Mission Resources (NASDAQ:MSSN)
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Mission Resources Reports Fourth-Quarter and Year-End 2003 Results, Provides
2004 Guidance and Updates Drilling Program
HOUSTON, Feb. 26 /PRNewswire-FirstCall/ -- Mission Resources Corporation today
reported financial and operational results for the fourth quarter and full-year
of 2003.
-- Fourth quarter 2003 net loss was $1.5 million and discretionary cash
flow was $7.7 million
-- Full-year 2003 net income was $2.4 million and discretionary cash
flow was $22.8 million
-- Fourth quarter 2003 average daily production was 63.0 million cubic
feet of gas equivalent
"We have made significant progress in 2003 toward achieving the strategic goals
we established to revitalize the Company," said Robert L. Cavnar, Chairman,
President and Chief Executive Officer. "We are now beginning to experience the
results of our program to strengthen the Company by optimizing existing assets,
drilling and acquiring production with lower unit operating expense, and
focusing on natural gas production. The $15 million debt for equity swap we
completed yesterday was one more positive step in the Company's financial
recovery. The full impact of our actions will become more evident in 2004 as we
continue to execute our strategy."
Executing Against Our Objectives:
Highlights of our 2003 accomplishments are as follows:
-- As of year end 2003, Mission reflected a net reduction in long-term
debt of $27.6 million, or 12% of total debt outstanding. Greater
flexibility was achieved with the establishment of a new revolving
credit facility making $12.5 million available for short-term
borrowings. In addition, the debt for equity swap completed
yesterday further reduces debt $15 millionfor a total reduction of
19% or $42.8 million.
-- Success in the Company's asset optimization program with the sale of
high-cost oil properties, making available approximately $25 million,
which was quickly redeployed into the Permian Basin. With the Jalmat
Field's acquisition on January 30, 2004 for $26.6 million, Mission
advanced its goal of focusing on natural gas production and lowering
its operating costs, without sacrificing daily production.
--Mission replaced 100% of 2003 production through reserve extensions
and discoveries, and 118% replacement of production from all sources
(exclusive of asset sales), with an all-source cost of $1.27 per
Mcfe. Included in this figure was an upward reserve revision of
3.6 Bcfe, after a full property review by Mission's independent
engineer, Netherland, Sewell & Associates, Inc.
"A year-ago we established several goals for rejuvenating Mission Resources,"
added Cavnar. "Below is a review of those goals and where we stand today
regarding these objectives."
-- Improve Mission's Financial Flexibility. Our long-term goal is to
reduce Mission's total debt to capitalization to 50%. At year end
2003, total debt to capital was approximately 72.5% compared to 77.5%
at year end 2002. We expect the debt to equity swap completed
yesterday will reduce our total debt to capitalization to
approximately 67%.
-- Natural Gas Focused. We are committed to changing Mission's asset
mix to 70% natural gas, focusing longer term on our core areas of the
Permian Basin, Gulf Coast and South Texas. Including Jalmat Field,
our current production mix is 58% natural gas compared to 43% for
2002.
-- Reduce Operating Expense. Our aim is to continue to reduce unit
lease operating expense. While unit lease operating expenses ("LOE")
for full year 2003 increased 9.2% to $1.43 per Mcfe from fullyear
2002, unit LOE in the fourth quarter 2003 declined to $1.24 per Mcfe,
and is expected to average between $1.15-$1.25 per Mcfe for 2004.
-- Execute a Disciplined and Thoroughly Evaluated Drilling and
Development Program. We drilled three successful exploratory and
39 successful developmental wells for a combined 88% success rate.
"While we have made significant strides in the last 12 to 18 months, much is
left to do, and this management team is committed to making 2004 even more
successful than 2003," added Cavnar.
Fourth Quarter 2003 Results:
Net Loss: Net loss for the three months ended December 31, 2003 was $1.5
million, or $0.06 per diluted share compared to a net loss of $20.7 million, or
$0.88 per diluted share for the three months ended December 31, 2002. The
significant improvement in reported fourth quarter results was primarily due to
a $16.7 million ($10.9 million after tax) non- cash impairment expense incurred
in the fourth quarter of 2002 and a $2.9 million or 29% year-over-year decline
in LOE during the fourth quarter.
