Energy XXI cuts 2009 budget after platforms are damaged by hurricanes

Posted by The Times-Picayune October 09, 2008 7:00AM

Energy XXI, the Bermuda company that is drilling a high-profile Gulf of Mexico well with McMoRan Exploration Co., is cutting its 2009 budget by 17 percent after Hurricane Ike destroyed some of its production platforms.

But the spending cut won't impact the South Timbalier Block 168 No. 1 well it is partnering with McMoRan on. The energy industry has been closely watching progress at the well, formerly known as Blackbeard, because it could potentially set a record for the depth it reaches beneath the ocean floor.

McMoRan, a New Orleans energy company, said this week that the well has currently reached more than 32,850 feet beneath the sea floor. The well is permitted to go as deep as 35,000 feet.