EPL Oil & Gas Inc. has signed a purchase and sale agreement with Nexen Petroleum Offshore USA Inc. for oil and natural gas assets in the shallow-water central Gulf of Mexico for $70.4 million.
The Eugene Island 258/259 field is comprised of 100% working interest in each of leases 254, 255, 257, 258, and 259. The assets are producing 900 net boe/d, 95% of which is oil, and proved reserves as of the Sept. 1, 2013, effective date are 2.6 million boe, 91% of which is oil.
EPL said the field areas show shallow decline and the company has identified upside potential beyond the current proved reserves.
Gary Hanna, EPL's president and chief executive officer, noted, “This purchase dovetails nicely into our commitment to acquire new 3D datasets. A new Full Azimuth Nodal dataset is currently being shot covering these field areas, and we expect to have the data in house during the second half of 2014.”
EPL in 2007 reported dual oil and gas successes in the South Timbalier and Eugene areas of the gulf shelf (OGJ Online, Aug. 6, 2007).