Drilling Program Listed in the table below are wells currently drilling or completing, along with wells that are scheduled to be drilled in the near term.
Prospect Category W.I.% Status/Spud Date Operator Offshore West Cameron 383#1 Exploratory 50 Discovery -- Tested Remington 6.7 Mmcfe/D West Cameron 457 #2 Exploratory 60 Discovery -- Tested Remington 7 Mmcfe/D Vermilion 64 #1 Exploratory 50 Discovery -- Tested Remington 12 Mmcfe/D S. Marsh Island 24 #2 Development 45 Completing Remington West Cameron 170 D-1St Development 100 Drilling @ 17,000' Remington West Cameron 170 #8 Exploratory 99 Drilling @ 9,800' Remington West Cameron 458 D-3 Development 60 Drilling @ 2,300' Remington East Cameron 282 #1 Exploratory 50 Drilling @ 1,100' Remington East Cameron 364 A-3 Exploratory 75 August Remington South Timbalier 138 #1 Exploratory 50 August Remington East Cameron 364 #3 Exploratory 75 August Remington
Remington has made a new field discovery at West Cameron 383 #1. This exploratory well was drilled to 5,745 feet and tested 6.7 Mmcfe/day. Production is expected to commence in the third quarter of 2004. Remington operates West Cameron 383 #1 and owns a 50% working interest. Magnum Hunter Resources and Forest Oil each own a 25% working interest.
At the Company's West Cameron Block 457/458 project area, operations on the 457 #2 (D-2) exploratory well have been concluded. This well was drilled to 12,830 feet and has been flow tested at 7 million cubic feet of gas per day. This well is expected to begin producing by the end of July. The D-2 well is the third successful well drilled in the 457/458 project area. Two wells, the D-1 and the 457 subsea #1, commenced production at a combined rate of 14 Mmcfe per day this month. Drilling has commenced on the D-3 well with the drilling of the D-4 well to follow. Remington operates West Cameron 458 Field and owns a 60% working interest. Magnum Hunter Resources owns the remaining 40% working interest.
The Company's Vermilion 64 #1 exploratory well was drilled to 9,590 feet and discovered oil and gas pay in a single sand package. This well has been flow tested at a rate of 10 million cubic feet of gas and 350 barrels of condensate per day. A caisson structure has been installed over the well and is currently awaiting platform and pipeline installation. First production is expected in the fourth quarter of 2004. Remington owns a 50% working interest. Magnum Hunter Resources and Forest Oil Corporation each own a 25% working interest.
The Company is currently drilling a high risk, high potential deep shelf exploratory well at West Cameron 170 #8 and a moderate risk exploratory well at East Cameron 282 #1. Near term drilling includes two low risk exploratory wells at East Cameron 364 and a high risk, high potential deep shelf well at South Timbalier 138. To date in 2004, we have drilled 12 exploratory wells, with 9 successful, for a 75% success rate. Overall we have drilled 16 wells, with 12 successful, for a 75% success rate.
Remington has recently commenced production from two new offshore production platforms located at West Cameron Block 398 and West Cameron Block 458. Both West Cameron 398 and 458 were scheduled for first production in the second quarter, however, significant delays were encountered during pipeline installations resulting in first production in July. The company has recently initiated production operations at Vermilion 241 and is currently installing the export pipeline at East Cameron 205. Both projects are expected at full producing rates by the end of July. Current developments that are scheduled to begin production during the third quarter include West Cameron Block 170 D-1St, West Cameron 383, West Cameron 458, and South Marsh Island 24 A-3. Additional volumes are scheduled for the fourth quarter from two wells at South Marsh Island 113 and the recent discovery at Vermilion 64.
Production for the second quarter of 2004 averaged 104 million cubic feet of gas equivalents per day. The Company's current net daily production is approximately 120 million cubic feet of gas equivalents per day. Remington currently has six development projects underway that are scheduled to commence production over the next two quarters. Estimated production from these six developments in conjunction with our existing production base is projected to yield volumes between 22 and 23 billion cubic feet of gas equivalents for the second half of 2004. Estimates for the next two quarters of 2004 are 15% to 20% above the same two quarters in 2003, when we produced 19.2 billion cubic feet of gas equivalents. These volumes are consistent with our targeted 15% increase in production volumes for 2004 over 2003 levels.
James A. Watt, Chairman and Chief Executive Officer, stated, "During the first half of 2004 our drilling operations were concentrated on development projects and lower risk exploration plays in an effort to achieve a targeted 15% growth in production for the year. In the second half of the year we will drill several higher potential, higher risk exploratory prospects."
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