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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: freddie who wrote (60386)	2/16/2000 10:36:00 AM
From: Wowzer	Read Replies (2) \| Respond to of 95453

BELW looks like it is on the right track. Also like the insider buying every little bit helps. Wednesday February 16, 1:03 am Eastern Time Company Press Release Bellwether Exploration Company Announces Record 1999 Year-End Operational Results Company Achieves Lowest Finding and Development Costs Ever 188 Percent Production Replacement Proved Reserves Increase 34 Percent HOUSTON--(BUSINESS WIRE)--Feb. 16, 2000-- In 1999, Bellwether's worldwide reserve replacement was 188% of total annual production of 5.2 million barrels of oil equivalent (``MMboe'). At January 1, 2000, Bellwether had proved reserves of 38.5 MMboe, a 34% increase over the 28.7 MMboe proved reserves at the end of 1998. The Company's reserve mix was approximately 43% oil and 57% gas at year-end 1999 versus 35% and 65% at year-end 1998. The Company's reserve life index was extended from 5.5 to 6.2 years, an overall increase of 13%. Proved reserves at January 1, 2000 were 65% proved producing, 21% proved undeveloped and 14% proved behind pipe, compared to 77%, 5% and 17% respectively at year-end 1998. The company's finding and development costs decreased 82% from $21.71 per Boe to $3.95 per Boe -- the lowest ever in Bellwether's history. For 2000, the company has committed to $55 million in capital spending to be paid through internally generated cash flow. The 2000 budget represents an increase of 76% from the previous year, excluding acquisitions. The 2000 capital-spending plan includes $29.1 million for development, $14 million for exploration and $8.9 million for seismic and leasehold compared to $16.9 million, $7.3 million and $6.8 million in 1999, respectively. The international component of the budget is currently $7.1 million. In 1999, Bellwether invested $57.2 million, including $25.9 million for acquisitions as compared to $40.9 million in capital expenditures in 1998, including $10.3 million for acquisitions. Operational results for the fourth quarter of 1999 and year to date 2000 include participation in 27 wells, including 22 successful wells with 16 wells representing cumulative initial equivalent production rates of 12.8 million cubic feet of gas equivalent per day (``MMcfgepd'). The remaining six shut-in wells will be on production by the end of the 1st Quarter of 2000. Of the 27 wells drilled, seven were exploratory and 20 were development wells. Four of the seven exploratory wells were successful (57%) and 18 of the 20 development wells were successful (90%). The year 1999 ended with a production exit rate of approximately 96 MMcfgepd, 4 MMcfgepd shy of achieving the company's goal of 100 MMcfgepd. This rate implies that the year 2000 has the potential to be an exciting one for Bellwether and drilling activity in the fourth quarter should carry over well into the first half of 2000. Two of the company's more successful operated exploratory wells include the Eugene Island 307 B-3 Sidetrack (100% WI), which logged 30 feet of net pay and will be brought on line at the end of March and the Shepard No. 1 Well (50% WI), a horizontal Austin Chalk completion in the Matterhorn prospect. The Shepard well is currently producing 745 barrels of oil per day (``Bopd') and 1.4 million cubic feet of gas per day (``MMcfgpd'). Significant operated development wells include two wells at Porter's Creek (100% WI), the Holt No. 3 and the Schneider No. 2, which have been fractured and are on production. At Eugene Island Block 307 (75% WI), the A-2 sidetrack has logged pay in two sands. The lower sand is on production at approximately 3 MMcfgpd. The B-6 Well located in Eugene Island Block 307 has logged 40 feet of gas pay and will be online following facilities upgrades in March. In the international arena, the company assumed operations at the Charapa field in Ecuador in January 2000 and has increased production from 125 Bopd to 640 Bopd, gross. In addition, Bellwether has agreed to acquire an operated 40% working interest in the Tiguino field in Ecuador. The Tiguino Field has 22.5 million barrels of oil equivalent of gross reserves. The company anticipates spending approximately $6-8 million at Tiguino and expects to assume field operations from the current operator by the first of March. Bellwether Exploration Company is an independent oil and gas exploration and production Company headquartered in Houston, Texas. Bellwether employs a program of producing property acquisitions and technology-driven development to increase its reserves, cash flow and net asset value. The Company's principal area of activity is Southeastern New Mexico, West Texas and the Texas/Louisiana Gulf Coast, both onshore and offshore, and Latin America. This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurances that forecasted results will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are referenced in the Company's 1999 annual report and 10-K, current reports and registration statements filed with the Securities and Exchange Commission.