8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2006

Helix Energy Solutions Group, Inc.

(Exact name of registrant as specified in its charter)

Minnesota	001-32936	95-3409686
(State or other jurisdiction	(Commission File Number)	(IRS Employer Identification No.)
of incorporation)
400 N. Sam Houston Parkway E.,
Suite 400
Houston, Texas		77060
(Address of principal executive offices)		(Zip Code)

281-618-0400
(Registrant’s telephone
number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

     Attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein are the press release and Second Quarter 2006 Earnings Conference Call Presentation issued by the Registrant on August 1, 2006 regarding earnings for the second quarter of 2006. This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

Number	Description
99.1	Press Release of Helix Energy Solutions Group, Inc. dated August 1, 2006 reporting financial results for the second quarter of 2006.
99.2	Second Quarter 2006 Earnings Conference Call Presentation.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 2, 2006

HELIX ENERGY SOLUTIONS GROUP, INC.
By:	/s/ A. WADE PURSELL
	A. Wade Pursell
	Senior Vice President and Chief Financial Officer

Index to Exhibits

Exhibit No.		Description
	99.1	Press Release of Helix Energy Solutions Group, Inc. dated August 1, 2006 reporting financial results for the second quarter of 2006.
	99.2	Second Quarter 2006 Earnings Conference Call Presentation.

EX-99.1

Exhibit 99.1

PRESSRELEASE

www.HelixESG.com

Helix Energy Solutions Group, Inc. • 400 N. Sam Houston Parkway E., Suite 400 • Houston, TX 77060-3500 • 281-618-0400 • fax: 281-618-0505

For Immediate Release		06-020
	Contact:	Wade Pursell
Date:     August 1, 2006	Title:	Chief Financial Officer

Helix Reports Record Second Quarter Results

HOUSTON, TX —Helix Energy Solutions (NYSE: HLX) reported record second quarter net income of $69.1 million, or $0.83 per diluted share. This represents an improvement of 166% over last year’s second quarter net income.

Summary of Results

(in thousands, except per share amounts and percentages)

	Second Quarter						First Quarter			Six Months
	2006			2005			2006			2006			2005
Revenues	$	305,013		$	166,531		$	291,648		$	596,661		$	326,106
Gross Profit		131,692			52,419			102,266			233,958			104,292
		43	%		31	%		35	%		39	%		32	%
Net Income		69,139			26,027			55,389			124,528			51,437
		23	%		16	%		19	%		21	%		16	%
Diluted Earnings Per Share		0.83			0.32			0.67			1.51			0.64

Owen Kratz, Chairman and Chief Executive Officer of Helix, stated, “We are delighted to have once again posted a record quarter on the back of continuing improvement in the market place for our contracting services. It is very notable that those services contributed 61% of our EBITDA in the quarter compared with 44% last year.

“During Q3 we are looking forward to further improvement and the first contribution from the recently closed Remington acquisition. As announced in early July we now expect full year 2006 earnings to fall in the higher range of $3.20 — $3.70 per diluted share.

“We also take this opportunity to announce that our Shelf construction subsidiary, Cal Dive, has completed the acquisition of Singapore based Fraser Diving to expand its operating presence in the Middle Eastern and Asia Pacific regions. Further details of this relatively small but strategic acquisition are included in the quarterly earnings presentation.”

Financial Highlights

• Revenues: The $138.5 million increase in year-over-year second quarter revenues was driven primarily by significant improvements in contracting services revenues due to the introduction of newly acquired assets and much better market conditions.

• Margins: 43% is twelve points better than the year ago quarter driven by the improved market conditions for contracting services. Margins in second quarter 2005 were impacted by asset impairments totaling $3.5 million pre-tax. Without this charge, margins would have been 34% in the prior year.

• SG&A: $27.4 million increased $14.6 million from the same period a year ago due primarily to increased overhead to support the Company’s growth. This level of SG&A was 9% of second quarter revenues, compared to 8% in the year ago quarter.

• Equity in Earnings: $4.5 million reflects primarily our share of Deepwater Gateway, L.L.C.’s earnings for the quarter relating to the Marco Polo facility.

• Income Tax Provision: The Company’s effective tax rate for the quarter was 34% which is less than the 36% rate in last year’s second quarter due primarily to the Company’s ability to realize foreign tax credits due to improved profitability both domestically and in foreign jurisdictions.

• Balance Sheet: Total debt as of June 30, 2006 was $444 million. This represents 35% debt to book capitalization and with $502 million of EBITDA during the last twelve months, this represents 0.9 times trailing twelve month EBITDA.

