Houston Exploration sells gulf assets

Houston Exploration Co. has agreed to sell almost all of the Louisiana portion of its Gulf of Mexico assets to a private investor for $590 million in cash.

April 12, 2006

By OGJ editors
HOUSTON, Apr. 12 -- Houston Exploration Co. has agreed to sell almost all of the Louisiana portion of its Gulf of Mexico assets to a private investor for $590 million in cash.

The transaction, expected to close May 31, is part of the company's plan to divest its Gulf of Mexico assets as it becomes a pure onshore US gas producer (OGJ Online, Nov. 8, 2005).

The company will retain interests in 18 leases off Louisiana for drilling, farmouts, or sales.

Its yearend 2005 proved reserves for the assets included in the Louisiana sale were estimated at 186.1 bcf of natural gas equivalent.