By OGJ editors
HOUSTON, Sept. 20 -- McMoRan Exploration Co. agreed to acquire all of Plains Exploration & Production Co.’s shallow-water Gulf of Mexico shelf assets for $818 million.
McMoRan, which already owns interests in most of the properties, will issue 51 million shares of McMoRan common stock in addition to paying $75 million.
Closing, expected by yearend, remains subject to McMoRan shareholder approval.
Independent reserve estimates for the proved reserves being acquired are 60 bcf of natural gas equivalent. Current production is 45 MMcfd.
The transaction will double McMoRan’s shelf holdings and consolidate its ownership in core focus areas, McMoRan said.