Remington Oil & Gas 8-K Remington Oil and Gas Announces Financial and Operating Results for the Fourth Quarter and Full Year 2003

	PRESS RELEASE
	FOR IMMEDIATE RELEASE

Contact: Steven J. Craig Sr. Vice President (214) 210-2675

REMINGTON OIL AND GAS ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2003

Dallas, TX, March 5, 2004 – Remington Oil and Gas Corporation (NYSE: REM) announced financial results for the fourth quarter and year ended December 31, 2003, and year-end reserves estimates.

	Three Months Ended				Years Ended
	December 31,				December 31,
	2003		2002		2003		2002
Total revenues	$	47,746	$	27,698	$	183,052	$	104,866
Net income	$	8,904	$	855	$	42,924	$	11,332
Basic net income per share	$	0.33	$	0.03	$	1.61	$	0.45
Diluted income per share	$	0.32	$	0.03	$	1.53	$	0.42
Cash flow provided by operations	$	64,233	$	18,576	$	153,215	$	71,420
Production Bcfe		9.7		6.3		34.8		27.8

Net income for the three months ended December 31, 2003, increased by $8.0 million to $8.9 million, or $0.32 diluted income per share, and net income for the year ended December 31, 2003, increased by $31.6 million to $42.9 million, or $1.53 diluted income per share. Income was negatively affected by a $2.7 million pre-tax impairment in the fourth quarter and $4.4 million pre-tax impairment for the full year. Cash flow from operations was $64.2 million and $153.2 million for the three months and full year ended December 31, 2003, respectively. The increases in net income and cash flow from operations reflect the higher revenues principally from a 25% increase in production volumes, and a combination of a 21% increase in oil prices and a 61% increase in gas prices over the prior year.

Oil and gas production for the three months ended December 31, 2003, increased by 54% to 9.7 Bcfe compared to 6.3 Bcfe for the same three months of 2002. For the full year 2003, oil and gas production increased by 25% to 34.8 Bcfe in 2003 compared to 27.8 Bcfe in 2002. Production for both the fourth quarter and the full year represent the highest volumes ever achieved for the given periods in the company’s history.

Operating costs remained steady at $0.61 and $0.60 per Mcfe for the three months and full year ended December 31, 2003, respectively, compared to $0.63 and $0.58 per Mcfe for the same respective periods in the prior year. Depreciation, depletion and amortization expense increased to $1.77 per Mcfe for the three months ended December 31, 2003, compared to $1.60 per Mcfe for the full year of 2003, $1.48 per Mcfe for the three months ended December 31, 2002, and $1.38 per Mcfe for the full year 2002. The increase reflects the ongoing finding and development costs associated with exploratory drilling in the Gulf of Mexico.

General and administrative expenses were $0.29 per Mcfe for the three months ended December 31, 2003, and $0.24 per Mcfe for the full year of 2003. General and administrative costs were $0.25 per Mcfe

for both the three months and year ended December 31, 2002. These costs include non-cash stock-based compensation of $0.04 per Mcfe in 2003 and $0.06 per Mcfe for 2002. Interest and financing expenses decreased to $1.6 million or $0.05 per Mcfe from $2.1 million or $0.08 per Mcfe in 2002 because of lower total outstanding debt and lower interest rates. Bank debt at year-end 2003 was $18.0 million versus $37.4 million at year-end 2002. The company’s current bank debt is $12.0 million. Income tax expense increased due to the increase in income. The effective tax rate increased slightly due to an increase in state taxes.

Dry hole costs for 2003 were $24.0 million versus $14.8 million in 2002. Property impairment was reduced from $8.1 million in 2002 to $4.4 million in 2003. Included in the 2003 impairment is $1.1 million for unproved properties and $3.3 million on proved properties. As part of successful efforts accounting, properties are evaluated individually for impairment. Impairment occurs when properties deplete sooner than predicted or capital costs exceed the future value of the properties.

Year-End 2003 Reserves

Year-end 2003 reserves, as prepared in a full evaluation by Netherland Sewell & Associates, Inc., were 11.6 million barrels of oil and 142.4 billion cubic feet of gas or 212 billion cubic feet of gas equivalents. This compares with 204 billion cubic feet of gas equivalents at year-end 2002. Based on year-end prices of $29.25 per barrel of oil and $5.97 per Mcf of gas, the Standardized Measure of Discounted Future Net Cash Flows of these reserves was $486.3 million. Before taxes, the present worth discounted at 10% of these reserves was $651.9 million. Proved developed reserves were 56% of the total reserves.

