Universal Energy reported that gas and oil production quantities increased for the eighth consecutive month in August 2008. August 2008 production increased 21% over July 2008 and it was a 108% increase over the average monthly production of the second quarter 2008.
The wells were ordered to be shut-in by the Governor of Louisiana on August 29, 2008 in preparation for Hurricane Gustav. Assessment of damages was slowed as the area was evacuated for the storm and the following week another hurricane hit the Gulf Coast area. The wells were not damaged by the storm but the production equipment was damaged on three wells. Repairs are currently being completed and the affected wells are expected to be back online within two weeks. Insurance claims have been filed and confirmed by insurance adjusters.
"Dealing with hurricanes is just part of doing business in the Gulf Coast area," commented Billy Raley, Chief Executive Officer of Universal Energy Corp. Raley continued, "With production beginning at Amberjack yesterday, Caviar-1 later this week, and Caviar-4 in the next two weeks, we hope to continue increased production throughout the remainder of the year."
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