2011-05-31-2011-05-04-2011-05-04

Bought GOM shelf properties including 25% to 67% WIl primarily in the High Island 52; Breton Sound 41; Ship Shoal 301; Ship Shoal 253; and Vermillion 60 fields, gaining 13 MMcfe/d, 21.3 Bcfe..

Matt McCarroll's Dynamic Offshore Resources LLC has acquired Gulf of Mexico shelf properties in two separate transactions for a combined price of $42.5 million cash.

The first deal for $22 million was announced last month by Providence Resources Plc, (London Aim: PVR). The second deal involved Australia's Woodside Petroleum Ltd. (Australia: WPL) for $20.5 million. Both are exiting the Gulf of Mexico shelf.

The assets include 25% to 67% working interests primarily in five fields on the central Gulf shelf: High Island 52; Breton Sound 41; Ship Shoal 301; Ship Shoal 253; and Vermillion 60. The acquisition also includes nonoperated interest in three additional fields.

Combined proved reserves acquired are 21.3 billion cubic feet equivalent (43.6 Bcfe proved plus probable) with the proved reserves 89% developed. Net production is approximately 13 million cubic feet equivalent per day (70% gas). Total asset retirement obligations are less than $16 million.

The acquisitions consolidate Dynamic's interests in existing fields as well as adds several new fields to its asset base. Dynamic Offshore now holds 100% interest in most fields and is operator.

"We will continue to pursue attractive acquisition and consolidation opportunities as Dynamic's commitment to growth on the shelf is as strong as it was in early 2008," says Dynamic president and chief executive McCarroll, referring to the company's launch date. "We expect the properties that we have just purchased will payout in less than two years with no additional drilling required."

He adds, "We have already identified exciting upside drilling potential and production enhancement projects on these assets."

Dynamic, a privately held company based in Houston, was formed in January 2008 with an equity commitment from Riverstone Holdings LLC. The company has completed eight material acquisitions since its inception. Production has grown from zero to more than 20,000 barrels of oil equivalent per day.