Further details are provided in the presentation for Helix’s quarterly conference call (see the Investor Relations page of www.HelixESG.com). In addition, reconciliations of non-GAAP measures are included on the Investor Relations page of our website. The call, scheduled for 9:00 a.m. Central Daylight Time on Wednesday, August 2, 2006, will be webcast live. A replay will be available from the Audio Archives page.

Helix Energy Solutions, headquartered in Houston, Texas, is an energy services company that provides innovative solutions to the oil and gas industry worldwide for marginal field development, alternative development plans, field life extension and abandonment, with service lines including diving services, shelf and deepwater construction, robotics, well operations, well engineering and subsurface consulting services, platform ownership and oil and gas production.

FORWARD-LOOKING STATEMENTS

This press release and attached presentation contain forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; future production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of property or wells; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to services; any statements regarding future economic conditions or performance; any statements of expectation or belief; any statements regarding the anticipated results (financial or otherwise) of the merger of Remington Oil and Gas Corporation into a wholly-owned subsidiary of Helix; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; complexities of global political and economic developments, geologic risks and other risks described from time to time in our reports filed with the Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K for the year ending December 31, 2005; and, with respect to the Remington merger, actual results could differ materially from Helix’s expectations depending on factors such as the combined company’s cost of

capital, the ability of the combined company to identify and implement cost savings, synergies and efficiencies in the time frame needed to achieve these expectations, prior contractual commitments of the combined companies and their ability to terminate these commitments or amend, renegotiate or settle the same, the combined company’s actual capital needs, the absence of any material incident of property damage or other hazard that could affect the need to effect capital expenditures, any unforeseen merger or acquisition opportunities that could affect capital needs, the costs incurred in implementing synergies and the factors that generally affect both Helix’s and Remington’s respective businesses. Actual actions that the combined company may take may differ from time to time as the combined company may deem necessary or advisable in the best interest of the combined company and its shareholders to attempt to achieve the successful integration of the companies, the synergies needed to make the transaction a financial success and to react to the economy and the combined company’s market for its exploration and production. We assume no obligation and do not intend to update these forward-looking statements.

*******************

As previously announced, Cal Dive has filed with the Securities and Exchange Commission a Form S-1 for its planned initial public offering (IPO) of a minority interest in Cal Dive’s common stock.

The offering will be made only by means of a prospectus. Once available, preliminary prospectuses may be obtained from Cal Dive International, Inc., 400 North Sam Houston Parkway E., Houston, Texas 77060 or by calling (281) 618-0400.

A registration statement relating to the IPO of Cal Dive stock has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of Cal Dive common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. There can be no assurance of if or when this offering will be completed.

HELIX ENERGY SOLUTIONS GROUP, INC.

Comparative Condensed Consolidated Statements of Operations

	Three Months Ended Jun. 30,				Six Months Ended Jun. 30,
(in thousands, except per share data)	2006		2005		2006		2005
	(Unaudited)
Net revenues	$	305,013	$	166,531	$	596,661	$	326,106
Cost of sales		173,321		114,112		362,703		221,814
Gross profit		131,692		52,419		233,958		104,292
Gain on sale of assets, net		16		—		283		925
Selling and administrative		27,414		12,858		48,442		25,696
Income from operations		104,294		39,561		185,799		79,521
Equity in earnings of investments		4,520		2,708		10,756		4,437
Net interest expense and other		2,983		913		5,440		2,102
Income before income taxes		105,831		41,356		191,115		81,856
Income tax provision		35,887		14,779		64,978		29,319
Net income		69,944		26,577		126,137		52,537
Preferred stock dividends		805		550		1,609		1,100
Net income applicable to common shareholders	$	69,139	$	26,027	$	124,528	$	51,437
Other Financial Data:
Net income applicable to common shareholders	$	69,139	$	26,027	$	124,528	$	51,437
Preferred stock dividends		805		550		1,609		1,100
Income tax provision		35,887		14,779		64,978		29,319
Net Interest expense and other		2,983		913		5,440		2,102
Non-cash stock compensation expense		2,251		204		3,816		397
Depreciation and amortization		34,346		29,247		88,318		55,969
Share of equity investments:
Depreciation		1,242		997		2,482		2,007
Interest expense, net		75		—		174		1,419
EBITDA(1)	$	146,728	$	72,717	$	291,345	$	143,750
Weighted Avg. Shares Outstanding:
Basic		78,462		77,444		78,216		77,294
Diluted		83,965		81,963		83,659		81,850
Earnings Per Share:
Basic	$	0.88	$	0.34	$	1.59	$	0.67
Diluted	$	0.83	$	0.32	$	1.51	$	0.64

(1) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization (which includes non-cash asset impairments), non-cash stock compensation expense and the Company’s share of depreciation, net interest expense and taxes from its equity investments. EBITDA and EBITDA margin (defined as EBITDA divided by net revenues) are supplemental non-GAAP financial measurements used by the Company and investors in the energy industry in the evaluation of its business due to the measurements being similar to income from operations.

