##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington DC 20549


Form 10-Q


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|           |  | For the quarterly period ended March 31, 2006                                               
|OR        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|           |  | For the transition period
    from           to                                             

Commission file number 1-11516


REMINGTON OIL AND GAS CORPORATION


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                      
|------------------------------------------------------------------ |  | -------------------------------------
|Delaware                                                           |  | 75-2369148                           
|(State or other jurisdiction of
    incorporation or organization) |  | (IRS employer
    identification no.)

8201 Preston Road, Suite 600,


Dallas, Texas 75225-6211


(Address of principal executive offices)


(Zip code)


(214) 210-2650


(Registrants telephone number, including area code)


Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past
90 days.     Yes þ No o


Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated
filer. See definition of accelerated filer and large
accelerated filer in
Rule 12b-2 of the
Exchange Act). (Check one):




|                           |                      |                         
|-------------------------- | -------------------- | ------------------------
|Large accelerated filer  þ | Accelerated filer  o | Non-accelerated filer  o

Indicate by check mark whether the registrant is a shell
company (as defined in
Rule 12b-2 of the
Exchange
Act).     Yes o No þ


There were 28,870,296 outstanding shares of Common Stock,
$0.01 par value, on May 4, 2006.










---



##### 










Remington Oil and Gas Corporation


Table of Contents


|                                                             |          |                                                          |                                                                                               |  |   |    | 
|------------------------------------------------------------ | -------- | -------------------------------------------------------- | --------------------------------------------------------------------------------------------- |  | - | -- | 
|PART I, FINANCIAL
    INFORMATION                            |          |                                                          | 3                                                                                             | 
|                                                             | Item 1.  |                                                          | Financial
    Statements                                                                      |  |   | 3  | 
|                                                             |          | Condensed Consolidated Balance
    Sheets                |                                                                                               |  | 3 |   
|                                                             |          | Condensed Consolidated Statements of
    Income          |                                                                                               |  | 4 |   
|                                                             |          | Condensed Consolidated Statements of
    Cash Flows      |                                                                                               |  | 5 |   
|                                                             |          | Notes to Condensed Consolidated
    Financial Statements |                                                                                               |  | 6 |   
|                                                             | Item 2.  |                                                          | Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations |  |   | 10 | 
|                                                             | Item 3.  |                                                          | Quantitative
    and Qualitative Disclosures about Market Risk                                |  |   | 13 | 
|                                                             | Item 4.  |                                                          | Controls
    and Procedures                                                                   |  |   | 13 | 
|PART II, OTHER INFORMATION                                   |          |                                                          | 13                                                                                            | 
|                                                             | Item 1.  |                                                          | Legal
    Proceedings                                                                         |  |   | 13 | 
|                                                             | Item 1A. |                                                          | Risk
    factors                                                                              |  |   | 13 | 
|                                                             | Item 2.  |                                                          | Unregistered
    Sales of Equity Securities and Use of Proceeds                               |  |   | 13 | 
|                                                             | Item 3.  |                                                          | Defaults
    upon Senior Securities                                                           |  |   | 13 | 
|                                                             | Item 4.  |                                                          | Submission
    of Matters to a Vote of Security Holders                                       |  |   | 14 | 
|                                                             | Item 5.  |                                                          | Other
    Information                                                                         |  |   | 14 | 
|                                                             | Item 6.  |                                                          | Exhibits                                                                                      |  |   | 14 | 
|Certification of James A. Watt Pursuant to Section 302      
|Certification of Frank T. Smith, Jr. Pursuant to Section 302
|Certification of James A. Watt Pursuant to Section 906      
|Certification of Frank T. Smith, Jr. Pursuant to Section 906



2



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##### Table of Contents






PART I, FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|Item 1. | Financial Statements

