HOUSTON, July 16 /PRNewswire-FirstCall/ -- Helix Energy Solutions
(NYSE: HLX) announced that its wholly-owned subsidiary, Energy Resource
Technology GOM (ERT) has made a second discovery in Garden Banks Block 506,
approximately 145 miles offshore from Galveston, Texas, in 2,700 feet of
water in the Gulf of Mexico. The 100% owned and operated "Danny"
exploratory well has been drilled and wireline logs and repeat formation
tests confirm the presence of high quality oil in a single sand body.
Preliminary analysis indicates reserve potential of around 50 bcfe.
The well is currently being completed and it is anticipated that the
Danny discovery will be developed, in conjunction with the development of
the Noonan reservoir, via a subsea tie back system to our 100% owned and
operated East Cameron block 381 platform located approximately 31 miles to
the north in 370 feet of water. First production from Danny is expected in
the second half of 2008.
Martin Ferron, President and Chief Executive Officer of Helix, stated,
"When we announced the acquisition of Remington Oil and Gas last year we
pointed to the deepwater prospect portfolio as a potential source of
significant production and contracting services value. We have now made two
very successful steps in unlocking that value, which bodes well for the
remaining inventory. With these first two discoveries, the ultimate value
created from the deepwater prospect portfolio alone could well exceed the
total acquisition price.
"Noonan and Danny will be developed with our marine assets within
approximately eighteen months of discovery with a combined finding and
development (F&D) cost of less than $2/mcfe. Therefore both the pace and
cost of the F&D work are at the leading edge of performance in the
deepwater Gulf of Mexico."
Helix Energy Solutions, headquartered in Houston, Texas, is an
international offshore energy company that provides development solutions
and other key life of field services to the open energy market as well as
to our own oil and gas business unit. That business unit is a prospect
generation, exploration, development and production company. Employing our
own key services and methodologies, we seek to lower finding and
development costs, relative to industry norms.
This press release contains forward-looking statements that involve
risks, uncertainties and assumptions that could cause our results to differ
materially from those expressed or implied by such forward-looking
statements. All statements, other than statements of historical fact, are
statements that could be deemed "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, including,
without limitation, any projections of revenue, gross margin, expenses,
earnings or losses from operations, or other financial items; future
production volumes, results of exploration, exploitation, development,
acquisition and operations expenditures, and prospective reserve levels of
property or wells; any statements of the plans, strategies and objectives
of management for future operations; any statement concerning developments,
performance or industry rankings, any statements regarding future economic
conditions or performance; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing. The risks,
uncertainties and assumptions referred to above include the performance of
contracts by suppliers, customers and partners; employee management issues;
complexities of global political and economic developments, geologic risks
and other risks described from time to time in our reports filed with the
Securities and Exchange Commission ("SEC"), including the Company's Annual
Report on Form 10-K for the year ending December 31, 2006. We assume no
obligation and do not intend to update these forward-looking statements.
SOURCE Helix Energy Solutions Group, Inc.
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Related links:
http://www.helixesg.com
CONTACT:
Wade Pursell, Chief Financial Officer of
Helix Energy Solutions Group, Inc., +1-281-618-0400, fax,
+1-281-618-0505
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