El Paso Corporation Provides Storm Impact on E&P Operations
October 03 2008 - 4:08PM
Marketwired
El Paso Corporation (NYSE: EP) is providing 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.
Regular updates for El Paso's pipelines are available on the
company's Web site at http://www.elpaso.com/postings.
El Paso Corporation provides natural gas and related energy
products in a safe, efficient, and dependable manner. The company
owns North America's largest interstate natural gas pipeline system
and one of North America's largest independent natural gas
producers. For more information, visit www.elpaso.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes certain forward-looking statements and
projections. The company has made every reasonable effort to ensure
that the information and assumptions on which these statements and
projections are based are current, reasonable, and complete.
However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this release, including, without
limitation, the ultimate extent of the damages to our production
facilities, the ability to repair any damage to such production
facilities; the costs of effectuating such repairs and replacement
facilities; the extent of damage to and the restoration of systems
owned and operated by others, and other factors described in the
company's (and its affiliates') Securities and Exchange Commission
filings. While the company makes these statements and projections
in good faith, neither the company nor its management can guarantee
that anticipated future results will be achieved. Reference must be
made to those filings for additional important factors that may
affect actual results. The company assumes no obligation to
publicly update or revise any forward-looking statements made
herein or any other forward-looking statements made by the company,
whether as a result of new information, future events, or
otherwise.
Contacts: Investor and Public Relations Bruce L. Connery Vice
President Office: (713) 420-5855 Media Relations Richard Wheatley
Manager Office: (713) 420-6828
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