Houston-based independent Spinnaker Exploration Co. warned Friday that Hurricane Ivan and weather-related production curtailments in the Gulf of Mexico will slightly reduce forecasted 3Q oil and natural gas production, and also weigh on quarterly earnings.

Spinnaker estimated that total net production of 0.6 Bcfe was lost in the quarter because of weather-related shut-ins. Most of the production deferral was blamed on Hurricane Ivan. The producer now expects to have produced net volumes of 11.2-11.3 Bcfe, versus original guidance of 11.5 Bcfe.

Earnings for the quarter are now expected to be in the range of 25-28 cents/share. Analysts polled by Thomson First Call expected earnings to average 35 cents/share.

In a statement, Spinnaker said, “The company believes that some impact on equipment rates and availability is still being felt in the GOM and that these effects are likely to have some influence on operations in 2005. The company anticipates that drilling and completion costs related to wells active during the affected period could be increased by as much as 10% to 20%.”

Fourth quarter production now is estimated to decline sequentially from the third quarter to approximately 10 Bcfe, Spinnaker said.

Shut-ins in the third quarter will cause delays for some new projects being brought online in the GOM, including the Front Runner oil and Minuteman natural gas discoveries. The Front Runner project has experienced delays of two-to-four weeks related to securing, evacuating and re-manning of the facility and to start-up of platform rig activities. Physical damage to the spar production facility was minimal, and first production is now expected in November. The Minuteman prospect’s initial production has been delayed approximately two months, and first production from the field is estimated to occur in December.

Spinnaker said it would discuss its ongoing operations further when earnings are released on Thursday (Oct. 28).

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