Whittier Energy Sets Budget at $27 Million
Whittier Energy Corporation (Nasdaq: WHIT) says that its Board of Directors has approved a $27 million capital expenditure budget for 2006. Whittier is planning to drill a total of 39 wells during 2006, including 14 proved undeveloped locations and 25 non-proved locations. The Company has allocated $8.1 million for the development of proved reserves, $16.7 million for the exploitation and exploration of non-proved reserves, and an additional $2.4 million for land and seismic costs. The Company has budgeted expenditures in its core areas in the following amounts: $17.4 million, or 64%, in the Gulf Coast; $5.1 million, or 19%, in the Permian Basin; and $4.8 million, or 17%, in South Texas. Whittier anticipates it will fund its entire 2006 capital budget using cash flow from operations.
Bryce W. Rhodes, Whittier's President and Chief Executive Officer, said, "We are excited about our 2006 drilling plan, which sets an ambitious but achievable goal for our Company to aggressively grow production and reserves. The majority of our planned drilling opportunities, both operated and non-operated, have rigs under contract and we believe they have a high likelihood of being drilled this year. We are extremely pleased to have this opportunity to execute our development plan, as well as test some of our major non-proved prospects, in such a tight rig environment."
Whittier Energy Corporation is an independent oil and gas
exploration and production company headquartered in Houston, Texas,
with operations in Texas and Louisiana. Whittier Energy also owns
non-operated interests in fields located in the Gulf Coast, Oklahoma,
Wyoming and California. The Company's stock trades as WHIT on the
NASDAQ National Market.
- Sterling Completes $145M Acquisition of Whittier (Mar 29)
- Whittier Stockholders Okay Sterling Merger (Mar 27)
- Sterling Energy to Acquire Whittier Energy for $188 Million (Jan 19)