R&B Falcon Corp. retreat from being among service companies with E&P assets proved nifty for U.K.-based Enterprise Oil Plc. Enterprise, the U.K.'s largest independent, with a US$3.9-billion market cap, has been looking for more than a year for Gulf of Mexico assets, with which to make the area one of its core revenue producers. It had only one producing asset in the region-deepwater Garden Banks 161, in which it has a 65% net equity interest and was receiving 1,487 net BOE of production per day year-end 1999 or less than 1% of its companywide total of 214,647 BOE per day. Meanwhile, Houston-based offshore driller R&B Falcon was looking to shed the Gulf of Mexico assets it acquired when buying Reading & Bates, a fellow marine driller, four years ago. A deal was done last month. For $127 million, Enterprise picked up a 50% working interest in the under-development deepwater Boomvang Field, interests in 19 other Gulf deepwater exploration blocks, and 100% working interest in Gyrfalcon Field, offshore Louisiana. Boomvang Field, which is operated by Kerr-McGee Corp. with a 30% stake, is estimated to have reserves of 70- to 100 million BOE. Production is expected to begin in early 2002. Gryfalcon is a producing gas field with reserves of 3 million BOE. Enterprise also recently agreed to farm-in to a 25% interest in 12 exploration blocks operated by Texaco Inc., in the deepwater Green Canyon and Walker Ridge areas. And, it won nine new leases in the Atwater Valley and Mississippi Canyon during Lease Sale 175 in March. R&B Falcon plans to use proceeds to strengthen its balance sheet. Baker Hughes Inc. is also looking to sell the E&P assets it acquired with its purchase of Western Atlas Inc. two years ago. The company estimates the properties will fetch $250 million. -Nissa Darbonne
Recommended Reading
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
Petro-Victory Buys Oil Fields in Brazil’s Potiguar Basin
2025-02-10 - Petro-Victory Energy is growing its footprint in Brazil’s onshore Potiguar Basin with 13 new blocks, the company said Feb. 10.
Report: Diamondback in Talks to Buy Double Eagle IV for ~$5B
2025-02-14 - Diamondback Energy is reportedly in talks to potentially buy fellow Permian producer Double Eagle IV. A deal could be valued at over $5 billion.
Apollo Funds Acquires NatGas Treatment Provider Bold Production Services
2025-02-12 - Funds managed by Apollo Global Management Inc. have acquired a majority interest in Bold Production Services LLC, a provider of natural gas treatment solutions.
Constellation Bets Big on NatGas in $16.4B Deal for Calpine
2025-01-10 - Constellation Energy will acquire Calpine Corp. in a $26.6 billion deal, including debt, that will give the pure-play nuclear company the largest natural gas power generation fleet.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.