Remington Oil and Gas Corporation





Condensed Consolidated Balance Sheets


|                                           |                                                                                                                                                                                                                     |                       |         |          |              |   |         |          |  
|------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- | ------- | -------- | ------------ | - | ------- | -------- | -
|                                           |                                                                                                                                                                                                                     | March 31,             |         |          | December 31, |  
|                                           |                                                                                                                                                                                                                     | 2006                  |         |          | 2005         |  
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|                                           |                                                                                                                                                                                                                     | (Unaudited)           |         |          |             
|                                           |                                                                                                                                                                                                                     | (In thousands, except |        
|                                           |                                                                                                                                                                                                                     | share data)           |        
|ASSETS                                     |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|Current assets                             |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|                                           | Cash and cash equivalents                                                                                                                                                                                           |                       | $       | 47,887   |              |   | $       | 38,860   |  
|                                           | Accounts receivable                                                                                                                                                                                                 |                       |         | 62,704   |              |   |         | 66,887   |  
|                                           | Insurance receivable                                                                                                                                                                                                |                       |         | 38,932   |              |   |         | 23,308   |  
|                                           | Income taxes receivable                                                                                                                                                                                             |                       |         |         |              |   |         | 5,767    |  
|                                           | Prepaid expenses and other current assets                                                                                                                                                                           |                       |         | 12,942   |              |   |         | 5,466    |  
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Total current assets                       |                                                                                                                                                                                                                     |                       | 162,465 |          |              |   | 140,288 |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Properties                                 |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|                                           | Oil and gas properties (successful-efforts method)                                                                                                                                                                  |                       |         | 937,791  |              |   |         | 908,437  |  
|                                           | Other properties                                                                                                                                                                                                    |                       |         | 3,876    |              |   |         | 3,758    |  
|                                           | Accumulated depreciation, depletion and amortization                                                                                                                                                                |                       |         | (485,804 | )            |   |         | (468,290 | )
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Total properties                           |                                                                                                                                                                                                                     |                       | 455,863 |          |              |   | 443,905 |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Other assets                               |                                                                                                                                                                                                                     |                       | 1,874   |          |              |   | 1,872   |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Total assets                               |                                                                                                                                                                                                                     | $                     | 620,202 |          |              | $ | 586,065 |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|                                          
|LIABILITIES AND STOCKHOLDERS EQUITY       |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|Current liabilities                        |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|                                           | Accounts payable and accrued liabilities                                                                                                                                                                            |                       | $       | 72,474   |              |   | $       | 76,561   |  
|                                           | Income taxes payable                                                                                                                                                                                                |                       |         | 3,521    |              |   |         |         |  
|                                           | Current deferred income taxes                                                                                                                                                                                       |                       |         | 1,094    |              |   |         | 1,094    |  
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Total current liabilities                  |                                                                                                                                                                                                                     |                       | 77,089  |          |              |   | 77,655  |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Long-term liabilities                      |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|                                           | Asset retirement obligation                                                                                                                                                                                         |                       |         | 23,498   |              |   |         | 21,375   |  
|                                           | Deferred income taxes                                                                                                                                                                                               |                       |         | 86,612   |              |   |         | 82,876   |  
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Total long-term liabilities                |                                                                                                                                                                                                                     |                       | 110,110 |          |              |   | 104,251 |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|                                           | Total liabilities                                                                                                                                                                                                   |                       |         | 187,199  |              |   |         | 181,906  |  
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Commitments and contingencies (Note 7)     |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|Stockholders equity                       |                                                                                                                                                                                                                     |                       |         |          |              |   |         |         
|                                           | Preferred stock, $.01 par value, 25,000,000 shares
    authorized, no shares outstanding                                                                                                                            |                       |         |          |              |   |         |          |  
|                                           | Common stock, $.01 par value, 100,000,000 shares
    authorized, 28,886,443 shares issued and
    28,852,084 shares outstanding in 2006,
    28,790,997 shares issued and 28,756,638 shares
    outstanding in 2005 |                       |         | 289      |              |   |         | 288      |  
|                                           | Additional paid-in capital                                                                                                                                                                                          |                       |         | 155,573  |              |   |         | 149,234  |  
|                                           | Restricted common stock                                                                                                                                                                                             |                       |         |         |              |   |         | 24,264   |  
|                                           | Unearned compensation                                                                                                                                                                                               |                       |         |         |              |   |         | (20,385  | )
|                                           | Retained earnings                                                                                                                                                                                                   |                       |         | 277,141  |              |   |         | 250,758  |  
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Total stockholders equity                 |                                                                                                                                                                                                                     |                       | 433,003 |          |              |   | 404,159 |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  
|Total liabilities and stockholders equity |                                                                                                                                                                                                                     | $                     | 620,202 |          |              | $ | 586,065 |         
|                                           |                                                                                                                                                                                                                     |                       |         |          |              |  



