Dominion Announces Estimated Restart of Production from Devils Tower

Oct 4, 2004
7:00am

October 4, 2004

RICHMOND, Va. – Dominion (NYSE:D) said today that it expects production from its Devils Tower field in the Gulf of Mexico to restart between late October and mid-November and reaffirmed that, until production resumes, it has a comprehensive insurance program to reimburse for delayed production beyond an estimated $9 million after-tax loss of income.

Production from three wells was interrupted on Sept. 15 by Hurricane Ivan. A fourth well near completion at the time of the Hurricane is also expected to begin production between late October and mid-November.

A new completion rig needed to bring the facility’s remaining four wells into production is expected to be available for installation in about 90 to 120 days. The four wells will then be sequentially completed and brought into production.

The company’s Dominion Exploration & Production unit owns 75 percent of Devils Tower production and is the operator of the platform. Devils Tower is a deepwater spar at Mississippi Canyon 773, about 140 miles southeast of New Orleans. Pioneer Natural Resources Company owns 25 percent of the production.

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 about 5 million 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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Media: Dan Donovan, 412-690-1370  
     
Analysts: Joe O'Hare, 804-819-2156  
  T.A. Hickman, 804-819-2129

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