HOUSTON – Energy XXI (NASDAQ: EXXI) (AIM: EXXI) has agreed to acquire all of EPL Oil & Gas Inc.'s (NYSE:EPL) outstanding shares for total consideration of $2.3 billion, including the assumption of debt. This will give Energy XXI production of about 65,000 boed, 70% of which is oil.
EPL owns working interests in 37 producing fields, mainly in nine producing areas: an estimated 91% of proved reserves, 88% of production, and 91% of revenues are associated with the Ship Shoal, East Bay, South Timbalier, South Pass 78 and 49, West Delta, Main Pass,Eugene Island and South Marsh complexes. EPL operates 90% of its properties, by reserves, similar to Energy XXI’s 94%.
“This acquisition adds meaningfully to our reserves, production, infrastructure and acreage positions, complemented by seismic data and field studies,” Energy XXI Executive Vice President of Exploration and Production Ben Marchive said. “Upon completion, the combined company will own and operate 10 oil fields on the shelf with cumulative production exceeding 80 MMbbl of oil each, with ample opportunity to grow organically by increasing recovery from thoseknown reservoirs as well as by exploring around and below the producing horizons.”