Energy XXI, Exxon Mobil form joint venture to explore in shallow water GoM

Energy XXI (Nasdaq:EXXI; LSE:EXXI) has agreed to acquire some of Exxon Mobil Corp.’s shallow water Gulf of Mexico interests.

Offshore staff

HOUSTON –Energy XXI (Nasdaq:EXXI; LSE:EXXI) has agreed to acquire some of Exxon Mobil Corp.’s shallow water Gulf of Mexico interests. The agreement covers 5,000 gross acres (20 sq km) on Vermillion block 164.

Further, Energy XXI and ExxonMobil have agreed to jointly explore nine contiguous blocks adjacent to Vermillion 164. The joint venture is named Pendragon and is expected to be active by year’s end.

Energy XXI also says its Big Sky 2 horizontal well at West Delta 73 reached 8,000 ft TVD/10,765 ft MD (2,438 m/3,281 m, respectively) and went onto production at 3,000 b/d of oil.

The company is now drilling a second horizontal well on West Delta.

10/02/2012

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