the summer and Eugene Island 397 early in 2002. We continue to have success with the drillbit in all three of our core areas based on 3-D seismic data. Based on success so far this year, we anticipate a 2001 capital program of approximately $90 million, or 36% above our originally approved $66 million budget. This capital program will be funded from cash flow." |
