Whittier Energy Escapes Hurricane Rita Damage
Whittier Energy says that none of its major oil and gas fields suffered any significant physical damage from either Hurricane Katrina or Hurricane Rita. However, as a result of power outages, limited access, and the inability of some oil and gas marketers to take delivery of production in affected areas, approximately 3.2 million cubic feet of gas equivalent ("Mmcfe") per day, or 20%, of Whittier's daily net production is currently shut-in. The Company anticipates that the majority of its shut-in production will be restored over the next few weeks and does not expect any materially adverse impact on its operations.
Scott and Hopper #4 -- Brooks County, Texas
Whittier has successfully re-completed the Scott & Hopper #4 well into 30' of net pay from one of the three shallower sands previously identified when the well was drilled in February 2005. The well was brought on at approximately 4 Mmcfe per day on September 18, 2005 and is currently producing 3.5 Mmcfe per day (1.6 Mmcfe per day net) with flowing tubing pressure of 5,600 psi. The previously producing 9,500' Vicksburg interval has been temporarily isolated and the Company plans to return to this interval upon depletion of the shallower sands. The Company has an approximate 56% working interest in the well until a 400% payout of the Company's investment in the well is reached, and a 42% working interest thereafter.
Bryce W. Rhodes, Whittier's President and Chief Executive Officer, said, "We are fortunate that all of our employees are safe and our assets sustained very little physical damage. We are working hard to return to normal operations as soon as possible." He added "We are also very pleased with the performance of the recently re-completed Scott and Hopper #4 well and we will monitor the well closely to determine if there may be additional development potential on this 640 acre lease."
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