Energy XXI closes East Bay field, Grand Isle gathering system sales
Energy XXI (Nasdaq:EXXI) has closed on the sale of its East Bay field for $21 million to a private buyer.
HOUSTON –Energy XXI (Nasdaq:EXXI) has closed on the sale of its East Bay field for $21 million to a private buyer. Energy XXI retains a 5% overriding royalty interest for a period not to exceed five years from the closing and also retains 50% of the deep rights associated with the East Bay field.
East Bay produced approximately 2,050 b/d of oil net on average for fiscal 2015, with net associated reserves estimated at approximately 9.4 MMboe, mostly liquids. The buyer assumes P&A liability.
Additionally, the company closed on the divestiture of the Grand Isle gathering system. Total cash proceeds received were $245 million. The company will continue to operate the system on behalf of the buyer, CorEnergy Infrastructure Trust Inc.