plug and abandon report of century exploration 7-5-13.pdf

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.

Case 11-13028 Doc 449 Filed 07/05/13 Entered 07/05/13 13:44:54 Main Document of 5

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.


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


mailto:[email protected]

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


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


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]













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],

[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.







































mailto:[email protected],%[email protected]








plug and abandon report of century exploration 7-5-13.pdf

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