Vintage Petroleum Announces 2004 Preliminary Capital Budget and Targets

Vintage Petroleum Announces 2004 Preliminary Capital Budget and Targets 


TULSA, Okla., Nov. 5  /PRNewswire-FirstCall/ -- Vintage Petroleum, Inc.  today
announced its preliminary 2004 non-acquisition capital budget of $225 million, a
22 percent increase from 2003's planned capital budget of $185 million.

Approximately 73 percent, or $165 million, of the total 2004 capital expenditure
budget is allocated to lower-risk exploitation projects.  About 50 percent of
total exploitation spending, or $84 million, is allocated to drilling,
workovers, seismic surveys and secondary recovery projects in Argentina.  The
four-rig drilling program initiated during 2003 will be continued in 2004,
accounting for about 70 percent of the Argentina exploitation budget, with
expectations of drilling 90 wells (88 wells in the San Jorge basin and 2 wells
in the Piedras Coloradas concession), a 29 percent increase over the 70 wells
planned for 2003.  The remaining 30 percent of the Argentina exploitation budget
is allocated for the completion of 84 workovers in the San Jorge basin, the
initiation of waterflood projects and 3-D seismic surveys.  Initial waterflood
production response is expected during 2005. Approximately 165,000 acres of 3-D
seismic will be recorded on the Tres Picos-Caleta Olivia, Cerro Wenceslao, and
Cerro Overo concessions during 2004. Currently, only 39 percent of the company's
operated 1.1 million gross acres in Argentina have been covered by 3-D seismic
surveys.

The North American exploitation budget of $55 million accounts for 33 percent of
the total exploitation budget with $46 million allocated to the United States. 
The 2004 domestic drilling program consists of 31 wells in California,
Louisiana, Oklahoma and Texas, with 63 workovers budgeted in those same states.

In Canada, a total budget of $22 million has been set with nearly 60 percent
allocated to exploration and 40 percent to exploitation.  Fifteen exploitation
wells in the Peace River Arch, West Central and Sturgeon Lake areas and 11
workovers in the Peace River Arch, East of 5 and Sturgeon Lake areas are
scheduled.

On October 15, 2003, the Republic of Yemen's Ministry of Oil and Minerals
approved Vintage's S-1 Damis block development plan covering approximately
285,000 acres for a term of 20 years.  Facilities construction and drilling in
Yemen account for the remaining $26 million, or 16 percent of Vintage's 2004
exploitation budget.  Approximately $17 million has been earmarked in the 2004
budget for the construction of facilities near the An Nagyah light oil discovery
and a pipeline.  Approximately $6 million in capital expenditures will be
incurred for facilities construction during the first quarter of 2005 to
complete the installation.  The facilities will be designed to process up to
10,000 gross (5,200 net) barrels of oil per day and are expected to be completed
by April 2005.  The remaining $9 million allocated to Yemen is for the drilling
of six An Nagyah development wells and one Harmel appraisal well during 2004. 
Vintage expects to install facilities which will allow for the early production
of up to 2,500 gross (1,300 net) barrels of oil per day beginning during the
first quarter of 2004.

The remaining 27 percent of the 2004 capital budget, or approximately $60
million, will be directed toward exploration projects primarily targeting gas in
North America.  About $51 million, or 85 percent of the exploration budget, will
be spent in North America and $9 million will be spent on international
projects.

In the United States, $38 million will be spent on exploration activities. Of
this amount, $25 million has been allocated to 10 exploration wells which will
be drilled on eight prospects located in West Texas, the Texas Gulf Coast and
South Louisiana.  The remaining $13 million has been allocated to the
acquisition of seismic and leasehold required to continue to build the
exploration prospect inventory in the United States.  Approximately $13 million
has been allocated to Canadian exploration where 12 wells are planned to be
drilled in the foothills trend of Northeast British Columbia and Peace River
Arch areas.

Exploration outside North America has been allocated $9 million which will be
spent primarily on the drilling of two wells in Italy and the continuing
geological evaluation of the high impact, frontier project in Bulgaria.  In
early 2001, Vintage acquired a 70 percent working interest in two exploration
blocks situated in the Po Valley, an industrial region of northern Italy which
has a long-established production history and well-developed pipeline
infrastructure serving a highly developed gas market.  Using seismic attributes
analysis from reprocessed 2-D seismic combined with newly acquired geochemical
surveys, Vintage is targeting shallow Pliocene gas sands in
structural-stratigraphic traps.  The process of well permitting is underway and
the company plans to begin drilling the first of two exploration wells in early
2004.  If successful, Vintage believes that numerous similar prospects can be
drilled using the same technology-driven exploration concept.  Vintage is the
operator of the Bastiglia and Cento blocks covering approximately 275,000 gross
acres.

Targets for 2004

The 2004 non-acquisition capital budget is aimed at stabilizing production in
the short-term while devoting significant resources to projects that can provide
longer-term growth opportunities.  Approximately $78 million, or 35 percent of
the total 2004 non-acquisition capital budget, is comprised of exploration and
development expenditures that target production growth in 2005 and beyond. 
Vintage is targeting production of 26.9 million barrels of oil equivalent in
2004.  This targeted production level takes into account the impact of the
recent Simi Valley fire that shut-in approximately 3,500 barrels of oil
equivalent per day of Vintage's production in California.  Vintage expects the
shut-in wells to be returned to production throughout the first quarter of
2004.