Discretionary Cash Flow and Earnings before Interest, Taxes and Non-Cash Items:
Fourth quarter 2003 discretionary cash flow increased 35% to $7.7 million,
versus fourthquarter of 2002 discretionary cash flow of $5.7 million.
Similarly, earnings before interest, taxes depreciation and other items
("adjusted EBITDA") for the fourth quarter of 2003 increased 21% to $13.6
million compared to adjusted EBITDA of $11.2 million in the fourth quarter of
2002. See the attached schedule for reconciliation of net cash provided by
operating activities to discretionary cash flow and of net income to adjusted
EBITDA.
Production: Total production in the fourth quarter of 2003 was 3,021 million
cubic feet ("Mmcf") of natural gas and 463,000 barrels ("bbl") of oil, or 5,799
million cubic feet of gas equivalent ("Mmcfe"), compared to 2,917 Mmcf of gas
and 697,000 bbls of oil, or 7,099 Mmcfe in the fourth quarter of 2002. Average
daily production for the fourth quarter of 2003 declined 18.4% to 63.0 million
cubic feet of gas equivalent per day ("Mmcfe/d") from 77.2 Mmcfe/d for the
fourth quarter of 2002 due to asset sales, and remained effectively even with
production rates in the third quarter of 2003.
Expenses: Total lease operating expenses for the fourth quarter declined
significantly from fourth quarter 2002 levels due primarily to the success of
the Company's asset optimization program, and the sale of high-cost properties
such as the East Texas, East Cameron Block 17 and Raccoon Bend fields. On a
unit basis, LOE for the quarter declined 12.7% to $1.24 per Mcfe from $1.42 per
Mcfe in the fourth quarter of the prior year, and notably declined from $1.44
per Mcfe for the third quarter of 2003. As a result of these asset sales,
however, non-cash DD&A rates have also experienced upward pressure, rising 13.3%
to $1.79 per Mcfe for the fourth quarter 2003 compared to $1.58 per Mcfe for the
fourth quarter of 2002.
2003 Full-Year Results:
Net Income/Loss: Net income for the year ended December 31, 2003 was $2.4
million, or $0.10 per diluted share, compared to a net loss of $38.5 million, or
$1.63 per diluted share for the year ended December 31, 2002. The significant
improvement in full year results was due in part to a $23.5 million ($15.3
million after tax) non-cash gain related to the early extinguishment of debt in
March and December of 2003, a $16.7 million ($10.9 million after tax) non-cash
impairment expense incurred in the fourth quarter of 2002 and a $10.5 million or
24% year-over-year decline in LOE.
Discretionary Cash Flow and Adjusted EBITDA: 2003 discretionary cash flow
declined slightly to $22.8 million from 2002 discretionary cash flow of $23.5
million. Adjusted EBITDA for 2003 was $47.0 million compared to adjusted EBITDA
of $49.1 million in 2002. See the attached schedule for reconciliation of net
cash provided by operating activities to discretionary cash flow and of net
income to adjusted EBITDA.
Production: Total production in the year of 2003 was 10,314 Mmcfe of gas and
2.1 million bbls of oil, or 22,902 Mmcfe of gas compared to 14,120 Mmcfe of gas
and 3.2 million bbls of oil, or 33,062 Mmcfe of gas in 2002. Average daily
production rates for 2003 declined 30.8% to 62.7 Mmcfe/d from 90.6 Mmcfe/d for
2002.
The properties sold in late 2002 plus the additional sales in the fourth quarter
of 2003 caused the oil and gas production declines. Gas production increases
from drilling, recompletions and workovers done at South Marsh Island, North
Leroy and West Lake Verret have partially offset the production declines.
Because these projects were completed in late 2003, their impact on the
full-year results is small, but production volumes are expected to benefit from
these projects in 2004.
