WELL BLOWOUT

Newfield Exploration Company reports that the A-2 gas well blowout on the Ship Shoal 354 production platform has been capped and stabilized. The blowout occurred on Thursday, September 9 and self ignited on September 12. There were no injuries associated with the blowout or the well capping operations and there has been only minor pollution from the incident. Newfield coordinated its efforts with the Minerals Management Service and Coast Guard Marine Safety Office (MSO) Morgan City and other regulatory authorities. Boots and Coots capped the blowout on Sunday, September 19. As a parallel plan of action to control the A-2 well, a relief well was spudded last week. The relief well efforts have been suspended and the rig is on standby. A recovery plan is now underway to bring condensate and gas production from the Ship Shoal 354 platform back on line. At the time of the incident, the platform was producing 6 million cubic feet per day of gas and 1,400 barrels of condensate per day (gross). Newfield expects that production from the platform will not resume any sooner than four to six weeks. An initial inspection of the platform revealed no major structural damage. The Company s immediate priorities are to abandon the current A-2 well completion, replace it and return to service the Williams Field Services Company pipeline that crosses the Ship Shoal 354 platform.
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