Powder River assesses Hurricane damage
  by: OilOnline
  Tuesday, October 04, 2005

Powder River Basin Gas Corp. has completed its assessment of the damage caused by Hurricanes Katrina and Rita. PRVB is pleased to report that no serious damage was sustained on any property, and that all oil and gas reserves, equipment, and inventory remain intact.

Hurricane Katrina caused no damage directly to Powder River Basin Gas Corp. properties.

The oil and gas pipelines which transport gas from the Arcadia Parish project were damaged, and remain out of service as gas facilities are being re-built. The gas is shut off at the wellhead until the facility is back in operation.

Hurricane Rita caused more direct disruption to operations, as electricity remains off since the storm. The electric company is working to have services restored as quickly as possible. Due to the excessive rainfall, this repair work has been delayed while water recedes.

The Arcadia Parish project will resume oil production as soon as electricity is restored. Oil will be stored on site until transports resume.

The Springhill project sustained some damage, but this was confined to the surface only. Trees were blown over roads and some electric poles were knocked down, as well as minimal flooding to the project. Electric service has been restored and wells are being quickly put back into production.

The Kirby, Texas well received no direct damage, but has been shut down while access roads are being cleared of downed trees and the water evaporates. There is also a shortage of propane, which is required to start the gas motors. This will delay production and sales, but only on a short-term basis.

Parts of Oklahoma received heavy rainfall, however there was no serious damage to any of the properties or equipment.

There remains a "waiting list" on materials as most of the suppliers in Louisiana have been temporarily shut down until services are restored.