At East Bay, production has been restored from all of the producing wells in the field, and production levels are expected to continue to ramp up to pre-storm levels over the next few weeks. At the South Timbalier 26 field, which includes production from the Company's initial discovery well at South Timbalier 41, the Company intends to begin bringing all producing wells online Wednesday. At Eugene Island 247, EPL's field infrastructure was not damaged, but re-start of production is pending repair of the main gas pipeline servicing the field.
EPL estimates the cumulative production deferral will be approximately 91,000 barrels of oil and 400 million cubic feet of natural gas, or 158,000 barrels of oil equivalent. For the third quarter of 2004, the Company expects the impact on production to average approximately 1,700 net Boe per day. Despite the interruption, the Company said it expects production for the quarter to fall near the lower end of its pre-Ivan guidance of 22,500 to 24,500 Boe per day. Initial damage estimates suggest that EPL will recognize approximately $1.0 million in lease operating expense net to the Company after insurance reimbursements for damage to property in the storm.
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