Bayou Bend Completes Gulf of Mexico Acquisition
Bayou Bend Petroleum has closed the acquisition of the Gulf of Mexico assets from Pearl Exploration and Production Ltd. The transaction was previously announced on January 18, 2007 with the consideration stated being 10 million common shares of Bayou Bend, which at the time had a deemed value of Cdn $1.20. The price of Bayou Bend shares have now appreciated to approximately Cdn $2.74, giving a current deal value of Cdn $27.4 million. Bayou Bend has acquired a 100% working interest in five Gulf of Mexico offshore exploration blocks, farm-in rights to acquire a 25% working interest in a sixth offshore block, and all physical data, work products and files and records associated with these blocks.
Operations are underway to commence drilling on these blocks with the first well expected to spud on the Mustang Island 736 prospect sometime in June. Hazard surveys have been acquired on several of the other former Pearl blocks to facilitate the permitting process while potential partners and rigs are being pursued. It is planned to drill a minimum of three exploratory wells on the former Pearl blocks by the end of 2007.
Clint Coldren, President of Bayou Bend, commented, "We are pleased to have this deal wrapped up and we look forward to great success as our drill campaign kicks off during the summer on our top Gulf of Mexico prospects."
Bayou Bend is an oil and gas exploration and production company with a focus in the Gulf of Mexico shallow water shelf area. The Company has lease interests in the State Waters of Louisiana near Marsh Island and owns a 100% interest in several Federal OCS blocks offshore Louisiana and Texas. The Company has an aggressive drilling program planned for 2007 including a minimum of 7 exploration wells.
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