(US) - Bois d'Arc Energy, Inc. announced that it expects to spend $180 million on its exploration and development activities in 2006. Bois d'Arc's exploration program in 2006 will focus on the company's acreage on the GoM shelf.
Bois d'Arc has budgeted $152 million to drill 19 offshore wells. In addition, the company plans to spend $12 million on acquisition of seismic data and acreage and $16 million on production facilities, recompletions, and abandonment work.
Bois d'Arc also says that its 2005 production exit rate was approximately 83 MMcf/d, which is the highest production rate in the company's history. Bois d'Arc achieved this production rate despite still having 18 MMcf/d shut-in pending third party pipeline repairs. The shut-in production is expected to resume late in the first quarter.
"Our 2006 drilling program will allow us to continue to grow our reserve base through the drill bit," said Wayne L. Laufer, CEO of Bois d'Arc. "With our higher production level and given the current oil and natural gas prices, we expect to be able to fund our drilling program with operating cash flow, while reducing our outstanding debt that we incurred as a result of the hurricane activity in 2005."