Energy Partners Takes Remaining Stake In GOM Field

Acquired remaining 40% interest in South Timbalier 41 Field in the GOM, gaining 960 BOE/d, 1 MMBOE proved.

Taking complete control of the offshore field, Energy Partners Ltd., New Orleans, (NYSE: EPL) has acquired the remaining 40% oil and natural gas interests in South Timbalier 41 Field from W&T Offshore Inc., Houston, (NYSE: WTI) for $32.4 million.

Energy Partners estimates the asset retirement obligation assumed in the acquisition was approximately $2 million.

Energy Partners previously owned a 60% working interest in the properties, and is operator of the field. The company has become the sole working interest owner of the field post acquisition.

Energy Partners estimates current net production of the acquired interest at 960 net barrels of oil equivalent per day, about 52% of which is oil. Proved reserves of the acquired interest as of April 1 totaled approximately 1 million barrels equivalent (51% oil, 84% proved developed).

Energy Partners funded the acquisition with cash on hand, and currently estimates its cash position post acquisition at approximately $60 million and total liquidity including its undrawn borrowing base under its senior secured credit facility at $260 million.

W&T Offshore chairman and chief executive Tracy W. Krohn says, “Through the divestiture of this non-core, non-operated property, we continue to enhance our already strong liquidity. We believe that the sales price makes this an attractive transaction for W&T and further positions us to focus on new opportunities that have greater potential to create shareholder value."

The effective date is April 1.