Mariner Energy has unveiled a 2010 capital budget of approximately $660 million, which assumes closing the acquisition from Edge Petroleum Corporation of its assets and operations by year-end 2009.
The budget is based on oil and natural gas prices averaging $75 per barrel and $5.50 per million British thermal units (MMBtu), respectively, and may be adjusted based upon exploration success and changes in commodity prices and industry conditions. It excludes the costs of hurricane-related repairs and anticipated insurance reimbursements. The company expects to fund 75-80% of its budget from internally generated cashflow.
Scott D. Josey, Chairman, Chief Executive Officer, and President of Mariner Energy, said, "Our 2010 capital program is designed to accomplish five primary objectives. First, we will accelerate drilling of our large portfolio of long-lived, oily Permian properties, much of the production benefit from which is expected to be realized in 2011. Second, we will delineate the significant deepwater discoveries we have made with Anadarko. Third, we will target several high-impact prospects in the deepwater. Fourth, we will develop deepwater discoveries at Balboa and Wide Berth, which should come online in the third quarter 2010 and first quarter 2011, respectively. Fifth, we will continue to build our unconventional resource portfolio and test several ideas. We expect our production for 2010 to range from 130 - 140 Bcfe, and we believe that our program is setting the stage for further increases in 2011."
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