TEL Offshore Trust (Nasdaq:TELOZ) lost nearly two-thirds of its value this morning after announcing that production from two of its most significant oil and gas properties were destroyed by Hurricane Ike.

The Austin-based firm said just after the bell on Tuesday that production at the two properties had ceased as a result of damage from Hurricane Ike.

The company is still trying to determine if it can resume production at the two properties or not.

TEL Offshore Trust also said it expects its scheduled distribution for the fourth quarter of 2008 to be severely negatively impacted due to the Hurricane, and there may not be sufficient net proceeds from the royalty properties to make any distributions for some time.

TEL Offshore Trust's stock plummeted on the news, and by mid-morning is at $5, down $8, from Tuesday's close. The stock is trading well below its 52-week low of $11.50 and high of $42.87 with more than 208,000 shares changing hands compared with an average three-month volume of 65,000.

For detailed price information and news stories on TEL Offshore Trust, click TELOZ.

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