Bois d'Arc reported net income for the quarter ended December 31, 2005 of $10.4 million or 16 cents per share as compared to pro forma net income of $4.7 million for the same period in 2004. Bois d'Arc's fourth quarter oil and gas sales were $48.8 million as compared to $35.4 million for the three months ended December 31, 2004. Production in the fourth quarter of 2005 totaled 4.4 billion cubic feet equivalent of natural gas ("Bcfe"), as compared to 4.8 Bcfe for the fourth quarter of 2004. Prices realized by the Company during the fourth quarter of 2005 averaged $11.67 per Mcf of natural gas and $59.29 per barrel of oil as compared to $7.01 per Mcf of natural gas and $46.96 per barrel of oil in 2004's fourth quarter. Bois d'Arc generated $29.2 million of operating cash flow (before changes in working capital accounts) in the fourth quarter of 2005 as compared to $23.4 million in the fourth quarter of 2004. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses totaled $34.5 million in the fourth quarter of 2005 as compared to $26.6 million in the fourth quarter of 2004.
For the year ended December 31, 2005, Bois d'Arc reported a net loss of $51.7 million or 89 cents per share. Excluding the one time effect on deferred income taxes of its conversion from a limited liability company to a corporation of $108.2 million, net income for 2005 was $56.5 million or 95 cents per diluted share. Oil and gas sales in 2005 were $184.4 million as compared to $143.1 million in 2004. Production in 2005 totaled 21.8 Bcfe, which was the same as 2004's production. Prices realized by the Company during 2005 averaged $8.28 per Mcf of natural gas and $52.88 per barrel of oil as compared to $6.41 per Mcf of natural gas and $40.35 per barrel of oil in 2004. Bois d'Arc's operating cash flow (before changes in working capital accounts) for the year ended December 31, 2005 was $123.2 million as compared to $98.5 million in 2004. EBITDAX totaled $143.9 million in 2005 as compared to $108.0 million for 2004.
Bois d'Arc, along with the majority of operators in the Gulf of Mexico, was substantially impacted in 2005 by Hurricanes Katrina and Rita and the other storm activity in the Gulf of Mexico. The effects of the storms continued into the fourth quarter; however, the Company made significant progress in restoring production to pre-storm levels. Bois d'Arc had four drilling rigs under contract in the Gulf of Mexico which were idle during the storm activity for a combined 63 days which increased the Company's drilling costs in 2005 by $5.5 million. Operating costs in 2005 includes $4.9 million to repair damages caused by the hurricanes. The storms also caused Bois d'Arc to shut in substantially all of its production for 37 days. Certain third party pipelines and processing facilities that transport and process the Company's production were out of service as a result of damage caused by the hurricanes. Approximately 2.1 Bcfe or 30% of production was deferred in the third quarter, with an additional 2.2 Bcfe or 33% of production deferred during the fourth quarter. Bois d'Arc's 2005 production exit rate was approximately 83 Mmcfe per day of natural gas equivalent, which is the highest production rate in the Company's history. Bois d'Arc achieved this production rate despite still having 18 Mmcfe per day still shut in pending third party pipeline repairs. The shut-in production is expected to resume early in the second quarter of this year.
Despite the setback to production operations caused by the hurricanes, Bois d'Arc's 2005 drilling program was successful. In 2005, Bois d'Arc drilled 19 (16.1 net) successful wells out of a total of 22 (18.7 net) wells drilled with three (2.6 net) dry holes. The discoveries at Ship Shoal block 111, which proved up the "Laker" prospect, the South Timbalier block 75 discovery, which tested the "Doc Holiday" prospect, the Ship Shoal block 56 discovery and the Ship Shoal block 92 "Paddlefish" well were the larger reserve discoveries in 2005. Bois d'Arc spent $202.2 million on its exploration and development activities in 2005. Successful results from its 2005 exploration activities added approximately 107 Bcfe of new proved and probable oil and natural gas reserves.
In addition to the wells reported on earlier, Bois d'Arc drilled three successful wells and one dry hole in the fourth quarter. The SL 18603 #1 drilled at Bay Marchand block 3 was drilled to a depth of 6,617 feet and encountered 105 net feet of pay in five sands. Bois d'Arc has a 70% working interest in this well. The other two successful wells were drilled to further delineate and develop the "Laker" prospect discovery made in the first quarter of 2005 at Ship Shoal block 111. The OCS-G 24924 #A-6 was drilled to a depth of 13,975 feet and encountered 154 feet of pay in nine sands and the OCS-G 24924 #A-7 was drilled to a depth of 14,508 feet and encountered 116 feet of pay in four sands. Bois d'Arc has a 100% working interest in these wells. The unsuccessful well was the OCS-G 24952 #1 drilled at South Timbalier Block 22. Bois d'Arc had a 63% working interest in this well. Exploration expense in the fourth quarter of 2005 includes a $2.2 million provision to write off this unsuccessful exploratory well.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.
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