By OGJ editors
HOUSTON, Nov. 8 -- Houston Exploration Co. announces plans to divest its entire Gulf of Mexico asset base as it shifts its strategy to become a pure onshore US gas producer.
Historically, the Gulf of Mexico has accounted for about 40% of the company's total production. Houston Exploration's yearend 2004 offshore reserves totaled 291 bcfe, or 37% of the company's total proved reserves.
The company expects to open a data room to qualified bidders in January. Executives said they will use the sale proceeds in multiple ways, and that might include acquiring additional US assets.
"For several years we have been building our onshore business and are now beginning more significant strategic moves to transform Houston Exploration," said William G. Hargett, chairman and chief executive officer. "We are taking advantage of the current favorable market conditions for offshore properties in order to monetize the gulf and focus our people and capital on longer-lived opportunities in the Lower 48."
