The most important 2003 discoveries were the Wild River 15-30 in Canada and the Ship Shoal 322 #1 in the Gulf of Mexico. The 15-30 well recently went on line and is currently producing 20 MMCFE per day (50% WI). The Ship Shoal 322 #1 was flow tested at rates of up to 16 MMCF per day and is expected to begin production in the next few weeks (25% WI).
The Company spent $2.9 million in 2003 acquiring unproved land associated primarily with the Liberty 3-D Seismic Project in Liberty County, Texas and the high-potential Buick Creek prospect in Canada. A total of $4.9 million was spent on seismic related costs focused on Liberty and Buick Creek with additional data acquired at Wild River and Hayter in Canada.
Significant facility costs were incurred in 2003 at multiple properties in the Gulf of Mexico. These facilities were associated with late 2002 discoveries as well as discoveries made in the first half of 2003. In addition, a large capacity pipeline and associated facilities were installed in late 2003 to connect the Wild River 15-30 well.
Total capital spending for 2003 was $47.6 million of which $47.1 was for oil and gas related projects. The remaining $0.5 million was spent on various other corporate items. Approximately $8.6 million of the $47.6 million was expensed under successful efforts accounting guidelines with the remainder capitalized. Approximately $3.8 million of capital spending in 2003 was related to projects completed in 2002, mostly in the Gulf of Mexico.
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