The properties acquired include interests in numerous fields located onshore and in state waters along the Louisiana Gulf Coast, as well as 30+ offshore leases on the Gulf of Mexico shelf. The total acreage associated with the properties includes over 200,000 gross acres and over 180,000 net acres. The reserve base is approximately 70% natural gas. During its ownership of the properties, Cabot internally developed 20 exploitation prospects and 35 exploration prospects, all of which Phoenix acquired in the transaction. Phoenix estimates these prospects have a total unrisked reserve potential of 1.2 tcfe.
Phoenix Chief Executive Officer, William H. Flores said, "We are very pleased with our acquisition of these properties. This acquisition creates a stable asset and cash flow base from which to further develop Phoenix while it also includes significant upside opportunities. A sizeable portion of this upside is 'drill-ready' due to Cabot's dedicated efforts to maximize the value of the properties. We believe that the properties have substantial additional upside that we can exploit through an aggressive redevelopment program, the efficient application of advanced seismic processing, state of the art exploration methodologies and our team of outstanding explorationists. We are also pleased to have Cabot's nine experienced field personnel become part of the Phoenix team." Concluding his remarks, Flores said, "Our goal is to create value through a balanced strategy of exploration and acquisitions. This acquisition represents the first component built upon the foundation of this strategy."
The Houston office of Mayer, Brown, Rowe & Maw LLP assisted Phoenix in the transaction.
Most Popular Articles
From the Career Center
Jobs that may interest you