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Elixir field hit by pipeline damage

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    Date: Friday 03 Oct 2008

    LONDON (ShareCast) - Oil and gas explorer Elixir Petroleum has had to delay the restart of production at its High Island field because of damage to the offshore pipeline.

    Limited availability of barges in the Gulf of Mexico is delaying repairs which are expected to take six weeks to complete, depending on barge availability.

    The two production wells at High Island that were shut-in as a safety precaution ahead of the storm will remain shut-in until the pipeline is repaired.

    Elixir expects to immediately recommence production once the HIOS is repaired.

    Meanwhile, production at the Pompano field has recommenced at similar levels to those seen prior to the shut-in.

    “'It is important to note that production from High Island is not lost as a result of the shut-in, but merely deferred,” said Elixir’s managing director, Andrew Ross.

    “Monthly cash receipts from the Pompano Project are in the order of US$500,000, and at current prices, High Island is likely to add a further US$400,000 to US$500,000 per month when it comes back on stream,” Ross added.

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