Capex Data
Mariner Energy approved a 2009 capital budget for exploration and development expenditures of $431 million, approximately 70% less than estimated 2008 total capital expenditures. For the Gulf of Mexico, the budget includes the start-up of production at new fields and a diverse exploration program testing several high-potential prospects. Capital spending in the Permian Basin will focus on the delineation of recent discoveries and a modest continuation of infill development drilling activities. The budget, which is based on oil and natural gas prices of $55/bbl and $6/MMbtu, respectively, may be adjusted based upon exploration success and changes in commodity prices and industry costs.
Capital Expenditures
Mariner's 2009 capital program includes approximately 14 wells offshore (12 exploration and 2 development) and 30 wells onshore. The program is summarized in the table below. These amounts exclude hurricane-related expenses that the company plans to submit for insurance reimbursement and acquisitions.
Full-year 2009 CAPEX plan ($millions)
Exploration
Gulf of Mexico - Deepwater: 104.0
Gulf of Mexico - Shelf: 67.5
Geologic & Geophysical/Leasehold/Rentals: 23.6
Development
Gulf of Mexico - Deepwater: 63.6
Gulf of Mexico - Shelf: 112.0
Permian Basin: 31.9
Capitalized Items: 28.0
Total Capital Expenditures: 430.6
Future Plans
For the Gulf of Mexico activity will include the start-up of production at new fields and a diverse exploration program testing several high-potential prospects. Capital spending in the Permian Basin will focus on the delineation of recent discoveries and a modest continuation of infill development drilling activities.
Mariner's 2009 capital program includes approximately 14 wells offshore (12 exploration and 2 development) and 30 wells onshore.