Eugene Island Field Production
Average Eugene Island production for the quarter was affected by gas compressor repair and maintenance; gas sales pipeline availability and the A-6 well being shut-in for about four weeks during the well recompletion.
The company has recently received notice from Transcontinental Gas Pipe Line Company, LLC (TGPL) stating that the pipeline system is experiencing high utilization of services, pipeline maintenance and various compressor station maintenance activities. These have resulted in reduced operating flexibility, and TGPL has advised that this situation may continue for the next several weeks.
The operational difficulties being experienced on the TGPL pipeline system have affected Leed Petroleum’s ability to sell its production from the Eugene Island field with about five days of associated shut-in during April 2009 and two days to date in May 2009. Prior to these difficulties, due to a combination of natural decline and operational constraints, the field was producing at a gross rate of 5,000 BOEPD and is currently producing at this rate.
Non-Operated Properties
Leed Petroleum has previously announced that the non-operated East Cameron field, in which Leed Petroleum holds a 25% working interest, is shut-in because of hurricane related damage to a non-company owned pipeline that carries gas from the Gulf of Mexico to an onshore treatment facility. Recently, further damage has been discovered on the pipeline, which will further delay the restoration of production. Historically, East Cameron represents a small proportion of Leed Petroleum’s production volumes.
Production at the company’s Main Pass field was curtailed during the quarter due to a lack of field gas necessary to lift oil out of the well bores. The operator is addressing this issue. Main Pass also represents only a small proportion of Leed Petroleum’s production volumes.
