Remington issued approximately 1.2 million shares to Phillips Petroleum as part of the settlement of long-standing litigation between the companies. To date Remington has purchased 300,000 shares from Phillips and Phillips has sold 34,000 shares in the open market. As per the agreement Phillips can put shares to Remington as long as the stock trades below $17.867 per share. This put is limited to 100,000 shares per week. If the share price remains below $17.867 per share, we anticipate purchasing all the remaining outstanding shares issued to Phillips in the third quarter using cash and available bank
lines. The purchase of shares from Phillips and the recent decline in natural gas prices do not affect the company's planned $90 million capital budget for 2001.
James A. Watt, President and Chief Executive Officer of the company, stated, "Our exploration model continues to work focusing on high-potential, 3-D defined Gulf of Mexico shelf projects. With our inventory of over 60 drillable gulf coast prospects with over 1 Tcf of unrisked reserve exposure, we are confident we can continue adding significant value for our shareholders through the drillbit. Our approximately 55%/45% mix of gas and oil reserves provides a natural price hedge for price fluctuations in either commodity."