DALLAS, May 2 /PRNewswire-FirstCall/ -- Remington Oil and Gas Corporation (NYSE:REM) announced the following first quarter financial information: Three Months Ended March 31, 2006 2005 (In thousands, except per share data) Oil and gas revenues $ 59,996 $ 59,471 Other income $ 18,102 $ 315 Net income $ 26,383 $ 16,035 Cash flow provided by operations $ 50,345 $ 45,355 Basic income per share $ 0.92 $ 0.57 Diluted income per share $ 0.90 $ 0.56 Production Bcfe 7.4 8.6 Average gas price $ 7.66 $ 6.54 Average oil price $ 60.07 $ 47.11 Oil and gas revenues for the three months ended March 31, 2006 increased $525,000, or 0.9%, compared to the same period in 2005. Gas revenues increased $4.2 million, or 10.5%, for the first quarter of 2006 compared to the first quarter of 2005 primarily due to the increase in average gas prices offset slightly by a decrease in production. Average gas prices for the first quarter of 2006 were $1.12 per Mcf, or 17.1% higher compared to the first quarter of 2005. Oil revenues decreased $3.7 million, or 19.4%, for the first quarter of 2006 compared to the first quarter of 2005 primarily due to the decrease in oil production partially offset by the increase in average oil prices. Oil prices increased $12.96 per barrel, or 27.5% during the first quarter of 2006 compared to 2005. Other income for the three months ended March 31, 2006 includes $17.3 million related to the partial accrual of lost production insurance payments. Net income for the three months ended March 31, 2006 increased $10.3 million, or 64.5%, compared to the same period of 2005. Cash flow from operations increased $5.0 million, or 11.0%, compared to the same period of 2005. Income taxes for the three months ended March 31, 2006 increased $5.2 million, or 59.0%, compared to the same period of 2005 due to the increase in income before taxes. Current taxes accounted for $10.3 million of total tax expense for the three months ended March 31, 2006. Dry hole expense for the first quarter of 2006 was $5.2 million. We utilize the successful-efforts method of accounting, which requires dry holes to be reported as an expense in the quarter they are determined to be dry. It is very difficult to predict when dry holes will occur and thus dry hole expense is subject to dramatic fluctuation each quarter. As of March 31, 2006, we have $38.9 million accrued as insurance receivables on the Balance Sheet. Of this amount, $18.3 million represents insurance receivables for hurricane related expenditures associated with physical damage, lost equipment and a control of well claim. The remaining $20.6 million represents an insurance receivable for partial claim for lost production through March 31, 2006, from shut-ins caused by Hurricane Rita, of which $17.3 million is related to the current period and is included in Other income on the Income Statement. Additional claims associated with lost production as a result of Hurricane Katrina have been made and will be recorded when finalized. 2006 Production Guidance Production volumes for the first quarter averaged 82 Mmcfe/day, versus guidance of 75 to 80 Mmcfe/day. Production volumes for the second quarter 2006 are expected to range between 90 and 100 Mmcfe/day (8.2 to 9.1 Bcfe). This increase in production over first quarter 2006 is anticipated as several fields shut-in as a result of damage from Hurricanes Katrina and Rita re- commence production during the second quarter. Repairs to the company's largest producing field, East Cameron 346, are nearing completion and expected to be finalized this month. Additionally, repairs to other third party pipelines servicing other Remington properties are expected to be completed by the end of the second quarter. Remington Oil and Gas Corporation is an independent oil and gas exploration and production company headquartered in Dallas, Texas, with operations concentrating in the onshore and offshore regions of the Gulf Coast. Statements concerning future revenues and expenses, production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of prospects or wells are forward-looking statements. Prospect size and reserve levels are often referred to as "potential" or "un-risked" reserves and are based on the Company's internal estimates from the volumetric calculations or analogous production. Other forward-looking statements are based on assumptions concerning commodity prices, drilling results, recovery factors for wells, production rates, and operating, administrative and interest costs that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business, mechanical, political, environmental and geologic risks. There is no assurance that these goals, projections, costs, expenses, reserve levels, and production volumes can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are herein incorporated by this reference. Information in this document should be reviewed in combination with the Company's filings with the Securities and Exchange Commission and information available on the Company's website at http://www.remoil.net/ . ADDITIONAL INFORMATION: The Company and Helix Energy Solutions Group, Inc. ("Helix ESG") have filed a proxy statement/prospectus and other relevant documents concerning the proposed merger transaction between the Company and Helix ESG with the Securities and Exchange Commission ("SEC"). Investors are urged to read the