Petsec Says Production at Main Pass 270 Temporarily Halted

Petsec Energy reports that its Main Pass 270 field has been shut in since April 19, 2008 due to a "pig" stuck in a production pipeline owned and operated by a third party. A pig is an oval, football shaped object which is run through pipelines as part of normal maintenance to clear pipelines of paraffin and other impurities that clog the flow of oil and condensate.

The production pipeline affected is used by Petsec Energy and other producers to transport condensate produced from various leases in this area. Without a pipeline to transport the condensate produced at Main Pass 270, Petsec Energy is also not able to flow the gas from the field. Daily production from the Main Pass 270 field net to Petsec Energy was approximately 4,700 MCF and 120 barrels of oil prior to the pipeline being blocked.

The operator of the pipeline has been working diligently to resolve the problem and it was initially expected that the blockage would be removed fairly quickly thereby returning the pipeline to service. Currently, the operator is injecting acid into the pipeline through hot taps in an attempt to dissolve the stuck pig.

Petsec owns a 25% working interest (20.83 net revenue interest) in the Main Pass 270 field.


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