Remington Ready To Spend $75 Million in 2002
Remington Oil and Gas Corporation's board of directors approved a $75 million capital budget for 2002. The company plans to spend $37 million on 26 exploratory wells. Sixteen of the wells and $32 million will be expended in the offshore shelf and $5 million for 10 wells onshore Texas and Mississippi. This budget includes $20 million for platforms and development drilling on operated discoveries at Eugene Island 302, South Marsh Island 93, East Cameron 184, West Cameron 417, and one non-operated development at Eugene Island 397. The remaining $18 million will be allocated to leasing, seismic acquisitions, and workovers. This $75 million budget compares with the $66 million budget adopted for 2001. Capital expenditures for 2001 will be approximately $120 million due to numerous discoveries and the resulting development expenditures which were not included in the original budget. The 2002 budget is anticipated to be within available cash flow in the current pricing environment.
The company anticipates 4th quarter production to be over 7 bcfe on target with prior guidance. Total production for the year will be over 28.5 bcfe, a 41% increase over 2000 levels. Production guidance for 2002 remains at least 20% above 2001 levels with a significant increase in production volumes in the first half of 2002 from known developments currently being brought on production. We anticipate exiting 2001 with production rates of approximately 80 mmcfe/day and exiting the 2nd quarter of 2002 with rates of approximately 100 mmcfe/day.
The board also approved the promotion of Greg Cox to Vice President/Exploration. Mr. Cox has 20 years exploration experience most recently serving as Exploration Manager for the company.
James A. Watt, President and CEO stated, "We have numerous high and moderate potential opportunities for drilling in 2002. Our increasing production volumes will fund our drilling and development program as defined and if prices improve, the program can easily be expanded for added growth."