Dynamic Offshore Resources, LLC has acquired 100% of the stock of Northstar Exploration and Production, Inc. and its wholly owned operating subsidiary Northstar GOM, LLC for $235 million effective January 1, 2008.
The Northstar transaction represents the second acquisition by Dynamic since receiving a $500 million equity commitment from Riverstone Holdings LLC and management in January 2008. Effective at closing, the Northstar GOM, LLC name will be changed to Dynamic Offshore Resources NS, LLC. No Northstar employees will be retained as part of the transaction and Dynamic will operate the acquired companies as wholly owned subsidiaries going forward.
The acquired companies have current net production of over 40 million cubic feet equivalent per day (55% gas) and leasehold interests in 89 offshore blocks covering approximately 64,000 net acres. The transaction nearly doubles Dynamic’s producing well count from 175 to 320. Additionally, Dynamic will jointly own eight drilling prospects with a newly formed entity owned by the former Northstar shareholders, providing additional upside to proven reserves.
"The acquisition of Northstar provides us with substantial geographic diversification across the Gulf of Mexico shelf and allows us to lever the depth of experience of our existing team across a significantly enhanced asset base," said Matt McCarroll, President and CEO of Dynamic Offshore Resources. "Further, the addition of Northstar’s attractive development opportunities to our already substantial exploitation program provides Dynamic with a larger platform for internal growth as we continue to pursue additional acquisitions."
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