Here is confirmation of at least one E&P company's reduction of its exploration budget. Note the stated reasons why and the type of drilling it intends to conduct in '98.
Monday March 2, 6:01 am Eastern Time
Company Press Release
SOURCE: Barrett Resources Corporation
Barrett Announces Approval Of $190 Million Capital Expenditure Budget
For 1998
DENVER, March 2 /PRNewswire/ -- Barrett Resources Corporation (NYSE: BRR
- news) announced today that the Company's capital expenditure budget
for 1998 is $190 million, as compared to capital expenditures in 1997 of
approximately $334 million. The 1998 budget will be largely allocated to
the Company's three core areas consisting of the Rocky Mountains, $81
million, the Gulf of Mexico, $43 million, and the Mid-Continent, $27
million. The budget also includes $24 million for exploration activities
in the Republic of Peru and $15 million for strategic acquisitions in
the Company's core areas.
The reduction in capital spending from 1997 is reflective of lower
product prices, particularly oil, where the Company is deferring some of
its development opportunities. The reduced spending also reflects a
decrease in the Company's lease acquisition budget, due to the Company's
emphasis on drilling development and exploration projects already in its
inventory. The 1998 budget will allow the Company to increase production
and cash flow over 1997 levels by participating in approximately 435
wells, of which 100 are coalbed methane wells located in the Powder
River Basin.
Barrett Resources is a Denver-based independent natural gas and oil
exploration and production company that is also involved in gas
gathering, marketing and trading activities. Barrett's properties are
focused primarily in the Rocky Mountain region of Colorado, Wyoming and
Utah, the Mid-Continent area of Kansas, Oklahoma, New Mexico and Texas,
and the Gulf of Mexico region of offshore Texas and Louisiana.
Ron Clark |
