Remington Hits in the Gulf of Mexico
Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced today a successful exploratory well at Eugene Island 397, well test results at High Island A-441 and expansion of the company's offshore 3-D seismic database by 1,000 blocks.
Production casing is being set in a new field discovery at Eugene Island Block 397 located 160 miles southwest of New Orleans in 480 feet of water. The OCS-G 15271 ##1 was drilled to 10,160 feet measured depth and logged approximately 200 feet of true vertical thickness apparent oil pay in four sand intervals. Following temporary abandonment of this well, operations will commence on the drilling of a confirmation that will have a bottom hole location on Green Canyon Block 48. Remington owns a 37.5% working interest in this new discovery that is operated by W&T Offshore, Inc. with a 50% working interest. Magnum Hunter Resources, Inc. (Amex: MHR) owns the remaining 12.5% working interest.
Subsea wellhead installation and production testing operations have been finalized at the company's previously announced High Island A-441 ##1 discovery well. The OCS-G 17179 ##1 tested at a rate of 9 MMCFG and 126 barrels of condensate per day. Production from this well is scheduled to commence in the early first quarter of 2001 following flowline installation. High Island Block A-441 is located 73 miles offshore Texas in 168 feet of water. Remington operates this well with a 75% working interest. Magnum Hunter Resources, Inc. (Amex: MHR) owns the remaining 25% working interest.
Remington has entered into an agreement with Western Geophysical to license 1,000 blocks of Western's Ocean Bottom Cable (OBC) 3-D seismic data located principally in the shallow waters of the Gulf of Mexico. This purchase, in conjunction with Remington's existing 1,600- block 3-D seismic database, will give the company nearly contiguous 3-D seismic coverage of the central region of offshore Louisiana up to water depths of 600 feet.
James A. Watt, President and Chief Executive Officer, stated, "Our continued drilling success in the offshore is a testament not only to the vast seismic library the company's explorationists have access to, but to their ability to interpret and integrate these data in order to make sound drilling decisions. Our expansion of this database with the OBC 3-D seismic data re-affirms Remington's commitment to lowering drilling risk through using the best quality people and tools available."