proxy statement/prospectus and any other relevant documents filed with the SEC because they contain important information. You may obtain the documents free of charge at the website maintained by the SEC at http://www.sec.gov/ . In addition, you may obtain documents filed with the SEC by the Company free of charge by requesting them in writing from the Company or by telephone at (214) 210-2650. You may obtain documents filed with the SEC by Helix ESG free of charge by requesting them in writing from Helix ESG or by telephone at (281) 618-0400. The Company and Helix ESG, and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies from the stockholders of the Company in connection with the merger. Information about the directors and executive officers of the Company and their ownership of stock of the Company is set forth in the proxy statement for the Company's 2005 Annual Meeting of Stockholders. Information about the directors and executive officers of Helix ESG and their ownership of Helix ESG stock is set forth in the proxy statement for Helix ESG's 2005 Annual Meeting of Shareholders. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus. Remington Oil and Gas Corporation Condensed Consolidated Balance Sheets (In thousands, except share data) March 31, December 31, 2006 2005 (Unaudited) Assets Current assets Cash and cash equivalents $ 47,887 $ 38,860 Accounts receivable 62,704 66,887 Insurance receivable 38,932 23,308 Income taxes receivable --- 5,767 Prepaid expenses and other current assets 12,942 5,466 Total current assets 162,465 140,288 Properties Oil and gas properties (successful-efforts method) 937,791 908,437 Other properties 3,876 3,758 Accumulated depreciation, depletion and amortization (485,804) (468,290) Total properties 455,863 443,905 Other assets 1,874 1,872 Total assets $ 620,202 $ 586,065 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $ 72,474 $ 76,561 Income taxes payable 3,521 --- Current deferred income taxes 1,094 1,094 Total current liabilities 77,089 77,655 Long-term liabilities Asset retirement obligation 23,498 21,375 Deferred income taxes 86,612 82,876 Total long-term liabilities 110,110 104,251 Total liabilities 187,199 181,906 Commitments and contingencies Stockholders' equity Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares Outstanding Common stock, $.01 par value, 100,000,000 shares authorized, 28,886,443 shares issued and 28,852,084 shares outstanding in 2006, 28,790,997 shares issued and 28,756,638 shares outstanding in 2005 289 288 Additional paid-in capital 155,573 149,234 Restricted common stock --- 24,264 Unearned compensation --- (20,385) Retained earnings 277,141 250,758 Total stockholders' equity 433,003 404,159 Total liabilities and stockholders' equity $ 620,202 $ 586,065 Remington Oil and Gas Corporation Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2006 2005 Revenues Gas sales $ 44,619 $ 40,390 Oil sales 15,377 19,081 Interest income 458 252 Other income 17,644 63 Total revenues 78,098 59,786 Costs and expenses Operating 7,228 5,912 Exploration 7,004 10,385 Depreciation, depletion and amortization 17,858 16,011 Impairment expense 274 297 General and administrative 5,186 2,121 Interest and financing 127 198 Total costs and expenses 37,677 34,924 Income before income taxes 40,421 24,862 Income tax expense 14,038 8,827 Net income $ 26,383 $ 16,035 Basic income per share $ 0.92 $ 0.57 Diluted income per share $ 0.90 $ 0.56 Weighted average shares outstanding (Basic) 28,822 28,045 Weighted average shares outstanding (Diluted) 29,414 28,838 Production Oil (MBbls) 256 405 Gas (MMcf) 5,826 6,176 Mcfe 7,362 8,606 Average Prices Oil $ 60.07 $ 47.11 Gas $ 7.66 $ 6.54 Per Mcfe $ 8.15 $ 6.91 Remington Oil and Gas Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31, 2006 2005 Cash flow provided by operations Net income $ 26,383 $ 16,035 Adjustments to reconcile net income Depreciation, depletion and amortization 17,858 16,011 Deferred income taxes 3,736 5,451 Amortization of deferred charges 25 46 Dry hole costs 5,227 9,049 Impairment costs 274 297 Cash paid for dismantlement (10) (243) Stock based compensation 1,241 512 Tax benefit from exercise of stock options (1,013) 3,376 Gain on sale of properties (59) --- Changes in working capital (Increase) decrease in accounts receivable 3,968 (5,646) (Increase) in insurance receivable (15,624) --- Decrease in income taxes 10,301 --- (Increase) decrease in prepaid expenses and other current assets (7,501) 49 Increase in accounts payable and accrued expenses 5,539 418 Net cash flow provided by operations 50,345 45,355 Cash from investing activities Capital expenditures (42,668) (47,600) Proceeds from sale of properties 130 --- Net cash (used in) investing activities (42,538) (47,600) Cash from financing activities Tax benefit from exercise of stock options 1,013 --- Common stock issued 665 6,833 Purchase of treasury stock (458) (336) Net cash provided by financing activities 1,220 6,497 Net increase in cash and cash equivalents 9,027 4,252 Cash and cash equivalents at beginning of period 38,860 58,659 Cash and cash equivalents at end of period $ 47,887 $ 62,911 DATASOURCE: Remington Oil and Gas Corporation CONTACT: Steven J. Craig, Sr. Vice President of Remington Oil and Gas Corporation, +1-214-210-2675 Web site: http://www.remoil.net/

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