|Thursday, March 02, 2000
EEX Corporation has contracted with Energy Resource Technology, a wholly owned subsidiary of Cal Dive International, to manage EEX operated properties located on the Continental Shelf of the Gulf of Mexico. This arrangement includes EEX facilities located on East Cameron Blocks 303 and 349, Matagorda Island Block 705 and Ewing Bank 482. The personnel managing these properties for EEX will now become employees of ERT. Additionally, in exchange for $4.9 million and an assumption of the EEX share of abandonment liability, ERT has acquired EEX's interest in six offshore blocks. The properties are South Timbalier Blocks 235, 236, 251 and 252, West Cameron Block 204 and South Marsh Island Block 15. These properties have a current production rate of approximately 23 million cubic feet of natural gas per day (13 MMcf net) and include 13 wells, five platforms and one caisson. "This agreement is a win-win for both companies," said David Henderson, executive vice president and chief operating officer. "These mature properties, which carry an abandonment liability to EEX, provide a better fit for ERT and Cal Dive where their focus is to extract value from the abandonment process," he added.