Drilling Program:
Capital Expenditures: In 2003, Mission's capital expenditures totaled $35.4
million, approximately 60% higher than 2002 levels due to our success in
improving our financial flexibility. 2003 expenditures were broken down as
follows: $24.3 million for development, $4.3 million for exploration, $5.8
million for seismic data, land and related items and $1.0 million for corporate
assets. Going forward, Mission's capital budget for 2004 totals approximately
$32.0 million to $34.0 million: 60% for development, 20% for exploration, and
20% for seismic data, land and corporate assets.
Drilling Update:
-- The Company has completed its JL&S #147 well in West Lake Verret, St.
Martin Parish, Louisiana flowing 322 bbls of oil per day with
110 thousand cubic feet per day ("Mcf/d") or 2,042 Mcfe per day. The
well was drilled to a total depth of 8,142 feet and found 26 feet of
pay in the "Q" Sand, 16 feet of pay in the N3 Sand and 5 feet of pay
in the "O" sand. Mission holds a 100% working interest in this well.
-- In the federal offshore Gulf of Mexico, Hunt Petroleum completed the
South Marsh Island Block 142 #C-5 ST BP01 well for a combined rate of
5.4 Mmcf/d with 67 bbls of condensate per day from 65 feet of pay in
the Upper and Lower 6400 feet Sand. The well also found 27 feet of
pay in the CP 13 Sand and 15 feet of pay in the 5700 feet Sand; these
zones will be completed at a later date. Mission owns a 31% working
interest in this field.
-- Mission participated in the Barry #1, a 16,033 foot test of the Lower
Wilcox in De Witt County, Texas. Production casing has been set to
total depth and completion work is scheduled to begin in mid-March.
Mudlog shows and log analysis indicate approximately 180 feet of gas
bearing sandstones in five intervals within the objective section of
the Wilcox. The Company anticipates an initial gross rate of from
5 to 10 Mmcf/d upon completion and Mission Resources holds a 25%
working interest in this well.
-- Mission also participated in the American Shoreline Glasscock #A-2, a
12,500 foot test of the Lower Wilcox drilled in Colorado County,
Texas. Early indicators while drilling and log analysis confirm the
presence of gas bearing zones. Plans are to set production casing to
total depth and test the well through casing. The Company
participated in this exploratory well with a 40% working interest and
will operate production and additional drilling operations in the
participating area.
Outlook for Full Year 2004:
Guidance on performance for the first quarter and full year of 2004 is as
follows:
First Quarter 2004 Full-Year 2004
Estimated Daily Production Daily Average Daily Average
Crude Oil (Barrels) 4,200 - 4,400 4,300 - 4,600
Natural Gas (Mmcf) 34 - 38 35 - 40
Total (Mmcfe) 60 - 64 62 - 66
Operating expenses Per Mcfe Per Mcfe
Lease operating expense $1.25 - $1.35 $1.15 - $1.25
Taxes other than income $0.38 - $0.43 $0.35 - $0.40
Depreciation, depletion and
amortization $1.85 - $1.95 $1.85 - $1.95
General and administrative $0.45 - $0.50 $0.45 - $0.50
Cash interest expense * $5.5 - $6.0 million $21 - $23 million
Federal income tax rate 35%, all deferred 35%, all deferred
* Excludes non-cash interest expense of approximately $700,000 and
$2.8 million for the first quarter of 2004 and the full-year 2004,
respectively.
Current Hedging Program: Mission maintains an active hedging program as an
important element of its risk-mitigation strategy. As such, the Company intends
to continue to hedge a significant portion of its production going forward
primarily utilizing no-cost collars, with a general target of hedging up to 75%
of rolling 12 months forward proved developed production and 50% of rolling 12
to 24 months forward proved developed production. Since February 2, 2004, when
the Company last provided an update on its hedging program, it has entered into
two additional hedges. For the twelve months of 2005, the Company added a gas
collar for 1,000 mmbtu per day with an average floor price of $4.56 and average
ceiling price of $5.64, and an oil collar for 1,500 bbls per day with an average
floor price of $26.33 and average ceiling price of $28.36. See the attached
schedule for a detailed listof all current hedges.