3



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##### Table of Contents






Remington Oil and Gas Corporation


Condensed Consolidated Statements of Income


|                                              |                                          |                       |        |        |      |   |        |        | 
|--------------------------------------------- | ---------------------------------------- | --------------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                              |                                          | Three Months Ended    |       
|                                              |                                          | March 31,             |       
|                                              |                                          |                       |       
|                                              |                                          | 2006                  |        |        | 2005 |  
|                                              |                                          |                       |        |        |      |  
|                                              |                                          | (Unaudited)           |       
|                                              |                                          | (In thousands, except |       
|                                              |                                          | per share amounts)    |       
|Revenues                                      |                                          |                       |        |        |      |   |        |       
|                                              | Gas sales                                |                       | $      | 44,619 |      |   | $      | 40,390 | 
|                                              | Oil sales                                |                       |        | 15,377 |      |   |        | 19,081 | 
|                                              | Interest income                          |                       |        | 458    |      |   |        | 252    | 
|                                              | Other income                             |                       |        | 17,644 |      |   |        | 63     | 
|                                              |                                          |                       |        |        |      |  
|Total revenues                                |                                          |                       | 78,098 |        |      |   | 59,786 |       
|                                              |                                          |                       |        |        |      |  
|Costs and expenses                            |                                          |                       |        |        |      |   |        |       
|                                              | Operating                                |                       |        | 7,228  |      |   |        | 5,912  | 
|                                              | Exploration                              |                       |        | 7,004  |      |   |        | 10,385 | 
|                                              | Depreciation, depletion and amortization |                       |        | 17,858 |      |   |        | 16,011 | 
|                                              | Impairment expense                       |                       |        | 274    |      |   |        | 297    | 
|                                              | General and administrative               |                       |        | 5,186  |      |   |        | 2,121  | 
|                                              | Interest and financing                   |                       |        | 127    |      |   |        | 198    | 
|                                              |                                          |                       |        |        |      |  
|Total costs and expenses                      |                                          |                       | 37,677 |        |      |   | 34,924 |       
|                                              |                                          |                       |        |        |      |  
|Income before income taxes                    |                                          |                       | 40,421 |        |      |   | 24,862 |       
|                                              | Income tax expense                       |                       |        | 14,038 |      |   |        | 8,827  | 
|                                              |                                          |                       |        |        |      |  
|Net income                                    |                                          | $                     | 26,383 |        |      | $ | 16,035 |       
|                                              |                                          |                       |        |        |      |  
|Basic income per share                        |                                          | $                     | 0.92   |        |      | $ | 0.57   |       
|                                              |                                          |                       |        |        |      |  
|Diluted income per share                      |                                          | $                     | 0.90   |        |      | $ | 0.56   |       
|                                              |                                          |                       |        |        |      |  
|Weighted average shares outstanding (Basic)   |                                          |                       | 28,822 |        |      |   | 28,045 |       
|                                              |                                          |                       |        |        |      |  
|Weighted average shares outstanding (Diluted) |                                          |                       | 29,414 |        |      |   | 28,838 |       
|                                              |                                          |                       |        |        |      |  



4



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Remington Oil and Gas Corporation





