Black Elk Energy Restores Production after Hurricanes Gustav and Ike

Black Elk Energy, an independent oil and gas company, announced a full recovery from the damage caused by hurricane Gustav to their South Timbalier Block 8 Field (ST8), located in Louisiana state waters.  The attached graphic shows the ST8 facility prior to hurricanes Gustav and Ike.  The entire tank battery facility (right in photo) was destroyed after becoming exposed to open seas as a result of protective barrier island erosion.  The recovery work included laying a new 10,500 ft pipeline and establishing a new floating, mobile production facility.

Hurricane readings in the area indicate the facility was impacted with wind gusts of 155 mph and 34 ft seas.  Exceeding initial expectations, Black Elk Energy was able to fully restore production earlier than anticipated, despite the extent of the damage.  To prepare for the storms, production lines were flushed and the oil storage tanks were filled with sea water to mitigate possible damage and protect the environment.  The ST8 facility is currently producing 6 mmcfd and 250 bopd.

"Based on my experience many operating companies would have taken considerably more time to restore production after such a catastrophic loss", says John Hoffman, President and CEO of Black Elk Energy.  "Our team did an exceptional job in less than one month (post hurricane IKE), reflecting our extensive emergency response planning.  We are now well positioned for the 2009 hurricane season with our new mobile production facility and have considerably reduced future hurricane risk".

About Black Elk Energy

Black Elk Energy, LLC is an independent oil and gas company headquartered in Houston, Texas.  Founded by seasoned industry executives, Black Elk Energy is dedicated to create exceptional returns in oil and gas through acquisition and exploitation.  Black Elk Energy has a specific competitive geographic focus within the Southern Gulf Coast states.  Within the geographic area, their technical focus is on low risk reservoir exploitation opportunities and operational improvements.