Conference Call Information: Mission will hold its quarterly conference call to
discuss fourth quarter and full year 2003 results on Thursday, February 26, 2004
at 10:00 a.m. Central Time. To participate, dial 877-894-9681 a few minutes
before the call begins. Please reference Mission Resources, conference ID
5542591. The call will also be broadcast live over the Internet from our
website at http://www.mrcorp.com/ . A replay of the conference call will be
available approximately two hours after the end of the call until Friday, March
12, 2004. To access the replay, dial (800) 642-1687 and reference conference ID
5542591. In addition, the call will also be archived on the Company's website
for 30 days.
About Mission Resources: Mission Resources Corporation is a Houston-based
independent exploration and production company that acquires, develops and
produces crude oil and natural gas in the Permian Basin of West Texas, along the
Texas and Louisiana Gulf Coast and inthe Gulf of Mexico.
This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
are subject to certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected. Among those risks, trends
and uncertainties are our estimate of the sufficiency of our existing capital
sources, our ability to raise additional capital to fund cash requirements for
future operations, the uncertainties involved in estimating quantities of proved
oil and natural gas reserves, in prospect development and property acquisitions
and in projecting future rates of production, the timing of development
expenditures and drilling of wells, and the operating hazards attendant to the
oil and gas business. In particular, careful consideration should be given to
cautionary statements made in the various reportsthe Company has filed with the
Securities and Exchange Commission. Mission undertakes no duty to update or
revise these forward-looking statements.
- Tables to Follow -
Contact: Ann Kaesermann
Vice President - Accounting & Investor Relations, CAO
(713) 495-3100
MISSION RESOURCES
STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
REVENUES:
Oil revenues $11,572 $16,057 $52,914 $69,926
Gas revenues 13,539 10,726 46,443 42,953
Gain on extinguishment of debt 1,101 --- 23,476 ---
Interest and other income
(expense) 249 544 1,141 (7,415)
26,461 27,327 123,974 105,464
COSTS AND EXPENSES:
Lease operating expense 7,165 10,104 32,728 43,222
Taxes other than income 1,300 2,152 8,251 9,246
Transportation costs 27 623 349 834
Asset retirement obligation
accretion expense 225 --- 1,263 ---
(Gain) loss on asset sales --- (74) --- 2,645
Depreciation, depletion and
amortization 10,538 11,374 38,501 43,291
Impairment expense --- 16,679 --- 16,679
General and administrative
expenses 2,843 2,740 10,856 12,758
Interest expense 6,537 6,433 25,565 26,853
28,635 50,031 117,513 155,528
INCOME (LOSS) BEFORE TAXES AND
CHANGE IN ACCTG METHOD (2,174) (22,704) 6,461 (50,064)
Income tax expense (benefit)
Current 1 (734) 276 (734)
Deferred (672) (1,270) 2,082 (10,846)
(671) (2,004) 2,358 (11,580)
INCOME (LOSS) BEFORE CHANGE IN
ACCOUNTING METHOD $(1,503) $(20,700) $4,103 $(38,484)
Cumulativeeffect of a change in
accounting method, net of deferred
tax --- --- (1,736) ---
NET INCOME (LOSS) $(1,503) $(20,700) $2,367 $(38,484)
Earnings (loss) per share before
change in acctg method ($0.06) ($0.88) $0.17 ($1.63)
Earnings (loss) per share before
change in acctg method -
diluted (A) ($0.06) ($0.88) $0.17 ($1.63)
Earnings (loss) per share ($0.06) ($0.88) $0.10 ($1.63)
Earnings (loss) per share -
diluted (A) ($0.06) ($0.88) $0.10 ($1.63)
Weighted avg. common shares
outstanding 24,251 23,586 23,696 23,586
Weighted avg. common shares
outstanding - diluted 24,251 23,586 24,737 23,586
Discretionary cash flow (B) $7,727 $5,705 $22,785 $23,536
Adjusted EBITDA (C) $13,641 $11,240 $46,986 $49,109
(A) Due to a potential antidilutive effect in loss periods, weighted
average common shares outstanding were used for periods with a loss.
