Panaco Sells Interest In GOM Blocks
Panaco, Inc. announced that it has sold all of its interest in two offshore MMS Leases covering OCS Block 538, West Cameron Area, South Addition, and Block 372, Eugene Island Area, to Coastal Oil & Gas Corporation. Panaco's ownership in the blocks was 35.3% WI and 25% WI, respectively. The sale closed on Nov. 30, 2000 with an effective date of October 1, 2000. Panaco received $800,000 from the sale of its interest in the properties.
The sale of these properties will have minimal impact on Panaco's reserve base as they contributed less than 1/2 of 1% to the Company's reserves. On a cash flow basis, the properties contributed less than $35,000 per month, net to Panaco's interest. The Company is released from future expenses related to the plugging and abandoning of the properties with the close of the sale.