Woodside acquires gulf player Gryphon Exploration

Sept. 1, 2005
Woodside Petroleum Ltd. has acquired Gulf of Mexico independent Gryphon Exploration Co., Houston, for $283 million plus assumption of $14 million in debt.

By OGJ editors
HOUSTON, Sept. 1 -- Woodside Petroleum Ltd. has acquired Gulf of Mexico independent Gryphon Exploration Co., Houston, for $283 million plus assumption of $14 million in debt.

Gryphon, formed in 2000 from the assets of Cheniere Energy Corp., had 64.1 bcf of gas and 1.4 million bbl of liquids proved reserves, 86% of which are gas, as of June 30, 2005. Proved and probable reserves totaled 114 bcfe.

Gryphon's 30 MMcfed of production from 15 fields, 11 of which it operates, becomes Woodside's first output in the gulf, where it already has a large acreage position. Woodside expects the assets to add 6 bcfe to its production in 2005 and 26.3 bcfe in 2006.

Gryphon operated three of six fields under development in which it holds interest and held interests in 118 gulf leases, 95 operated, off Texas and Louisiana covering 300,000 net acres. The company has 15 drillable prospects and another 65 prospects in inventory.

Cycle time from discovery to production has averaged 104 days on Gryphon-operated properties, Woodside said. Gryphon has four exploration wells in progress.

Gryphon has licensed 2,300 offshore blocks of highly contiguous 3D prestack time migrated seismic data.

Woodside said the acquisition will boost its 2005 exploration budget by $11 million and its capital spending by $26 million and give it a diverse mix of shelf and deepwater holdings.