Ivan

While Tropical Storm Arlene failed to develop into a significant storm such as Hurricane Ivan in 2004, a review of hurricane trends show that there is more than a one in three chance of large hurricane catastrophe-losses in the United States in the current season, according to EQECAT Inc., an extreme risk modeling firm.

Although she was expected to follow a path similar to that of her far more terrible predecessor, Ivan, Tropical Storm Arlene on Friday was expected to remain weak, causing little or no lasting impact on the natural gas market or Gulf exploration and production infrastructure.

Pioneer Natural Resources and Dominion Resources announced that production from the Devils Tower field has returned to pre-Hurricane Ivan levels. Three wells are currently producing 28,000 boe/d on a gross basis, and a fourth well is expected to be producing by the end of November. Eight wells have been drilled to develop the field, but damage to the platform rig delayed completion activities related to the four remaining wells. However, the timeframe for resuming completion activities has improved, with potential for continued field development to begin by year end, the companies said. The financial impact of these delays is mitigated by business interruption insurance coverage that is designed to restore the expected cash flow from the project after a waiting period that ended on Nov. 1. Pioneer holds a 25% working interest in Devils Tower. Dominion operates the field with a 75% working interest. The field is located about 140 miles southeast of New Orleans on Mississippi Canyon block 773 in the deepwater Gulf of Mexico.

Pioneer Natural Resources and Dominion Resources announced that production from the Devils Tower field has returned to pre-Hurricane Ivan levels. Three wells are currently producing 28,000 boe/d on a gross basis, and a fourth well is expected to be producing by the end of November. Eight wells have been drilled to develop the field, but damage to the platform rig delayed completion activities related to the four remaining wells. However, the timeframe for resuming completion activities has improved, with potential for continued field development to begin by year end, the companies said. The financial impact of these delays is mitigated by business interruption insurance coverage that is designed to restore the expected cash flow from the project after a waiting period that ended on Nov. 1. Pioneer holds a 25% working interest in Devils Tower. Dominion operates the field with a 75% working interest. The field is located about 140 miles southeast of New Orleans on Mississippi Canyon block 773 in the deepwater Gulf of Mexico.

Pioneer Natural Resources and Dominion Resources announced that production from the Devils Tower field has returned to pre-Hurricane Ivan levels. Three wells are currently producing 28,000 boe/d on a gross basis, and a fourth well is expected to be producing by the end of November. Eight wells have been drilled to develop the field, but damage to the platform rig delayed completion activities related to the four remaining wells. However, the timeframe for resuming completion activities has improved, with potential for continued field development to begin by year end, the companies said. The financial impact of these delays is mitigated by business interruption insurance coverage that is designed to restore the expected cash flow from the project after a waiting period that ended on Nov. 1. Pioneer holds a 25% working interest in Devils Tower. Dominion operates the field with a 75% working interest. The field is located about 140 miles southeast of New Orleans on Mississippi Canyon block 773 in the deepwater Gulf of Mexico.

Affected by news late Thursday of damaged and missing rigs and platforms discovered in the Gulf of Mexico (see related story), natural gas futures on Friday morning headed toward, and then through the all-important psychological $5 resistance level. October futures hit a high on the day of $5.27 as of 1:16 p.m. (EDT), a 55.1 cent premium over Thursday’s settle.