Taylor Energy Company LLC, Korea National Oil Corporation ("KNOC") and Samsung Corporation ("Samsung") today announced that Taylor Energy has agreed to sell substantially all of its Gulf of Mexico shelf oil and gas properties to KNOC USA Corporation and Samsung Oil & Gas USA Corp., subsidiaries of KNOC and Samsung, both South Korean companies.
The transaction includes five producing fields located in the Outer Continental Shelf of the Gulf of Mexico in water depths ranging from 70 feet to over 650 feet. Daily production from the properties is approximately 17,000 boe per day gross. All of the production is currently operated by Taylor Energy. KNOC and Samsung intend to retain Taylor employees with an office in New Orleans and continue as operator.
This acquisition represents the first large, operated acquisition of producing oil and gas properties by KNOC and Samsung in North America. A ceremony was held in New Orleans the evening of January 31, 2008 in recognition of this significant commitment to Louisiana by two South Korean companies. Delegations from Taylor Energy, KNOC, Samsung, as well as Louisiana State officials including the Governor and South Korean government officials including the Vice-Minister of Commerce, Industry and Energy were in attendance.
Phyllis Taylor, Chairman and Chief Executive Officer of Taylor Energy had the following comment: "I am most pleased that the buyers of our offshore assets, KNOC USA Corporation and Samsung Oil & Gas USA Corp., will remain in New Orleans and carry on the tradition established by my husband, Patrick Taylor. The significant capital base of KNOC and Samsung will allow for development and growth far beyond the capacity of Taylor Energy."
Mr. Doo-Yul Hwang, President of KNOC commented, "On behalf of Korea National Oil Corporation and Samsung, I would like to express our genuine excitement about this acquisition. This is an important step for our North American growth strategy. We are very pleased to be joining forces with an organization that has such a deep and rich experience as well as a proven track record of success. We are excited to use this acquisition as a platform for future growth, not only for offshore acquisitions, but onshore acquisitions in North America as well."
The transaction is effective January 1, 2008 and Taylor, KNOC and Samsung have secured board approvals. The transaction is expected to close by March 2008, subject to customary closing conditions.
Scotia Waterous (USA) Inc. acted as exclusive financial advisor and Liskow & Lewis served as legal counsel to Taylor Energy. Merrill Lynch & Co. acted as exclusive financial advisor and Thompson & Knight LLP served as legal counsel to KNOC and Samsung.
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