UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF LOUISIANA
In re:
CASE NO. 11-13028
VIRGIN OFFSHORE USA, INC.
SECTION “A”
Involuntary Debtor
CHAPTER 11
PLUG AND ABANDON REPORT OF
CENTURY EXPLORATION NEW ORLEANS, LLC
NOW INTO COURT, through undersigned counsel, comes Century Exploration New
Orleans, LLC f/k/a Century Exploration New Orleans, Inc. (“Century Exploration”), a creditor and
party in interest in the above-captioned case, which makes the following report with regard to the
status conference scheduled on July 8, 2013 in the captioned case to discuss plug and abandon
responsibilities:
1.
Century Exploration and the Trustee are parties to various executory contracts, including, but
not limited to, a Joint Development Agreement and an Offshore Operating Agreement, pertaining to
the oil and gas exploration, development, production and operation of certain submerged lands
offshore from the State of Louisiana known as the Ship Shoal area. Century Exploration is the
Operator under these agreements.
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2.
Among the duties the parties to these agreements have is the payment of the expense of the
plugging and abandonment (“P&A”) of wells operated by the parties. Century Exploration has
secured an estimate prepared by a third party independent engineering firm, Pelican Energy
Consultants, LLC (“Pelican Engineering”), which states that the total plugging and abandonment
liability attributable to the area covered by the Joint Development Agreement between Century,
Virgin Oil and Virgin Offshore is estimated to be $3,669,400 at this time. The estimate covers the
three (3) wells located on Ship Shoal Block 153 and the Well Guard #22 and pipeline located on Ship
Shoal Block 154. Virgin Offshore’s 28.53920% share of these estimated costs is $1,047,217.
Attached as Exhibit “1” to this Report is a breakdown of the estimated P&A cost for each well in
question submitted by Pelican Engineering.
3.
The US Bureau of Safety and Environmental Enforcement (BSEE) considers Well Guard #22
as “Idle Iron”, therefore this structure will need to be removed in the near future. Century and Virgin
Oil have executed and approved an Authority for Expenditure (AFE) authorizing this work to be
done, and Century Exploration is waiting on a response from Virgin Offshore. Virgin Offshore’s
share of this AFE is $103,038. The plugging and abandonment of the three (3) wells are projected to
take place in 24 months when the wells reach the end of their economic life.
4.
Based on the above referenced cost estimate and time frame, for Virgin Offshore to be able to
meet its obligation to pay for its share of plugging and abandonment costs, an average of $44,000 per
month would need to be set aside for this purpose.
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WHEREFORE, Century Exploration New Orleans, LLC prays that its Plug and
Abandonment Report be deemed good and sufficient and that it be considered in future orders of this
Honorable Court.
Respectfully submitted;
STEFFES, VINGIELLO & McKENZIE, LLC
By: /s/ Arthur A. Vingiello___________________
ARTHUR A. VINGIELLO (LA Bar #13098)
13702 Coursey Blvd., Building 3
Baton Rouge, Louisiana 70817
Telephone: (225) 751-1751
Facsimile: (225) 751-1998
E-mail: [email protected]
Attorneys for Century Exploration New Orleans, LLC
f/k/a Century Exploration New Orleans, LLC
Case 11-13028 Doc 449 Filed 07/05/13 Entered 07/05/13 13:44:54 Main Document Page 3 of 5
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF LOUISIANA
In re:
CASE NO. 11-13028
VIRGIN OFFSHORE USA, INC.
