ngton Oil and Gas Corporation Provides Update At Banc of America Securities Energy Conference
PR NEWSWIRE - June 18, 2001 10:57
DALLAS, Jun 18, 2001 /PRNewswire via COMTEX/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) provided operational and financial update at the Banc of America Securities Energy Conference at the Pierre Hotel in New York City.
Operations Update
Remington, as operator, is currently drilling two exploratory wells in the Gulf of Mexico. At South Marsh Island Block 93, intermediate casing has been set and drilling continues toward a total depth of 14,500'. Remington owns a 57.5% working interest in this well. Drilling continues toward a 12,524' total depth at East Cameron Block 184, where the company owns a 57.5% working interest. Both wells are expected to reach total depth by the end of the month. For the remainder of 2001, Remington expects to drill nine additional exploratory wells in the Gulf of Mexico.
Two new platforms have been installed on Remington owned properties at East Cameron Blocks 305 and 345. Both platforms will have pipelines installed prior to the end of the month. Additional drilling and completion operations will commence this month with first production expected from both developments in the third quarter. Remington operates East Cameron 305 with a 75% working interest and owns a 37.5% working interest in East Cameron Block 345.
In the onshore Gulf Coast, the company has participated in eight wells this year with six of these wells being completed as new gas producers. On the Texas Gulf coast, we are currently completing a new gas well in Nueces County (25% working interest) and drilling a development well in Jasper County with a 23% working interest.
Remington has participated in three exploratory wells in Mississippi this year with one well successful as a new gas discovery. The Parker 30-11 #1 well located in Hinds County has been completed and is currently waiting for a gas-processing unit that is to be installed this week. Remington owns a 40% working interest in this well. We expect to drill an additional twelve wells in the onshore Gulf Coast area this year.
Production Forecast
Second quarter production volumes are anticipated to be 7.2 Bcfe, slightly higher than the first quarter volumes of 7.0 Bcfe and 41% above second quarter 2000 levels. Including the effects of new discoveries and expected new production from the above-mentioned operational activities, total production for 2001 is anticipated to be approximately 28 Bcfe, or a 40% increase over 2000 levels. Production volumes in 2002 are anticipated to be approximately 20% above 2001 levels.
Increased Borrowing Base
The borrowing base on Remington's $150 million credit facility has been increased to $75 million. Currently $24.5 million is borrowed under this credit facility. The company expects to fund its capital budget of approximately $90 million from available cash flow. The increased borrowing availability will provide the company flexibility to purchase up to 1.2 million shares issued to Phillips as part of the settlement of long-standing litigation or to pursue additional opportunities beyond Remington's planned budget and projected cash flow.
8 1/4% Convertible Notes
So far this year approximately $2.2 million of the $5.9 million of outstanding 8 1/4% notes have been converted into approximately 200,000 shares of Remington stock. The notes have a conversion price of $11.00 per share and mature in December of 2002.
James A. Watt, President and Chief Executive Office of the company stated, "Reserve growth and production increases can now be forecast into 2002. Success on the remaining drilling program for 2001 will enhance our production and reserve growth for the future." |
