El Paso Reports Storm Impact on E&P

El Paso Corp.

El Paso Corporation has provided an update on the effects of Hurricane Ike on its Gulf of Mexico and onshore production.

Gulf of Mexico/S. Louisiana

El Paso's net production in the Gulf of Mexico and S. Louisiana areas, which totaled 125 million cubic feet equivalent per day (MMcfe/d) before production was shut in for Hurricane Ike, currently totals 30 MMcfe/d. While most of the 27 operated-platforms received only minor damage, two structures in the Eugene Island area, that together produce approximately 15 MMcfe/d, were heavily damaged.

Evaluations are ongoing to determine the costs of restoring the platforms to operations. Of the remaining approximately 80 MMcfe/d that is currently shut in, 55 MMcfe/d is dependent on the repair of the High Island Offshore System (HIOS) and 25 MMcfe/d is dependent on repairs to onshore facilities of the Stingray system. Volumes on Stingray are expected to be flowing again between late October 2008 and the end of November 2008. The operator of HIOS expects the system to return to service in mid-to-late November 2008.

Texas Gulf Coast

El Paso's production in the Texas Gulf Coast (TGC) Division is now back to pre-storm levels. At its peak, approximately 90 MMcfe/d of production was shut in due to the temporary outage of processing and fractionation plants and end-user markets in the Houston area that were off-line due to the loss of power following the hurricane. The TGC Division did not suffer any material damage to its production infrastructure.

Central Onshore

El Paso's production from the Arklatex area of the Central Onshore region had initial shut ins totaling as much as 20 MMcfe/d, principally due to constrained processing capacity. All production is now back to pre-storm levels.

Third Quarter Impact

In addition to the direct impact on existing production, Hurricane Ike and the preceding recent hurricanes and tropical storms have impacted ongoing drilling, completions, and facility activities across the company's domestic operations. El Paso expects that the impact will reduce third quarter production by approximately 40-45 MMcfe/d.