Dynamic Offshore Resources has announced the acquisition of Beryl Oil and Gas LP, a Gulf of Mexico focused E&P company with a substantial footprint across the Shelf. Dynamic joined with an existing Beryl owner and certain former debt holders to acquire Beryl in exchange for an equity contribution and the assumption of a portion of the existing Beryl debt. The acquisition includes all cash, working capital and existing hedge positions at Beryl. The company will be operated as a subsidiary of Dynamic.
The acquisition substantially increases Dynamic’s presence on the Shelf. Including the Beryl acquisition, Dynamic has interests in over 550 producing wells and 200 offshore blocks covering nearly 400,000 net acres. Beryl's recent production has averaged over 55 Mmcfepd and should increase through year-end 2009 as repairs are completed to third party pipelines and facilities. In addition to a substantial proved reserve base, the Beryl assets offer significant upside potential attributable to several high impact prospects, including prospects currently being pursued by Dynamic.
"Given the high level of familiarity our employees have with the Beryl assets, having previously managed them at SPN Resources, I am very confident in our future development and exploitation efforts," commented Matt McCarroll, CEO of Dynamic Offshore Resources." In addition to benefitting from Dynamic's strong technical competencies, the combination of Beryl's improved capital structure, recent recommencement of hurricane impacted production and a more favorable commodity price environment should ensure future profitability. With Dynamic's talented team of employees and strong capital position, I believe the company will continue to benefit from the current industry environment favoring additional consolidation on the Shelf."