The company has assumed a lower average NYMEX price for the year 2004 of $27.00
per barrel of oil versus its revised 2003 assumption of $30.40 per barrel.  For
natural gas, the company has lowered its assumed NYMEX price for the year to
$5.00 per MMBtu from its revised 2003 assumption of $5.45 per MMBtu.  The oil
price received in 2004 as a percent of the NYMEX price is anticipated to be 84
percent compared to the 87 percent estimated for 2003. The gas price received in
2004 as a percent of the NYMEX price is anticipated to strengthen marginally to
69 percent from 68 percent assumed for 2003.

Given its preliminary outlook for the 2004 capital budget, production, assumed
prices and costs enumerated in the accompanying table, "Vintage Petroleum, Inc.
Preliminary Targets for 2004," as well as other expectations, Vintage has
established 2004 targets for cash flow (before all exploration expenses and
working capital changes) and EBITDAX of $214 million and $315 million,
respectively.  The 2004 targets do not reflect the impact of the costs to be
incurred to repair damage to the company's properties resulting from recent
fires in California.

Vintage to Webcast Conference Call

The company's third quarter 2003 conference call to review third quarter results
and future plans will be broadcast live on a listen-only basis over the internet
on Thursday, November 6, at 3 p.m. Central time.  Interested parties may access
the webcast by visiting the Vintage Petroleum, Inc. website at
http://www.vintagepetroleum.com/ and selecting the microphone icon, or at
http://www.fulldisclosure.com/ and typing VPI in the ticker search box and
selecting "Go".  To listen to the internet broadcast, participants will need a
multimedia computer with speakers and the Windows media player installed.
Download from http://www.microsoft.com/windows/windowsmedia/download/default.asp
and test the software prior to the call.  Vintage Petroleum is unable to provide
technical support for downloading the software.  The teleconference may be
accessed by dialing [phone] five to ten minutes prior to the scheduled
start time and providing the call identifier, "Vintage" to the operator.  The
webcast and the accompanying slide presentation will be available for replay at
the company's website.  An audio replay will be available until November 14,
2003, by dialing [phone].

Forward-Looking Statements

This release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995.  All statements in this release, other than
statements of historical facts that address estimates of assumed NYMEX prices,
realized prices as a percent of NYMEX, production, capital expenditures, cash
flows, EBITDAX and events or developments that the company expects are
forward-looking statements.  Although Vintage believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the forward-looking
statements.  Factors that could cause actual results to differ materially from
those in forward-looking statements include oil and gas prices, exploitation and
exploration successes, actions taken or to be taken by foreign governments as a
result of economic conditions or other factors, changes in foreign exchange and
inflation rates, as well as continued availability of capital and financing, and
general economic, market or business conditions and risk factors listed from
time-to-time in the company's reports and other documents filed with the
Securities and Exchange Commission. Vintage Petroleum is an independent energy
company engaged in the acquisition, exploitation, exploration and development of
oil and gas properties and the marketing of natural gas and crude oil.  Company
headquarters are in Tulsa, Oklahoma, and its common shares are traded on the New
York Stock Exchange under the symbol VPI.  For additional information visit the
company website at http://www.vintagepetroleum.com/

                         VINTAGE PETROLEUM, INC.
                       PRELIMINARY TARGETS FOR 2004


  Oil production (MMBbls):                                        2004
                                                               Targets(c)
    U.S.                                                          5.8
    Canada                                                         .8
    Argentina                                                    11.1
    Bolivia                                                        .1
    Yemen                                                          .4
    Total                                                        18.2

 Gas production (Bcf):
    U.S.                                                         23.4
    Canada                                                       14.8
    Argentina                                                     8.5
    Bolivia                                                       5.5
    Total                                                        52.2

 Total MMBOE                                                     26.9

 Assumed NYMEX(a) prices:
    Oil                                                        $27.00
    Gas                                                         $5.00

  Net realized price (before impact of hedging) as a
  percent of NYMEX(a) - Total Company:
    Oil                                                            84%
    Gas                                                            69%

 DD&A per BOE (oil and gas only)                                $4.75
 LOE per BOE (including Argentine export tax impact)(e)         $8.75
 G&A per BOE                                                    $2.20

 Non-Acquisition Capital Spending Budget (in millions)           $225

  Cash Flow (before all exploration expenses, working
   capital changes and current taxes associated with
   property sales) (in millions)(d)(e)                           $214

  EBITDAX (in millions)(b)(d)(e)                                 $315

   MMBbls     -million barrels
   Bcf        -billion cubic feet
   MMBOE      -million barrels of oil equivalent

   (a) NYMEX -
           Oil - Average of the daily settlement price per barrel for the
                 near-month contract for light crude oil as quoted on the
                 New York Mercantile Exchange.
           Gas - Average of the settlement price per MMBtu for the last 3
                 trading days for the applicable contract month for
                 natural gas as quoted on the New York Mercantile Exchange.

   (b) EBITDAX:  Earnings before interest, taxes, DD&A, impairments,
       exploration expenses, cumulative effect of change in accounting
       principle, loss on early extinguishment of debt, and gains/losses on
       property sales.

   (c) Targets do not reflect any future acquisitions or dispositions of
       assets.  Targets reflect the impact of existing hedges.  See "Targets
       for 2004" and "Forward-Looking Statements" elsewhere in the release.

   (d) The targets for non-GAAP financial measures are not reconciled to the
       most directly comparable GAAP financial measures as the company does
       not establish targets for such GAAP financial measures.

   (e) Before costs to repair damage resulting from recent fires in
       California.


DATASOURCE: Vintage Petroleum, Inc.



CONTACT:  Robert E. Phaneuf, Vice President - Corporate Development of

Vintage Petroleum, Inc., [phone]



Web site:  http://www.vintagepetroleum.com/ 

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