2011-01-19-2011-01-13-2011-02-15

Acquired three main producing oil and gas fields and complexes in the shallow-water central GOM shelf, gaining 3,000 BOE/d, 8 MMBOE proved.

Energy Partners Ltd., New Orleans, (NYSE: EPL) has acquired producing oil and gas assets in the shallow-water central Gulf of Mexico shelf from privately owned, Houston-based Anglo-Suisse Offshore Partners LLC for $200.7 million.

The properties include three main complexes and field areas in Main Pass blocks 296/301/311, South Pass blocks 33/49, and West Delta blocks 26/27/28/29/47 on the Gulf shelf near Energy Partners' existing core South Timbalier and East Bay operations.

Production is approximately 3,000 net barrels of oil equivalent per day (92% oil). Estimated proved reserves as of Dec. 31, 2010, were approximately 8 million BOE (84% oil, 63% proved developed producing).

Energy Partners funded the acquisition using proceeds from the issuance of $210 million of its 8.25% senior notes due 2018. Additionally, the company entered a new $250-million credit facility with $150 million of undrawn revolving capacity.

Energy Partners chief executive Gary Hanna says, "The acquired properties are an ideal fit with our existing legacy assets, adding three oil-weighted complexes that are operationally easy to integrate. These centrally located, shallow-water fields complement our core assets with high-quality, low-cost recompletion opportunities with the added benefit of upside drilling potential."

Post transaction, Energy Partners' debt metrics remain well below its peer group, Hanna adds.