Spinnaker Exploration Says Facilities Inspected So Far Are Intact
Spinnaker assessed for damage and says that all facilities in which Spinnaker owns an interest that have been visually inspected are intact, including the Front Runner Spar and related completion rig. Several shallow water platforms operated by Spinnaker have not yet been inspected. Those inspections will occur today. Based upon the location of those facilities, the Company expects to find them intact.
The assessment of related downstream pipeline assets not owned by Spinnaker will not be conducted by Company personnel. The potential for impact to Spinnaker's net production is anticipated to be minor based upon location of those lines relative to Katrina's path.
Likewise, damage assessment related to downstream processing facilities through which Spinnaker production flows will be conducted by others. The Company anticipates minimal impact on its net production, based upon the location of those facilities.
All of Spinnaker's Western Gulf of Mexico and Central Gulf of Mexico production assets west of the Cameron Additions are now producing or are scheduled to recommence production by the end of the day. Total net production in this category is approximately 60 million cubic feet of gas equivalent per day (MMcfged).
Production that is operated by others, but located in areas assumed to be
unaffected by Katrina totals approximately 30 MMcfged. It is anticipated that those volumes should be flowing within 2-3 days.
The Front Runner Field complex produced volumes in excess of 50 MMcfed net to Spinnaker prior to the storm. Personnel are being transported to the Front Runner facility now. Spinnaker has not received a ramp-up schedule as of yet for that facility. Pipeline and processing facilities that service Front Runner production are all located west of the storm's path, but no assessments have yet been received by Spinnaker.
Pre-storm production volumes of 10 MMcfged net to Spinnaker are located in areas that were directly impacted by Katrina. The status of those facilities is unknown at this time. The Company's assumption is that damage has been incurred and that production could be delayed for weeks or months. A majority of these volumes are related to facilities not owned or operated by Spinnaker, but through which oil and gas owned by the Company is processed. The main property in this category is the Zia Field (Mississippi Canyon 496). Zia is a single subsea completion located in 1,800 feet of water. It is anticipated that the wellhead and related subsea systems should be intact.
The Company currently operates or is participating in a total of six rig operations. Four of those operations were manned and active as of this morning. No damage was incurred by any of those rigs.
A fifth operation at Front Runner should be at least partially staffed by the end of the day. The sixth rig has been moved by the storm from its prior location. The rig has now been located. Assessment operations are underway by the rig owner. The rig had recovered its drilling riser and the well had been secured prior to evacuation.
The Company will update the status of its operations as meaningful new information is received
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