SECTION “A”
Involuntary Debtor
CHAPTER 11
******************************************************************************
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a copy of the above and foregoing Plug and Abandonment
Report of Century Exploration New Orleans, LLC has this day been served upon the following parties
of interest:
Office of U.S. Trustee
Eastern District of Louisiana
400 Poydras Street, Suite 2110
New Orleans, LA 70130
Virgin Offshore USA, Inc.
c/o Rick M. Shelby
201 St. Charles Avenue, Ste. 4000
New Orleans, LA 70170-4000
Helis Oil & Gas Co., LLC
c/o J. David Forsyth
Sessions, Fishman, Nathan & Israel, LLP
201 St. Charles Ave., Ste. 3815
New Orleans, LA 70170
Specialty Rental Tools & Supply, LLC
and Sooner Pipe, LLC
c/o Albert J. Derbes, IV
THE DERBES LAW FIRM, LLC
3027 Ridgelake Drive
Metairie, LA 70011-8176
Official Committee of Unsecured Creditors
of Virgin Oil Company, Inc.
c/o Benjamin Kadden & Stewart F. Peck
Lugenbuhl, Wheaton, Peck, Rankin
601 Poydras St., Suite 2775
New Orleans, LA 70130
Virgin Offshore USA, LLC
c/o Douglas S. Draper & Tristan Manthey
Heller, Draper, Hayden, Patrick & Horn, LLC
650 Poydras Street, Ste. 2500
New Orleans, LA 70130-6103
Dynamic Energy Services, LLC
c/o Michael A. Crawford
Taylor, Porter, Brooks & Phillips, LLP
P.O. Box 2471
Baton Rouge, LA 70821-2471
Precision Drilling, LP
c/o H. Kent Aguillard
Young, Hoychick and Aguillard
P.O. Box 391
Eunice, LA 70535
Tanner Services, LLC
c/o Jacque B. Pucheu, Jr.
Pucheu, Pucheu & Robinson, LLP
P.O. Box 1109
Eunice, LA 70535
by depositing same in the U.S. mail, postage prepaid, and properly addressed.
I HEREBY FUTHER CERTIFY that a copy has also been served upon the following
parties by electronic notice via the Court’s CM/ECF system:
H. Kent Aguillard, [email protected]
Brent B. Barriere, [email protected]
Raymond A. Beyt, [email protected]
Frederick L. Bunol, [email protected], [email protected]
Jeffrey M. Burmaster, [email protected]
Christopher T. Caplinger, [email protected], [email protected]
Jeffery D. Carruth, [email protected]
Leo D. Congeni, [email protected]
Michael A. Crawford, [email protected]
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Albert J. Derbes, [email protected], [email protected]
Carl Dore, [email protected], [email protected]
Steven G. Durio, [email protected], [email protected]
Stanwood R. Duval, [email protected]
J. David Forsyth, [email protected]
Tanya N. Garrison, [email protected]
Mark S. Goldstein, [email protected], [email protected]
Robert C. Gravolet, [email protected], [email protected]
Thomas G. Gruenert, [email protected], [email protected]
George B. Jurgens, [email protected], [email protected]
Benjamin Kadden, [email protected]
Omar F. Kuebel, [email protected]
Dewey H. Lane, [email protected]
Armistead M. Long, [email protected], [email protected]
Mark Mintz, [email protected], [email protected]
Louis M. Phillips, [email protected]
Patricia Williams Prewitt, [email protected]
Jacque B. Pucheu, [email protected], [email protected]
Ryan J. Richmond, [email protected]
E. Kathleen Shahan, [email protected]
Patrick M. Shelby, [email protected]
Paul N. Temple, [email protected]
Thomas J. Smith, [email protected], [email protected], [email protected]
Office of the U.S. Trustee, [email protected]
Dennis J. Vidrine, [email protected]
David F. Waguespack, [email protected], [email protected],
Guy E. Wall, [email protected], [email protected]
Kristin N. Wallis, [email protected], [email protected]
Timothy A. York, [email protected]
Baton Rouge, Louisiana this 5th day of July, 2013.
______/s/ Samantha J. Fisher_____
SAMANTHA J. FISHER
Respectfully Submitted by:
Arthur A. Vingiello (#13098)
Steffes, Vingiello & McKenzie, LLC
13702 Coursey Blvd., Building #3
Baton Rouge, Louisiana 70817
Telephone: (225) 751-1751
Facsimile: (225) 751-1998
E-mail: [email protected]
Attorneys for Century Exploration New Orleans, LLC
f/k/a Century Exploration New Orleans, Inc.
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