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Endeavour International Corporation (END)
Operational Update Conference
July 10, 2013 8:30 am ET
K. Darcey Matthews - Director of Investor Relations and Corporate Communications
William L. Transier - Executive Chairman, Chief Executive Officer and President
Carl D. Grenz - Executive Vice President of International
James J. Emme - Executive Vice President of North America
Catherine L. Stubbs - Chief Financial Officer and Senior Vice President
Neal Dingmann - SunTrust Robinson Humphrey, Inc., Research Division
Welles W. Fitzpatrick - Johnson Rice & Company, L.L.C., Research Division
Stephen F. Berman - Canaccord Genuity, Research Division
David Epstein - CRT Capital Group LLC, Research Division
Steven Karpel - Crédit Suisse AG, Research Division
Colin Wilson Murphy
Previous Statements by END
» Endeavour International Management Discusses Q1 2013 Results - Earnings Call Transcript
» Endeavour International Management Discusses Q4 2012 Results - Earnings Call Transcript
» Endeavour International Management Discusses Q3 2012 Results - Earnings Call Transcript
K. Darcey Matthews
Thank you, Marquetta. Good morning, good afternoon, everyone, and thank you for joining us today for Endeavour's Operational Update Conference Call and Webcast. Joining us on the line today, we have Bill Transier, our Chief Executive Officer; Cathy Stubbs, our Chief Financial Officer; Carl Grenz, Executive Vice President for International Operations; and Jim Emme, Executive Vice President for North American Operations.
Before we begin, I'd like to remind everyone that our comments today reflect our current information and understanding. There are a number of factors, however, that can cause actual results to differ materially from what we present here today. For the latest risk factors associated with our business, please read our full disclosures in our more recent 10-K and 10-Qs. And for that, I'll turn the opening -- call over to Bill for some opening comments.
William L. Transier
Good morning, everyone. This morning, we want to bring everyone up-to-date on our operations. Our primary focus will be on the U.K., but we do have a few comments regarding our U.S. operations as well.
We felt like, rather than an attempt to discuss all the matters that are important in terms of an update in a press release, we felt it would be much more informative and more productive to have a conference call with investors, like we're doing here this morning.
I ask you to please respect that we will have our normal quarterly financial review in a couple of weeks, so our comments will be limited regarding any particular financial matters until we finish with our financial information in a couple weeks, and our independent auditors have a chance to review that information. Frankly, most of our discussion today will be a continuation of matters already well known about Endeavour, and we're just trying to bring you up-to-date.
As a guide to our discussion this morning, we will first have Carl Grenz, our EVP of International Operations, who will give you an update on all of the significant activity going on in the U.K. He will be followed by Jim Emme, our EVP of North America, who will give you a short update on activity levels here in the U.S. And then following that, we'll have Cathy Stubbs, our Chief Financial Officer, who will discuss both our cash position and our capital spending for the rest of the year.
With that, I'll get right into it and have Carl give you an update on our U.K. operations.
Carl D. Grenz
Yes. Thank you, Bill, and good day to everyone on the call. As Bill said, I'm going to give you an update on our key operations in the U.K. I'm going to talk about Rochelle, Bacchus and Alba. And I'll start off with Rochelle, there's lots to talk about there.
So the west well that we successfully drilled is now completed and flow tested. This is well W1. During the 56-hour flow test, this well flowed up to 60 million standard cubic feet per day, which was the limit of the drill rig well-test equipment. Now this is a good result in that it demonstrates good porosity and deliverability. And by extrapolation, we know that the well can produce much higher rates through the production system. And we're satisfied that the well will be able to fulfill maximum gas nominations as we enter the winter season.
The final pipe's flow [ph] pieces have been installed, connecting the well to the subsea pipeline infrastructure. So we now have connectivity all the way back to the Scott Platform. The well control systems have also been fully function tested. So essentially, Rochelle is ready to produce.
Now at this time, however, the Scott Platform is preparing for a shutdown, which commences on the 11th of July on what we believe is a routine maintenance integrity work, and for a duration of the 6 to 8 weeks. We have been given to understand by the Scott operator that access will be given to us to start production at Rochelle upon the completion of the west well. However, we understand that the platform shutdown work scope has increased, which is preventing us from having access we need to start our production. We're not privy to all the work being carried out on Scott by the owners, but extended work programs during shutdowns are becoming the norm in the U.K. North Sea because of more vigilant regulatory requirements.
So although unhappy about the timing, the improvements on the Scott Platform reliability going forward should be meaningful to the Rochelle development. We believe the Scott owners are well incentivized to get the shutdown completed expeditiously, as they are actually being impacted by approximately 35,000 barrels a day, every day the shutdown goes on. And that's not included in the Rochelle production.