First Quarter 2007 Financial Results
Bois d'Arc reported net income of $11.9 million, or 18 cents per diluted share, for the three months ended March 31, 2007 as compared to 2006's first quarter net income of $16.8 million, or 26 cents per diluted share. Bois d'Arc's first quarter 2007 results were influenced by strong production growth in the quarter that was partially offset by lower oil and natural gas prices. Bois d'Arc's production in the first quarter of 2007 increased to 9.9 billion cubic feet equivalent of natural gas ("Bcfe"), up 42% as compared to production of 7.0 Bcfe in the first quarter of 2006. The average daily production rate of 110 million cubic feet per day in the first quarter of 2007 set a new corporate high record. The Company's realized natural gas price averaged $7.10 per Mcf in 2007's first quarter, which was 15% lower than the $8.39 per Mcf realized in 2006's first quarter. Realized oil prices in the first quarter of 2007 averaged $58.33 per barrel, which was 4% lower than the average oil price of $60.95 per barrel for 2006. The impact of the higher production level and the lower oil and natural gas prices was a 23% increase in Bois d'Arc's first quarter oil and gas sales to $76.2 million as compared to 2006's first quarter sales of $61.8 million. The higher revenues also drove cash flow higher in the quarter. Operating cash flow (before changes in working capital accounts) of $55.0 million in the first quarter was 24% higher than 2006's first quarter cash flow of $44.3 million. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses was $61.6 million, a 29% increase over 2006's first quarter EBITDAX of $47.7 million.
2007 Year to Date Drilling Results
Bois d'Arc also announced today the results to date of its 2007 exploration program. Bois d'Arc has drilled three exploratory wells, 1.8 net to Bois d'Arc's interest and one development well (0.8 net). Bois d'Arc's OCS-G 22738 #3 well at South Timbalier block 75 is its second well to test the "Doc Holliday" prospect. To date this well has been drilled to a depth of 16,236 feet and has encountered pay in several new reservoirs. Bois d'Arc has set protective casing and is deepening this well to test additional prospective targets. Bois d'Arc's OCS-G 22648 #2 well drilled at South Marsh Island block 220 and a well drilled at Vermillion block 50 were unsuccessful. Bois d'Arc also participated in another operator's deepwater exploratory prospect that was not successful.
In addition to the deepening of the second "Doc Holliday" well, Bois d'Arc is currently drilling an exploratory well to test its "Dogbone" prospect at South Pelto block 7 and is participating in a second, non-operated deepwater test.
Bois d'Arc also reported good results from its waterflood recovery project in the Ship Shoal 113 Unit. During the first quarter, Bois d'Arc has been producing oil from the M-8 sand at a rate of approximately 500 barrels per day after injecting water in the reservoir for the last thirty months. A second injection well was recently drilled and completed and a second well is currently being recompleted as a producer in the M-8 waterflood sand.
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.
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