Mariner Energy acquires West Cameron interest

By OGJ editors
HOUSTON, Aug. 24 -- Mariner Energy Resources Inc. (MERI), a wholly owned unit of Mariner Energy Inc., acquired the interest in West Cameron Block 110 and the SE/4 of West Cameron Block 111 in the Gulf of Mexico from BP Exploration & Production Inc. The acquisition cost, net of preliminary purchase price adjustments, was about $70.9 million.

BP retained its block interest in depths below 15,000 ft. MERI previously held a 37.5% working interest in the property that was acquired in Mariner's merger transaction with Forest Oil Corp. in March.

Mariner will become operator of the property, and MERI will own 100% of the working interest, exclusive of the deep rights retained by BP.

The acquisition adds proved reserves estimated by Mariner to be 20 bcf of gas equivalent as of Aug. 1. Production associated with the acquired interests was about 11 MMcfd of gas equivalent during July.