Elixir Petroleum Limited has provided an operations update.
Elixir's operations at the High Island and Pompano projects located in the Gulf of Mexico were shut-in during the passage of Hurricane Ike. We are pleased to report that the platforms and associated offshore infrastructure were not damaged.
While production at the Pompano project recommenced on the September 19, 2008, some damage was sustained to the onshore section of the export pipeline into which Elixir's High Island production is sold. An evaluation of the damage to the pipeline and the programme required to effect repairs is currently being investigated by the pipeline owner. The damage is not believed to be severe and production should restart within the next week.
Well #3 - Pompano Project
The Operator at the Pompano Project has also advised that the Hercules 152 jackup drilling rig, which is contracted to drill the third development well at Pompano, was not damaged by Hurricane Ike and has been mobilized to the field. The rig arrived on location on the 19/09/08 and was last reported to be making preparations to drive the 36" Caisson.
Well #3 will be drilled through this new Caisson which will be positioned adjacent to the existing #5 Caisson.
The #5 Caisson forms part of the existing field infrastructure and is located approximately 900m to the southwest of the 'A' Production Platform to which it is already connected via subsea flowlines.
Well #3 is targeting undrilled and updip fault block compartments immediately adjacent to the recently successful Well #2. The well will be directionally drilled into a total of 4 primary and 2 secondary target sands. It is expected that the primary sands will contain proven undeveloped reserves in horizons encountered by Well #2.
It is estimated that Well #3 will take approximately 25 days to drill and evaluate. If a decision is made to complete the well, then these operations are expected to take a further 22 days.
Subject to integrity testing, the existing flowline infrastructure from the Well #3 location to the 'A' Production Platform should facilitate a short time frame to production from the well. The addition of a third production stream to the existing two producing wells will require some upgrade activity on the 'A' Production Platform. These upgrade activities may temporarily interrupt production from the field for short periods.
Commenting on the announcement, Elixir's Managing Director, Andrew Ross, said, "Other than a short shut-in period during the passage of Hurricane Ike, we are pleased to advise that the storm has not adversely affected our projects in the Gulf of Mexico. We look forward to resumption of full production in the near future.
"We are eagerly anticipating the commencement of drilling operations in the coming days for Well #3 at the Pompano Project, where we hope to achieve a similar result to that of our successful Well #2 and a further lift in production rates from the field."
The Participants in the Pompano Project and their respective working interests are:
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