(B) Discretionary cash flows consists of net income excluding non-cash
items. Non-cash items include depreciation, depletion and
amortization, compensation expense related to stock options, gain
(loss) due to hedge ineffectiveness (FAS 133), gain (loss) on
interest rate swap, amortization of debt issue costs, amortization
of bond premium, gain on extinguishment of debt, asset retirement
accretion expense, receivable write-offs, loss on asset sales,
cumulative effect of a change in accounting method impairment
expense, loss on asset retirement obligation settlement, equity
interest in earnings of White Shoal Pipeline and deferred taxes.
(C) Earnings before interest, taxes and non-cash items consist of
earnings before interest expense, taxes, and non-cash items detailed
in footnote (B).
MISSION RESOURCES
SUMMARY OPERATING INFORMATION
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
AVERAGE SALES PRICE, INCLUDING
THE EFFECT OF HEDGES:
Oil and condensate ($/Bbl) $24.99 $23.04 $25.22 $22.15
Gas ($/Mcf) $4.48 $3.68 $4.50 $3.04
Equivalent ($/Boe) $25.97 $22.64 $26.03 $20.49
Equivalent ($/Mcfe) $4.33 $3.77 $4.34 $3.41
AVERAGE SALES PRICE, EXCLUDING
THE EFFECT OF HEDGES:
Oil and condensate ($/Bbl) $30.27 $24.77 $29.69 $22.66
Gas ($/Mcf) $4.52 $3.68 $5.12 $2.95
Equivalent ($/Boe) $28.63 $23.66 $30.16 $20.55
Equivalent ($/Mcfe) $4.77 $3.94 $5.03 $3.42
AVERAGE DAILY PRODUCTION:
Oil and condensate (Bbls) 5,033 7,576 5,748 8,649
Gas (Mcf) 32,837 31,707 28,258 38,685
Equivalent (Boe) 10,506 12,861 10,458 15,097
Equivalent (Mcfe) 63,035 77,163 62,746 90,579
TOTAL PRODUCTION:
Oil and condensate (MBbls) 463 697 2,098 3,157
Gas (MMcf) 3,021 2,917 10,314 14,120
Equivalent (MBoe) 967 1,183 3,817 5,510
Equivalent (MMcfe) 5,799 7,099 22,902 33,062
OPERATING COSTS PER MCFE:
Lease operating expense $1.24 $1.42 $1.43 $1.31
Taxes other than income $0.22 $0.30 $0.36 $0.28
General and administrative
expenses $0.49 $0.39 $0.47 $0.39
Depreciation, depletion, and
amortization (A) $1.79 $1.58 $1.65 $1.29
(A) Depreciation of furniture and fixtures and amortization of
intangibles is excluded.