Condensed Consolidated Statements of Cash Flows


|                                           |                                                  |                                                          |        |         |         |   |        |         |        |  
|------------------------------------------ | ------------------------------------------------ | -------------------------------------------------------- | ------ | ------- | ------- | - | ------ | ------- | ------ | -
|                                           |                                                  | Three Months                                             |       
|                                           |                                                  | Ended                                                    |       
|                                           |                                                  | March 31,                                                |       
|                                           |                                                  |                                                          |       
|                                           |                                                  | 2006                                                     |        |         | 2005    |  
|                                           |                                                  |                                                          |        |         |         |  
|                                           |                                                  | (Unaudited)                                              |       
|                                           |                                                  | (In thousands)                                           |       
|Cash flow provided by operations           |                                                  |                                                          |        |         |         |   |        |        
|                                           | Net income                                       |                                                          | $      | 26,383  |         |   | $      | 16,035  |       
|                                           | Adjustments to reconcile net income              |                                                          |        |         |         |   |        |         |       
|                                           |                                                  | Depreciation, depletion and amortization                 |        |         | 17,858  |   |        |         | 16,011 |  
|                                           |                                                  | Deferred income taxes                                    |        |         | 3,736   |   |        |         | 5,451  |  
|                                           |                                                  | Amortization of deferred charges                         |        |         | 25      |   |        |         | 46     |  
|                                           |                                                  | Dry hole costs                                           |        |         | 5,227   |   |        |         | 9,049  |  
|                                           |                                                  | Impairment costs                                         |        |         | 274     |   |        |         | 297    |  
|                                           |                                                  | Cash paid for dismantlement                              |        |         | (10     | ) |        |         | (243   | )
|                                           |                                                  | Stock based compensation                                 |        |         | 1,241   |   |        |         | 512    |  
|                                           |                                                  | Tax benefit from exercise of stock options               |        |         | (1,013  | ) |        |         | 3,376  |  
|                                           |                                                  | Gain on sale of properties                               |        |         | (59     | ) |        |         |       |  
|                                           | Changes in working capital                       |                                                          |        |         |         |   |        |         |       
|                                           |                                                  | (Increase) decrease in accounts receivable               |        |         | 3,968   |   |        |         | (5,646 | )
|                                           |                                                  | (Increase) in insurance receivable                       |        |         | (15,624 | ) |        |         |       |  
|                                           |                                                  | Decrease in income taxes receivable                      |        |         | 5,767   |   |        |         |       |  
|                                           |                                                  | (Increase) decrease in prepaid expenses and other assets |        |         | (7,501  | ) |        |         | 49     |  
|                                           |                                                  | Increase in accounts payable and accrued expenses        |        |         | 5,539   |   |        |         | 418    |  
|                                           |                                                  | Increase in income taxes payable                         |        |         | 4,534   |   |        |         |       |  
|                                           |                                                  |                                                          |        |         |         |  
|                                           | Net cash flow provided by operations             |                                                          |        | 50,345  |         |   |        | 45,355  |       
|                                           |                                                  |                                                          |        |         |         |  
|                                           | Cash from investing activities                   |                                                          |        |         |         |   |        |         |       
|                                           | Capital expenditures                             |                                                          |        | (42,668 | )       |   |        | (47,600 | )     
|                                           | Proceeds from sale of properties                 |                                                          |        | 130     |         |   |        |        |       
|                                           |                                                  |                                                          |        |         |         |  
|                                           | Net cash (used in) investing activities          |                                                          |        | (42,538 | )       |   |        | (47,600 | )     
|                                           |                                                  |                                                          |        |         |         |  
|                                           | Cash from financing activities                   |                                                          |        |         |         |   |        |         |       
|                                           |                                                  | Tax benefit from exercise of stock options               |        |         | 1,013   |   |        |         |       |  
|                                           |                                                  | Common stock issued                                      |        |         | 665     |   |        |         | 6,833  |  
|                                           |                                                  | Purchase of treasury stock                               |        |         | (458    | ) |        |         | (336   | )
|                                           |                                                  |                                                          |        |         |         |  
|                                           | Net cash provided by financing activities        |                                                          |        | 1,220   |         |   |        | 6,497   |       
|                                           |                                                  |                                                          |        |         |         |  
|Net increase in cash and cash equivalents  |                                                  |                                                          | 9,027  |         |         |   | 4,252  |        
|                                           | Cash and cash equivalents at beginning of period |                                                          |        | 38,860  |         |   |        | 58,659  |       
|                                           |                                                  |                                                          |        |         |         |  
|Cash and cash equivalents at end of period |                                                  | $                                                        | 47,887 |         |         | $ | 62,911 |        
|                                           |                                                  |                                                          |        |         |         |  



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Remington Oil and Gas Corporation





Notes to Condensed Consolidated Financial Statements


(Unaudited)




|        |                                              
|------- | ---------------------------------------------
|Note 1. | Accounting Policies and Basis of Presentation



10-Q. 10-Q. 10-K 10-K/A.




| |                        
| | -----------------------
| | New Accounting Standard





