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Gulf Oil Rig Explosion – Sparks Oil Spill Fears – Mariner Energy (NYSE:ME)

New Orleans – Around 9:30 a.m. an explosion was reported on an oil rig approximately 80 miles off the Louisiana coast. Coast Guard helicopters were quickly on the scene and plucked the 13 crew of the rig from the water. It appears that after the explosion, all crew members donned their bright orange “Gumby” survival suits and evacuated the platform. Early reports say that one crewman was injured, but no further details are available yet as to the extent of his injuries. The rig is on fire according to a spokesman for the Coast Guard, but it’s unclear if the rig is in danger of foundering.

The oil rig, operated by Mariner Energy (NYSE:ME) was working in relatively shallow waters of 340 feet in depth. On first reports it was feared that the rig may have suffered a blowout similar to the April 20 explosion on the Deepwater Horizon rig. Later it was confirmed, according to Associated Press, that the rig was not in production at the time of the explosion.

CNBC reports that Patrick Cassidy, spokesman for Mariner Energy, said “The fire occurred away from the well…it wasn’t involved in the area where they had oil producing wells,” and that “there is no spill, no sheen, no nothing.” This is in contradiction to a report from the Coast Guard that a 100-foot-by-1-mile sheen can be seen at the site of the platform.

Further updates will be posted as they come to hand.

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