FORT WORTH, Texas, Oct. 28 /PRNewswire/ -- Snyder Oil Corporation ("SOCO")
(NYSE: SNY) today announced that its 1998 third quarter results will be
adversely impacted by higher-than anticipated exploration expenses and
lower-than-expected oil and gas production volumes as a result of
hurricane-related shut-ins.
The Company said exploration expenses totaled $13.5 million for the month
of September which includes dry hole costs of $10 million for the Raven South
prospect drilled in Garden Banks Block 625. Due principally to these higher
than anticipated charges, Snyder estimates its exploration expense for the
full 1998 third quarter will approximate $25 million. Even with the higher
exploration expense for the quarter, the Company expects overall finding and
development costs for the year to be approximately $5 per barrel.
In the Gulf of Mexico, tropical storms Frances and Hermine, along with
hurricanes Earl and Georges, caused shut-in and curtailed production during
the third quarter and into early October. All three of the Company's Main
Pass platforms were directly hit by hurricane Georges but sustained only minor
damage, which is expected to be repaired in the near future. Although
production was increased at Main Pass with the August completion of the
Transco pipeline to SOCO's Main Pass 261 platform, the Company expects overall
third quarter production to be flat with the second quarter due to the impact
of the storms and related problems.
Snyder Oil Corporation is engaged in the production, development,
acquisition and exploration of domestic oil and gas properties, primarily in
the Gulf of Mexico, the Rocky Mountains and northern Louisiana. The Company
also has investments in two international exploration and production
companies, SOCO International plc and Cairn Energy plc. The Company's shares
are traded on the New York Stock Exchange under the symbol "SNY." The
Company's news releases and other information can be found on the Internet at
http://www.snyderoil.com.
This release contains certain forward-looking statements which are based
on assumptions which the Company believes are reasonable, but which are
subject to a wide range of uncertainties and business risks. Factors that
could cause actual results to differ materially from those anticipated are
discussed in the Company's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 1997.
SOURCE Snyder Oil Corporation
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Related links:
http://www.snyderoil.com
Company News On-Call:
http://www.prnewswire.com/comp/118962.html or fax,
800-758-5804, ext. 118962
CONTACT:
Rodney L. Waller of Snyder Oil Corporation,
817-882-5937
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