Black Elk has closed a major transaction with JX Nippon Oil & Gas Exploration (NOEX) to acquire 27 properties in the Gulf of Mexico. The NOEX transaction represents the fifth acquisition by Black Elk since 2008. The NOEX purchase includes 19 fields, with an estimated 15 million barrel equivalent (87 bcfe) of proven reserves, and probable upside in excess of 51 million barrel equivalents (304 bcfe). The acquisition gives Black Elk an aggregate interest in more than 650 wells on 111 platforms located across 406 thousand gross acres offshore and significantly enhances its position in the Gulf of Mexico. The NOEX acquired assets increase Black Elk’s net production from approximately 6,000 to 12,200 barrel oil equivalents per day or 73.2 million cubic feet gas equivalent per day (57% liquids).
"This acquisition is a meaningful milestone for Black Elk as we close out year three of our offshore operations," said John Hoffman, President and CEO of Black Elk Energy. "We see an exciting future for our company as we continue to build a large, stable and diverse asset base to apply our experienced exploitation skills." Future development of ultra deep shelf opportunities hold substantial resource potential and the acreage position opportunistically positions Black Elk to monetize these opportunities.
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