Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
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Contact: Steven J. Craig
Sr. Vice President
(214) 210-2675
REMINGTON OIL AND GAS ANNOUNCES LOUISIANA APPELLATE COURT
VACATES PRIOR OPINION IN PHILLIPS LITIGATION
Dallas, Texas, December 19, 2000 - Remington Oil and Gas Corporation (NASDAQ
NMS: ROIL and PCX symbol REM.P) received notice that the Court of Appeal,
Fourth Circuit, State of Louisiana vacated its prior opinion of January 5,
2000, regarding the Phillips litigation (NYSE: P) at South Pass 89, offshore
Louisiana. The Appeals Court determined that the trial court had been correct
in allocating only a part of the $69.6 million settlement received from TETCO
in 1990 to the net profits account. Further, the court held that Phillips can
look only to the proceeds of production to be included in the "net profits"
account. Finally, the court determined that the oil transportation charges paid
by Remington were properly charged to the net profits account, and Remington's
transportation charge was valid under the contract.
As of the end of the third quarter Remington Oil and Gas Corporation had
recorded a long-term liability reflecting the trial court judgment in the
amount of $19.5 million including interest. The trial court's judgment is
bonded in the amount of $18 million, and the Company has provided $9 million in
cash collateral to the surety. This new opinion is in line with the amount
Remington has recorded.
James A. Watt, President and Chief Executive Officer stated, "We are very
pleased with this opinion. Remington has been and is willing to settle with
Phillips based on the 1998 trial court judgment amount, even though we feel it
is excessive. Having risked nothing, Phillips has received over $100 million
from Remington associated with this farmout, plus an additional $19.5 million
associated with this judgment. Phillips has continually resorted to the courts
in a deep-pocketed, litigation campaign against Remington. Earlier this year,
Phillips filed the January 5, 2000, opinion in both Mississippi and Texas in an
unwarranted attempt to execute on it. The courts in both states recognized the
filing as invalid and premature. Phillips has filed a judicial lien on all of
our Louisiana properties including undeveloped acreage. This last act created a
cloud on our title and impaired relations with operating partners. We will
demand Phillips remove these liens immediately, as our obligation to Phillips
has been fully bonded. The Phillips litigation and the January 5, 2000,
opinion in particular have been a cloud on Remington and have obscured the
excellent operating results the company has achieved. The litigation has
resulted in several missed business opportunities and has caused irreparable
damage to the company. Hopefully, because of this opinion, Phillips will be
willing to end this litigation, but if not, we will continue our focus on
growing shareholder value through the drillbit and allow the legal system to run
its course. We remain confident that the law, the facts, and equity are on our
side."
Statements concerning future revenues and expenses, results of exploration,
exploitation, development and acquisition expenditures, and reserve levels are
forward-looking statements. These statements are based on assumptions concerning
commodity prices, drilling results and production, 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 risks, and there is no
assurance that these goals and projections can or will be met. Further
information is available in the Company's filings with the Securities and
Exchange Commission, which are incorporated by this reference.
