Burlington Resources Inc., with 90% of its oil and natural gas assets in North America, increased its fourth quarter production forecast on Monday, attributing the jump to higher-than-anticipated gas production in Canada. The Houston independent also retained some assets marked for sale longer than expected, which will improve the bottom line, it said.

The company updated its production guidance based on actual volumes for October and estimated volumes for November and December. Burlington’s fourth quarter 2002 total production now is estimated to range between 2,350-to-2,490 MMcfe/d, compared with the previous guidance range of 2,260-to-2,490 MMcfe/d.

On a gas equivalent-per-unit basis, estimated fourth quarter costs include cash costs (excluding non-income taxes and transportation expense) of $0.70 to $0.73; depreciation, depletion and amortization expense of $0.84 to $0.87; and transportation expense of $0.34 to $0.36. Burlington expects to announce its fourth quarter results on January 23.

Burlington also reiterated that its long-term production growth will remain between 3% and 8% a year over the next several years, with 8% “absolute” growth in 2002 over last year, or about a 10% rise on a per-share basis. However, the strong growth in 2002 will be tempered next year, Burlington said. It anticipates the “low end”of the range in 2003 for growth, partly because of its performance this year, as well as anticipated property sales. By 2004, “as major development projects come online,” the company again forecasts the “upper end of the range” in growth.

“During 2002, we significantly upgraded our portfolio by successfully integrating high-quality properties acquired primarily in Canada,” said CEO Bobby S. Shackouls. “We also completed a very successful program to divest non-core assets. As a result, we will exit the year with properties that offer lower production decline rates as well as significant exploitation and development opportunities to help drive future growth. In addition, we expect to achieve contributions from several of the major development projects.”

Approximately 75% of the 2003 exploration and production capital is earmarked for core programs in North America, with 45% allocated to Canada and 30% to the United States. The rest of the budget will fund oil development projects in Algeria and China, as well as a natural gas development project in the UK’s East Irish Sea. Burlington said that “all are expected to contribute substantially to production following scheduled start-ups in 2003 and 2004.” It also is conducting exploration and development programs in several other countries.

Earlier this month, Burlington reshuffled its executive offices and announced some promotions. Randy Limbacher was named executive vice president and COO, and CFO Steven Shapiro also added the title of executive vice president. Limbacher will be responsible for exploration and day-to-day company operations. He joined the company in 1985 and had served as senior vice president since 2000. Shapiro, who joined Burlington in 2000 as CFO, will continue to be responsible for company strategy and financial performance.

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