"Production and corresponding cash flow from deepwater projects like Devils Tower and Front Runner, which will come on later this year, provide tremendous upside to our E&P program and complements our stable, long-life onshore program," said Thos. E. Capps, Dominion's chairman and chief executive officer. "We expect to continue to see increased production, strong operating cash flow and a solid platform for growth from our E&P operations."
"The startup of Devils Tower is a significant milestone for Dominion," said Duane Radtke, president and chief executive officer of Dominion E&P. "The project is the fourth producing property in our deepwater portfolio, and the first operated by Dominion. Devils Tower will be a major contributor to our deepwater production growth over the next two years and will generate significant cash flow. The Devils Tower project also adds to our record of outstanding exploration, production, and safety success offshore."
Production from the Mississippi Canyon 773 A-1 well began today. The well is the first of eight completions to be brought on in sequence through the first quarter of 2005. Oil and gas production from Devils Tower flows through a spar floating production facility owned by a unit of The Williams Companies, Inc.
The spar is designed to handle 60 thousand barrels of oil and 110 million cubic feet of gas per day. Located in 5,610 feet of water, the facility is the world's deepest dry-tree spar. In addition to the Devils Tower wells, a three-well subsea development is currently under evaluation to connect the adjacent Triton and Goldfinger discoveries to the host platform.
"We look forward to production from Devils Tower for years to come and to continuing an outstanding relationship with the Williams Companies," Radtke said.
Dominion E&P owns a 75 percent interest in the Devils Tower project area, with partner Pioneer Natural Resources Company owning the remaining 25 percent.
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