Bois d'Arc Reports Third Quarter Results

Bois d'Arc Energy, Inc. on Thursday reported its financial and operating results for the quarter and nine months ended September 30, 2006. Bois d'Arc's net income for the three months ended September 30, 2006 was $11.6 million or $0.18 per diluted share as compared to 2005's third quarter net income of $13.3 million or $0.21 per diluted share.

For the third quarter of 2006, Bois d'Arc's oil and gas sales reached $67.0 million as compared to $43.4 million in the three months ended September 30, 2005. Production in the third quarter of 2006 set a new corporate record at 8.3 billion cubic feet equivalent of natural gas ("Bcfe"), an increase of 74% over production of 4.8 Bcfe for the same period in 2005. Last year's hurricanes caused the deferral of approximately 0.3 and 2.1 Bcfe of production in the three months ended September 30, 2006 and 2005, respectively.

Prices realized by the Company during the third quarter of 2006 averaged $6.72 per Mcf of natural gas and $70.01 per barrel of oil as compared to $8.70 per Mcf of natural gas and $59.96 per barrel of oil in 2005's third quarter. For the three months ended September 30, 2006, Bois d'Arc generated $48.1 million of operating cash flow (before changes in working capital accounts) as compared to $31.0 million in the third quarter of 2005. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses totaled $52.4 million in the third quarter of 2006 as compared to $34.7 million in the third quarter of 2005.

For the nine months ended September 30, 2006, Bois d'Arc reported net income of $43.1 million or $0.67 per diluted share as compared to pro forma net income of $36.7 million ($0.63 per diluted share) for the nine months ended September 30, 2005. The pro forma earnings for the nine months of 2005 give effect to income taxes as if the Company has been taxed as a corporation prior to May 11, 2005 and exclude the one-time charge of $108.2 million to establish a deferred income tax liability on the date Bois d'Arc became taxable. Oil and gas sales for the first nine months of 2006 were $188.4 million as compared to $135.6 million for the nine months ended September 30, 2005. Production in the first nine months of 2006 totaled 22.6 Bcfe, an increase of 29% over production of 17.5 Bcfe for the same period in 2005. Production of 3.5 Bcfe and 2.1 Bcfe was deferred during the nine months ended September 30, 2006 and 2005, respectively, awaiting the return to service of third party pipelines damaged by the 2005 hurricanes. Prices realized by the Company during the nine months ended September 30, 2006 averaged $7.27 per Mcf of natural gas and $67.00 per barrel of oil as compared to $7.36 per Mcf of natural gas and $51.54 per barrel of oil in the same period in 2005. Bois d'Arc's operating cash flow (before changes in working capital accounts) for the nine months ended September 30, 2006, was $136.2 million as compared to $94.0 million in the same period in 2005. EBITDAX totaled $147.1 million in the first nine months of 2006 as compared to $109.3 million in the first nine months of 2005.

During the third quarter of 2006, Bois d'Arc completed a private placement of its common stock to its largest stockholder, Comstock Resources, Inc. Bois d'Arc received proceeds of $35.9 million for the issuance of 2,250,000 shares of common stock. On October 31, 2006 Bois d'Arc's borrowing base under its bank revolving credit facility was increased to $200.0 million from $150.0 million. The Company had $105.0 million outstanding under the revolving credit facility as of September 30, 2006.

Bois d'Arc made capital expenditures of $191.8 million during the first nine months of 2006 for its acquisition, exploration and development activities. During the last quarter of 2006, the Company expects to make an additional $42.0 million in capital expenditures.

Bois d'Arc has had successful results from its exploration focused drilling program. Since the beginning of 2006, Bois d'Arc has drilled nine (7.7 net) successful wells out of a total of twelve (10.2 net) drilled for a 75% success rate. Since reporting its second quarter results, Bois d'Arc has drilled three additional wells. Two of the wells were successful and one was a dry hole.

The SL 15071 #2 ST was drilled at Ship Shoal block 67 to a depth of 12,296 feet. This well was unable to test its primary deeper, geo-pressured objectives due to mechanical problems but did encounter 23 feet of net pay in two reservoirs. The other successful well was drilled at Ship Shoal block 166. The OCS-G-5549 #4 was drilled to a depth of 15,256 feet and encountered 82 feet of net pay in two reservoirs. The unsuccessful well was drilled to a depth of 16,840 feet at South Timbalier block 103. Third quarter exploration expense included the write-off of $6.2 million related to this dry hole.

During the third quarter two of Bois d'Arc's largest 2006 discoveries began producing. The OCS-G 18054 #54 ST, which was drilled to test the "Sockeye" prospect at South Pelto 22, began producing at 17.0 Mmcfe per day in August 2006 and the OCS-G 24924 No.1 ST drilled to test the "Steelhead" prospect at Ship Shoal block 111 began producing at 6.5 Mmcfe per day in September 2006. With the weak natural gas prices in October, Bois d'Arc elected not to increase the flow rates on these two high rate wells.

Bois d'Arc Energy is a growing independent exploration company engaged in the discovery and production of oil and natural gas in the Gulf of Mexico. The Company's stock is traded on the New York Stock Exchange under the symbol "BDE."

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