"Our first horizontal well, Big Sky 2, had the highest oil rate ever produced in the
At Grand Isle 16 (WI 100%/ NRI 87%), the Pi development well was drilled to 9,572 feet TVD/ 11,482 feet MD and is currently producing 1,200 BOE/d. Pay was seen in the primary targets, C1 through C-7 sands, and additional pay was seen in the BF-1 through B-4 sands. The company currently is drilling Cake, a horizontal development well targeting the BF-2 sand updip of a past producer. The well is drilling at 6,898 feet TVD/7,808 feet MD.
Purchase and Exploration Joint Venture
The company has executed a purchase and sale agreement to acquire certain shallow-water
"This joint venture provides
Production for the fiscal first quarter was impacted by downtime associated with Hurricane Isaac, as well as pipeline repairs. While the company sustained no significant physical storm damage, production was shut-in for an extended period. Combined with repairs to operated and third-party pipelines, these shut-ins are expected to result in production of approximately 37,000 BOE/d for the current quarter, with more than 70 percent being liquids. Current production is averaging 45,000 BOE/d, 71 percent oil, with current capacity of 50,000 BOE/d.
"Even with the storm and pipeline outages during the fiscal first quarter, and the deferral of two high-rate gas wells to accommodate the joint venture oil exploration, we still expect to grow the average annual production rate this year more than 25 percent while generating significant free cash flow," Schiller said. "Notably, the oil portion of our production could grow by more than 30 percent, with the potential for upward production and reserves additions in the future if we are successful with our high-impact exploration."
All statements included in this release relating to future plans, projects, events or conditions and all other statements other than statements of historical fact included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, including changes in long-term oil and gas prices or other market conditions affecting the oil and gas industry, reservoir performance, the outcome of commercial negotiations and changes in technical or operating conditions, among others, that could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements.
About the Company
Barrel — unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons.
BOE — barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel.
BOE/d — barrels of oil equivalent per day.
MMcf/d — million cubic feet of gas per day.
Net Pay — cumulative hydrocarbon-bearing formations.
NRI, Net Revenue Interest — the percentage of production revenue allocated to the working interest after first deducting proceeds allocated to royalty and overriding interest.
WI, Working Interest — the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of the interest is vested with the right to explore for, develop, produce and own oil, gas or other minerals and bears the proportional cost of such operations.
Workover / Recompletion — operations on a producing well to restore or increase production. A workover or recompletion may be performed to stimulate the well, remove sand or wax from the wellbore, to mechanically repair the well, or for other reasons.
Energy XXI Stewart LawrenceVice President, Investor Relations and Communications 713-351-3006 firstname.lastname@example.org Greg SmithDirector, Investor Relations 713-351-3149 email@example.com Seymour PierceNominated Adviser: Jonathan WrightCorporate Broking: Richard RedmayneTel: +44 (0) 20 7107 8000 Pelham Bell Pottinger James Hendersonjhenderson@pelhambellpottinger.co.uk Mark Antelme firstname.lastname@example.org +44 (0) 20 7861 3232
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