Helix Energy Solutions

Helix Energy Solutions, Houston, (NYSE:HLX) reports it plans to divest some or all of its E&P assets as part of a strategic reorganization in which the company intends to aggressively focus on deleveraging its balance sheet by monetizing noncore assets to focus its direction on its deepwater construction and well-intervention services. At year-end 2007 Helix held 677 billion cubic feet equivalent of proved reserves with 95% in the Gulf of Mexico. Helix held 304 billion equivalent proved in five fields in the Gulf of Mexico deepwater which comprised approximately 45% of total proved reserves. Working interests range from 17.5% to 100%. Net production in deepwater totaled 13 billion equivalent in 2007. On the Outer Continental Shelf Helix held 336 billion equivalent in more than 130 fields which comprised approximately 50% of total proved reserves. OCS net production was approximately 50 billion equivalent. Working interests in OCS fields range from 3% to 100%. The largest field based on proved reserves is East Cameron 346, with approximately 11% of OCS reserves and 6% of total proved reserves. Helix operates 75% of OCS proved reserves. Onshore U.S. proved reserves were approximately 22 billion equivalent in 17 onshore fields in Mississippi, Alabama, Louisiana and Texas, mostly nonoperated. Net production totaled approximately 2 billion equivalent. U.S. onshore proved reserves comprised approximately 3% of its total. Working interests onshore range from 7% to 93.6%. One onshore nonoperated field, Parker Creek, in Mississippi comprised 71% of its U.S. onshore reserves. Helix also holds a 50% interest offshore U.K. North Sea in Camelot Field. In addition, Helix is marketing its interest in production facilities and its 58%-owned subsidiary Cal Dive International. Helix president and chief executive Owen Kratz says, "We believe that unlocking the asset value in the company via debt reduction and the divestment of assets outside of our core business focus will enhance shareholder value and position the company to take advantage of opportunities for future growth or value creation in our strongest core competencies." Helix is an international offshore energy company that provides reservoir development solutions and other contracting services. Helix operates primarily in the Gulf of Mexico, North Sea, Asia Pacific and Middle East regions. Contact Tony Tripodo, 281-618-0400.