123(R)-3,






6



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##### Table of Contents



Remington Oil and Gas Corporation


Notes to Condensed Consolidated Financial
Statements  (Continued)






|                                                                                                                           |                          |                |     |        | 
|-------------------------------------------------------------------------------------------------------------------------- | ------------------------ | -------------- | --- | ------ | 
|                                                                                                                           |                          | Three Months  
|                                                                                                                           |                          | Ended         
|                                                                                                                           |                          | March 31, 2005
|                                                                                                                           |                          |               
|                                                                                                                           |                          | (In thousands,
|                                                                                                                           |                          | except per    
|                                                                                                                           |                          | share amounts)
|As reported:                                                                                                               |                          |                |     |       
|                                                                                                                           | Net income               |                | $   | 16,035 | 
|                                                                                                                           | Basic income per share   |                | $   | 0.57   | 
|                                                                                                                           | Diluted income per share |                | $   | 0.56   | 
|Stock based compensation (net of tax at statutory rate of 35%)
    included in net income as reported                      |                          | $              | 329 |       
|Stock based compensation (net of tax at statutory rate of 35%)
    if using the fair value method as applied to all awards |                          | $              | 329 |       
|Pro forma (if using the fair value method applied to all awards):                                                          |                          |                |     |       
|                                                                                                                           | Net income               |                | $   | 16,035 | 
|                                                                                                                           | Basic income per share   |                | $   | 0.57   | 
|                                                                                                                           | Diluted income per share |                | $   | 0.56   | 
|Weighted average shares used in computation                                                                                |                          |                |     |       
|                                                                                                                           | Basic                    |                |     | 28,045 | 
|                                                                                                                           | Diluted                  |                |     | 28,838 | 



|        |                     
|------- | --------------------
|Note 2. | Net Income per Share

|                                                 |                                                            |                       |        |        |      |   |        |        | 
|------------------------------------------------ | ---------------------------------------------------------- | --------------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                                 |                                                            | Three Months Ended    |       
|                                                 |                                                            | March 31,             |       
|                                                 |                                                            |                       |       
|                                                 |                                                            | 2006                  |        |        | 2005 |  
|                                                 |                                                            |                       |        |        |      |  
|                                                 |                                                            | (In thousands, except |       
|                                                 |                                                            | per share amounts)    |       
|Net income                                       |                                                            | $                     | 26,383 |        |      | $ | 16,035 |       
|                                                 |                                                            |                       |        |        |      |  
|Basic income per share                           |                                                            | $                     | 0.92   |        |      | $ | 0.57   |       
|                                                 |                                                            |                       |        |        |      |  
|Diluted income per share                         |                                                            | $                     | 0.90   |        |      | $ | 0.56   |       
|                                                 |                                                            |                       |        |        |      |  
|Weighted average common stock                    |                                                            |                       |        |        |      |   |        |       
|                                                 | Total common shares for basic income per share             |                       |        | 28,822 |      |   |        | 28,045 | 
|                                                 | Dilutive stock options outstanding (treasury stock method) |                       |        | 288    |      |   |        | 529    | 
|                                                 | Restricted common stock grant                              |                       |        | 304    |      |   |        | 264    | 
|                                                 |                                                            |                       |        |        |      |  
|Total common shares for diluted income per share |                                                            |                       | 29,414 |        |      |   | 28,838 |       
|                                                 |                                                            |                       |        |        |      |  
|Non-dilutive stock options outstanding           |                                                            |                       | 928    |        |      |   | 417    |       
|                                                 |                                                            |                       |        |        |      |  

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Remington Oil and Gas Corporation


Notes to Condensed Consolidated Financial
Statements  (Continued)




|        |                      
|------- | ---------------------
|Note 3. | Insurance Receivables





|        |                 
|------- | ----------------
|Note 4. | Pension Benefits



| |                                                
| | -----------------------------------------------
| | Components of Net Periodic Pension Benefit Cost

|                                              |  |                |      |   |      |   |      |  
|--------------------------------------------- |  | -------------- | ---- | - | ---- | - | ---- | -
|                                              |  | Three Months   |     
|                                              |  | Ended          |     
|                                              |  | March 31,      |     
|                                              |  |                |     
|                                              |  | 2006           |      |   | 2005 |  
|                                              |  |                |      |   |      |  
|                                              |  | (In thousands) |     
|Service cost                                  |  | $              | 208  |   |      | $ | 136  |  
|Interest cost on projected benefit obligation |  |                | 118  |   |      |   | 96   |  
|Expected return on plan assets                |  |                | (125 | ) |      |   | (128 | )
|Recognized net actuarial loss                 |  |                | 52   |   |      |   | 24   |  
|Amortization of prior service costs           |  |                | 1    |   |      |   | 1    |  
|                                              |  |                |      |   |      |  
|Net periodic pension benefit costs            |  | $              | 254  |   |      | $ | 129  |  
|                                              |  |                |      |   |      |  



