Dominion Exploration & Production Inc. says production from the Devils Tower field has returned to pre-Hurricane Ivan levels. Three wells are currently producing 28,000 b/d of oil on a gross basis, and a fourth well is expected to be producing by the end of November.

Dominion drilled eight wells to develop the field, and damage to the platform rig during Hurricane Ivan delayed completion activities related to the four remaining wells. The timeframe for resuming completion activities has improved with potential for continued field development to begin by year end, Dominion's partner Pioneer says. The financial impact of these delays is mitigated by business interruption insurance coverage held by Pioneer that is designed to restore the expected cash flow from the project after a waiting period that ended on Nov. 1.

11/04/04