Naperville, IL -- (SBWIRE) -- 11/01/2012 -- EPL Oil & Gas, Inc. (EPL) agreed to acquire interest in certain shallow water oil and gas assets in the Gulf of Mexico (GOM) from Hilcorp Energy GOM Holdings, LLC (Hilcorp), for a purchase consideration of $550m. The transaction has an effective date of July 1, 2012.
Under the terms of the transaction, EPL has submitted a 10% cash deposit to Hilcorp. EPL will fund the remaining acquisition cost through its existing cash reserves, along with a senior secured credit financing from the Bank of Montreal. The acquisition will enable EPL to increase its shallow water assets in the Gulf of Mexico and complement its strategy to expand in the Central Gulf. The transaction implies deal values of $55,000 per barrel of oil equivalent (boe) of daily production, and $15.15 per boe of 1P reserves. The acquisition is expected to be completed on or before October 31, 2012, subject to customary closing conditions and adjustments.
- Rationale behind EPL acquiring stake in shallow water oil and gas assets in the Gulf of Mexico.
- Rationale behind Hilcorp divesting its stake in the fields.
- Geography Covered- US (Gulf of Mexico).
Reasons to buy
- Develop a sound understanding of EPL's acquisition plan in Gulf of Mexico.
- To understand Hilcorp's divestment plan of assets in Gulf of Mexico and focusing on oil and gas assets in Alaska.
- To know about the prolific assets in the Central Gulf which is concidered to be the most prolific oil bearing region of the Gulf of Mexico.
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