Remington Commences Production From Two New Offshore Gulf of Mexico Fields and Updates Drilling Activity
PR NEWSWIRE - June 13, 2002 17:40
DALLAS, Jun 13, 2002 /PRNewswire-FirstCall via COMTEX/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) today provides an update on the company's drilling and production activities in the second quarter of 2002, including the commencement of production from two new Offshore Gulf of Mexico Fields.
West Cameron Block 417 Field began production on June 10, at a rate of 12 MMCFE/ day from the initial discovery well announced last November. The company achieved a 7-month cycle time from discovery to production at the West Cameron 417 Project. Remington operates and owns a 50% working interest in West Cameron Block 417 with Magnum Hunter Resources (Amex: MHR) and The Wiser Oil Company (NYSE: WZR) each owning 25%.
At Eugene Island Block 397 field, the company's two initial discovery wells (A-1, A-2) have been completed and are currently producing at a combined daily rate of 2,400 barrels of oil and 2.2 million cubic feet of gas. Drilling and logging of the A-4 well has been finalized, and this well is currently being completed. Production from this well is expected in late June. Following the completion of the A-4 well, plans are to drill up to four additional wells with three of the wells targeting exploratory zones. Remington owns a 37.5% working interest in the Eugene Island 397 field. W&T Offshore, Inc. operates this field with a 50% working interest. Magnum Hunter Resources owns the remaining 12.5% working interest.
On the company's Eugene Island Block 302 field, drilling and completion of the A-2 development well has been finalized. Field production is currently 2,300 barrels of oil and 3.0 million cubic feet of gas per day. Additional exploratory targets below our existing field pays have been identified on block 302 and are currently being considered for drilling later in 2002. 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.
Platform and pipeline installations are near completion at the company's South Marsh Island Block 93 development. This well flow tested at a rate of 1,630 barrels of oil and 2.7 million cubic feet of gas per day. Production is expected to commence next week, and additional drilling on this block is expected later this year. Remington operates and owns a 57.5% working interest in South Marsh Island Block 93. Magnum Hunter Resources and The Wiser Oil Company own 30% and 12.5% respectively.
With the recent production commencement from the above mentioned fields, the company's current net daily production is approximately 100 million cubic feet of gas equivalents per day. We anticipate our 2nd quarter exit rate to be above this level with the addition of new production from South Marsh Island 93 and the Eugene Island 397 A-4 well. These new production volumes should allow the company to achieve its prior guidance of 35 Bcfe for the year 2002, a 20% increase over 2001 volumes.
Drilling Update
Listed below are recent wells not mentioned in the production discussion above along with the wells planned in the near future. This program exposes the company to over 150 BCFE in net un-risked reserve potential from the seven wells currently drilling or to be drilled over the next two to three months.
Prospect Category W.I. % Status Operator
OFFSHORE
Ship Shoal 164 Exploratory 50 Plugged & Abandoned Remington
West Cameron 347 Exploratory 50 Completing Remington
Eugene Island 148 Exploratory 50 Drilling Remington
East Cameron 185 Exploratory 58 Drilling Remington
Eugene Island 397 Exploratory 38 Late June W & T
ONSHORE
Eminence Dome-Miss. Exploratory 20 Completing Key
Tatum Dome-Miss. Exploratory 50 Late June Remington
Brookshire-S. Texas Exploratory 25 July Suemaur
Harlan-S. Texas Exploratory 25 July Suemaur
Blossman-S. Texas Exploratory 20 Late June Suemaur
The company has been awarded 24 of the 25 offshore blocks that it was high bidder on at the 2002 Central Gulf of Mexico lease sale. The addition of these blocks brings the company's current exploratory leasehold to 66 blocks of which 52 are operated by Remington. The inventory of prospects exposes the company to over 1 Tcfe of net unrisked reserve potential.
James A. Watt, President and Chief Executive Officer stated, "We plan to keep two to three operated rigs drilling in the offshore for the remainder of the year on numerous prospects some of which will be high potential and high risk, while others will have a more moderate risk and reserve profile. Our 2002 exploratory program exposes our shareholders to significant exploratory upside supported by an increasing production base and a low debt structure." |
