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Petroleum

Louisiana Land and Exploration Company Announces 1996 Exploration and Development Budget

Strategic Insights

— 1 min read

The Louisiana Land and Exploration Company (NYSE:LLX) has announced an exploration and development budget for 1996 of $206 million, reflecting a 14 percent increase from the previous year's projected spending level of $180 million. This increase in budget is attributed to higher levels of exploratory activity, with a focus on domestic projects. The company's Chairman and Chief Executive Officer, H. Leighton Steward, emphasized the importance of creating shareholder value through exploration, with a strategy centered around low-risk exploration and high-potential opportunities.

Key Takeaways:

  • The 1996 exploration and development budget for LL&E is $206 million, a 14 percent increase from the previous year's projected spending of $180 million.
  • Exploration expenditures are being increased by more than 30 percent to $114 million, with $88 million allocated for drilling activities, $21 million for seismic costs, and $5 million for land acquisition.
  • High-potential opportunities are expected to account for more than 35 percent of exploration spending, with a focus on projects in south Louisiana, the Gulf of Mexico subsalt play, the offshore flex trend, and international locations such as Algeria, Yemen, and Tunisia.
  • Approximately 84 percent of the exploratory budget will be spent on domestic projects, including enhanced recovery at the Jay field in Alabama/Florida and various offshore projects.
  • Internationally, development spending is focused on the Thelma and Brae fields in the U.K. North Sea and the KAKAP concession offshore Indonesia.
  • The increase in budget is attributed to higher levels of exploratory activity, with the company aiming to create shareholder value through exploration.

Statistics:

  • $206 million: 1996 exploration and development budget for LL&E
  • 14 percent: Increase in budget from the previous year's projected spending level of $180 million
  • $114 million: Increase in exploration expenditures
  • 30 percent: Increase in exploration expenditures
  • $88 million: Allocation for drilling activities
  • $21 million: Allocation for seismic costs
  • $5 million: Allocation for land acquisition
  • 84 percent: Percentage of exploratory budget spent on domestic projects
  • 35 percent: Percentage of exploration spending allocated to high-potential opportunities

Sources:

  • "Louisiana Land and Exploration Company Announces 1996 Exploration and Development Budget." Business Wire, 27 Dec. 1995.

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