USA: EPL Buys Remaining South Timbalier Field Interest

Energy Partners, Ltd., U.S. based, independent oil and natural gas exploration and production company, has acquired additional oil and natural gas interests in the EPL operated South Timbalier 41 field from W&T Offshore, Inc. for $32.4 million.

Prior to the acquisition, EPL owned a 60% working interest in the field, located approximately 60 to 72 miles south of New Orleans in water depths of 73 feet or less. The Company has become the sole working interest owner of the field post acquisition. ST 41 field was discovered by EPL in late 2003.

EPL estimates current net production capability of the acquired interest at 960 net barrels of oil equivalent (boe) per day, about 52% of which is oil. The proved reserves of the acquired interest as of the April 1, 2012 economic effective date totaled approximately 1.0 million boe, consisting of 51% oil and 84% proved developed reserves.

The Company also estimates the asset retirement obligation assumed in the acquisition was approximately $2 million. EPL funded the acquisition with cash on hand, and currently estimates its cash position post acquisition at approximately  $60 million and total liquidity including its undrawn borrowing base under its senior secured credit facility at $260 million.

South Timbalier area is comprised of South Timbalier (ST) Blocks 26, 41, 46 and Bay Marchand Area.  EPL currently operates both ST 26 and 41 fields with 100% working interest

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Offshore Energy Today Staff, May 18, 2012