Fieldwood to acquire gulf assets from SandRidge for $750 million

Fieldwood Energy LLC has purchased certain offshore Gulf of Mexico and onshore Gulf Coast assets from SandRidge Energy Inc. for $750 million.

Fieldwood Energy LLC has purchased certain offshore Gulf of Mexico and onshore Gulf Coast assets from SandRidge Energy Inc. for $750 million.

The transaction, expected to close in first quarter, includes the assumption of $370 million of abandonment liabilities by Fieldwood, while SandRidge will retain a 2% overriding royalty interest in the deep Miocene prospects in Green Canyon Block 65 (Bullwinkle area) and South Pass Block 60.

As of Dec. 1, the assets’ total proved reserves were 57.2 million boe, 51% oil and 72% developed, according to a Netherland, Sewell & Associates’ reserve report.

The report also stated that probable reserves were 11.4 million boe and possible reserves were 9 million boe, resulting in total 3P reserves of 77.5 million boe. Current production, which is 90% company operated, totals more than 25,000 boe/d.

Fieldwood said it now has a pro-forma leasehold with more than 650 blocks and net production of 125,000 boe/d, 54% of which is oil.

Fieldwood is a Houston-based portfolio company of Riverstone Holdings LLC, a New York-based private equity firm.

“This transaction, coming only 3 months after the closing of our inaugural acquisition from Apache [Corp.], demonstrates Fieldwood’s continued commitment to our acquire and develop strategy in the Gulf of Mexico,” commented Matt McCarroll, Fieldwood president and chief executive officer.

Fieldwood in July acquired the Gulf of Mexico shelf business from Apache comprising more than 500 blocks and 1.9 million net acres for $3.75 billion (OGJ Online, July 18, 2013).

“Additionally, the acquisition adds further geographic and geologic diversity by expanding our business to include an onshore Gulf Coast division as well as the deepwater Bullwinkle field,” McCarroll added.

Fieldwood’s gulf assets include more than 50 blocks with common interests between the company and SandRidge.

SandRidge will redeploy the capital expenditures that were previously allocated to gulf development into its Midcontinent assets.

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