LATEST NEWS FROM HELIX ENERGY SOLUTIONS GRP INC COM (HLX: NYSE)

• NEW YORK, July 20 (Reuters) - Natural gas shipments have begun from the ultra deepwater Independence Hub which is expected eventually to pump 10 percent of U.S. Gulf of Mexico production, project partners said on Friday. First production began on Thursday from the semi-submersible platform, which sits in 8,000 feet of water 123 miles southeast of Biloxi, Mississippi. Companies involved called Independence the deepest production platform ever installed and the largest offshore natural gas processing facility. Output from the first well is expected to ramp up to approximately 50 million cubic feet per day over the next week, while producers expect output to reach capacity of 1 billion cubic feet per day by late 2007 from the Hub's 15 wells. The Independence Hub is a 105-foot, deep-draft, semi-submersible platform with a two-level production deck. The companies involved in the project, called the Atwater Valley Producers Group, include Anadarko Petroleum Corp.(APC); Devon Energy Corp.(DVN), Eni EN.MI and Norsk Hydro (NHY). The Hub is owned by Enterprise Product Partners LP(EPD) and Helix Energy Solutions Group (HLX). The 134-mile long, 24-inch Independence Trail pipeline, 100 percent owned and operated by Enterprise, connects the Hub platform to onshore markets via an interconnect with the Tennessee Gas Pipeline at Enterprise's West Delta block 68 shallow-water manifold platform. PRICE PRESSURE Natural gas traders and analysts said that while the Hub will boost U.S. production and help meet soaring demand for gas, in the near-term it could pressure prices. "This new production is scheduled to ramp up to 1.5 percent of total U.S. production, or 1 bcf per day, in just a few months, while storage levels should set new records heading into fall. Couple that with a sluggish cooling season and a lack of hurricanes thus far and it has the potential to create concentrated pressure on natural gas prices in the short-term," said Chris Jarvis, senior analyst at Caprock Risk Management. Jason Schenker, economist with Wachovia Bank in North Carolina, added, "This is just another factor feeding into the bearish natural gas outlook at the short end of the curve. We've seen prices move down as the year-over-year inventory gap has dissipated and we've seen elevated levels above the five-year average." "With the way we've seen supplies increasing rapidly, I just think this adds to further bearish price pressures in the marketplace," Schenker said. Natural gas storage levels stand at 2.692 trillion cubic feet, 63 bcf, or 2 percent, below record stock levels seen at this time last year, according to this week's report from the U.S. Energy Information Administration. Storage is also 365 bcf, or 16 percent, above the five-year average, a comfortable cushion to meet summer cooling loads or offset any hurricane-related supply disruptions. Traders expect stocks in the next two or three weeks to climb above last year's record highs, noting small builds and even drawdowns seen late last summer during an intense heat wave were not likely to be repeated this year. (Additional reporting by Matt Daily in New York) • Cal Dive International, a subsidiary of Helix Energy Solutions Group, has signed a long-term agreement with CapRock Communications Cal Dive International, a subsidiary of Helix Energy Solutions Group and a global leader of marine construction and diving services, signed a long-term agreement with CapRock Communications to receive broadband satellite communication services. As the world's largest operator of dive support vessels, Cal Dive knows what it takes to deliver the highest level of service to its customers. For critical operations such as subsea construction, deepwater maintenance and repair of offshore production and pipeline infrastructure, reliable communications is a must. "With CapRock's communication solutions, we're able to focus on what matters most to us," said Cal Dive CEO Quinn Hebert. "Reliable communication services improve the efficiency of our daily operations while also providing the means for our employees to stay connected with their families and friends back home. That's why we chose CapRock." Under the terms of the agreement, CapRock will provide the contracted vessels with Voice over IP (VoIP) services, broadband Internet access and high-speed connections to its corporate voice/data network. This new agreement builds upon an existing arrangement where CapRock has been providing communications to several vessels in the fleet. "The expansion of CapRock's relationship with Cal Dive demonstrates how customers are able to count on CapRock to deliver reliable communications with unparalleled service and support," said CapRock CEO Peter Shaper. "We look forward to our extended relationship with Cal Dive as well as the opportunity to continue to provide them with enhanced services they have come to count on." About CapRock Communications With more than 25 years of experience, CapRock Communications is a premier global satellite communications provider for the energy, maritime, engineering and construction, commercial shipping, mining and disaster recovery industries, as well as for government services. The Company utilizes the latest field-proven satellite technologies to deliver highly reliable managed communication services for broadband networking, real-time video and digital telephony to the world's harshest and most remote locations. CapRock delivers on its promise to be the market's reliability leader by leveraging "best of breed" partnerships, technical expertise and a robust global infrastructure that includes five international teleports and ten regional support centers across the U.S., Central and South America, Europe, West Africa and Asia Pacific. More information about CapRock is available at www.caprock.com