Remington Commences Production of 42 MMCFE/Day From East Cameron Block 184 Offshore Gulf of Mexico
DALLAS, April 23 /PRNewswire-FirstCall/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced today it has commenced production from its operated East Cameron Block 184 Field at a rate of 36 million cubic feet of gas and 1,050 barrels of condensate per day or 42 MMCFE/day. This new field, discovered in June 2001, began production on April 15, 2002, from two wells. The company achieved a 10 month cycle time from discovery to production even though both wells drilled through salt before encountering the productive reservoirs. Additional drilling on this three-block complex is scheduled to take place later this year. Remington owns a 57.5% working interest in East Cameron Blocks 179, 184, and 185. Magnum Hunter Resources (Amex: MHR - news) and The Wiser Oil Company (NYSE: WZR - news) own 30% and 12.5 % working interest respectively.
On the company's Eugene Island Block 302 field, the drilling of the A-2 development well is underway. This well is currently below 7,100 feet drilling toward a total depth of 10,500 feet. Results from this well are expected in May. The initial discovery well has been completed and is currently waiting for pipeline hookup. Production from this new field is expected early next week. Remington operates and owns a 57.5% working interest in Eugene Island Block 302. Magnum Hunter Resources and The Wiser Oil Company own 30% and 12.5% respectively.
At Eugene Island Block 397 field, the initial discovery well (A-1) has been completed and was flow tested at a rate of 1,000 barrels of oil and 0.4 million cubic feet of gas. The #2 (A-2) well is currently being completed. Up to six additional development and exploratory wells are scheduled to be drilled following the completion of the A-2 well. First production is expected in late May following pipeline installations. Remington owns a 37.5% working interest in Eugene Island 397 field.
Remington has recently signed a purchase and sale agreement to sell 9 non-operated producing wells located in South Texas for approximately $8.0 million. The effective date of this sale will be March 1, 2002, and a closing is anticipated on or before April 30, 2002. These 9 wells were producing approximately 3.5 million cubic feet of gas equivalents net to the company per day. Even with this sale of production, the company anticipates meeting its production guidance of 35 Bcfe for the year or 20% above 2001 levels.
Near-Term Exploratory Drilling Activity
Remington's current offshore Gulf of Mexico drilling program includes the following wells:
Prospect Category Working Status Operator
Interest
Main Pass 232 Exploratory 50% Plugging Magnum Hunter
Ship Shoal 164 Exploratory 50% Drilling below Remington
15,200'
West Cameron 347 Exploratory 50% Drilling below Remington
1,000'
West Cameron 253 Exploratory 50% 2nd Quarter Remington
The company, as a non-operator, is participating in the drilling of an 18,750' well in the Mississippi Salt Basin with a 20% working interest. Remington intends to participate in two exploratory wells in South Texas. Remington will own between a 20 and 25% working interest in these wells.
James A. Watt, President and Chief Executive Officer stated, ``East Cameron 184 appears to be a significant discovery with additional upside potential. Ten months from discovery to production is an excellent cycle time. The company continues to focus on operated high interest properties as evidenced by our sale of the non-operated South Texas properties to enhance shareholder value.'' |