The following table reflects the capital invested and reserve additions for the year ended December 31, 2003, and for the three years then ended:

	Yr. Ended			3-Yrs. Ended
	12/31/2003			12/31/2003
Beginning Reserves (Bcfe)		203.6			151.0
Production		(34.8	)		(91.4	)
Sales		—			(5.5	)
Ending Reserves		212.1			212.1
Reserve Additions		43.3			158.2
Reserve Revisions		(7.9	)		(9.9	)
Reserve Additions w/o Revisions		51.2			168.1
Capital Costs (MM$)		116.4			339.8
F&D Costs ($/Mcfe)		2.69			2.15
F&D Costs w/o Revisions ($/Mcfe)		2.27			2.02
Commodity Price ($/Mcfe)		5.25			4.35
Production Replacement		124	%		173	%

For 2003, reserve additions prior to revisions were 51.2 Bcfe and 43.3 Bcfe after revisions, resulting in a production replacement of 124%. Each year through Netherland Sewell and Associates, Inc. we evaluate the reserve potential of each new discovery and the performance of each existing well. Existing producing wells are subject to upward or downward revisions or no change at all from the previous year’s estimates based on actual production performance. Finding and development costs for 2003 were $2.69 per Mcfe including revisions and $2.27 per Mcfe without revisions. For the past three years finding and development costs have been $2.15 per Mcfe including revisions and $2.02 per Mcfe without revisions. Commodity prices received on average were $5.25 per Mcfe in 2003 and $4.35 per Mcfe over the prior three year period. Total capital costs incurred during 2003 were $116.4 million. Included in the 2003 capital costs is $7.8 million for South Timbalier 159 and Vermilion 136. Both of these projects are awaiting outcome and results are not known at this time.

Financial and Operational Guidance

The table below lists the Company’s guidance for cost estimates for 2004 on a million cubic feet of gas equivalents produced basis. These projections are based on current developmental projects being completed and commencing production over the next three to four months. Changes in this guidance may occur with operating results during the year.

LOE	$	0.60 - $0.70
G&A*	$	0.21 - $0.28
Interest	$	0.03 - $0.05
DD&A	$	1.80 - $1.95
Total	$	2.64 - $2.98

* Includes non-cash stock-based compensation of $0.03 — $0.06

The primary change in this guidance from 2003 levels is in the DD&A rate, which has necessarily increased with higher finding and development costs.

Dry hole expense for 2004 is anticipated to be between $20 and $24 million. As previously stated production guidance for the first six months of 2004 is 17.5 – 18.5 Bcfe and will be updated with the Company’s release of first quarter earnings.

The Company is targeting increasing production and reserves approximately 15% over 2003 levels during 2004 from its ongoing exploration and development program.

James A. Watt, President and Chief Executive Officer said, “This year’s excellent results were driven by a 25% increase in production volumes coupled with a 45% increase in commodity prices received. Finding and development costs and resultant DD&A rates have increased along with commodity prices allowing for excellent margins in our operations. We anticipate continuing an active exploration program in 2004 to continue to provide value growth for our shareholders.”

Remington Oil and Gas Corporation is an independent oil and gas exploration and production company headquartered in Dallas, Texas, with operations concentrating in the onshore and offshore regions of the Gulf Coast.

Statements concerning future revenues and expenses, production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of prospects or wells are forward-looking statements. Prospect size and reserve levels are often referred to as “potential” or “un-risked” reserves and are based on the Company’s internal estimates from the volumetric calculations or analogous production. Other forward-looking statements are based on assumptions concerning commodity prices, drilling results, recovery factors for wells, production rates, and operating, administrative and interest costs that management believes are reasonable based on currently available information; however, management’s assumptions and the Company’s future performance are subject to a wide range of business, mechanical, political, environmental, and geologic risks. There is no assurance that these goals, projections, costs, expenses, reserve levels, and production volumes can or will be met. Further information is available in the Company’s filings with the Securities and Exchange Commission, which are herein incorporated by this reference. Information in this document should be reviewed in combination with the Company’s filings with the Securities and Exchange Commission and information available on the Company’s website at www.remoil.net.

