Remington Oil and Gas Corp. acquired interests in 10 Gulf ofMexico offshore blocks from Union Pacific Resources (UPR). Seven ofthe blocks are producing, one is anticipated to come on productionbefore year-end, and two are undeveloped. The blocks are on theoffshore Louisiana and Texas shelf in water depths less than 400feet. Interests vary from 5% to 100%, with all of the producingproperties being non-operated. The effective date of thetransaction is Sept. 1 with an anticipated closing prior toyear-end. Unaudited reserves for the blocks are about 7 BCFe with apurchase price of $7.65 million.

Included in the purchase is a 50% working interest in EugeneIsland Block 148. On that block, the OCS-G-13620 #1 Well, drilledand completed in March of 1998, encountered 63 feet of net gas payin three Miocene sands. This well, operated by Samedan Oil, isawaiting pipeline connection with first production scheduled forDecember. Additional exploratory drilling opportunities areavailable on the block.

Also included in the acquisition are interests in five producingfields covering seven blocks: Matagorda 587, Galveston 333, EugeneIsland 297 and High Island A-340 and A-548. Remington’s interestsin these fields will be 8.75%, 40.9%, 20%, 5% and 5% respectively.Additional drilling opportunities exist on several of the blocks.Current net daily production attributable to these blocks totals4.5 MMcf/d. A significant increase in the net daily production rateis expected following hookup of the Eugene Island Block 148 well.

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