Remington Updates Gulf of Mexico Drilling Activity
Listed in the table below are wells recently drilled, currently drilling or completing, along with wells that are scheduled to be drilled in the near term.
Prospect Category W.I.% Status/Spud Date Operator Offshore West Cameron 147 #2 Exploratory 65 Plugged and Abandoned Remington West Cameron 328 #2 Exploratory 50 Discovery-Tested 8 MMCF/D Remington East Cameron 185 A-3 Development 65 Producing Remington East Cameron 346 A-6st Exploratory 75 Awaiting Completion Remington Eugene Island 154 #1 Development 60 Plugged and Abandoned Remington Main Pass 206 A-1 Development 40 Awaiting Completion MHR Main Pass 206 A-2 Development 40 Drilling @ 6,141 MHR West Cameron 256 #2 Exploratory 100 Drilling @ 500' Remington East Cameron 346 A-13 Exploratory 75 Drilling @ 1,200' Remington East Cameron 315 #1 Exploratory 50 May 2005 Remington South Pass 87 Aquarius Exploratory 50 Waiting on Rig-Est. May 2005 MarathonThe Company's West Cameron Block 328 #2 exploratory well was drilled to total depth of 5,311 feet and discovered gas pay in a single sand. This well has been flow tested at a rate of 8 MMCFG/day. Platform construction is underway and first production is expected in the late third quarter 2005. Remington operates West Cameron 328 and owns a 50% working interest. Magnum Hunter Resources and W&T Offshore each own a 25% working interest
Drilling activities continue at the company's East Cameron Block 346 field. The Company recently drilled the A-6 sidetrack well and found oil and gas pay in multiple sands in a secondary objective. The primary objective was not encountered in this wellbore due to encountering salt prior to the expected target depth. A new well will be drilled to test this deeper objective at a different bottom hole location. A shallow exploratory well is currently being drilled to test potential gas sands prior to completion of the A-6 sidetrack. The Company has identified three additional exploitive and exploratory opportunities that will be tested with an ongoing drilling program that will continue through the second quarter 2005. Remington operates East Cameron Block 346 with a 75% working interest. Magnum Hunter Resources own the remaining 25%.
One new development well has been drilled, and another is currently drilling, at the Company's non-operated, recently installed Main Pass Block 206 platform. The A-1 well has been drilled and cased and the A-2 is currently approaching total depth. Both wells will be batch completed following the drilling of the A-2. First production is expected this summer following pipeline installation. Remington owns a 40% working interest in this field. Magnum Hunter Resources operates the Main Pass Blocks 206 and 207 with a 40% working interest.
Additional wells drilling include one exploratory well located at West Cameron 256 #2 and a development well at East Cameron 185 A-4. Remington expects to spud an exploratory well on East Cameron Block 315 the first week of May. The Company is currently waiting on the drilling rig for the South Pass Block 87 Aquarius Prospect and anticipate the rig's arrival soon. Additionally, the Company has contracted a semi-submersible rig to drill its first deepwater prospect this year. This rig is scheduled for late in the year.
Remington's first quarter 2005 production averaged approximately 96 million cubic feet of gas equivalents per day compared to an average 113 MMCFE/D for the fourth quarter 2004. The Company expects its average daily production for the second quarter to be higher than the first due to the addition of two new production platforms recently brought online and new wells drilled off of existing platforms. Remington remains confident with its earlier production guidance stating its combined first and second quarter 2005 volumes to range between 105 and 116 million cubic feet of gas equivalents per day. The Company's goals for 2005 are to increase production volumes and reserves 15% over 2004 levels at economically attractive finding and development costs.
2004 SAFE Award
On April 26, 2005, Remington Oil and Gas Corporation received the 2004 Safety Award for Excellence (SAFE) from the Minerals Management Service. This award honors operating companies that expend extra effort and conduct their operations in a safe manner, adhering to all regulatory requirements, employing trained and motivated personnel and taking extra steps to enhance the safety of operations in the Offshore Gulf of Mexico. The SAFE award was established in 1983 to recognize outstanding safety achievement by offshore oil and gas operators and contractors.
Remington Oil and Gas Corporation has also been awarded the 2004 District Safety Award for Excellence for the Lake Charles Louisiana District of the Minerals Management Service. The Company was recognized for these awards for its extremely low number of incidences of non-compliance with offshore federal regulations and its record for environmental protection.
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