Remington Begins Production from Two New GOM Fields
Remington Oil and Gas Corporation has commenced production from two new fields in the Gulf of Mexico.
West Cameron Block 417 Field began production on June 10, at a rate of 12 MMCFE/ day from the initial discovery well announced last November. The company achieved a 7-month cycle time from discovery to production at the West Cameron 417 Project. Remington operates and owns a 50% working interest in West Cameron Block 417 with Magnum Hunter Resources and The Wiser Oil Company each owning 25%.
At Eugene Island Block 397 field, the company's two initial discovery wells (A-1, A-2) have been completed and are currently producing at a combined daily rate of 2,400 barrels of oil and 2.2 million cubic feet of gas. Drilling and logging of the A-4 well has been finalized, and this well is currently being completed. Production from this well is expected in late June. Following the completion of the A-4 well, plans are to drill up to four additional wells with three of the wells targeting exploratory zones. Remington owns a 37.5% working interest in the Eugene Island 397 field. W&T Offshore, Inc. operates this field with a 50% working interest. Magnum Hunter Resources owns the remaining 12.5% working interest.
On the company's Eugene Island Block 302 field, drilling and completion of the A-2 development well has been finalized. Field production is currently 2,300 barrels of oil and 3.0 million cubic feet of gas per day. Additional exploratory targets below our existing field pays have been identified on block 302 and are currently being considered for drilling later in 2002. Remington operates and owns a 57.5% working interest in Eugene Island Block 302. Magnum Hunter Resources and The Wiser Oil Company own 30% and 12.5% respectively.
Platform and pipeline installations are near completion at the company's South Marsh Island Block 93 development. This well flow tested at a rate of 1,630 barrels of oil and 2.7 million cubic feet of gas per day. Production is expected to commence next week, and additional drilling on this block is expected later this year. Remington operates and owns a 57.5% working interest in South Marsh Island Block 93. Magnum Hunter Resources and The Wiser Oil Company own 30% and 12.5% respectively.
With the recent production commencement from the two new fields, the company's current net daily production is approximately 100 million cubic feet of gas equivalents per day. It is anticipated that the 2nd quarter exit rate will be above this level with the addition of new production from South Marsh Island 93 and the Eugene Island 397 A-4 well. These new production volumes should allow the company to achieve its prior guidance of 35 Bcfe for the year 2002, a 20% increase over 2001 volumes.