Energy XXI buys shallow GoM interest from ExxonMobil

Energy XXI has bought certain shallow water Gulf of Mexico interests from ExxonMobil for $1.01 billion, the company reports.

Offshore staff

HOUSTON – Energy XXI has bought certain shallow water Gulf of Mexico interests from ExxonMobil for $1.01 billion, the company reports. The properties include nine fields generally located between Energy XXI's existing South Timbalier and Main Pass operations in water depths of 470 ft (143 m) or less.

The properties produce approximately 20,000 net boe/d, about 53% of which is oil. Offshore leases included in the purchase total 130,853 net acres.

"With this acquisition, we are gaining access to production, infrastructure and extensive acreage complemented by seismic data and field studies,” says John Schiller, chairman and CEO of Energy XXI. “As operator of 94% of the assets being acquired, we would have a portfolio of drilling and recompletion opportunities that we can pursue while analyzing the potential for higher-impact exploration prospects.”

11/22/2010

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