MISSION RESOURCES
CONDENSED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
2003 2002
ASSETS:
Current assets $44,378 $32,426
Property, plant and equipment, net 302,128 300,719
Leasehold, furniture and equipment, net 2,340 2,096
Other assets 5,404 7,163
$354,250 $342,404
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $31,177 $31,474
Term loan facility 80,000 ---
Senior subordinated notes due 2007 117,426 225,000
Unamortized premium on senior
subordinated notes 1,070 1,431
Deferred tax liability 17,270 16,946
Other long-term liabilities,
excluding current portion 210 2,176
Asset retirement obligation,
excluding current portion 32,157 ---
Stockholders' equity 80,647 69,572
Other comprehensive income
(loss), net of taxes (5,707) (4,195)
$354,250 $342,404
MISSION RESOURCES
CONDENSED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Twelve Months Ended December 31,
2003 2002
OPERATING ACTIVITIES:
Net income (loss) $2,367 $(38,484)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities 20,494 59,375
Net changes in operating assets
and liabilities (3,972) (13,669)
Net cash provided by operating activities 18,889 7,222
INVESTING ACTIVITIES:
Acquisition of oil and gas properties (1,570) (850)
Capital expenditures (32,893) (20,589)
Leasehold, furniture andequipment (930) (198)
Proceeds from sales of properties 28,090 60,396
Proceeds on disposal of non-operating assets 850 ---
Net cash (used in) provided by investing
activities (6,453) 38,759
FINANCING ACTIVITIES:
Proceeds from borrowings 80,000 21,000
Repurchase of notes (71,700) ---
Payments of long term debt --- (56,000)
Proceeds from stock options 4 ---
Credit facility costs (4,976) (237)
Restricted cash held for investments(24,877) ---
Net cash provided by (used in) financing
activities (21,549) (35,237)
Net increase in cash and cash equivalents (9,113) 10,744
Cash and cash equivalents at beginning
of period 11,347 603
Cash and cash equivalents at end of
period $2,234 $11,347
MISSION RESOURCES
NON-GAAP DISCLOSURE RECONCILIATION
(Amounts in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
NET CASH PROVIDED BY OPERATING
ACTIVITIES $(2,111) $(5,265) $18,889 $7,222
Change in assets and liabilities 9,914 11,044 3,972 13,669
Loss on disposal of non-
operating assets (76) --- (76) ---
Loss on asset sales --- (74) --- 2,645
DISCRETIONARY CASH FLOW * $7,727 $5,705 $22,785 $23,536
NET INCOME (LOSS) $(1,503) $(20,700) $2,367 $(38,484)
Interest expense (A) 5,913 6,269 23,925 26,307
Gain on interest rate swap (A) --- (681) (520) (2,248)
Amort. of deferred financing
costs and bond prem. (A) 624 845 2,160 2,794
Income tax expense (benefit) (671) (2,004) 2,358 (11,580)
Depreciation, depletion and
amortization 10,538 11,37438,501 43,291
Impairment expense --- 16,679 --- 16,679
Gain on extinguishment of debt (1,101) --- (23,476) ---
Loss on asset retirement
obligation settlement 18 --- 18 ---
Earnings - White Shoal
Pipeline (C) (20) --- (361) ---
Cumulative effect of a chg. in
acct. method, net of tax --- --- 1,736 ---
Asset retirement accretion expense 225 --- 1,263 ---
Receivable write-offs (C) --- (210) --- 553
Loss on asset sales --- (74) --- 2,645
Amortization of stock
options (B) --- --- --- 102
Loss (gain) due to hedge
ineffectiveness (C) (382) (258) (985) 9,050
ADJUSTED EBITDA * $13,641 $11,240 $46,986 $49,109
NET INCOME (LOSS)$(1,503) $(20,700) $2,367 $(38,484)
Gain on extinguishment of debt,
net of tax (716) --- (15,259) ---
Cumulative effect of a chg. in
acct. method, net of tax --- --- 1,736 ---
NET LOSS BEFORE GAIN AND
CUMULATIVE CHANGE ** $(2,219) $(20,700) $(11,156) $(38,484)
(A) Included in interest expense
(B) Included in general and administrative expenses
(C) Included in interest and other income (expense)
* NOTE - Management believes that earnings before interest, taxes and
non-cash items and discretionary cash flow are relevant and useful
information, which are commonly used by analysts, investors and other
interested parties in the oil and gas industry. Accordingly, we are
disclosing this information to permit a more comprehensive analysis of
our operating performance and liquidity, and as an additional measure
of Mission's ability tomeet its future requirements for debt service,
capital expenditures and working capital. Earnings before interest,
taxes and non-cash items and discretionary cash flow should not be
considered in isolation or as a substitute for net income, cash flow
provided by operating activities or other income or cash flow data
prepared in accordance with generally accepted accounting principles
("GAAP") or as a measure of our profitability or liquidity. Earnings
before interest, taxes and non-cash items and discretionary cash flow
exclude components that are significant in understanding and assessing
our results of operations and cash flows. In addition, earnings
before interest, taxes and non-cash items and discretionary cash flow
are not terms defined by GAAP and, as a result, our measures of
earnings before interest, taxes and non-cash items and discretionary
cash flow might not be comparable to similarly titled measures used by
other companies.
