Remington Oil and Gas Corporation CommencesProduction From New Gulf Discoveries
DALLAS, Dec. 18 /PRNewswire/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced initiation of new production from two Gulf of Mexico Fields and an operations update.
OFFSHORE SHELF
Remington has commenced production from its operated East Cameron Block 364 discovery, located 110 miles offshore Louisiana in 373' water. This field, discovered in January 2000, is currently producing 16 MMcfg/day from two wells. Remington installed a three slot platform in October 2000 and then drilled the OCS-G 21080 #A-2 well that discovered gas bearing sands in a fault block adjacent to the company's discovery well drilled last January. Additional exploratory drilling opportunities have been identified on block 364 that will be pursued at a later date. Remington owns a 75% working interest in block 364 with the remaining 25% owned by Magnum Hunter Resources, Inc. (Nasdaq: MHR).
Production from the West Cameron Block 170 #3 (renamed the C-1) exploratory well has commenced at a rate of 24 MMcfg and 1,382 barrels of oil per day. The C-1 was drilled to 15,880' measured depth and logged 170' oil and gas pay in six sand intervals. Additional drilling on block 170 is scheduled for early first quarter 2001. Remington owns a 42% working interest in the C-1 well that is operated by Nexen Petroleum USA, Inc. which holds the remaining working interest.
At Eugene Island Block 135, offshore Louisiana, two new development wells have been drilled. The OCS-G 14467 A-4 well was been drilled to 19,119' measured depth and logged 55' of apparent oil and gas pay in the main field reservoir K-2 sand. The A-5, drilled to 16,061' measured depth, logged 76' of apparent gas pay in a shallower sand and is currently being completed. Completion of the A-4 well will immediately follow with both wells expected on production in January 2001. Remington owns a 15 percent working interest in both wells.
On the company's operated East Cameron Block 344 project, a six slot production platform was installed in October 2000 and drilling operations commenced on the OCS-G 17878 # A-2 in late October. After encountering several drilling abnormalities below 11,000', this well has been sidetracked. Drilling operations should be finished by year end with the completion phase beginning in January 2001. First production is expected by the end of the first quarter 2001. Remington owns a 50% working interest with partners Continental Land & Fur Co. and Magnum Hunter Resources, Inc. (Nasdaq: MHR), each owning a 25% working interest.
SOUTH TEXAS
Remington is currently participating in the drilling of two high potential exploratory wells in South Texas. In Goliad County, Texas, drilling continues toward a 16,500' total depth at the Barnes #1 Wilcox sand test well. This well is currently drilling below 13,900' and should reach total depth in January 2001. Remington owns a 20% working interest in the Barnes well.
In Kleburg County, Texas, drilling is proceeding at the Radford #1 well toward a 13,000 total depth. This well is presently drilling below 9,000' and is expected to reach total depth by year end. Remington owns a 25% working interest in the Radford #1 well.
In Nueces County three new wells, the Burnett #3, Otahal #1 and the Walton #1 all have been drilled. The Burnett #3 is producing and the Otahal #1 is being completed. The Walton #1 was plugged and abandoned. In Kleburg County, the May #1 has been drilled, completed and currently producing to sales. Remington's net daily production from the Burnett #3 and the May #1 totals 2 MMcfe per day.
MISSISSIPPI SALT BASIN
Remington's Mississippi Salt Basin activity includes the commencement of new production at Eminence Dome and a deeper pool discovery at Kola Dome.
Production from the Crosby 5-2 #1 well began November 21, 2000, at a rate of 2.2 MMcfg and 300 barrels of oil per day. The company expects additional drilling to take place to fully develop this discovery. Remington owns a 20 % working interest and operated the drilling of this well.
At Kola Dome, the Thoth #1 well has been drilled to 17,667' and has discovered multiple apparently log productive reservoirs in the Rodessa, Sligo, and Hosston sands. Production casing is currently being set and completion of the well is to follow. Remington owns a 16% working interest in this well.
At the company's operated Pickering #1 well, Covington County, wireline logs indicate non-commercial quantities of hydrocarbons in this 18,802' exploratory well. The well has been plugged and abandoned. Remington owns a 40% working interest in this well.
James A. Watt, President and Chief Executive Officer, stated, "Initiation of production from East Cameron 364 in less than 12 months from initial discovery is a great achievement for Remington's first operated offshore Gulf of Mexico project." Mr. Watt continued, "Production volumes from East Cameron 364 and West Cameron 170, along with planned completions for 2001, should allow the company to have production volumes in 2001, 20% above 2000 levels." |