| |                       
| | ----------------------
| | Employer Contributions





|        |              
|------- | -------------
|Note 5. | Notes Payable





|        |                        
|------- | -----------------------
|Note 6. | Forward Sales Contracts



|     |  |                                |  |                               
|---- |  | ------------------------------ |  | ------------------------------
|Oil: |  | 1,000 bbls/day @ $70.00/bbl    |  | March 2006  February 2007    
|Gas: |  | 20,000 mmbtu/day @ $9.83/mmbtu |  | March 2006  August 2006      
|     |  | 10,000 mmbtu/day @ $8.88/mmbtu |  | September 2006  December 2006
|     |  | 20,000 mmbtu/day @ $9.72/mmbtu |  | January 2007  June 2007      

8



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Remington Oil and Gas Corporation


Notes to Condensed Consolidated Financial
Statements  (Continued)




|        |              
|------- | -------------
|Note 7. | Contingencies





|        |                                                        
|------- | -------------------------------------------------------
|Note 8. | Proposed Merger with Helix Energy Solutions Group, Inc.



9



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

10-K 10-K/




10-K. 10-K 10-K/


www.remoil.net.


Liquidity and Capital Resources








Results of Operations




10



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|                                                 |                             |                              |        |            |            |  |       |      |  |   |        |  | 
|------------------------------------------------ | --------------------------- | ---------------------------- | ------ | ---------- | ---------- |  | ----- | ---- |  | - | ------ |  | 
|                                                 |                             | Three Months Ended March 31, |       
|                                                 |                             |                              |       
|                                                 |                             |                              |        | % Increase |            |  |      
|                                                 |                             | 2006                         |        |            | (Decrease) |  |       | 2005 | 
|                                                 |                             |                              |        |            |            |  |       |      | 
|                                                 |                             | (Dollars in thousands,       |       
|                                                 |                             | except unit prices)          |       
|Gas production volume (MMcf)                     |                             |                              | 5,826  |            |            |  | (5.7  | )%   |  |   | 6,176  | 
|Gas sales revenue                                |                             | $                            | 44,619 |            |            |  | 10.5  | %    |  | $ | 40,390 | 
|Price per Mcf                                    |                             | $                            | 7.66   |            |            |  | 17.1  | %    |  | $ | 6.54   | 
|Increase (decrease) in gas sales revenue due to: |                             |                              |        |            |            |  |       |      |  |   |        | 
|                                                 | Change in prices            |                              | $      | 6,917      |            |  |       |      |  |   |        |  | 
|                                                 | Change in production volume |                              |        | (2,688     | )          |  |       |      |  |   |        |  | 
|                                                 |                             |                              |        |            |            |  |       |      | 
|Total increase in gas sales revenue              |                             | $                            | 4,229  |            |            |  |       |      |  |   |        | 
|                                                 |                             |                              |        |            |            |  |       |      | 
|Oil production volume (MBbls)                    |                             |                              | 256    |            |            |  | (36.8 | )%   |  |   | 405    | 
|Oil sales revenue                                |                             | $                            | 15,377 |            |            |  | (19.4 | )%   |  | $ | 19,081 | 
|Price per barrel                                 |                             | $                            | 60.07  |            |            |  | 27.5  | %    |  | $ | 47.11  | 
|Increase (decrease) in oil sales revenue due to: |                             |                              |        |            |            |  |       |      |  |   |        | 
|                                                 | Change in prices            |                              | $      | 5,249      |            |  |       |      |  |   |        |  | 
|                                                 | Change in production volume |                              |        | (8,953     | )          |  |       |      |  |   |        |  | 
|                                                 |                             |                              |        |            |            |  |       |      | 
|Total decrease in oil sales revenue              |                             | $                            | (3,704 | )          |            |  |       |      |  |   |        | 
|                                                 |                             |                              |        |            |            |  |       |      | 
|Total production Mcfe                            |                             |                              | 7,362  |            |            |  | (14.5 | )%   |  |   | 8,606  | 
|Price per Mcfe                                   |                             | $                            | 8.15   |            |            |  | 17.9  | %    |  | $ | 6.91   | 













