Denver-based St. Mary Land & Exploration Co. plans to reduce its onshore U.S. rig count to seven by the end of February, down from a peak of 16 in mid-2008. Two operated rigs will focus on drilling horizontal wells in the Woodford, Arkoma and Anadarko basins, and one rig will be used in the Rocky Mountains. In the Permian Basin, one operated rig will run intermittently throughout the year. In its emerging shale plays, St. Mary plans to have one to two operated rigs that will be shared through the year at its Haynesville, Eagle Ford and Marcellus shale programs. Full-year 2009 production is forecast to be 101-104 Bcfe, down from the 115 Bcfe produced in 2008. The company posted a 4Q2008 loss of $126 million (minus $2.01/share), compared with earnings of $32.9 million (51 cents) in the same period of 2007. Excluding one-time charges, St. Mary reported a quarterly profit of $27.1 million (43 cents/share). Revenue fell 6% to $258 million from $275 million a year earlier.

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