Remington Oil Sets 2004 Budget at $104 Million

Remington Oil and Gas announced its Board of Directors has approved a base level capital budget of $104 million for 2004. This compares with an initial budget of $86 million for 2003, or a 21% increase. Remington's approved budget includes only known developments, planned exploratory wells, and capital for leasing, workovers and seismic data. No funds are included in the budget for completions of exploratory wells to be drilled or property acquisitions. Success on these exploratory projects will increase this budget during the year. The exploratory drilling program assumes drilling 22 offshore wells and 7 onshore wells for a total investment of $56 million. Nine of the 22 offshore exploratory wells will target reservoirs below 15,000 feet or the deep shelf. Remington will operate approximately 75% of its offshore drilling program for the year. Development capital of $21 million will allow for platform and pipeline installations on three recent discoveries, along with development drilling on existing fields. The remaining $27 million will be used for seismic acquisitions, workovers, and lease acquisitions.

2004 Production Guidance

Remington's production for 2003 is anticipated to total between 34.8 and 35 Bcfe or approximately 25% above 2002 levels. Since the majority of the company's completions are put on production in less than 6 months from drilling, guidance for 2004 will be provided on a forward 6 months basis. Remington's current estimates call for first half 2004 production to range between 17.5 and 18.5 Bcfe. This represents an approximate 15% increase over 2003 first six months volumes. At this time Remington has no forward sales or hedges in place for 2004 allowing shareholders to participate fully in the current commodity price environment.

Remington anticipates publishing year-end 2003 reserves in late February once Netherland Sewell and Associates concludes their complete independent analysis of our total reserve base. At that time additional guidance will be provided on DD&A rates per Mcfe and cash costs per Mcfe.

James A. Watt, President and Chief Executive Officer stated, "Our drilling successes in the latter half of 2003 are expected to contribute to continue production growth in the first half of 2004. We anticipate operating a 3 to 4 offshore rig program through the year, drilling a mix of higher reserve potential-higher risk projects coupled with lower risk-lower potential projects aimed at providing a balanced reserve and production growth profile."