Energy XXI's Post-Hurricane Production Steadily Ramping Up
Energy XXI has provided an operational update related to storm impacts affecting the company's production assets in the Gulf of Mexico.
"Our post-hurricane restoration of oil and natural gas production is ahead of schedule, which, combined with hedge-protected prices, is delivering solid cash flow that is funding our strong capital program, including high-potential exploration that can be a company game-changer," Energy XXI Chairman and CEO John Schiller said.
POST-HURRICANE PRODUCTION UPDATE
The company's recent net production has reached approximately 21,000 barrels of oil equivalent per day (BOE/d), which remains partially constrained due to pipeline outages that are expected to be resolved within the next several months. Production averaged an estimated 15,500 BOE/d in October and 19,500 BOE/d in November. South Timbalier 21 field production has been restored to approximately 6,800 BOE/d. The current status of other key storm-affected Gulf of Mexico fields follows.
- South Pass 49 - All topside facilities are ready to flow; pre-storm volumes of 830 BOE/d remain shut-in due to the loss of third-party-operated sales lines. Production is expected to be restored by March 2009.
- East Cameron 334/335 - Approximately 250 BOE/d of pre-storm net production is expected to be restored in December following repairs to the third-party pipeline servicing the area, as well as volumes from three recent recompletions.
- Nine additional fields representing approximately 1,700 BOE/d of pre-storm net production remain off-line due to third-party pipelines that are expected to be repaired during the next several months.
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