Remington Oil and Gas Corporation Provides Operations Update

Remington Oil and Gas Corporation Provides Operations Update DALLAS, March 7 /PRNewswire-FirstCall/ -- Remington Oil and Gas Corporation (NYSE:REM) provided an update on the Company's drilling and production operations. Drilling Program 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 East Cameron Exploratory 60 Discovery-tested 6 MMCF/D Remington 140 #2 East Cameron Development 75 Tested 4,400 BOPD Remington 346 South Timbalier Exploratory 50 Tested 9 MMCFE/D Remington 138 #1st1 West Cameron Exploratory 65 Drilling @ 8,000' Remington 147 #2 East Cameron Development 65 Drilling @ 4,500' Remington 185 A-3 East Cameron Development 75 Multiple wells-Drilling Remington 346 Eugene Island Development 60 Drilling @ 7,500' Remington 154 #1 South Pass Exploratory 50 Waiting on Rig-Est. Marathon 87 Aquarius 30-45 days The Company's East Cameron Block 140 #2 exploratory well was drilled to test different exploratory objectives in an adjacent fault block to our earlier announced #1 discovery well. This well was successful and has been flow tested at a rate of 6 MMCFE/day. Platform construction is underway and first production is expected in the second quarter 2005. Remington operates East Cameron 140 and owns a 60% working interest. Attic exploitation on the flank of a salt dome at the Company's 75% owned and operated East Cameron Block 346 field has resulted in development of new reserves in this old field. Using the Company's proprietary, reprocessed 3-D seismic database, we have identified multiple up-dip, salt flank drilling locations. Our first well encountered significant quantities of new oil reserves and has been tested at a rate of 4,400 barrels of oil per day. We have identified other exploitive and exploratory opportunities that will be tested with an ongoing drilling program that will continue into the second quarter 2005. Remington has made a new oil and gas discovery at South Timbalier 138. The #1st1 well was drilled to 20,200 feet and found multiple productive pay sands below 17,000 feet. The lowermost sand has been flow tested at a rate of 9 MMCFE/day and is currently awaiting installation of a platform and pipeline. Additional drilling is likely for full development on this prospect. This well currently qualifies for deep shelf royalty relief and is expected to begin production by the third quarter 2005. Remington operates South Timbalier 138 and owns a 50% working interest. Additional wells drilling include our high risk, high potential, deep shelf exploratory well located at West Cameron 147 #2 and three development wells. Following the same strategy employed over the past several years, we emphasize development drilling in the early part of the year to take advantage of optimal weather periods in the summer for installations of our facilities. We are currently waiting on the drilling rig for the South Pass Block 87 Aquarius Prospect and anticipate the rig's arrival in the next 30-45 days. Currently, we have four jack-up drilling rigs under contract and expect to maintain or increase this level of activity as the year goes on. Additionally, we have contracted a semi-submersible rig to drill our first deepwater prospect this year. This rig is scheduled for late in the year. Production Update Remington's fourth quarter 2004 production averaged approximately 113 million cubic feet of gas equivalents per day compared to an average 111 MMCFE/D for the third quarter 2004. The Company's annual production totaled 38.1 BCFE representing a 9.5 percent increase over 2003 volumes. Average daily production for the first two months of the year has been below our 2004 exit rate principally due to increased production downtime and delays associated with wintertime platform and pipeline installations. We estimate our combined first and second quarter 2005 volumes to range between 105 and 116 million cubic feet of gas equivalents per day with the second and third quarter volumes ramping up due to the addition of our development projects scheduled to come online over the next four months. The Company's goals for 2005 are to increase production volumes and reserves 15% over 2004 levels at economically attractive finding and development costs. Remington Oil and Gas Corporation is an independent oil and gas exploration and production company headquartered in Dallas, Texas, with operations concentrating in the onshore and offshore regions of the Gulf Coast. Statements concerning future revenues and expenses, production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of prospects or wells are forward-looking statements. Prospect size and reserve levels are often referred to as "potential" or "un-risked" reserves and are based on the Company's internal estimates from the volumetric calculations or analogous production. Other forward-looking statements are based on assumptions concerning commodity prices, drilling results, recovery factors for wells, production rates, and operating, administrative and interest costs that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business, mechanical, political, environmental, and geologic risks. There is no assurance that these goals, projections, costs, expenses, reserve levels, and production volumes can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are herein incorporated by this reference. Information in this document should be reviewed in combination with the Company's filings with the Securities and Exchange Commission and information available on the Company's website at http://www.remoil.net/ . DATASOURCE: Remington Oil and Gas Corporation CONTACT: Steven J. Craig, Sr. Vice President of Remington Oil and Gas Corporation, +1-214-210-2675 Web site: http://www.remoil.net/