thanks Dog... With a lower oil price deck being articulated by the investment banks, It's a wonder the stock is trading as hi as it is...The lower Oil price certainly is putting pressure on valuation for Hlx. If the company would get on the page regarding how to improve the valuation of the E&P sector better, we wouldn't get the dips more closely associated with a roller coaster!!!
"Bas", you were right regarding the HP-I not working in "Phoenix" field until after the BP oil spill activity. Below is an excerpt from HLX 2011 Annual Report:
"The HP I will primarily service fields in the Deepwater of the Gulf of Mexico. The initial plan was to utilize the HP I at our Phoenix field, in which we hold a 70% working interest. In June 2010, the HP I was certified for use as a floating production unit by the U.S. Coast Guard. Following that certification, the HP I was preparing to initiate service to the Phoenix field; however, it was then contracted by BP to participate in the Gulf oil spill response and containment efforts. The HP I participated in those response and containment efforts until early October 2010 at which time BP released it from its contract and the HP I returned to the Phoenix field where production commenced on October 19, 2010."
Yes, like all GOM O&G production facilities considered to be in the path of the storm (hurricane) will be shut down until the storm passes. However, the advantage Helix and the "Helix Producer 1" (HP-1) has, as oppose to platforms, is the ability to disconnect from its 300 ft. deep riser and go to a safe port and return to production as soon as the weather clears. This avoids damage to very expensive structure and equipment as well as even more expensive repairs that could take months or even years to replace and return to production.
It should be noted that Helix obtained the "Phoenix" GOM lease when that lease lost it platform during a 2005 hurricane. HLX elected to build the "HP-1" to resume production of the lease. However, production did not start until mid year 2010, just before it was call out to capture and produce the infamous BP oil/gas spill in July 2010.
Around the time of the BP spill, the HP1 was within days of starting production at the phoenix field as my memory serves me. Someone posted on this board a ship tracking status for not only the HP1 but the Q4000 as well at that time.. Have you any idea how to track the ship to see if indeed the HP1 moved out of the field?
Since the storm is still churning in the Gulf, I suspect if the HP1 has moved that it is still not back at the field. any IDEA?