DENVER, Sept. 18 /PRNewswire-FirstCall/ -- Venoco, Inc. (NYSE: VQ) today
announced that it appears there is no major damage resulting from Hurricane
Ike to its operations in the Houston area including the Hastings Complex and
the Manvel field. All production from the properties was shut-in on Friday,
September 12th as the hurricane approached. Company personnel and contractors
initiated cleanup and repair work on Sunday, September 14th and focused on
clearing downed trees, replacing power poles and electrical lines in the
fields and completely assessing the operating components. Full production
will resume when electrical power is restored to the area. Initial estimates
indicated it could take several days for most areas to get electricity
restored, but it could be considerably longer. The company's typical net
daily production from the Hastings and Manvel fields has recently been about
3,300 barrels of oil equivalent.
"As of today, electricity has been restored to the Manvel field and a good
portion of the production and disposal wells are back in operation," said Mark
DePuy, Venoco's Chief Operating Officer. "Electricity at Hastings is
anticipated to return in stages over the next week."
"We have a number of employees in the area and our thoughts are with them
as they deal with the extensive impacts to their homes, communities and
personal lives," Mr. DePuy continued. "We are thankful there have been no
reports of injuries to employees or their families. It also appears our field
equipment survived this huge storm with only minor damage. Our personnel have
been very active evaluating individual field components and making repairs to
the field electrical system, so we've been able to immediately resume
operations as electrical service is restored."
Analyst Day
Venoco has scheduled an Analyst Day for Wednesday, October 1, 2008 in New
York City to discuss the company's assets and operations. For information
please use the contact below. Details regarding the Analyst Day, and how to
access it via the internet, will be provided in a subsequent release.
Financial Market Impact
The company has terminated all of its commodity derivative contracts with
Lehman Brothers Commodity Services Inc. (a subsidiary of Lehman Brothers
Holdings Inc. which filed for bankruptcy protection on September 15, 2008). As
a result, Lehman Brothers and its subsidiaries will no longer be
counterparties to any of the company's commodity derivative contracts. The
estimated mark-to-market value of the terminated commodity derivative
contracts is not material. On the banking side, Lehman Commercial Paper Inc.
(which was not included in the bankruptcy filing) holds a small portion
(4.75%) of Venoco's credit facility.
About the Company
Venoco is an independent energy company primarily engaged in the
acquisition, exploitation and development of oil and natural gas properties in
California and Texas. Venoco operates three offshore platforms in the Santa
Barbara Channel, has non-operated interests in three other platforms, operates
four onshore properties in Southern California, has extensive operations in
Northern California's Sacramento Basin and operates eighteen fields in Texas.
Forward-looking Statements
Statements made in this release relating to the resumption of production
at Venoco's Texas properties, the likely effect on Venoco of recent financial
developments, and all other statements except statements of historical fact,
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on assumptions and estimates that management
believes are reasonable based on currently available information; however,
management's assumptions and the company's future performance are both subject
to a wide range of business risks and uncertainties and there is no assurance
that these projections can or will be met. Any number of factors could cause
actual results to differ materially from those in the forward-looking
statements, including, but not limited to, adverse developments in
post-hurricane recovery efforts and adverse financial market developments.
All forward-looking statements are made only as of the date hereof and the
company undertakes no obligation to update any such statement. Further
information on risks and uncertainties that may affect the company's
operations and financial performance, and the forward-looking statements made
herein, is available in the company's filings with the Securities and Exchange
Commission, which are incorporated by this reference as though fully set forth
herein.
SOURCE Venoco, Inc.