Petsec Resumes Gas Production at Vermilion Field

Petsec Energy's Vermilion 258 gas field in the Gulf of Mexico has recommenced gas production following the reopening of third party downstream sales pipelines, which had been shut-in since September 22nd due to damage from Hurricane Rita.

Production recommenced December 5th from three of the four wells at Vermilion 258 and is now at pre-Rita production levels.

Current gross flow rates from the three wells are 17.5 million cubic feet per day (MMcf/d), essentially the same as it was prior to Hurricane Rita. These rates should improve as the fourth well is brought on-line and compression facilities are commissioned. The compressor was installed but not brought on line just prior to the Hurricane.

Current natural gas prices are in excess of US$13 per thousand cubic feet (Mcf).