HOUSTON, Dec. 12 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) announced
today that its board of directors has approved a capital investment program of
approximately $650 million for the year 2002. The spending will be funded
from Ocean's discretionary cash flow based on anticipated commodity prices,
and is subject to change if market conditions shift or new opportunities are
identified.
"We believe that this amount is sufficient to sustain continued production
growth at double digit rates and fund our successful deepwater exploratory
program in the Gulf of Mexico. It also reflects our commitment to financial
discipline and our desire to maintain balance sheet strength in a weaker
commodity price market," said James T. Hackett, Ocean Energy chairman,
president and chief executive officer. "Even though commodity prices are down
nearly 50 percent from the highs of 2001, our drilling program has been
reduced by less than 25 percent from last year, excluding the $300 million we
spent on two niche acquisitions."
On a geographic basis, about half of the projected 2002 capital spending
budget will be directed toward Gulf of Mexico activities with 40 percent
focused on international programs and the remainder funding domestic onshore
exploration and exploitation.
Gulf of Mexico
In the Gulf of Mexico, Ocean plans to spend approximately $300 to
$350 million to grow its reserve base through the delineation of recent
discoveries and additional deepwater exploration. Included in this amount is
funding for nine planned exploration tests during the year and the acquisition
of deepwater seismic for future exploratory initiatives. A portion of the
dollars will also be allocated to development activities in five new deepwater
fields and further development of the Nansen and Boomvang deepwater fields in
the East Breaks area as well as Gulf of Mexico shelf properties.
International
On the international front, Ocean has allocated approximately $250 to
$275 million of its 2002 capital budget. Nearly half of the total
international budget will be spent in Equatorial Guinea on continued
development of the Zafiro field. In Egypt, the company plans to develop
reserves from its recent A-21 discovery in the East Zeit Concession. Four
exploratory wells are also scheduled to drill in Angola on Blocks 24 and 19.
U.S. Onshore
Ocean plans to spend approximately $50 to $75 million on its domestic
onshore properties. In the Rockies, the company has scheduled 50 development
wells in its Bear Paw field in north central Montana. Further development of
assets acquired during 2001 in the Arklatex region is also planned.
Ocean Energy, Inc. is an independent energy company engaged in the
exploration, development, production, and acquisition of crude oil and natural
gas. North American operations are focused in the shelf and deepwater areas
of the Gulf of Mexico, the Rocky Mountains, Permian Basin, Arklatex, Anadarko,
East Texas and the Gulf Coast regions. Internationally, Ocean holds a leading
position among U.S. independents in West Africa with oil and gas activities in
Equatorial Guinea, Angola and Cote d'Ivoire. The company also conducts
operations in Egypt, the Russian Republic of Tatarstan, Brazil, Pakistan, and
Indonesia.
Certain statements in this news release regarding future expectations,
plans for acquisitions, dispositions, and oil and gas reserves, exploration,
development, production and pricing may be regarded as "forward-looking
statements" within the meaning of the Securities Litigation Reform Act. They
are subject to various risks, such as operating hazards, drilling risks, the
inherent uncertainties in interpreting engineering data relating to
underground accumulations of oil and gas, as well as other risks discussed in
detail in the Company's SEC filings, including the Annual Report on Form 10-K
for the year ended December 31, 2000. Actual results may vary materially.
SOURCE Ocean Energy, Inc.
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Related links:
http://www.oceanenergy.com
Company News On-Call:
http://www.prnewswire.com/comp/913463.html
CONTACT:
financial, Bruce Busmire, +1-713-265-6161, or
media, Janice Aston White, +1-713-265-6164, both of Ocean Energy,
Inc.
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