W&T Offshore Delays Production Start Up at Pluto in MC718
W&T Offshore has just been informed that the South Pass 89 "B" platform, in which the Company has no ownership, appears to have sustained significant damage to the lower deck. As a result, W&T Offshore will delay the start-up of production at its Mississippi Canyon 718 Field ("Pluto") project, which had planned to begin utilizing processing facilities located on the SP 89 "B" platform in September 2005. W&T's Pluto project expects to defer approximately 2.0 billion cubic feet gas equivalent until the platform's processing facilities are repaired in 2006. These volumes were included in the Company's pre-Hurricane Katrina production guidance.
Mississippi Canyon 718 Block is located approximately 45 miles south of the Mississippi River Delta in approximately 2,700 feet of water. The field/unit comprises two OCS Blocks: Mississippi Canyon 674 and 718. The field is produced from a single subsea completion and tied back via an approximately 30 mile pipeline and umbilical to the South Pass 89 "B" platform.
The Company also reports that approximately 73% of its gas sales are currently back on-line as of September 2, 2005. At this time, W&T does not have sufficient information to accurately assess the status of its oil sales or the oil pipelines that transport its oil, however the Company is producing and selling oil. As mentioned in a previous release, W&T did not sustain significant damage to its operated drilling rigs and production platforms in the Gulf of Mexico, and that most of the deferred production is a result of pipeline issues. Three gas pipelines representing 9%, 7%, and 5% of the Company's daily gas sales volumes are currently shut-in, and production through the pipelines will be brought on line as soon as they are capable of accepting the Company's production.
Operates 4 Offshore Rigs
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