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Remington Oil and Gas Corporation
Condensed Consolidated Balance Sheets
(In thousands, except share data)

	At December 31,
	2003			2002
Assets
Current assets
Cash and cash equivalents	$	31,408		$	14,929
Accounts receivable		43,004			32,555
Prepaid expenses and other current assets		2,846			4,978
Total current assets		77,258			52,462
Properties
Oil and gas properties (successful-efforts method)		609,599			510,921
Other properties		3,450			3,182
Accumulated depreciation, depletion and amortization		(333,011	)		(279,722	)
Total properties		280,038			234,381
Other assets		2,089			2,150
Total assets	$	359,385		$	288,993
Liabilities and stockholders’ equity
Current liabilities
Accounts payable and accrued expenses	$	58,266		$	47,523
Short-term notes payable and current portion of long-term note payable		45			1,715
Total current liabilities		58,311			49,238
Long-term liabilities
Notes payable		18,000			37,400
Other long-term payables		—			1,503
Asset retirement obligation		12,446			—
Deferred income taxes		28,751			7,192
Total long-term liabilities		59,197			46,095
Total liabilities		117,508			95,333
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value, 25,000,000 shares authorized Shares issued – none
Common stock, $.01 par value, 100,000,000 shares authorized, 26,946,768 shares issued and 26,912,409 shares outstanding in 2003, 26,327,195 shares issued and 26,236,459 shares outstanding in 2002		269			263
Additional paid-in capital		120,925			115,827
Restricted common stock		3,156			5,468
Unearned compensation		(1,668	)		(3,192	)
Treasury stock (56,377 shares common stock, at cost in 2002)		—			(977	)
Retained earnings		119,195			76,271
Total stockholders’ equity		241,877			193,660
Total liabilities and stockholders’ equity	$	359,385		$	288,993

Remington Oil and Gas Corporation
Condensed Consolidated Statements of Income
(In thousands, except per share amounts and prices)

	Three Months Ended				Years Ended
	December 31,				December 31,
	2003		2002		2003		2002
Revenues
Oil sales	$	13,709	$	10,742	$	52,233	$	41,969
Gas sales		33,918		16,921		130,346		58,412
Interest income		46		34		161		198
Gain on sale of assets and other income		73		1		312		4,287
Total revenues		47,746		27,698		183,052		104,866
Costs and expenses
Operating costs and expenses		5,919		3,951		20,910		16,150
Exploration expenses		4,745		4,397		25,416		15,623
Depreciation, depletion and amortization		17,095		9,327		55,694		38,528
Impairment of oil and gas properties		2,693		6,709		4,447		8,081
General and administrative		2,774		1,565		8,408		6,912
Interest and financing expense		317		439		1,635		2,145
Total costs and expenses		33,543		26,388		116,510		87,439
Income before taxes		14,203		1,310		66,542		17,427
Income tax expense		5,299		455		23,618		6,095
Net income	$	8,904	$	855	$	42,924	$	11,332
Basic income per share	$	0.33	$	0.03	$	1.61	$	0.45
Diluted income per share	$	0.32	$	0.03	$	1.53	$	0.42
Average shares outstanding
Basic		26,868		26,204		26,628		25,294
Diluted		28,088		27,828		27,987		27,122
Production
Oil (MBbls)		467		411		1,775		1,729
Gas (MMcf)		6,871		3,818		24,149		17,448
Mcfe (1 barrel of oil is equivalent to 6 Mcf of gas)		9,673		6,284		34,799		27,822
Average prices
Oil	$	29.36	$	26.13	$	29.43	$	24.27
Gas	$	4.94	$	4.43	$	5.40	$	3.35

Remington Oil and Gas Corporation
Consolidated Statements of Cash Flows
(In thousands)

	Years Ended December 31,
	2003			2002
Cash flow provided by operations
Net income	$	42,924		$	11,332
Adjustments to reconcile net income
Depreciation, depletion and amortization		55,694			38,528
Deferred income tax expense		23,443			6,095
Amortization of deferred charges		207			228
Impairment of oil and gas properties		4,447			8,081
Dry hole costs		23,993			14,828
Cash paid for dismantlement and restoration liability		(1,631	)		(247	)
Stock issued to directors and employees for compensation		1,565			1,609
Gain on sale of properties		—			(4,095	)
Changes in working capital
Decrease (increase) in accounts receivable		(10,483	)		(13,099	)
Decrease (increase) in prepaid expenses and other current assets		2,313			(5,131	)
Increase in accounts payable and accrued expenses		10,743			13,291
Net cash flow provided by operations		153,215			71,420
Cash from investing activities
Payments for capital expenditures		(115,714	)		(99,865	)
Proceeds from property sales		—			7,739
Net cash (used in) investing activities		(115,714	)		(92,126	)
Cash from financing activities
Proceeds from notes payable and long-term accounts payable		—			17,000
Payments on notes payable and long-term accounts payable		(22,573	)		(54,393	)
Purchase common stock		(809	)		(977	)
Commitment fee on line of credit		(293	)		—
Common stock issued		2,653			54,628
Net cash provided by financing activities		(21,022	)		16,258
Net increase (decrease) in cash and cash equivalents		16,479			(4,448	)
Cash and cash equivalents at beginning of period		14,929			19,377
Cash and cash equivalents at end of period	$	31,408		$	14,929

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