** NOTE - Management believes net loss before gain on extinguishment of
debt and cumulative effect of a change in accounting method is
relevant and useful information. We believe it gives a clearer
picture of the Company's performance excluding material non-recurring
transactions. Accordingly, we are disclosing this information to
permit a more comprehensive analysis of our operating performance.
Net loss before gain on extinguishment of debt and cumulative effect
of a change in accounting method should not be considered in isolation
or as a substitute for net income prepared in accordance with GAAP.
OIL GAS
First Quarter 2004 First Quarter 2004
2,500 bbl a day in a 5,000 mmbtu a day in a collar of
swap of $25.24 $3.90 to $5.25
1,000 bbl a day in a collar 5,000 mmbtu a day in a collar of
of $28.00 to $30.42 $6.00 to $7.02
3,000 mmbtu a day in a collar of
$4.50 to $5.61
2,000 mmbtu a day in a collar of
$4.50 to $6.70
Second Quarter 2004 Second Quarter 2004
2,500 bbl a day in a 5,000 mmbtu a day in a collar of
swap of $24.67 $3.70 to $4.08
5,000 mmbtu a day in a collar of
$5.00 to $6.01
2,000 mmbtu a day in a collar of
$4.50 to $5.10
2,000 mmbtu aday in a collar of
$4.75 to $5.34
Third Quarter 2004 Third Quarter 2004
2,500 bbl a day in a 5,000 mmbtu a day in a collar of
swap of $24.30 $3.70 to $4.04
5,000 mmbtu a day in a collar of
$5.00 to $5.75
2,000 mmbtu a day in a collar of
$4.50 to $5.10
2,000 mmbtu a day in a collar of
$4.75 to $5.35
Fourth Quarter 2004 Fourth Quarter 2004
2,500 bbl a day in a 5,000 mmbtu a day in a collar of
swap of $23.97 $3.85 to $4.23
5,000 mmbtu a day in a collar of
$5.00 to $6.10
2,000 mmbtu a day in a collar of
$4.50 to $5.45
2,000 mmbtu a day in a collar of
$4.75 to $5.90
------------------------------------------
First Quarter 2005 First Quarter 2005
1,000 bbl a day in a 1,000 mmbtu a day in a collar of
collar of $26.50 to $29.51 $4.25 to $6.32
500 bbl a day in a collar of 1,000 mmbtu a day in a collar of
$27.50 to $29.25 $4.75 to $6.60
Second Quarter 2005 Second Quarter 2005
1,000 bbl a day in a collar 1,000 mmbtu a day in a collar of
of $26.00 to $28.86 $4.25 to $4.92
500 bbl a day in a collar of 1,000 mmbtu a day in acollar of
$27.00 to $28.65 $4.50 to $5.15
Third Quarter 2005 Third Quarter 2005
1,000 bbl a day in a collar 1,000 mmbtu a day in a collar of
of $26.00 to $27.81 $4.25 to $4.72
500 bbl a day in a collar of 1,000 mmbtu a day in a collar of
$26.50 to $28.08 $4.50 to $5.19
Fourth Quarter 2005 Fourth Quarter 2005
1,000 bbl a day in a collar 1,000 mmbtu a day in a collar of
of $26.00 to $27.09 $4.25 to $5.14
500 bbl a day in a collar of 1,000 mmbtu a day in a collar of
$26.00 to $27.80 $4.50 to $5.62
DATASOURCE: Mission Resources Corporation
CONTACT: Ann Kaesermann, Vice President - Accounting & Investor
Relations, CAO of Mission Resources Corporation, +1-713-495-3100, or
Web site: http://www.mrcorp.com/