Black Elk Energy Sells Noncore Assets

Sold four non-core properties consisting of one non-operated and three operated fields in the Eugene Island, Ship Shoal and South Timbalier.

Black Elk Energy Offshore Operations LLC has sold four non-core properties producing about 950 barrels of equivalent (BOE) per day to an undisclosed buyer for an undisclosed amount.

The sale consisted of one non-operated and three operated fields in the Eugene Island, Ship Shoal and South Timbalier. About 90% of the production is oil.

“We are pleased to announce this divestment”, says John Hoffman, president and chief executive of Black Elk Energy. “This sale will reduce our plugging and abandonment obligations by $30 million plus and release approximately $30 million of cash from the $243 million we have set aside to meet long term plugging and abandonment obligations. Transforming our portfolio is an important aspect of the company strategy as we continue growing.”

Hoffman also stated, “Currently, Black Elk Energy is producing approximately 13,000 net BOE per day with a capacity of about 16,000 net BOE per day. We are very excited about our initial two 2013 drill prospects, and we have achieved early success. The first two wells are expected to be online and producing by early May, adding approximately 1,000 net BOE per day to our production.”

“Black Elk Energy has a number of exciting, low risk drilling prospects that will keep rigs busy in 2013, 2014 and 2015. The result of this program to drill and develop our proved undeveloped reserves is expected to robustly increase our cash flow and create additional shareholder value.”

Black Elk Energy Offshore Operations is an independent oil and gas company based in Houston, Texas.