Whittier (NASDAQ:WHIT)
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Whittier Energy Corporation (NASDAQ:WHIT) announced
today a drilling and operations update and the final adjusted closing
prices and estimated proved reserves associated with the two
acquisitions completed on June 1, 2006 and August 9, 2006
respectively.
Drilling and Operations Update
Whittier Energy remains on-track to participate in 46 new wells in
2006, a record number for the Company. Through September 8, 2006 the
Company has participated in 28 wells with 24 of them successful, for
an 85% success rate. This drilling program has been largely
responsible for the growth in current daily production to 20 Mmcfe
(million cubic feet equivalent), an increase of 42% over year-end
2005. The Company currently has two operated and two non-operated
drilling rigs running including one drilling the Rebel #5 located in
the Windham Field in the Permian Basin which spudded September 9, 2006
and the non-operated Diamond Development #1 located in Gillis English
Bayou. The Company intends to test the recently drilled Westhoff #A-1
this week. The Duhon #1 well, located in Lafayette Parish, Louisiana
has been returned to production. The well, which was shut-in by the
operator in July of this year to repair casing, is currently producing
at approximately 6 Mmcfe per day; however volumes will be monitored
over the next few weeks to ensure the well is producing at optimum
levels. The Company owns a 9.75% working interest in the well.
Acquisition Update
The net acquisition price after customary closing and post-closing
adjustments for the previously announced acquisitions of Westhoff
Ranch located in South Texas and certain Imperial Petroleum properties
located in Mississippi and East Texas is approximately $28.1 million
with total proved reserves for the two acquisitions after closing
adjustments estimated at 15.9 Bcfe (Billion cubic feet equivalent).
The Company estimates that it paid an average of $1.77 per Mcfe
(Thousand cubic feet equivalent) of estimated proved reserves.
In the Westhoff Ranch acquisition the final closing price of $17.9
million reflects purchase price adjustments for revenue and expenses
attributed to the Company during the period from the February 1, 2006
effective date of the acquisition through the May 31, 2006 closing
date. The Company elected not to close on certain Imperial Petroleum
properties resulting in a final closing price of approximately $10.2
million.
Management Comments
Bryce Rhodes, President and Chief Executive Officer, said, "We are
very pleased with our success this year adding substantially to
reserves and daily production through both acquisitions and organic
growth through the drill bit." Mr. Rhodes went on to say, "On a
combined basis the Westhoff Ranch and Imperial Petroleum acquisitions
were done at a very competitive cost of approximately $1.77 per Mcfe
on estimated proved reserves. These acquisitions have added
production, proved and probable reserves and provide significant
development opportunity for future growth. In addition, our drilling
program has been very successful year-to-date. Approximately 70% of
our 2006 capital budget for the year is targeted at non-proved
locations and with an 85% overall success rate year-to-date we are
demonstrating our ability to grow organically."
About Whittier Energy Corporation
Whittier Energy Corporation is an independent oil and gas
exploration and production company headquartered in Houston, Texas,
with operations in Texas, Louisiana and Mississippi. Whittier Energy
also holds non-operated interests in fields located in the Gulf Coast,
Oklahoma, Wyoming and California. To find out more about Whittier
Energy Corporation (NASDAQ:WHIT), visit www.whittierenergy.com.
Forward-Looking Statements
This news release includes projections and other "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These projections or statements reflect Whittier's
current views about future events and performance. No assurances can
be given that these events or performance will occur as projected and
actual results may differ materially from those projected. Important
factors that could cause the actual results to differ materially from
those projected include, without limitation, the availability and
costs of drilling rigs and other oilfield services, drilling and
operating risks, exploration and development risks, and other risks
inherent in Whittier's business that are detailed in its Securities
and Exchange Commission filings. Whittier assumes no obligation and
expressly disclaims any duty to update the information contained in
this news release except as required by law.