XTO Energy Inc. said Monday it expects to grow its natural gas-heavy production base about 12% more than last year, with more than half of its development budget directed to East Texas activities. Meanwhile, Magnum Hunter Resources Inc. raised its week-old fourth quarter forecast, calling the previous estimate too conservative.

XTO plans to spend $400 million this year on development and exploration, drilling 309 (255 net) wells and performing about 385 (283 net) workovers and recompletions. In East Texas alone, about 65% of the budget will be used to drill 149 new wells and 60 workover activities.

For the San Juan and Arkoma basins, XTO will allocate approximately 20% of the development funds, evenly distributed, to drill 114 new wells and perform 207 workovers. An expected 10% of the budget will be directed toward Alaska, the Permian Basin and the Hugoton Royalty Trust properties. On exploration, XTO plans to spend about $20 million.

“Our disciplined and well-established development programs continue to provide top-tier performance — meaning consistent internal growth with healthy economic returns for the shareholders,” said CEO Bob R. Simpson. “For XTO Energy, 2003 will offer another exciting year dedicated to measured growth, financial strength and new opportunity.”

XTO said it also remains on track to increase its natural gas production this year by 15%, a forecast it had made in December after completing its acquisition of coalbed methane properties in southwestern Colorado (see Daily GPI, Dec. 31, 2002). The acquisition added another 29 MMcf/d to XTO’s production base.

Irving, TX-based Magnum Hunter, which plans to spend $115 million this year on exploration and production activities, on Monday raised its earnings forecast for the final quarter of 2002, citing higher commodity prices, production levels and cost estimates.

The company said daily production for the quarter will average between 195 MMcf to 202 MMcf, up from a forecast last week of 182 MMcf to 201 MMcf (see Daily GPI, Dec. 31, 2002). Magnum Hunter also raised its earnings estimate for the fourth quarter to between 4-6 cents/share, up from an earlier estimate of 0-2 cents.

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