Dominion Announces Partial Resumption of Gulf of Mexico Natural Gas and Oil Production

Oct 10, 2005
7:00am

October 10, 2005

RICHMOND, Va. – Dominion (NYSE:D) announced Monday that its Gulf of Mexico and South Louisiana production has reached approximately 130 million cubic feet of natural gas equivalent (mmcfe) per day.

Dominion facilities were not significantly damaged by the storms. Production capability of approximately 570 mmcfe per day is still shut-in primarily due to hurricane damage to downstream facilities not owned by Dominion.

Some Dominion facilities remain off line. At this time, Dominion is not able to forecast with certainty when off-line production, whether interrupted because of damage downstream or to its facilities, will resume.

Prior to Hurricane Katrina, Dominion’s Gulf of Mexico and South Louisiana production was approximately 435 mmcfe per day. Dominion had forecasted production increases to approximately 700 mmcfe per day during October with the addition of four previously announced deepwater projects, plus other planned completion activity.

Dominion Daily Gulf of Mexico and South Louisiana Production Summary mmcfe/d (per day)
Prior to Hurricane Katrina 435
Prior to Hurricane Rita 240
Expected September Prior to Storms 525
Expected October Prior to Storms 700
All volumes are approximate.  

Until a significant percentage of production is resumed, Dominion will post updated production data at the beginning of each week on its Web site.

Dominion has business interruption insurance for hurricane-related delays in natural gas and oil production. Production delayed by Hurricane Katrina has a 30-day deductible period. Production delayed by Hurricane Rita has a 45-day deductible period. Dominion’s business interruption insurance covers delays caused both by damage to its own production facilities and by damage to third-party facilities downstream. Despite production delays caused by these hurricanes, the natural gas and oil reserves remain in the ground and are expected to be produced by Dominion in the future.

Dominion is one of the nation's largest producers of energy, with an energy portfolio of about 28,100 megawatts of generation, about 6 trillion cubic feet equivalent of proved natural gas reserves and 7,900 miles of natural gas transmission pipeline. Dominion also operates the nation's largest underground natural gas storage system with more than 965 billion cubic feet of storage capacity and serves retail energy customers in nine states. For more information about Dominion, visit the company's Web site at www.dom.com.

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CONTACTS:    
Media: Mark Lazenby, 804-819-2042  
  Hunter Applewhite, 804-819-2043  
     
Analysts: Joseph O’Hare, 804-819-2156,  
  T. A. Hickman, 804-819-2129  
  Greg Snyder, 804-819-2383

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