St. Mary Land & Exploration Company announced its capital investment budget and production target for 2008 is $626 million.
The company has broken its exploratory budget into the following regional allocations: ArkLaTex $161 million, Mid-Continent, $135 million, Permian $120, Rocky Mountain $106 million, Gulf Coast $80 million and Hanging Woman Basin $24 million. The region with the largest percentage of the exploratory budget is ArkLaTex with 26%.
"Our 2008 capital program is designed to provide solid economic production growth within our expected discretionary cash flow next year," said Tony Best, president and CEO. "Living within cash flow next year gives us the flexibility to accelerate successful drilling programs or to pursue other accretive investment opportunities, such as acquisitions or share repurchases. We have had a record year in 2007, and our team continues to focus on building and high-grading our project inventory to ensure that 2008 is even more successful."
The preliminary production target for 2008 is 107-111 BCFE, which at the midpoint is roughly a 7% increase from the 2007 production range of 101 to 102 BCFE. St. Mary expects to refine its production guidance once it has completed its year-end reserve review.
Consistent with St. Mary's business strategy, the Company will continue to pursue accretive acquisitions of oil and gas properties, which when combined with its organic drilling program will provide further growth opportunities. The capital investment budget and production target range for 2008 referenced above do not include any assumptions for acquisitions. Guidance will be updated as any potential transactions are announced.
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