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##### Table of Contents







|                                                                              |  |                 |      |      |  |   |      | 
|----------------------------------------------------------------------------- |  | --------------- | ---- | ---- |  | - | ---- | 
|                                                                              |  | Three Months   
|                                                                              |  | Ended March 31,
|                                                                              |  |                
|                                                                              |  | 2006            |      | 2005
|                                                                              |  |                 |      |     
|Operating costs and expenses                                                  |  | $               | 0.98 |      |  | $ | 0.69 | 
|Depreciation, depletion and amortization                                      |  | $               | 2.43 |      |  | $ | 1.86 | 
|General and administrative expense*                                           |  | $               | 0.70 |      |  | $ | 0.25 | 
|Interest and financing expense                                                |  | $               | 0.02 |      |  | $ | 0.02 | 
|                                                                              |  |                 |      |      |  |   |      | 
|* Stock based compensation included in general and
    administrative expense |  | $               | 0.17 |      |  | $ | 0.06 | 









Critical Accounting Policies


10-K 10-K).


Stock-Based
Compensation




share-based


12



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##### Table of Contents



share-based







|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures about Market
    Risk

Interest Rate Risk




Commodity Price Risk






|     |  |                                |  |                               
|---- |  | ------------------------------ |  | ------------------------------
|Oil: |  | 1,000 bbls/day @ $70.00/bbl    |  | March 2006  February 2007    
|Gas: |  | 20,000 mmbtu/day @ $9.83/mmbtu |  | March 2006  August 2006      
|     |  | 10,000 mmbtu/day @ $8.88/mmbtu |  | September 2006  December 2006
|     |  | 20,000 mmbtu/day @ $9.72/mmbtu |  | January 2007  June 2007      






|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

13a-15(e).





PART II, OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings








|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K







|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults upon Senior Securities



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##### Table of Contents








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits

| |    |        |  |                                                                                                                                                                                          
| | -- | ------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2  | .1**** |  | Agreement and Plan of Merger.                                                                                                                                                            
| | 2  | .2**** |  | Amendment No. 1 to Agreement and Plan of Merger.                                                                                                                                         
| | 3  | .1###  |  | Restated Certificate of Incorporation of Remington Oil and Gas
    Corporation.                                                                                                          
| | 3  | .3++   |  | By-Laws as amended of Remington Oil and Gas Corporation.                                                                                                                                 
| | 10 | .1**   |  | Pension Plan of Remington Oil and Gas as Amended and Restated
    Effective January 1, 2000.                                                                                             
| | 10 | .2**   |  | Amendment Number One to the Pension Plan of Remington Oil and
    Gas Corporation.                                                                                                       
| | 10 | .3##   |  | Amendment Number Two to the Pension Plan of Remington Oil and
    Gas Corporation.                                                                                                       
| | 10 | .4##   |  | Amendment Number Three to the Pension Plan of Remington Oil and
    Gas Corporation.                                                                                                     
| | 10 | .5***  |  | Amendment Number Four to the Pension Plan of Remington Oil and
    Gas Corporation.                                                                                                      
| | 10 | .6+    |  | 1997 Stock Option Plan (as amended June 17, 1999 and
    May 23, 2001).                                                                                                                  
| | 10 | .7*    |  | Non-Employee Director Stock Purchase Plan.                                                                                                                                               
| | 10 | .8##   |  | Form of Employment Agreement effective April 30, 2002, by
    and between Remington Oil and Gas Corporation and an executive
    officer.                                                
| | 10 | .9#    |  | Form of Contingent Stock Grant Agreement  Directors.                                                                                                                                    
| | 10 | .10#   |  | Form of Contingent Stock Grant Agreement  Employees.                                                                                                                                    
| | 10 | .11#   |  | Form of Amendment to Contingent Stock Grant
    Agreement  Directors.                                                                                                                   
| | 10 | .12#   |  | Form of Amendment to Contingent Stock Grant
    Agreement  Employees.                                                                                                                   
| | 10 | .13### |  | Remington Oil and Gas Corporation 2004 Stock Incentive Plan.                                                                                                                             
| | 10 | .14+++ |  | First Amendment to Remington Oil and Gas Corporation 2004 Stock
    Incentive Plan.                                                                                                      
| | 10 | .15+++ |  | Form of Restricted Stock Agreement (Employees).                                                                                                                                          
| | 10 | .16+++ |  | Form of Restricted Stock Agreement (Non-employee Directors).                                                                                                                             
| | 10 | .17+++ |  | Remington Oil and Gas Corporation Executive Severance Plan.                                                                                                                              
| | 10 | .18+++ |  | Remington Oil and Gas Corporation Employee Severance Plan.                                                                                                                               
| | 14 | .1++   |  | Code of Business Conduct and Ethics.                                                                                                                                                     
| | 21 | ###    |  | Subsidiaries of Registrant.                                                                                                                                                              
| | 31 | .1#### |  | Certification of James A. Watt, Chief Executive Officer, as
    required pursuant to Section 302 of the Sarbanes-Oxley Act
    of 2002.                                                  
| | 31 | .2#### |  | Certification of Frank T. Smith, Jr., Principal Financial
    Officer, as required pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.                                        
| | 32 | .1#### |  | Certification of James A. Watt, Chief Executive Officer,
    pursuant to 18 U.S.C. Section 1350, as required
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.              
| | 32 | .2#### |  | Certification of Frank T. Smith, Jr., Principal Financial
    Officer, pursuant to 18 U.S.C. Section 1350, as
    required pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.

