Energy XXI has closed on the sale of the East Bay Field for US$21 million to a private buyer. In addition, Energy XXI will retain a 5% overriding royalty interest on these assets for a period not to exceed five years from the closing date, and Energy XXI will also retain 50% of the deep rights associated with the East Bay Field.
The East Bay Field produced approximately 2050 b/d net on average for fiscal 2015, with net reserves associated with the East Bay Field estimated at approximately 9.4 MMboe, 94% liquids, as of 30 June 2015. The buyer will assume plugging and abandonment liability.
"The sale of East Bay allows the company to focus on activities in fields with higher profitability, while significantly reducing our plugging and abandonment liability in the Gulf of Mexico," said John Schiller, chairman, president and CEO of Energy XXI. "We continue to evaluate additional opportunities to sell non-core assets in the Gulf of Mexico."
Additionally, the company closed on the divestiture of the Grand Isle Gathering System. Total cash proceeds received were $245 million. As previously announced, the company will continue to operate the system on behalf of the buyer, CorEnergy Infrastructure Trust, Inc.
Image: Logo/Energy XXI
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