Elixir has provided an update on production operations at the Pompano and High Island Fields located offshore Texas in the Gulf of Mexico.
As previously announced, well SL 103229#1 ("Well #1") was shut-in in mid-October pending a remedial workover to address sand bridging issues encountered in the upper 6700 Sand reservoir and unexpected water production from the lower B Sand reservoir.
Elixir is pleased to report that it has been advised by the field operator, AnaTexas Offshore Inc. ("ATO"), that production has been reinstated from the 6700 Sand reservoir in Well #1. The sand bridges in the 6700 Sand completion have cleared without intervention and production has been restored from this reservoir at a rate of approximately 1 million cubic feet of gas per day.
Notwithstanding the natural restoration of production from the 6700 Sand reservoir, a planned workover of Well #1 will also include a solution to address the underlying cause of the sand bridging in this reservoir. The workover will also seek to resolve the water and sand production from the B Sand reservoir, which is believed to originate from the deeper B2 Sand and is being produced via a poor annular cement bond. This problem has inhibited production from the B Sand reservoir in Well #1. Elixir expects to receive a final recommendation from ATO for the workover of Well #1 in the coming weeks, with operations to commence shortly thereafter.
High Island Field
Elixir has been advised by the field operator, Peregrine Oil & Gas LLC ("Peregrine"), that repairs to the High Island Offshore System ("HIOS"), which was damaged during the passage of Hurricane Ike in mid-September, are now complete. The HIOS is the regional pipeline system through which gas produced at the High Island Field is exported to market.
Peregrine has reported that, with the completion of repairs and the re-commissioning of the HIOS by the pipeline owner, the two wells at High Island are now being brought back online and production has restarted. An update on production rates will be provided once steady state production has been resumed.
Commenting on the announcement, Elixir's Managing Director, Andrew Ross said, "The reinstatement of production from the upper reservoir in Well #1 at Pompano and from both wells at High Island is great news and will further add to Elixir's cashflow from its Gulf of Mexico operations."
He added, "We are also looking forward to the commencement of the workover of Well #1 at Pompano and to re-establishing higher flow rates from that well."
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