Mariner has purchased an additional 11.6% working interest in the Bass Lite natural gas field (Atwater Valley Block 426) from Energy Resource Technology (ERT) for approximately $32.6 million. The purchase price is subject to customary post-closing adjustments. The acquisition provides internally estimated proved reserves of more than 17.6 billion cubic feet equivalent to Mariner.
Mariner Energy exercised its preferential right to acquire the interest following ERT's negotiated sale of its Bass Lite asset to a third party. The transaction was completed December 19, 2008 with an effective date of November 1, 2008.
Bass Lite is located in water depths of approximately 6,750 feet. Production from Bass Lite commenced in February 2008 from an early production system until the primary two-well development system was completed in August. Gross production from the development currently averages approximately 110 million cubic feet of natural gas per day. Natural gas is produced from Bass Lite via a 56-mile subsea tieback to the Devils Tower Spar located on Mississippi Canyon Block 773.
Mariner is the operator at Bass Lite and with this transaction owns a 53.8% working interest in the development. Other working interest owners in the field include Deep Gulf Energy LP, ENI, and EOG Resources, Inc.
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