Before Oil Platform Explosion, Mariner Energy Filed Damning SEC Report

(Sept. 2) -- The oil platform that exploded in the Gulf of Mexico today, 90 miles off the coast of Louisiana's Vermilion Bay, was damaged by Hurricane Ike in 2008, according to documents filed by the platform's holding company, Mariner Energy.

"Hurricane Ike damaged the structure with the rig on the platform, causing us to suspend drilling while underwater structural repairs were made. We brought the platform back on production at reduced rates until the facilities upgrade was finished," notes a regular Securities and Exchange Commission filing from the company, which covers the end of fiscal year 2009.

The report goes on to observe that Mariner's many operations in the Gulf of Mexico, which include prospecting and oil processing, were adversely affected by hurricanes Katrina and Rita in 2005.

During 2008, Mariner settled its Katrina and Rita claims with its excess insurers for a one-time cash payment of $48.5 million. As of December 31, 2009, Mariner had recovered approximately $137.0 million in respect of Hurricanes Katrina and Rita.

Surge Desk reached out to Mariner for comment but has been declined a response at this time.

Meanwhile, the company's website touts its long track record of safe operations, while at the same time affirming that fact that it engaged in "higher-risk" activities in pursuit of new oil finds in the gulf:

Our exploration program is designed to facilitate organic growth through exploration in a wide variety of drilling projects, including higher-risk, high-impact projects that have the potential to create substantial value for our stockholders...

Our geoscientists and engineers have a solid track record in effectively developing new fields, redeveloping legacy fields, rejuvenating production, controlling unit costs, and adding incremental reserves at attractive finding costs in both onshore and offshore fields.

This coincides with boastful language used in the SEC filing:

Drilling prospects run the gamut from relatively small, low-risk, conventional shelf projects that can be drilled from one of our numerous existing platform facilities, to high-impact, deep shelf exploration prospects at depths approaching 20,000 total vertical feet.

Other interesting facts revealed by the SEC report:

Mariner has successfully operated deepwater projects in the Gulf of Mexico since 1996.

Mariner owns 20 different yields in the gulf, which are located "primarily in federal waters."

During 2008 and 2009, Mariner drilled five wells and added production capacity on the Vermilion 380 platform.

At the end of 2009, estimated proved reserves of the Vermilion 380 field were 33.2 billion cubic feet, consisting of approximately 47 percent oil and natural gas liquids and 53 percent natural gas.