Pyramid Provides Operational Updates
Tuesday November 18, 9:28 am ET
HOUSTON, TX--(MARKET WIRE)--Nov 18, 2008 -- Pyramid Petroleum Inc. ("Pyramid" or "the Company") (CDNX:PYR.V - News) today announced that 40% of its production in the Gulf of Mexico is back on line following the damage caused by Hurricane Ike as previously announced on September 24th, 2008. The remaining 60% is expected to be on line by late December 2008. Specific operational updates are as follows:
1. Green Canyon 53/52/184
These platforms sustained damage due to Hurricane Ike. Pyramid immediately undertook efforts to secure and repair the platforms and return the wells to production. Pyramid's share of estimated costs for repairs was approximately $2.1 million. The company is to pay roughly half of this with the balance to be paid by insurance. Production is anticipated to be on line in late December. The Green Canyon Blocks are located in 570 to 1,760 feet of water in the Gulf of Mexico and produce approximately 2,200 bopd and 4,000 mcfd gross. Pyramid's working interest share is roughly 550 boepd. The design capacity of the platform facilities located in Block 52 is approximately 55,000 bopd and 125,000 mcfd. Produced oil is shipped through a 30 mile 12" line in which Pyramid owns a 19% interest. The gas is marketed through a third party gas line. Pyramid has working interests ranging from 16.5% to 25% in the Green Canyon wells, the platform facilities, and the roughly 15,000 acre leasehold.
2. Green Canyon 184 well work over program
Pyramid will resume its work over program once production is restored. The program at Green Canyon 184 consists of 8 wells 2 of which were completed prior to the interruptions by Hurricane Ike.
3. High Island 160
The platform sustained damage due to Ike. Production has now been restored and the Block is producing about 1,500 mcfd. Pyramid's estimated share of repair costs was approximately $800,000 all of which has been paid to date. High Island 160 is located in 55 feet of water with Pyramid holding a 50% or roughly 125 boepd working interest in the Block.
4. Vermillion 331/MU804
The platform and pipeline sustained damages due to Ike. The cost to Pyramid was 200,000. Both the Blocks are now producing with Pyramid's working interest share being 12.5% or approximately 275 boepd.
5. Three Well Exploratory Drilling Program
The three well exploratory drilling program, announced earlier this year, was postponed due to Hurricane Ike. The program will commence in mid December. Pyramid has a 10% interest in the program.
Pyramid Petroleum CEO Ilyas Chaudhary stated, "After sustaining damages due to Ike, I am pleased to see the success our operations team accomplished thus far in bringing production back on line in such an efficient manner. I feel confident we will continue to see Pyramid moving forward with additional production coming back on line at Green Canyon as well as the drilling and work over programs."
