Remington Oil and Gas Corporation Provides First Quarter 2001 Drilling And Production Operations Update
DALLAS, March 19 /PRNewswire/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) today provides an operations update and future drilling and production guidance for 2001.
OFFSHORE SHELF DRILLING
Remington has reached total depth of 14,630' at the South Marsh Island Block 35 exploratory well. This well discovered 35' net oil and gas in the primary objective Rob "E" sand. The well is currently being completed for production that is expected to commence in the 3rd quarter 2001. Remington operates this new field discovery with a 62.5% working interest with Magnum Hunter Resources (Amex: MHR) owning the remaining 37.5% working interest.
Drilling operations continue toward a 17,256' total depth at the company's 42% owned West Cameron 170 #4 exploratory well. This well is expected to reach total depth by the end of March 2001. Following operations on the #4 well, two additional wells are expected to be drilled on this property during 2001.
Remington's near term 2001 offshore Gulf of Mexico drilling program includes the drilling of eight exploratory wells:
Prospect Working Interest Operator
Eugene Island Block 302#1 58% Remington
West Cameron Block 170 A-7 20% Nexen Petroleum
South Marsh Island Block 93 #1 58% Remington
South Timbalier 214 #1 50% Remington
East Cameron 179 #1 58% Remington
South Timbalier 214 #2 33% Kerr McGee
West Cameron 170 B-2 42% Nexen
East Cameron 298 #1 58% Remington
We have secured a rig for drilling the listed operated wells. These are almost all on blocks purchased by Remington in last year's March Central Gulf OCS lease sale.
OFFSHORE SHELF PRODUCTION
During the first quarter 2001, Remington has initiated production from new discoveries and workovers totaling a net of 16 MMCFE per day resulting in a 30% increase in daily volumes over the fourth Quarter 2000. This new production comes from operated projects located on High Island Block 441 and East Cameron 344, and non-operated interests at our Eugene Island Block 135 and South Pass Block 86 fields. Additional production volumes for 2001 are expected to commence during the second and third quarters from four projects currently under development. Production volumes from these new developments and our existing production base should allow the company to achieve its previously announced 34% increase in production volumes over 2000 levels.
ONSHORE GULF COAST
In South Texas, new production commenced from the Otahal #1 located in Nueces County, Texas. This well is currently producing 6 MMCFG and 215 BOPD. Remington owns a 25% working interest in this well. We expect to drill 10 additional exploratory wells in the South Texas area this year.
Remington is currently participating in the drilling of two exploratory wells in Mississippi. Both wells are expected to reach total depth by the end of March. We expect to drill four to six additional exploratory wells in Mississippi this year mainly based on newly acquired 3-D data.
James A. Watt, President and Chief Executive Officer, stated, "In the first quarter we have achieved a major increase in our production volumes primarily from operated properties. We will operate the majority of our offshore exploratory drilling program during 2001. Our near term drilling operations are focused on projects that, if successful, could be on production prior to the end of the year or early in 2002." |