Comparative Condensed Consolidated Balance Sheets

ASSETS					LIABILITIES & SHAREHOLDERS' EQUITY
(000's omitted)	Jun. 30, 2006		Dec. 31, 2005			Jun. 30, 2006		Dec. 31, 2005
	(unaudited)					(unaudited)
Current Assets:					Current Liabilities:
Cash and equivalents	$	38,278	$	91,080	Accounts payable	$	138,006	$	99,445
Accounts receivable		284,278		228,058	Accrued liabilities		135,633		145,752
Other current assets		58,105		52,915	Current mat of L-T debt (2)		6,316		6,468
Total Current Assets		380,661		372,053	Total Current Liabilities		279,955		251,665
Net Property & Equipment:					Long-term debt (2)		437,970		440,703
Marine Contracting		640,697		524,890	Deferred income taxes		203,419		167,295
Oil and Gas Production		453,606		391,472	Decommissioning liabilities		110,757		106,317
Equity Investments		203,198		179,844	Other long-term liabilities		8,984		10,584
Goodwill		105,012		101,731	Convertible preferred stock (2)		55,000		55,000
Other assets, net		97,413		90,874	Shareholders' equity (2)		784,502		629,300
Total Assets	$	1,880,587	$	1,660,864	Total Liabilities & Equity	$	1,880,587	$	1,660,864

(2) Debt to book capitalization — 35% at June 30, 2006. Calculated as total debt ($444,286) divided by sum of total debt, convertible preferred stock and shareholders’ equity ($1,283,788).

EX-99.2

Exhibit 99.2

Second Quarter 2006 Earnings Conference Call August 2, 2006 Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer

This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; future production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of property or wells; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to services; any statements regarding future economic conditions or performance; any statements of expectation or belief; any statements regarding the anticipated results (financial or otherwise) of the merger of Remington Oil and Gas Corporation into a wholly-owned subsidiary of Helix; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; complexities of global political and economic developments, geologic risks and other risks described from time to time in our reports filed with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K for the year ending December 31, 2005; and, with respect to the Remington merger, actual results could differ materially from Helix's expectations depending on factors such as the combined company's cost of capital, the ability of the combined company to identify and implement cost savings, synergies and efficiencies in the time frame needed to achieve these expectations, prior contractual commitments of the combined companies and their ability to terminate these commitments or amend, renegotiate or settle the same, the combined company's actual capital needs, the absence of any material incident of property damage or other hazard that could affect the need to effect capital expenditures, any unforeseen merger or acquisition opportunities that could affect capital needs, the costs incurred in implementing synergies and the factors that generally affect both Helix's and Remington's respective businesses. Actual actions that the combined company may take may differ from time to time as the combined company may deem necessary or advisable in the best interest of the combined company and its shareholders to attempt to achieve the successful integration of the companies, the synergies needed to make the transaction a financial success and to react to the economy and the combined company's market for its exploration and production. We assume no obligation and do not intend to update these forward-looking statements. Forward-Looking Statements

Presentation Outline I. Summary of Results II. Operational Highlights by Segment A. Contracting Services B. Oil & Gas Production III. Strategic Overview IV. Questions & Answers H E L I X E N E R G Y S O L U T I O N S

Summary of Results (all amounts in thousands, except per share amounts and percentages) Second Quarter Second Quarter First Quarter 2006 2005 2006 Revenues $305,013 $166,531 $291,648 Gross Profit 131,692 52,419 102,266 43% 31% 35% Net Income 69,139 26,027 55,389 23% 16% 19% Diluted Earning Per Share 0.83 0.32 0.67 EBITDA (see reconciliation in the attached financial summary) 146,728 48% 72,717 44% 144,617 50% H E L I X E N E R G Y S O L U T I O N S

2Q 2005 2Q 2006 Contracting Services 98.9 223.9 Oil & Gas Production 67.6 81.1 Revenues and Gross Profit by Segment 2Q 2005 2Q 2006 Contracting Services 16.3 90.2 Oil & Gas Production 36.1 41.5 Revenues in Millions Gross Profit in Millions H E L I X E N E R G Y S O L U T I O N S Contracting Services Oil & Gas Production

