CAPCO & Hoactzin Acquire Shallow Water GoM Acreage
CAPCO Energy and Hoactzin Partners, an oil and gas investment affiliate of New York based investment firm Dolphin Asset Management Corp have entered into a joint venture to acquire producing assets in the Gulf of Mexico.
CAPCO and Hoactzin acquired rights to 11 producing wells and approximately 13,300 gross acres of land in South Chandeleur Area in the Gulf of Mexico and Louisiana State Waters from Manti Operating Company. The joint venture's working interests in the wells vary from 14% to 100%, with current net production of approximately 13 million cubic feet of gas per day.
The $20.0 Million purchase price for the Louisiana properties
was funded by both Hoactzin and CAPCO, and by cash flow
credited from production of the acquired properties. CAPCO
also contributed to the joint venture arrangement its interests
in High Island Block 196 and certain other oil and gas producing
properties in exchange for the reduction of approximately
$6.4 million of indebtedness to Hoactzin. Under their joint
venture arrangement, Hoactzin will own and retain all cash
flow from the properties until their investment is returned,
and thereafter CAPCO will receive a 66.7% economic interest
in the properties. CAPCO will also retain an option to repurchase
the properties to be determined by a formula.