November 3, 2004
Houston – Production at Devils Tower has returned to pre-Hurricane Ivan levels, Dominion Exploration & Production, a subsidiary of Dominion (NYSE: D), announced today. Three wells are producing, with a fourth well expected on stream within two weeks.
The three wells are currently producing approximately 28,000 barrels of oil equivalent per day gross. Completion work on the four remaining wells is now expected to begin by year-end.
"Our staff worked diligently with The Williams Companies under difficult circumstances to get Devils Tower back on stream quickly," said Duane Radtke, chief executive officer of Dominion E&P.
Dominion E&P owns 75 percent of Devils Tower production and is the operator of the platform. Pioneer Natural Resources Company (NYSE:PXD) owns the remaining 25 percent of production. Oil and natural gas from Devils Tower flows through a spar floating production facility owned by a unit of The Williams Companies, Inc. Devils Tower is located about 140 miles southeast of New Orleans on Mississippi Canyon block 773 in the deepwater Gulf of Mexico.
Dominion has a comprehensive insurance program to reimburse for delayed production beyond an estimated $9 million after-tax loss of income.
Dominion is one of the nation's largest producers of energy, with an energy portfolio of about 25,500 megawatts of generation, 6.4 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 960 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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