HOUSTON, Oct. 17, 2017 (GLOBE NEWSWIRE) — Energy XXI Gulf Coast, Inc. (“EGC” or the “Company”) (NASDAQ:EXXI) today provided an update on operations.
Due to Hurricane Nate’s course through the Gulf of Mexico (GOM), the Company and third-party operators evacuated crews on October 5. The storm resulted in essentially all production being shut in for nearly five days. Once weather conditions improved, EGC completed flyover and onsite inspections in the GOM that indicated the Company sustained no significant damage to its operated offshore facilities. The Company began restoring production once pipelines and onshore facilities were returned to service.
At this time, the Company estimates about 3,000 net barrels of oil equivalent (Boe) daily production remains curtailed due to the storm. EGC also said approximately 5,000 Boe of daily production is currently shut-in due to pipeline repairs and maintenance unassociated with the hurricane. Based on current information and a projected timeline for production restoration, the impact to fourth quarter production is estimated to be 3,000 to 4,000 net Boe per day from the combination of the storm and pipeline repairs and maintenance.
Douglas E. Brooks, EGC’s Chief Executive Officer and President, commented, “We are pleased that our operated facilities appear to have sustained minimal damage due to Hurricane Nate and we continue to be in communication with operators of our non-operated assets. While our team has brought the majority of our production back online due to the storm, additional production has been curtailed due to pipeline repairs and maintenance. It will take time to restore production to pre-storm levels. This has been an especially difficult hurricane season as we have been forced to shut-in production multiple times.”
The Bureau of Safety and Environmental Enforcement (BSEE) must also deem the facilities that were in the path of the storm operational before production can resume. EGC is awaiting additional information regarding full restoration of production from third-party operated fields.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to the intent, beliefs, plans, or expectations of EGC are based upon current expectations and are subject to a number of risks, uncertainties, and assumptions. It is not possible to predict or identify all such factors and the following list should not be considered a complete statement of all potential risks and uncertainties including, but not limited to: (i) the extent or duration of the impact on EGC’s production and operations and (ii) other risks and uncertainties. These risks and uncertainties could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. For a more detailed discussion of risk factors, please see Part I, Item 1A, “Risk Factors” of the Transition Report on Form 10-K for the transition period ended December 31, 2016 filed by EGC for more information. EGC will file reports and other information with the SEC going forward. EGC assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
About the Company
Energy XXI Gulf Coast, Inc. is an independent oil and natural gas development and production company whose assets are primarily located in the U.S. Gulf of Mexico waters offshore Louisiana and Texas. The Company’s near-term strategy emphasizes exploitation of key assets, enhanced by its focus on financial discipline and operational excellence. To learn more, visit EGC’s website at www.energyxxi.com.
Investor Relations Contact:
Investor Relations Coordinator