LONDON– Gulfsands Petroleum plc has announced the sale of three properties from the Company’s Gulf of Mexico asset portfolio.
These non-core producing properties are located in the shallow-water shelf area of the Gulf of Mexico, and the disposal is a part of the company’s ongoing plans to rationalize its US oil and gas property portfolio. The properties include various working interests in the Eugene Island 57/58 (EI 57/58) gas field, the Vermillion 379 (VR 379) oil and gas field and the South Pelto 13 (PL13) oil and gas field. The transaction has an effective date of May 1, 2010 and a sale price of US$4.2 million prior to closing adjustments. Completion of the transaction is expected to occur in late January 2011.
These properties are considered non-core due to either their production being dominated by natural gas (EI 57/58) or their relatively low working interest positions (VR 379 and PL 13). In addition to receipt of the cash consideration, the company says that the sale of these properties removes its forward liability provision related to the decommissioning (plugging and abandonment of wells, decommissioning of facilities on these licences); and that therefore, it will receive returned cash deposits that are currently held in escrow as security against these future liabilities. The amount of cash deposits expected to be returned will be approximately US$5.6 million.
Gulfsands divests three GoM properties
Gulfsands Petroleum plc has announced the sale of three properties from the Company’s Gulf of Mexico asset portfolio.