Dominion E&P Unit Makes Initial Assessment of
Gulf Storm Impact
RICHMOND, Va. — Dominion (NYSE:D) said
today that an initial post-storm assessment of the Devils Tower facility that
it operates in the Gulf of Mexico determined the facility’s platform incurred
no serious structural damage but did sustain damage to the surface production
and completion equipment. Production could resume as early as three weeks, subject
to repairs and approvals by the Mineral Management Service and other agencies.
Dominion’s Front Runner facility and other
Gulf properties appeared to have sustained no significant damage under initial
inspection.
The company’s Dominion Exploration &
Production unit has a comprehensive insurance program to reimburse for delayed
production, which will be covered by insurance beyond an estimated $9 million
after-tax loss of income during the uninsured period. This amount represents
about 3 billion cubic feet equivalent of production, which will be delayed to
a future period.
Overall, about 80 percent of the company’s
production is from onshore with about 20 percent from offshore properties in
the Gulf.
At Devils Tower, Dominion Exploration & Production
is a 75 percent owner of the production and is the operator of the spar platform
that began producing in May in a tract about 140 miles southeast of New Orleans.
Pioneer Natural Resources owns 25 percent.
Dominion
is one of the nation’s leading energy producers.
This release contains forward-looking statements,
including our expectations for repairs to our Devils Tower offshore facility
that are subject to various risks and uncertainties. Factors that could cause
actual results to differ materially from management’s projections, forecasts,
estimates and expectations may include factors that are beyond the company’s
ability to control or estimate precisely, such as differences between preliminary
and final storm damage assessments, construction and repair delays, or delays
in approvals by the Mineral Management Service. Other risk factors are detailed
from time to time in Dominion’s most recent quarterly report on Form 10-Q
or annual report on Form 10-K filed with the Securities & Exchange Commission.
