HOUSTON, TX – Sable Offshore Corp., a company specializing in crude petroleum and natural gas, announced today that the California Office of State Fire Marshall (OSFM) has upheld its April 2021 Risk Analysis and Implementation Plan. This decision comes after the company's efforts to comply with California State Assembly Bill 864, which mandates the use of the best available technology to reduce the environmental impact of oil spills.
The OSFM's letter, dated July 10, 2024, confirms that the 2021 Plan remains effective and in compliance with state regulations, despite Sable Offshore's submission of a Supplemental Plan following Santa Barbara County's denial of permits. These permits were necessary for installing safety valves proposed in the 2021 Plan. The OSFM concluded that the Supplemental Plan did not offer the same level of environmental protection.
Sable Offshore and Santa Barbara County are currently in discussions to address the permit denial that has led to ongoing litigation. These negotiations are underscored by the OSFM's reaffirmation of the 2021 Plan's superiority in mitigating potential environmental damage.
In line with the OSFM's directive, Sable Offshore is proceeding with pipeline repairs, the construction of new pump stations, and the establishment of control facilities for lines 324 and 325. These advancements are part of the preparations for the anticipated restart of the Las Flores Canyon processing facilities and the associated Santa Ynez Unit offshore production platforms. The company targets the resumption of operations for the late third quarter of 2024 or early fourth quarter of 2024.
This update is based on a press release statement from Sable Offshore Corp. The company's stock is traded on the New York Stock Exchange under the symbols NYSE:SOC for common stock and NYSE:SOC.WS for warrants.
InvestingPro Insights
As Sable Offshore Corp. (NYSE:SOC) navigates through regulatory compliance and infrastructure upgrades, investors may be keen to understand the financial standing and market performance of the company. According to InvestingPro, Sable Offshore's market capitalization currently stands at $927.16 million. While the company's gross profit for the last twelve months as of Q1 2024 is relatively low at $0.16 million, reflecting challenges in profitability, Sable Offshore has demonstrated a strong return over the last three months with a 40.73% price total return. This momentum is also seen over the last six months, with a 33.77% return, and a notable 50.05% return over the last year.
InvestingPro Tips indicate that despite not being profitable over the last twelve months, Sable Offshore's liquid assets exceed its short-term obligations, which may provide some financial flexibility as the company works towards operational restarts. Additionally, the company is trading near its 52-week high, with the price at 93.96% of this peak, signaling investor confidence in its near-term prospects.
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