Dynamic Offshore Resources acquires Northstar Exploration and Production
July 18, 2008
Dynamic Offshore Resources has acquired Northstar Exploration and Production Inc. and its wholly owned operating subsidiary Northstar GOM LLC for $235 million.
Offshore staff
HOUSTON -- Dynamic Offshore Resources has acquired Northstar Exploration and Production Inc. and its wholly owned operating subsidiary Northstar GOM LLC for $235 million. Effective at closing, the Northstar GOM name will be changed to Dynamic Offshore Resources NS. No Northstar employees will be retained as part of the transaction and Dynamic will operate the acquired companies as wholly owned subsidiaries going forward.
The acquired companies have current net production of over 40 MMcf/d (55% gas) and leasehold interests in 89 offshore blocks covering approximately 64,000 net acres. The transaction nearly doubles Dynamic's producing well count from 175 to 320. Additionally, Dynamic will jointly own eight drilling prospects with a newly formed entity owned by the former Northstar shareholders.
"The acquisition of Northstar provides us with substantial geographic diversification across the Gulf of Mexico shelf and allows us to lever the depth of experience of our existing team across a significantly enhanced asset base," says Matt McCarroll, president and CEO of Dynamic Offshore Resources. "Further, the addition of Northstar's attractive development opportunities to our already substantial exploitation program provides Dynamic with a larger platform for internal growth as we continue to pursue additional acquisitions."
