Louisiana-based EPL Oil & Gas, Inc. (EPL) has executed a purchase and sale agreement to acquire certain shallow water Gulf of Mexico (GOM) shelf oil and natural gas interests from Hilcorp Energy GOM Holdings, LLC (Hilcorp) for $550 million, nearly doubling its proven energy reserves. Porter Hedges represented EPL in the transaction. The purchase is subject to customary closing conditions and adjustments. The economic effective date is July 1, 2012, with closing expected by October 31, 2012.
The properties include three fields that Hilcorp had acquired from Chevron Corporation in Ship Shoal Block 208, South Pass 78, and South Marsh Island 239, which are all on the Central GOM shelf in the vicinity of EPL’s existing core field areas. Hilcorp has indicated to EPL that this sale represents their exit from the GOM shelf.
This is the fourth acquisition that EPL has made since 2011. Porter Hedges previously represented EPL in acquisition of producing oil and natural gas assets in the shallow-water central Gulf of Mexico shelf from Anglo-Suisse Offshore Partners, LLC for $201.5 million in January 2011.
The Porter Hedges team was led by partners Bob Thomas and Corey Brown with assistance from associates Mac Marshall and Joe Morrel.
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