“Energy XXI will be the only publicly traded pure play on the Gulf of Mexico shelf, with the highest concentration of large, mature oil fields ever owned by a single shelf operator,” John Schiller (pictured), chairman and CEO, Energy XXI said. “With a history of increasing acquired reserves, we have proven the adage that big oil fields get bigger, and we are excited at the prospect of continuing that trend with the addition of EPL’s properties.”
The new company will produce 65,000boe/d, 70% of which will be crude. Energy XXI produced about 45,100boe/d in 2Q ended 31 Dec. EPL has working interests in 37 producing fields, mainly in nine core-producing areas including: the Ship Shoal, East Bay, South Timbalier, South Pass 78 and 49, West Delta, Main Pass, Eugene Island and South Marsh complexes.
“This acquisition adds meaningfully to our reserves, production, infrastructure and acreage positions, complemented by seismic data and field studies,” Energy XXI Executive Vice President of exploration and production Ben Marchive said. “Upon completion, the combined company will own and operate 10 oil fields on the shelf with cumulative production exceeding 80MMbbl each.”
The acquisition follows Energy XXI’s purchase of Apache’s Gulf of Mexico assets in July 2013, SandRidge Energy’s assets in January 2013, and the $1.1 billion acquisition of nine oil and gas fields in the shallow waters of the Gulf of Mexico from ExxonMobil in 2010.
Schiller will remain chairman and CEO of the combined entity, and one member of EPL's board will join Energy XXI's board. Citigroup Global Markets Inc. and Credit Suisse Securities LLC advised Energy XXI's board, and Vinson & Elkins LLP provided Energy XXI with legal counsel.
Barclays plc' advised EPL's board, while Sidley Austin LLP counseled EPL's board.