Dominion Says Operations at Front Runner Field Progressing
Dominion says gross production at the Front Runner Field in the Gulf of Mexico is currently approximately 33,000 barrels of oil equivalent per day from five wells. Completion operations are underway on a sixth well after which two risers will be run and the final two well completions made. These operations are scheduled to be finalized during the second quarter of 2006.
Duane Radtke, president and CEO of Dominion Exploration and Production, said:
"We are very enthusiastic about our Front Runner properties. While three of the wells have performed below our initial models, our reserve estimates are appropriate and we will recover the full volumes albeit over a longer period of time. Front Runner remains among our key assets and will yield significant cash flow to Dominion over the next 15 years."
The update in Dominion's outlook for Front Runner will not result in a revision to the company's forecast of 5 to 6 percent average annual growth over the original estimate of its 2005 natural gas and oil production.
Dominion also does not expect a revision to the company's proved reserves as a result of this update. Dominion has replaced approximately 179 percent of its production during the nine months ended September 30, 2005.
Dominion owns a 37.5 percent interest in Front Runner, with its partners Murphy Oil Corp. owning 37.5 percent and Spinnaker Exploration Co. owning 25 percent. Murphy is the operator of Front Runner.
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