Omega Protein Update on Gulf of Mexico Oil Spill
Omega Protein Corporation updated the status of effects the oil spill caused by the Deepwater Horizon rig has had on the company's fishing operation in the Gulf of Mexico.
The oil slick has had an adverse effect on the company's ability to operate in the fishing grounds east of the Mississippi River Delta, near its Moss Point, Mississippi facility. Regulators have closed this area to commercial fishing until at least May 17, 2010. In addition, on May 9, 2010, the Louisiana Department of Fisheries and Wildlife (LDWF) announced additional areas closed to commercial fishing, extending from the eastern shore of South Pass of the Mississippi River westward to the eastern portion of Atchafalaya Bay at Point au Fer, Louisiana.
In response to the spill, the company relocated its Moss Point fishing fleet to fishing grounds on the west side of the Mississippi River Delta. Docking and re-supply for the Moss Point fleet have been relocated to the Company-owned facility at Morgan City, Louisiana. That fleet continues to process fish at Moss Point, as well as at the Company's other two Louisiana facilities in Abbeville and Cameron.
Currently, the company believes that the new May 9 LDWF restrictions will not materially affect its Morgan City operations. However, the company is developing an additional contingency response plan to move its vessels from Morgan City, Louisiana farther west to its Abbeville and Cameron facilities should the May 9 restrictions begin to impact the Company's fish catch or should further restrictions be implemented.
The oil spill has not had a material adverse effect on the volume of company's fish catch as of May 9, 2010.
"We are thankful that Omega Protein's flexibility and scale have allowed it to react swiftly to this disaster," said Joe von Rosenberg, Omega Protein's Chief Executive Officer. "Fortunately, our response plan has allowed us to redeploy our Moss Point vessels to our other facilities."
In addition, the Company's Reedville, Virginia plant with its ten fishing vessel fleet started its fishing season on the Atlantic today.
The company does not have reason to believe that the health of the Gulf Coast menhaden resource will be affected by any contamination from the oil spill, and is confident that its stringent quality control protocols will continue to ensure the high quality of its products. Omega Protein pledges that regardless of the oil spill's impact, the high quality of its fish meal and fish oil products will not be compromised.
