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Loss of Production Income for Wells in the Gulf of Mexico

Accumyn analyzed a Loss of Production Income (LOPI) claim against underwriters related to a shut-in of production from deep water offshore wells allegedly due to a hurricane in the Gulf of Mexico. The wells were in varying stages of production at the time of the hurricane so Accumyn had to determine the LOPI for each well, depending upon insurance policy provisions, factual circumstances, and stage of production.   Accumyn obtained information from third party sources, including the Minerals Management Service, regarding the dates each well was spud, total depth reached, and production achieved.   Accumyn also provided an economic analysis as to the commodity prices of oil and gas during the shut-in period as compared to later periods when there were record high prices.