Remington Oil and Gas Corporation's board of directors approved an $86 million capital budget for 2003. The company plans to spend $51 million on 30 exploratory wells. Forty-five million dollars is budgeted for 21 offshore shelf exploratory wells, and $6 million is budgeted for 9 onshore wells located in Texas and Mississippi. This budget includes $16 million for platforms, facilities, and development drilling primarily on recent operated discoveries. The remaining $19 million will be allocated to leasing, seismic acquisitions, and capital workovers. This $86 million budget compares with the $75 million budget adopted for 2002. Capital expenditures for 2002 will be approximately $100 million due to numerous discoveries and the resulting development expenditures which were not included in the original budget. The 2003 budget is anticipated to be within available cash flow in the current pricing environment. Development of 2003 discoveries will be additive to the current approved 2003 capital budget.
The board also approved the promotion of Daniel D. Fischer to Vice President/Operations, Brian S. Sherranto Vice President/Engineering, and Douglas L. Logan to Director/Land. Mr. Fischer has a B.S. in petroleum engineering from Texas A&M University and Mr. Sherran has a B.S. in petroleum engineering from the Colorado School of Mines. Mr. Logan has a B.S. and J.D. from the University of Alabama.
James A. Watt, President and CEO stated, "Our 2003 drilling program has several high reserve potential wells planned exposing our shareholders to approximately 500 BCFE of net unrisked reserve potential. The organizational changes reflect the added responsibility associated with the company's movement to being operator of the majority of our wells."