By OGJ editors
HOUSTON, Mar. 18 -- A joint venture of Alamo Resources LLC, Houston, and Palace Exploration Co., New York, has agreed to acquire a majority interest in Main Pass Block 59 in 60-70 ft of water 35 miles east of Venice, La.
A new sole-purpose entity, Alamo-Palace MP 59 LLC, will buy 86% of Ridgelake Energy Inc.'s interest for $69.5 million. The transaction is scheduled to close Mar. 31.
The property's production of 2,600 b/d of oil and 600 Mcfd of natural gas had been shut-in since the producing facilities sustained damage during Hurricane Ivan last September. Repairs are essentially complete, and production recently resumed.
The acquisition involves varying working interests in 15 wellbores. Ridgelake Energy will retain a working interest in the block, which is operated by Chevron USA Inc. Alamo-Palace MP 59 LLC will propose additional development.