2Q 2005 2Q 2006 2005 Actual 2006 Estimate 26 69.1 0 150.1 226 51 Earnings Growth (Net Income in Millions) H E L I X E N E R G Y S O L U T I O N S 26.0 69.1 150.1 334 289 Guidance Range

2001 2002 2003 2004 2005 2006 12.3 4.9 7.4 13.4 16.5 23 Return on Capital Invested 2nd QTR YTD (See GAAP reconciliation at Company's website - www.HelixESG.com) 12 5 7 13 17 23 H E L I X E N E R G Y S O L U T I O N S (Percentage)

MARAD Construction and Other Long Term Debt Term B Facility (Amounts in Millions) 7/01/06 6/30/06 12/31/05 12/31/04 Debt To Book Capitalization 22% 40% 35% 48% Convertible Notes H E L I X E N E R G Y S O L U T I O N S Pro Forma

Contracting Services (CS) Second Quarter Second Quarter First Quarter 2006 2005 2006 Revenues $237,354 $103,391 $220,821 Gross Profit 91,190 17,577* 79,644 38% 17% 36% (Amounts reflected are in thousands, except percentages, and are before intercompany eliminations and pre-tax charges for asset value impairments in Q2/05) Q2/06: Overall revenues more than doubled year over year and increased by 7% sequentially. The improvement resulted from another full quarter of contribution from the acquisitions made last year (Acergy assets, Torch assets and Helix RDS) together with better pricing. H E L I X E N E R G Y S O L U T I O N S * Before $790k pre-tax asset value impairment charge.

Contracting Services (CS) cont. Gross profit margins improved by 21 points year over year and by two points sequentially. The sequential improvement was due to better pricing in all segments. Q3/06 and Outlook: We expect further improvement in 2H/06 financial performance driven mainly by pricing. This trend should continue for at least the medium term as we add backlog on gradually better terms. In particular, in the Deepwater construction and Well Operations segments, we are presently undertaking some projects that were bid up to a year ago. Pricing has improved since then and this will be visible over the next few quarters. H E L I X E N E R G Y S O L U T I O N S

CS - Reservoir and Well Technology Second Quarter First Quarter 2006 2006 Revenues $10,263 $9,605 Gross Profit 3,320 2,509 32% 26% H E L I X E N E R G Y S O L U T I O N S Q2/06: Both revenue and gross profit were in line with our expectations for this second quarter since the acquisition of Helix RDS. Gross profit margins improved six points sequentially mainly due to key contract renewals at higher rates. Q3/06 and Outlook: Activity levels are expected to remain at robust levels for the remainder of the year. The recruitment and retention of personnel will continue to be the main challenge related to continued improvement in financial performance. (Amounts in thousands, except percentages)

CS - Shelf Construction Second Quarter Second Quarter First Quarter 2006 2005 2006 Revenues $124,765 $40,699 $119,790 Gross Profit 60,944 9,584* 50,205 49% 24% 42% Utilization 87% 54% 90% (Amounts in thousands, except percentages and are before intercompany; eliminations and before pre-tax charges for asset value impairments in Q2/05) H E L I X E N E R G Y S O L U T I O N S * Before $790k pre-tax asset value impairment charge.

CS - Shelf Construction Continued Q2/06: Utilization remained at near the record level of Q1, helped by continued incremental demand caused by the 2005 hurricanes. Gross profit margins increased seven points sequentially to just under 50%. Q3/06 and Outlook: We expect this level of utilization to be maintained well into next year as hurricane related inspection and repair work continues. The longevity of this work is illustrated by the fact that the DSV Kestrel will commence an eighteen month contract with a major operator in August, and we anticipate chartering extra vessels to take on additional projects later in the year. Future financial performance will also be boosted by the recent acquisition of Fraser Diving which is based in Singapore and operates in the Middle East and Asia Pacific regions. The main assets associated with the transaction are six saturation diving systems and fifteen air diving systems. The purchase price was approximately $26 million. H E L I X E N E R G Y S O L U T I O N S

CS - Deepwater Construction Second Quarter Second Quarter First Quarter 2006 2005 2006 Pipelay 85% 91% 100% Robotics 67% 68% 70% Utilization Q2/06: Pipelay asset utilization declined by 15% sequentially due to 15 days of unscheduled downtime for the Intrepid and the commencement of the Express upgrade in mid-June. Utilization of robotic assets was essentially flat with Q1 before the start of seasonal pipe burial work. At times during the Q2 the robotics group had up to four vessels on charter. H E L I X E N E R G Y S O L U T I O N S

