Spinnaker Exploration Has Restored 80% of its Gas Production in the Gulf

Spinnaker Exploration updated the status of its Gulf of Mexico operations relative to the effects of Hurricane Katrina.

The Company is now producing approximately 120 million cubic feet of gas equivalent per day (MMcfged) from its Gulf of Mexico interests. This rate represents approximately 80% of Spinnaker's net productive capacity in the Gulf. The Front Runner Field complex, operated by Murphy Oil Corporation, has recommenced production and is now at full rate.

Net production volumes of approximately 30 MMcfged are shut-in. The Company believes that about 20 MMcfged of these shut-in volumes should be back online within a week. The remaining shut-in volumes should return to production in 4 to 8 weeks. No significant damage has been sustained by any Spinnaker-owned or operated facilities. The shut-in of these volumes relates to mid-stream assets not owned by the Company that service those properties. The affected assets are mainly pipelines. Spinnaker does not anticipate making any insurance claims relative to Katrina.

Spinnaker's company-operated production is at 100% of pre-storm levels.

All drilling operations are back to normal with the exception of one deepwater location. That well was being drilled by a rig that was moved from its location by the storm. The rig sustained some damage and assessment and repair is now underway.