Cal Dive Acquires Gulf of Mexico Acreage
Energy Resource Technology, Inc. a wholly owned subsidiary of Cal Dive International, has acquired a mature property package on the Gulf of Mexico shelf from Murphy Exploration & Production Company - USA. The acquisition cost to ERT including both cash and assumed abandonment liability was approximately $200 million.
The acquisition represents essentially all of Murphy's Gulf of Mexico Shelf properties consisting of eight operated and eleven non-operated fields with most of the value in the operated fields. Current net production from the properties is approximately 20 MMCFD equivalent. ERT expects to significantly improve production rates through capital investments to exploit proved undeveloped and behind pipe reserves, the majority of which will be spent over the next two years. ERT estimates proved reserves of the acquisition to be approximately 75 BCF equivalent. The package has synergies with existing ERT properties allowing ERT the opportunity to combine many of the operations thereby reducing future operating expenses.
Cal Dive CEO, Owen Kratz stated, "We have been patient in our approach to mature property acquisitions and feel that the Murphy properties fit well with our ERT mature property strategy."
- Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
- Murphy Oil CEO: Now is the Time for Deepwater to Come Back (May 02)
- Pilot Energy Inks Deal to Acquire Murphy's Stake in Permit WA-481-P Off WA (Jul 27)
Company: Cal Dive more info
- American Eagle Energy Seeks Bankruptcy After Oil Price Drop (May 11)
- Cal Dive Sells GOM Surface Diving Fleet (Jun 04)
- Cal Dive Makes a Big Splash with Pemex Contract (May 15)