W&T Offshore Loses Two Platforms to Hurricane Ike

W&T Offshore says that initial flyovers after Hurricane Ike have indicated that its Eugene Island 371 "B" platform and Eugene Island 397 "A" platform and the third party owned processing facility for its Ewing Banks 949 "Queen of Hearts" sank. The Company is currently evaluating its alternatives for those facilities including utilizing other platforms. The Company has not made a final determination as to the cost to repair or replace these facilities or the timing of such repairs. The Company has also learned that several non-operated platforms were lost. The net production volumes from these sunken operated and non-operated platforms were approximately 5.0 MMcfe per day.

W&T's pre-Hurricane Gustav and Ike production volumes were approximately 308 MMcfe per day. The Company will have production estimates in seven to ten days after assessing multiple factors including damaged and/or sunken platforms, the functionality of downstream pipelines, processing and third party facilities, delays in drilling and production operations and third-party operators recommencing production and drilling operations. W&T plans to provide updates regarding re-establishment of its production shut in due to Hurricane Ike in future press releases.

W&T's corporate office in Houston sustained minimal damage as a result of Hurricane Ike but it is now completely operational.

Read more on the aftermath of Hurricane Ike in Rigzone's Special Coverage After the Storm.