Because of the hurricane, the Company temporarily shut-in 135 of 138 gross operated wells, which deferred net operated production of approximately 550 million cubic feet of gas equivalent (MMcfe) through August 31, 2005. The Company expects that the majority of its operated production will be back on line within the next 96 hours, although we will not be able to use certain transportation pipelines until inspections have been completed or, in some cases, until certain processing plants onshore have estarted.
Approximately 33% of the Company's total production is derived from non-operated wells and at this time the Company is gathering information to accurately report the status of this non-operated production. While the Company is still gathering information to ascertain the status of these non-operated wells, we have no reason to believe the impact on these properties will be materially different from the wells we operate.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "This has been a horrific experience for all who work and live in the Gulf Coast area.
We are relieved and pleased that nearly all of our employees have been located and are safe. We expect, as communications improve, to hear from the remaining employees, as well. Accordingly, our disaster recovery plans have been implemented and we have temporarily relocated our personnel to the Houston office. Our off-site back-up systems are in operation."
Eight Greenway Plaza Suite 1330 Houston, TX 77046 Phone: 713-626-8525 Fax: 713-626-8527
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