CS - Deepwater Construction Both deepwater pipelay assets are booked through the end of the year (apart from the upgrade program for the Express which is scheduled for a further 55 days in Q3). The outlook is also bright for 2007 based on brisk bidding activity. H E L I X E N E R G Y S O L U T I O N S The robotics group (Canyon) looks set to have a strong second half of the year with the award of several significant pipe burial contracts, together with a continued good market for ROV services. Q3 and Outlook

CS - Well Operations Q2/06: Utilization increased by 12% sequentially although the Q4000 had another period of unscheduled downtime in Q2. Q3/06 and Outlook: Both vessels are fully booked until next year, with the Seawell in particular looking set to see at least a 10 point gross profit increase compared to 2005. H E L I X E N E R G Y S O L U T I O N S Second Quarter Second Quarter First Quarter 2006 2005 2006 83% 49% 71% Utilization

CS - Production Facilities Second Quarter Second Quarter First Quarter 2006 2005 2006 Equity in Earnings $4,629 $2,708 $3,365 Production throughput (MBOe) 2,951 718 1,273 Q2/06: Continued well problems, related to the K2 field development, curtailed production flowing to the Marco Polo platform. The second K2 well started producing in July. By mid-July, combined production from the Marco Polo and four K2/K2 North wells was about 48,500 BOED. Q3/06 and Outlook: A third K2N well should come on-line by early August adding approximately 10,000 BOED production. The third K2 well is still scheduled for first production in the middle of Q3. The two Ghengis Khan well completions have been impacted by the recent MMS rules which limit the use of certain rigs during the hurricane season and will be delayed until the first quarter of 2007. Equity income for the full year is now expected to fall in the range of $20 to $24 million as per our recently updated guidance. The Independence Hub hull was delivered to the GOM in June and some work remains to be completed prior to the planned integration of the hull and topsides in late August. The mooring piles have been pre-installed. Installation and mechanical completion are still planned by the end of the year although activities on the BP Atlantis project could cause some slight delays. Production is expected to commence by the second quarter of 2007. (Amounts in thousands)

Oil & Gas Production Second Quarter Second Quarter First Quarter 2006 2005 2006 Revenues $81,110 $67,590 $80,312 Gross Profit (before asset impairments) 41,499 38,389 43,369 51% 57% 54% Asset Impairments - <2,757> <20,746> Production (BCFe): Shelf 6.0 6.7 5.4 Gunnison 2.5 2.2 2.7 Average Commodity Prices (net of hedging impact): Oil/Bbl $64.98 $45.96 $58.71 Gas/Mcf 7.42 7.32 9.52 (Amounts in thousands, except percentages and production data)

Oil & Gas Production Q2/06: Shelf: Production of 6.0 Bcfe was 11% greater than achieved in the first quarter due to a continued ramp up following the shut-ins caused by the 2005 hurricanes. Realized commodity prices were down 7% overall sequentially but 20% higher than those achieved in last year's second quarter. Natural gas made up 54% of the second quarter production. Gunnison: Production of 2.5 BCFe was up 14% over the prior year's quarter. Natural gas made up 52% of Gunnison production in Q2. The present status of all deepwater production projects, besides Gunnison, is presented on the next two slides. This will be updated next quarter to include near term projects associated with the Remington acquisition. H E L I X E N E R G Y S O L U T I O N S

Deepwater Production - Project Update Field / Prospect ERT Interest Q2 Activity Outlook Estimated Production Date GB 689 - - Dawson Deep 10% Tie-back construction work completed to Gunnison Spar Production commenced early in Q3 Q3/06 GC 195 - - Tiger 40% Drilling and completion activities completed. Well to be tied back to EW 947 during Q3 Q4/06 AT 63 Telemark 0% Review of development plans with partners Field sold early in Q3 GB 344 - - Devil's Island 50% Appraisal well drilled and suspended New sidetrack/well completion planned for later in the year 2H/07 ____

Deepwater Production - Project Update Continued Field / Prospect ERT Interest Q1 Activity Outlook Estimated Production Date GB 346 Huey 20% Drilling commenced Drilling to be completed in Q3 1H/07 AT 426 Bass Lite 17.5% None Development drilling planned for Q4/06 1H/08 H E L I X E N E R G Y S O L U T I O N S

Helix Hedges: As Of July 31, 2006 H E L I X E N E R G Y S O L U T I O N S