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##### Table of Contents






|     |  |                                                                                                                                                                                      
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*    |  | Incorporated by reference to the Companys Form 10-K
    (file number 1-11516) for the fiscal year ended
    December 31, 1997 filed with the Commission on March 30,
    1998.      
|    
|#    |  | Incorporated by reference to the Companys Form 10-K
    (file number 1-11516) for the fiscal year ended
    December 31, 2000 filed with the Commission on March 16,
    2001.      
|    
|+    |  | Incorporated by reference to the Companys Form 10-Q
    (file number 1-11516) for the fiscal quarter ended
    September 30, 2001 filed with the Commission on
    November 9, 2001.
|    
|**   |  | Incorporated by reference to the Companys Form 10-K
    (file number 1-11516) for the fiscal year ended
    December 31, 2001 filed with the Commission on March 21,
    2002.      
|    
|##   |  | Incorporated by reference to the Companys Form 10-K
    (file number 1-11516) for the fiscal year ended
    December 31, 2002, filed with the Commission on March 31,
    2003.     
|    
|++   |  | Incorporated by reference to the Companys Form 10-Q
    (file number 1-11516) for the fiscal quarter ended June 30,
    2003, filed with the Commission on August 11, 2003.         
|    
|***  |  | Incorporated by reference to the Companys Form 10-K
    (file number 1-11516) for the fiscal year ended
    December 31, 2003, filed with the Commission on March 12,
    2004.     
|    
|###  |  | Incorporated by reference to the Companys Form 10K/A
    (file number 1-11516) for the fiscal year ended
    December 31, 2004, filed with the Commission on March 17,
    2005.    
|    
|+++  |  | Incorporated by reference to the Companys Form 10-Q
    (file number 1-11516) for the fiscal quarter ended
    March 31, 2005, filed with the Commission on April 29,
    2005.     
|    
|**** |  | Incorporated by reference to the Companys Form 8-K
    (file number 1-11516) filed with the Commission on
    January 26, 2006.                                                     
|    
|#### |  | Filed herewith                                                                                                                                                                       

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##### Table of Contents



SIGNATURES






| |                                  
| | ---------------------------------
| | REMINGTON OIL AND GAS CORPORATION



| |     |                  
| | --- | -----------------
| | By: | /s/ James A. Watt

| |                                     
| | ------------------------------------
| |                                     
| | James A. Watt                       
| | Chairman and Chief Executive Officer





| |     |                       
| | --- | ----------------------
| | By: | /s/ Frank T. Smith Jr.

| |                              
| | -----------------------------
| |                              
| | Frank T. Smith Jr.           
| | Senior Vice President/Finance



16