El Paso updates post-hurricane production status

Offshore staff

HOUSTON -- El Paso's net production in the Gulf of Mexico and South Louisiana areas, which totaled 125 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, the company says. 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.

10/03/2008

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