Crimson Exploration Effects of Hurricane Rita Minimal
Crimson Exploration has preliminary assessments of physical damage from Hurricane Rita on its south Louisiana and Texas gulf coast properties appears to be minimal. Production, however, remains shut-in pending restoration of electrical power to, and the commencement of operations by, the operators of sales lines through which the Company delivers its production. Details of those estimated effects are as follows:
Production at the Company's Grand Lake Field in Cameron Parish, Louisiana was shut-in on Thursday, September 22 in anticipation of the approaching storm. The eye of the storm passed approximately 30 miles west of the Grand Lake Field, but based on a preliminary site review, the Company does not appear to have suffered major structural damage on the Grand Lake wells and facilities. Final assessment of physical damage will be made once flood waters have receded and the Company can perform a complete inspection of the facilities and test the structural integrity of the equipment. Production from the field remains shut-in pending the commencement of operations by the operators of the oil and natural gas sales lines and gas plant through which our production is sold. Prior to being shut-in for the storm, the Company was producing approximately 3.1 mmcfe of natural gas equivalents per day, net to the Company's interest. Based on estimates provided by operators of the oil and natural gas sales lines, production from this field and our Lacassine Field could remain shut-in for as much as thirty more days.
Production from the Company's Lacassine Field, an onshore field also in Cameron Parish, Louisiana was shut-in on September 22 and remains shut-in pending resumption of operations by the operators of the same sales lines as those servicing the Grand Lake Field. Preliminary assessment of physical damage at the Lacassine Field is that only minor repairs will be necessary. Production from the Lacassine Field, prior to shut-in for the storm, was approximately 1.3 mmcfe of natural gas equivalents per day, net to the Company's interest.
The shut-in production from the Cameron Parish properties represents approximately 54% of the Company's current equivalent daily production. Total repair costs are not expected to be significant, and most repairs can be done after production is restored.
Daily production of approximately another 0.7 mmcfe per day from smaller Texas gulf coast properties near Victoria was shut-in beginning September 22, but substantially all of that production was restored by Sunday, September 25. No significant physical damage was incurred on these properties.
- Contango, Crimson Exploration Pen Merger Agreement (Apr 30)
- Crimson Hits Oil Pay at Woodbine Well (Jul 31)
- Crimson Completes HZ Texas Well (Mar 29)