Mission Resources to Spend $32 Mn on 2003 Capital Program
Mission Resources anticipates spending approximately $32.0 million on it's exploration and development program for 2003. In the first quarter, the company spent $6.3 million primarily in the Brahaney Unit, Waddell and TXL fields in West Texas, the W. Lake Verret field in South Louisiana and the Carpenter field in Oklahoma. This development program has been successful with the production from development wells more than offset natural declines. "Since the successful completion of the refinancing of our senior secured bank facility and the repurchase of $97.6 million of our 10 7/8% notes, we have focused on implementing our business plan and are quickly ramping up our capital program." said Robert L. Cavnar, chairman, president and chief executive officer.
"To implement our growth strategy of finding and developing primarily onshore Gulf Coast gas reserves in established trends, in addition to continuing the development program mentioned above, we will participate in drilling 13 (4.7 net) wells during the remainder of 2003. In accordance with our strategy of increasing our exposure to natural gas, 85% of the risked reserves targeted by this program are natural gas. We intend to implement our drilling plan as quickly as possible to take advantage of the pricing environment that we are currently enjoying and to lock in revenues through a carefully managed hedge program."
Six of the thirteen wells to be drilled are located in the gas-prone Miocene trend of southern Louisiana and are evenly split between exploratory and development projects. The remaining seven include two Wilcox exploratory wells in central Texas, a high potential prospect in the South Texas Vicksburg trend, a development well in our Raccoon Bend field and three wells in the offshore Louisiana shelf (two of which we have only a minor interest).
Mission's long-term strategy is to be geographically focused onshore on the Gulf Coast, South Texas and the Permian basin. An overall reserve and production mix of 70% gas and 30% oil remains the company's target.
- Mission Resources Sells Goldsmith and Wasson Fields for $56.5 Million (Jul 05)
- Mission Resources Logs Pay in Several Core Areas (Apr 18)
- Mission Resources Names New Senior VP (Mar 09)