In what it said would be its final update of evacuation and shut-in production statistics related to Hurricane Isaac, the Bureau of Safety Environmental Enforcement (BSEE) said Tuesday that two production platforms and a single rig remained evacuated in the Gulf of Mexico (GOM). Based on data from offshore operator reports submitted as of 11:30 a.m. CDT Tuesday, BSEE estimated 4.73% (213 MMcf/d) of natural gas production and 4.16% (57,439 b/d) of oil output in the GOM was shut in. All of those statistics peaked in the immediate aftermath of Isaac, when BSEE reported 509 production platforms and 50 rigs evacuated, and an estimated 75.52% (3.264 Bcf/d) of gas production and 94.99% (1.311 million b/d) of oil production was shut in (see Daily GPI, Aug. 31).
Crestwood Midstream Partners LP Tuesday began restarting its Corvette natural gas processing facility in Hood County, TX, following a fire last Thursday that damaged one of nine compressors and a portion of a building housing the units adjacent to the processing facility. Corvette, a cryogenic gas processing unit, was not damaged and was taken out of service as a normal part of the facility's emergency shut-down procedures. Gas flowing through the facility prior to the compressor incident was rerouted to Crestwood's other nearby processing facilities or was temporarily shut-in by producers. Crestwood said it expected the Corvette facility to be back to full service in the next few days.
The board of directors of Magellan Petroleum Corp. has decided not to pursue a recent proposal by Stratex Oil & Gas Holdings Inc. to acquire the Denver-based independent upstream oil and gas company for $2.30/share in cash and stock (about $124 million). The board said Stratex "is a development stage company that lacks significant financial or other assets" and had not responded to a request for preliminary information. "The manner in which Stratex has reported its oil and gas reserve quantities, future net cash flows, and the number of its gross and net wells raises concerns about accurately understanding the value of these metrics," Magellan said. Stratex announced its proposal, which provided a 137% premium to Magellan shareholders, on Aug. 27. Magellan owns and operates the Poplar oil field in the Williston Basin, holds 240,00 net acres in the United Kingdom and owns and operates gas fields in Australia.
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