Black Elk Energy has acquired certain properties in the Gulf of Mexico, primarily located within Texas State waters. The purchase includes six fields with an estimated 17 Bcfe of proven reserves and probable upside in excess of 35 Bcfe. The acquisition adds interest in an additional 40 wells and an estimated 35 thousand acres to the Black Elk Energy portfolio.
With the completion of this transaction, Black Elk Energy holds an aggregate interest in over 360 thousand acres offshore and more than 500 wells. The acquisition increases the geographic diversity of the company's portfolio, which now spans the entire Gulf Coast energy corridor. Black Elk Energy management believes conventional natural gas will play an increasingly important role in meeting domestic energy demands and is aggressively expanding its strategic position accordingly. This latest acquisition is an important step in the company's continuous growth, and is consistent with their conventional natural gas exploitation strategy.
"The acquisition of these fields is another milestone for Black Elk Energy toward aggregating a significant position within the conventional natural gas segment," said John Hoffman, President and CEO of Black Elk Energy. "We see a bright future for natural gas as a source of cleaner fuel for power generation that offers a lower carbon footprint versus coal. This purchase will enhance our position in the Gulf of Mexico while expanding our operations into Texas. We will continue to acquire natural gas reserves and develop fields that have been capital-starved or neglected. Independent oil and gas companies produce some 82% of America’s natural gas and we are proud to contribute to this important part of the American energy portfolio."
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