Offshore staff

(US, GoM) - Houston Exploration Co. has agreed to sell substantially all of the Louisiana part of its Gulf of Mexico assets to an unidentified private investor for $590 million in cash.

The company expects the sale to close on May 31; it will retain interests in 18 exploration leases.

Proved reserves of the Louisiana portion were an estimated 186.1 bcfe of natural gas at the end of last year, the company says.

Houston Exploration CEO William Hargett says the sale is part of the company's move to refocus its resources onshore where it sees "more stable and predictable production and reserve growth" from both drilling and acquisitions.

To date the company has completed or has pending GoM sales deals totaling $810 million.

Total estimated proved reserves for these assets were an estimated 244.6 bcfe at the end of 2005, says the company.

04/10/06