Remington's capital expenditures for 2001 totaled $123 million with $47 million spent on exploration, $61 million on development and $15 million for acquisition of land and seismic, including the South Pass 89 net profits interest from Phillips Petroleum. Reserve additions totaled 73 BCFE, including 67 BCFE from new discoveries and extensions and 6 BCFE in positive revisions of previous year's estimates.
All in finding and development costs for 2001 were $1.68 per MCFE ($10.11 BOE). Over the last three years, Remington has invested $224 million and has added 195 BCFE of proved reserves at a finding and development cost of $1.28 per MCFE. Over 99% of these reserves have been added through drillbit activities. As of December 31, 2001, the SEC PV at 10% of the reserves was $239 million before tax, based on year-end prices of $16.75 per barrel of oil and $2.65 per MCF of gas. The company's reserves at year end were 52% proved developed with 57% of the total reserves being natural gas. Approximately 50% of the year-end proved undeveloped reserves will be converted to proved developed when production commences from Eugene Island 397, Eugene Island 302, East Cameron 184, South Marsh Island 93 and West Cameron 417, all of which are expected to begin producing in the second quarter.
Production for 2001 was 42% above 2000 levels and is projected to be approximately 35 BCFE in 2002, or approximately 20% above 2001 production. Due to several weather delays at offshore installations, production is expected to be approximately 7 BCFE in the first quarter. Production will ramp up in the second quarter to yield 28 BCFE over the remainder of the year.
James A. Watt, President and Chief Executive Officer, stated, "Reserves increased 29% in 2001 reflecting the continued success of our 3-D seismic driven exploration program. Three-year finding and development costs are $1.28/mcfe. In 2001 we have set or are in the process of setting 8 platforms and facilities. We look forward to continued growth in reserves and production in 2002."
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