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Epic EXXI
Time: 16:30:16
Mid Price: 19.50
Change Today: 0.00
Change % Today: 0.00
Fifty Two Week High: 19.50
Fifty Two Week Low: 5.00
Market Capital: 990.48
Period & price data
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Now: 19.50
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Additional information
Additional Information
Market: AIM, NASDAQ
Sector: Energy
Epic: EXXI
News: Latest news
Web Site: Energy XXI
Other Articles: 08-01-2007

Crude Oil

Energy XXI

Oil and gas exploration development and production company with principal operations in US Gulf of Mexico. The Company is engaged in the prodution of oil gas and natural gas liquids.

Monday, November 23, 2009

Energy XXI pays $238 million to increase interest in several fields in Gulf of Mexico

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In what the company has dubbed a ‘transformational transaction’, Energy XXI (NASDAQ, AIM: EXXI) announced that it had increased its interest in existing joint venture projects in the Gulf of Mexico through an asset purchase with fellow New York listed energy group Mitsui & Co.

The Houston headquartered Energy XXI has acquired further stakes in some of its oil and natural gas producing properties in Gulf of Mexico from Mitsui & Co Ltd (NASDAQ: MITSY) for $283 million.

According to Energy XXI’s CEO John Schiller, the company is doubling-up some of its ‘most profitable and lowest-risk barrels’ and in-turn strengthening its balance sheet.

Following the transaction, Energy XXI will now be the beneficial owner of 67% of its current operating production, which is up from 59% at 30 June 2009 financial year end

Also as a result of the deal, Energy XXI has increased its total attributable reserves by almost 30%, with proved plus probable reserves at 93 million barrel oil equivalent (boe) from 66 boe. Among the properties, Energy XXI operates approximately 80% of the producing wells.

The deal is an identical deal to the asset purchase from Pogo Producing Company in June 2007, John Schiller said ‘The original Pogo property acquisition turned out to be an excellent transaction for Energy XXI, and the purchase announced today will double our interests in the same properties’.

The group of properties affected, includes 30 fields with which are currently producing 8,000 barrels of oil equivalent per day (boepd). Offshore leases included in the purchase total nearly 33,000 net acres. Production at some of the properties is currently constrained due to hurricane damage on third party pipelines sustained in 2008. Upon restoration, Energy XXI expects net production across the properties to reach 10,000 boepd. 

Energy XXI Chairman and CEO John Schiller said.

“The synergies are obvious, as no incremental personnel, systems or other overhead will be required. Administrative and operating cash costs are expected to be reduced by about $1 per BOE overall.  This transaction will boost our recent production run rate by 43 percent to about 27,000 BOE per day, with near-term upside anticipated.”

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