Remington Oil and Gas Corporation Provides Operations Update
Remington Oil and Gas provides an update on the Company's drilling and production operations in the Gulf of Mexico.
Listed in the table below are wells recently drilled, 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 Exploratory 100 Suspended- 444 #2 Waiting on Platform Remington East Cameron Exploratory 100 Discovery- 185 C-3 Completing Remington East Cameron Exploratory 100 Stuck Pipe- 298 #1 Sidetracking Remington East Cameron Exploratory 50 Plugged and 315 #1 Abandoned Remington East Cameron Exploratory 75 Drilling Remington 346 A-15 South Pass Exploratory 50 Drilling Marathon 87 Aquarius Main Pass Exploratory 20 Discovery- 185 #1 Drilling Ahead Cimarex Vermilion Exploratory 100 August Remington 61 A-3 Ship Shoal Exploratory 60 August Remington 250 #1 Main Pass Exploratory 50 August Cimarex 200 #1
After testing the West Cameron 444 #1 at 6 MMCF/D, the West Cameron Block 444 #2 exploratory well was drilled to total depth of 8,767 feet and encountered the primary objective, which was faulted out of the wellbore. The well has been suspended while the platform is installed and at that time, a rig will return to sidetrack the well to a structural location away from the original well. The Company expects first production to commence in the late 3rd quarter 2005. Remington operates West Cameron Block 444 and owns a 100% working interest in the West Cameron 444 #2 wellbore.
Remington has made a deeper pool discovery at the East Cameron 185 C-3 well. This well encountered apparent gas pay in a single sand below the existing main field producing horizons. The well is currently being completed and is expected to begin production by the end of this month. Remington owns a 100% working interest in the East Cameron C-3 well.
Drilling activities continue at the company's East Cameron Block 346 field. The Company recently drilled the A-14 well to 8,168 feet and encountered well control problems and determined the well's casing program was insufficient to reach the proposed total depth. The A-14 well will be used as a future development well. Remington is currently drilling the A-15 well to the same exploratory targets the A-14 was attempting to reach, however the A-15 has a larger casing program that should enable the well to reach the proposed total depth of 10,817 feet. The Company has plans to drill up to two more wells on this property after the A-15 well. Remington operates East Cameron Block 346 with a 75% working interest. Cimarex owns the remaining 25%.
Additional exploratory wells drilling include South Pass 87 Aquarius and Main Pass 185 #1. The Main Pass well has encountered apparent, commercial gas pay in one of the primary objectives and is still drilling and should be at total depth this week. South Pass 87 Aquarius is expected to reach total depth by the end of October. Exploratory wells scheduled to commence drilling this month include Vermilion 61 A-3, Ship Shoal 250 #1 and Main Pass 200 #1. The Company is currently waiting on its contracted semi-submersible rig to drill its 100% working interest Noonan prospect in 2,700 feet of water. Remington expects this well to begin drilling in the late 4th quarter 2005 or early 1st quarter 2006.
Remington's second quarter 2005 production averaged approximately
114 million cubic feet of gas equivalents per day compared to an average
96 MMCFE/D for the first quarter 2005. The Company estimates its average
daily production for the second half of the year to range between 115 to
125 million cubic feet of gas per day or total approximately 21 to 23 BCFE for
the six months. This range represents a 5 to 10 percent increase in full year
production volumes over 2004 levels. Third quarter volumes are expected to be
lower than the second quarter due to production shut-ins as a result of
Hurricane Dennis and Emily during the first two weeks of July and downtime
associated with a workover operation at the South Marsh Island 24 A-2 well.
Additional production downtime associated with a facility upgrade will be
experienced in the second half of August for approximately 15 days at
Remington's largest producing field located at East Cameron Block 346. This
facility enhancement will expand production capacity from 5,000 BOPD to
10,000 BOPD. This expansion will be timed in conjunction with downtime
associated with a third party pipeline repair on a gas export line that is
also scheduled in August. The Company expects 4th quarter volumes to ramp up
as a result of this expanded capacity and additional new fields coming on
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