Remington Oil and Gas Corporation Updates Production and Drilling Results
DALLAS, Oct. 18 /PRNewswire/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced that the third quarter production volumes were in line with prior guidance at levels between 7.1 and 7.2 BCFE. Production for the year is anticipated to be approximately 28.5 BCFE or approximately 42% above the prior year production levels. To date in 2001 the company has completed 26 of 33 wells drilled. Total dry hole and exploration expense for the third quarter will be approximately $6.0 million.
Offshore Drilling and Production Operations
Since the last operations update, Remington has participated in seven offshore wells and numerous production operations as detailed below:
West Cameron 170 - The West Cameron 170 #A-7 development well has been
drilled to a total depth of 17,610 feet, and production casing has been
set. This well logged 150 feet of net pay in our existing field pay
sands and 25 feet of potential pay in a sand located below the deepest
producing reservoirs in the field. Completion operations are under way.
Remington has a 20% working interest in this well. Drilling operations
on the West Cameron 170 #7 exploratory test will commence as soon as
completion operations are finished at the A-7 well. Remington will have
a 42% interest in this 17,600 foot exploratory test which is anticipated
to reach total depth near year end 2001. NEXEN Petroleum Offshore USA,
Inc. (NYSE: NXY; Toronto) operates West Cameron 170 and owns a 78%
working interest in the A-7 well and a 56% working interest in the #7
well.
West Cameron 417 - The West Cameron Block 417 #1 has been drilled to
8,080 feet and has logged 80 feet of net gas pay in two sands. An
intermediate string of casing has been set, and drilling will continue to
the proposed total depth of 9,080 feet. After drilling operations are
completed, the well will be flow tested followed by the installation of a
caisson structure. First production is anticipated during the second
quarter 2002 once a flowline and gas production facility is installed.
Remington is operator of this discovery with a 50% working interest.
Magnum Hunter Resources, Inc. (Amex: MHR) and Wiser Oil Company
(NYSE: WZR) each own 25% working interests.
East Cameron 184 - Fabrication of this six-slot, three-pile platform is
underway. This platform will have a gas processing facility capable of
handling 50 million cubic feet of gas per day. Prior to the platform
installation, scheduled for December 2001, a development well will be
drilled on our adjoining block 179. Drilling of this 12,800 foot well is
to commence the week of October 22nd. Production from this development
is expected in the first quarter 2002. Remington is operator of East
Cameron Blocks 179, 184 and 185 with a 57.5% working interest in each.
Magnum Hunter Resources, Inc. and Wiser Oil Company own 30% and
12.5% respectively.
East Cameron 305 - Production has commenced on this discovery, and it is
currently producing at 13 million cubic feet of gas equivalents per day.
A second well, the A-2, was drilled to 6,563 feet and temporarily
abandoned for possible later reentry and a sidetracking operation.
Remington owns a 75% working interest in this field with Magnum Hunter
Resources, Inc. owning the remaining 25% working interest.
East Cameron 345/360 - The East Cameron 360 #1 and the East Cameron 345 #2
have been drilled and completed. This field is in initial start up with
current rates of 15 million cubic feet of gas equivalents per day.
Remington has a 37.5% working interest in this field. W&T Offshore, Inc.
operates and owns a 50% working interest, with Magnum Hunter Resources,
Inc. owning the remaining 12.5% working interest.
South Marsh Island 35 - Operations are proceeding on schedule to bring
this 2001 oil discovery on line in the fourth quarter of 2001. Remington
is operator of this discovery with a 62.5% working interest and Magnum
Hunter Resources, Inc. has the remaining 37.5% working interest.
South Marsh Island 93 - The previously announced South Marsh Island 93 #1
new field discovery was flow tested from the lower zone at 1,630 barrels
of oil and 2.7 million cubic feet of gas per day. The South Marsh Island
93 #2 was drilled to 14,415' to test a separate geologic structure and
found no commercial hydrocarbons. This well is being plugged and
abandoned. Facility and pipeline design is underway for the #1 well with
first production expected to commence in the second quarter of 2002.
Remington owns a 57.5% working interest in this well while Magnum Hunter
Resources, Inc. and Wiser Oil Company own 30% and 12.5% respectively.
Eugene Island 302 - Construction of a three-pile, three-slot production
platform is nearly completed and ready for installation. Following the
platform installation, scheduled for December 2001, additional drilling
and completion operations will commence on the block. First production
is expected from this new oil and gas field in the first quarter 2002.
Remington is operator with a 57.5% working interest. Magnum Hunter
Resources, Inc. and Wiser Oil Company own 30% and 12.5% respectively.
Eugene Island 397 - Installation of a 12 slot drilling and production
platform on this discovery is scheduled for late this month or early
November. The platform will have a production capacity of 15,000 barrels
of oil and 50 million cubic feet of gas per day. A drilling rig is to be
installed on the platform in November to commence drilling and completion
operations. Initial production is anticipated in the first quarter 2002
with full production anticipated by the end of the second quarter 2002.
Remington owns a 37.5% non-operated working interest in this development.
W&T Offshore, Inc. operates and owns a 50% working interest with Magnum
Hunter Resources owning the remaining 12.5% working interest.
South Timbalier 214 - The company participated with a 33% non-operating
working interest in a 13,920' unsuccessful exploratory attempt on this
block. This well has been plugged and abandoned.
Onshore - Remington participated in 5 onshore wells since the last update
with three of these being successful. Two of these three wells are on
production and the third is currently being tested. In a separate
project, Remington is the operator and is conducting two 3-D seismic
surveys covering 55 square miles in the Mississippi Salt Basin.
Exploratory drilling is anticipated on these high potential prospects in
2002.
James A. Watt, President and Chief Executive Officer of the company stated, "Low rig rates and oilfield service costs enhance the economics of our exploratory prospects. We intend to maintain an aggressive drilling program funded through cash flow and commercial bank debt to add new production for the second half of 2002 and beyond." |
