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

To: marc chatman who wrote (23006)	5/28/1998 7:32:00 PM
From: Broken_Clock	Read Replies (2) \| Respond to of 95453

where's Teddy? Looks like the roof is caving in on the oil drillers<g> biz.yahoo.com Snyder Oil Expands Drilling Plans in The Gulf of Mexico and Increases 1998 Capital Budget Expenditures to $200 Million FORT WORTH, Texas and HOUSTON, May 28 /PRNewswire/ -- Snyder Oil Corporation (NYSE: SNY - news; SOCO) today announced an agreement with Texaco (NYSE: TX - news) covering six prospects in the Flex Trend area of the Gulf of Mexico. Under the agreement, SOCO will obtain working interests ranging from 22.5 to 30 percent in prospects located in East Breaks, Garden Banks and Mississippi Canyon. SOCO expects to invest $25 million in 1998 on these prospects through a continuous drilling program slated to begin late next month. The Company also announced that planned 1998 exploration and development expenditures have been increased by 40 percent to $200 million, reflecting the Company's growing portfolio of opportunities in the Gulf of Mexico. This year, the Company has completed agreements with Shell, British-Borneo and now Texaco, to participate in the exploration of eight prospects in water depths ranging from 1,000 to 2,500 feet. On an unrisked basis, SOCO estimates its total potential net reserves for these prospects to be approximately 400 billion cubic feet of gas equivalent. John C. Snyder, SOCO Chairman and Chief Executive Officer, stated, ''With the opportunities to organically grow our reserve base, the Board has approved this increase in the Company's 1998 capital program. Participating in these projects allows us to utilize our strong capital base today, and still maintain our financial flexibility to do high impact acquisitions that fit our operating and growth strategies. With the potentially attractive rates of return afforded from these prospects, we will be shifting some capital from our acquisition budget to these opportunities.'' ''The recent additions to our Gulf management team gives us the confidence to drive this higher level of capital spending in order to capture these new opportunities,'' said W. G. Hargett, President and Chief Operating Officer. ''We already have substantial growth built into our Gulf operations through 1999 and these new exploration activities, if successful, will enable us to extend our production growth several years further into the future. These projects are highly prospective, supported by recent 3-D seismic, and in some cases with oil and gas discovered on the prospects by previously drilled wells.'' Snyder Oil Corporation is engaged in the production, development, acquisition and exploration of domestic oil and gas properties, primarily in the Gulf of Mexico, the Rocky Mountains and North Louisiana. The Company also has investments in two international exploration and production companies, SOCO International plc and Cairn Energy plc. The Company's shares are traded on the New York Stock Exchange under the symbol ''SNY''. SOCO news releases and other information about the Company can be found on the Internet at snyderoil.com. This release contains certain forward looking statements, which are based on assumptions which the Company believes are reasonable, but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ materially from those anticipated are discussed in the Company's periodic filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1997. SOURCE: Snyder Oil Corporation