Newfield Says 90% of Gulf of Mexico Production Restored
Newfield Exploration continues to assess damage to its platforms and facilities and is awaiting additional information from outside operated facilities, pipelines and onshore gathering and production infrastructure.
Newfield began shutting in production in preparation for Hurricane Katrina on August 27. Since that time, approximately 2.6 billion cubic feet equivalent (Bcfe) net has been deferred. Newfield has restored 90% of its operated production in the Gulf of Mexico and has approximately 60 MMcfe/d shut-in at this time.
Based on the assessments to date, total deferred production for 2005 will likely be 7 - 9 Bcfe. Newfield now expects that its total production for 2005 will be approximately 258 - 260 Bcfe.
The increase in commodity prices as a result of Hurricane Katrina will
likely offset the negative impact on 2005 revenues, earnings and cash flow
from the deferral of production. Newfield carries business interruption
insurance on a portion of the affected properties. Business interruption
insurance proceeds, if any, would further offset the affect of deferred
production on operating results in 2006.
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