Burlington Resources expects to top First Call/ThomsonFinancial’s earnings estimate for the company’s third quarter by$.06 to $.11 cents, but reports production may lag in comparison tolast quarter due to the “natural decline” in some of its operationareas.

The international company, which specializes in exploration,development, production and marketing of crude oil and natural gas,expects earnings will be in the area of $.70 to $.75 per share forthe quarter, double the company’s first quarter 2000 posting of$.36.

Production, however, is not enjoying the same increase asevidenced by the company’s third quarter estimates for oil and gas.Burlington expects production for natural gas volumes to be between1,830 and 1,860 MMcf/d, and oil production to be around 72,000 to74,000 b/d. Burlington’s second quarter report showed 1,963 MMcf/d,and 79.3 thousand b/d.

The company cites natural declines in the Gulf of Mexico, SanJuan Basin Fruitland Coal and the Dalton field in the East IrishSea, as one cause of the decline in gas volumes. Mechanicaldowntime, and processing and treating efficiency problems in theSan Juan Basin due to excessive heat this summer were also noted asreasons for the production decrease. Oil production decreases wereblamed on asset disposition and natural base decline.

Burlington also released fourth quarter 2000 productionestimates, which show a small resurgence. The company expects thatits capital program, along with other factors, will raise gasvolume production to a range of 1,830 to 1,970 MMcf/d, but oilproduction is expected to drop again, producing 65,000 to 70,000b/d.

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