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%.