EEX Corporation has entered into an Asset Purchase, Farmout and Joint Exploration Agreement with BP Exploration & Production Inc. BP acquired seventy-five percent of EEX's current interest in 23 outer continental shelf (OCS) leases. As part of this agreement, BP will conduct further leasing and geophysical activities in an area encompassing 140 OCS blocks. At the end of the initial evaluation period, BP may elect to commit to the drilling of up to three wells. EEX will be carried for its 25% interest of the costs of the initial evaluation period as well as the drilling of the first three exploration wells. The parties are interested in pursuing exploration prospects in shallow waters of the Gulf of Mexico that EEX identifies as "deep shelf," geological formations that are deeper than conventional Gulf of Mexico OCS oil and gas exploration and production.
EEX and BP were successful bidders on six federal offshore blocks at OCS Lease Sale No. 182 held March 20, 2002, that are included in this agreement. The Minerals Management Service has awarded four of the blocks to date.
Tom Hamilton, Chairman and President, Chief Executive Officer, said, "EEX has been quietly building this lease position over the past three years. We are extremely excited about joining with BP, the most successful explorer for deep plays in the Gulf of Mexico, in pursuit of this world class exploration play."