Sable Offshore Corp. (NYSE: SOC) provided an operational update on September 28, 2026, regarding the status of Platform Hondo, midstream facility upgrades, and current oil sales volumes.
The company reported that the reconstruction and internal operational commissioning of Platform Hondo are complete. Management has modernized the platform from a manually controlled system to one with updated technology and safety standards. Sable stated that it is working with the Marine Minerals Administration (MMA) and anticipates the MMA’s final review and approval of the platform's instrumentation, control, and safety commissioning submission in October 2026.
To prepare for the restart, Sable plans to accelerate four additional Perforation Addition (Perf Add) operations. This will result in nine of the 15 production wells on Platform Hondo receiving completed Perf Adds prior to restart, rather than the previously expected five. Each Perf Add is estimated to produce an incremental approximately 600 barrels of oil per day at a cost of about $800,000 per operation.
In the midstream sector, Sable is planning operational and facility upgrades at the Las Flores Canyon Midstream Processing Facility (LFC). Currently, LFC processes approximately 80% of the productive capacity of Platforms Harmony and Heritage. The upgrades are expected to allow the facility to safely and efficiently handle production from all three Santa Ynez Unit platforms at full capacity, which Sable aims to achieve prior to the Hondo restart in Q4 2026.
Regarding sales, Sable provided preliminary estimates for July and August, averaging approximately 32,000 gross barrels of oil per day over the two months. The company expects September sales to average about 34,000 gross barrels of oil per day. Nominations to crude purchasers are projected to increase to an average of 38,000 gross barrels per day in October 2026, with an estimated exit rate of approximately 45,000 gross barrels per day prior to the addition of Hondo volumes.
