Privately held Dynamic Offshore Resources LLC, Houston, has acquired Gulf of Mexico-focused E&P Beryl Oil & Gas LP, Houston, for an undisclosed price in cash and debt assumption.

Beryl, a privately held portfolio company of First Reserve Corp. and led by chief executive Stuart Burbach, had more than 90 billion cu. ft. equivalent of proved reserves at year-end 2008. Dynamic Offshore acquired an interest in 90 blocks in the central Gulf of Mexico shelf involving more than 20 fields, primarily in High Island, Vermilion, South Timbalier and Main Pass, and more than 200,000 acres of leases. The assets include an interest in more than 200 wells (65% operated).

Recent production has averaged more than 55 million cu. ft. equivalent per day (65% gas) and is expected to increase to 60 million to 70 million cu. ft. equivalent per day through year-end 2009 as repairs are completed to third-party pipelines and facilities damaged in the 2008 hurricanes.

Dynamic, backed by private-equity provider Riverstone Holdings LLC, joined with an existing Beryl owner and former debt-holders to acquire Beryl in exchange for an equity contribution and the assumption of a portion of the existing Beryl debt, which was restructured at closing. The acquisition includes all cash, about $50 million in working capital and existing hedge positions that were unwound at closing and rehedged for three years at more than $6 per thousand cu. ft. (Mcf) and $78 per barrel of oil. The company will be operated as a subsidiary of Dynamic.

Dynamic chief executive Matt McCarroll says, “Given the high level of familiarity our employees have with the Beryl assets—having previously managed them at SPN Resources LLC—I am very confident in our future development and exploitation efforts.”

In July 2006, Beryl (fka Coldren Oil & Gas Co. LP) bought Gulf of Mexico shelf assets from Noble Energy Inc., Houston, (NYSE: NBL) for $625 million. At that time SPN Resources, the E&P division of oilfield-services and equipment provider Superior Energy Services Inc., Harvey, La., (NYSE: SPN) became a 40% owner in Beryl until Dynamic bought SPN in March 2008. Dynamic did not acquire the interest in Beryl in that acquisition.

Dynamic now holds interests in more than 550 producing wells and 200 offshore blocks covering some 400,000 net acres.

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