Houston Exploration acquiring Gulf of Mexico assets from two companies

Sept. 24, 2004
Houston Exploration Co. agreed to acquire producing assets in the shallowwater Gulf of Mexico in two separate transactions involving a private company and BP PLC.

By OGJ editors

HOUSTON, Sept. 24 -- Houston Exploration Co. agreed to acquire producing assets in the shallowwater Gulf of Mexico in two separate transactions involving a private company and BP PLC.

Terms call for private company's assets to cost $113.5 million, less $7 million if closing is on or before Oct. 29, effective retroactive to Aug. 1. The name of the private company was not disclosed.

The properties, which are 81% natural gas, have proven reserves of 63 bcfe. Production is 17 MMcfed net from 12 fields. Houston Exploration plans to operate 85% of the proven reserves with an average interest of 62%.

In addition, Houston Exploration is buying interests in two offshore fields from BP for $31.5 million. The fields have proven reserves of 16 bcfe and production of 5 MMcfed net. Closing is expected on Sept. 30, effective retroactive to Aug. 1.

The BP assets are 85% gas. Houston Exploration plans to operate 100% of the properties with an average interest of 85%.